INTERNAL AUDIT DEPARTMENT

The activities of the Internal Audit Department cover all activities of the HUN-REN HQ performed in accordance with Government Decree No. 370/2011 (XII.31.) on the internal control system and internal audit of budgetary bodies (hereinafter: Control System Decree), in particular, the audit of the planning, use and accounting of budgetary revenues and expenditures, as well as the management of assets and liabilities.

Pursuant to Section 21 (2)-(3) of the Control System Decree, the Internal Audit Department performs, in particular, the following tasks to certify compliance with law

    - analyze, examine and evaluate compliance of the establishment and operation of internal control systems with laws and regulations, as well as the cost-effectiveness, efficiency and success of their operation;

    - analyze and examine the management of available resources, the preservation and acquisition of assets, as well as the adequacy and validity of accounts;

    - provide insights, conclusions and recommendations regarding the audited processes in order to prevent and eliminate or reduce risk factors and deficiencies, to prevent or detect irregularities, and to increase the efficiency of operation of the budgetary body and improve and further develop the internal control systems;

    - record and monitor measures taken in the form of internal audit reports.

Pursuant to Section 21(4) of the Control System Decree, the Internal Audit Department may have tasks that can be performed within the framework of consulting activities, in particular:

    - supporting managers by analyzing, evaluating, examining and assessing the risk of each solution;

    - providing advice on more rational and efficient management of financial, material, IT and human resource capacities;

    - providing expert support for the management in the development and continuous improvement of risk management and irregularity management systems and the performance management system;

    - providing consultation to rationalize organizational structures and manage change;

    - providing the management with consultation and advice on the development of organizational strategy;

    - making proposals to increase the efficiency of the budgetary body, as well as to improve and further develop internal control systems regarding the content and structure of the internal regulations of the budgetary body.

Pursuant to Section 21(5) of the Control System Decree, the Internal Audit Department performs the following duties for the budgetary bodies under the management or supervision of the HUN-REN HQ – in addition to the tasks specified above:

    - professional management of the internal audit activities of the budgetary bodies under the management or supervision of the Secretariat;

    - coordination of audits within the chapter;

    - the provisions set out in Section 32(5) and Section 49(4) of the Control System Decree.

 The Internal Audit Department also performs the following tasks:

    - develops and operates the quality assurance system of audits;

    - examines and evaluates the establishment and operation of the internal control system and its compliance with laws and regulations;

    - participates in the Public Finances Internal Audit Working Group upon request;

    - reinforces the Secretariat's commitment to anti-corruption and contributes to related tasks.

    - The responsibilities of the Internal Audit Department are detailed in the Internal Audit Manual.

The Head of the Internal Audit Department is also the Head of Internal Audit of the HUN-REN HQ, who must be appointed in accordance with the applicable legislation.

The internal auditors report directly to the President of the HUN-REN HQ. The general and professional requirements for internal auditors are laid down in Ministry for National Economy Decree No. 28/2011 (VIII. 3.) on the registration and mandatory professional training of those performing internal audit activities at a budgetary body and on the further training of the heads and economic managers of budgetary bodies on the internal control system.

The Head of the Internal Audit Department and the internal auditors may not be involved in any activity other than those ensuring compliance and providing consultation in line with the international and internal audit standards published by the Minister responsible for public finances.

The internal auditor may not take part in tasks relating to the operational activities of a budgetary body as set out, in particular in Section 19(2) of the Control System Decree.