Prague, March 21st, 2016

1. PEMPAL IACOP meeting The progress in Internal Control and Internal Audit Reforms Prague, the Czech Republic - March 21-23, 2016 Prague, March 21st, 2016 Stéphan Roudil, CIA/CGAP, Rapporteur general of the Central harmonisation committee for internal audit The Principles of Public Internal Control system (PIC) Position paper developed by the PIC working group and adopted by the PIC Network of European Union in November 2015

2. Principles of PIC in the EU Member States Position paper drafted by the PIC working group composed by : MsKatleenSeeuws(Belgium), MrLukášPečeňa (Czech Republic), MrStéphanRoudil (France), MsEdit Németh(Hungary), Mr Martin Dees (The Netherlands), Mr José António Viegas Ribeiro (Portugal), Nathan Paget (UK), With Mr Robert Gielisse and Mr Raymond Hill (DG Budget of European Commission)

3. Why principles? Source of inspiration, guidance and measurement for: • Exchange of experiences, ideas and knowledge within the PIC Network • Country-specific analysis and development • Training and education • Communication with other networks and professional organizations (e.g. IIA/ECIIA, INTOSAI/EUROSAI, IFAC/FEE) • Research (academic and non-academic)

4. Context of the principles • PIC definition – based on INTOSAI/COSO, extended to fully reflect general public sector objectives (e.g.: good policy preparation, good budgeting) • Diversity of PIC practices – according to legal and governance arrangements and administrative and cultural traditions and preferences in each country • Shared stakes: common trends and expectations as a challenge; internationally recognised guidance as a source of inspiration

5. 8 Principles of PIC • Good public governance in the public interest as context, purpose and main driver • Focus on performance • COSO/INTOSAI as a basis • Accountability triangle as a cornerstone • Three lines of defence • Independent Internal Audit function • Harmonisationfunction • Continuousimprovementperspective

6. Principles of Public Internal ControlWorkshop feedback

7. Principles of Public Internal ControlWorkshop feedback • Principles adequately cover internal control concept in the public sector ? • An acceptable balance found between common principles and specificities of each MS • No fundamental problems with 8 principles, but development on practices is needed • Compatibility with your legal and administrative tradition ? • Overall endorsement, however 2 remarks : • Conformity and legality (in all fields) is included in any administrative regulation within MS • Based on international standards like COSO, INTOSAI GOV and IIA

8. Principles of Public Internal ControlWorkshop feedback • Most challenging to be implemented • Bridging the principles to the administrative tradition of our countries. • Gaining senior management interest and implication • Topics to be developed in practice : • Governance • Performance management • Accountability and transparency • Internal audit • Articulation between internal and external stakeholders

9. PEMPAL IACOP meeting The progress in Internal Control and Internal Audit Reforms Prague, the Czech Republic - March 21-23, 2016 Prague, March 21st, 2016 Stéphan Roudil, CIA/CGAP, Rapporteur general of the Central harmonisation committee for internal audit The Principles of Public Internal Control system (PIC) Position paper developed by the PIC working group and adopted by the PIC Network of European Union in November 2015