Palestiniann National Authority. te Audit And. Bureau. Annual Report Executive Summary

Transcription

1 Palestiniann National Authority Stat te Audit And Admini istrative Con ntrol Bureau Annual Report 2010 Executive Summary

2 Rammalah 2010

3 The Report addresses audit activities performed throughout 2010, where outcomes were classified according to professional sectors (6 audit sectors), in addition to legal affairs and public complaints. The Report is divided into three chapters, first of which contains audit reports for government, economy, infrastructure and social services sectors. The second chapter includes audit reports for local government units, NGOs, legal affairs and tender sectors. Light was shed on the most remarkable positive developments and changes took place at the audited bodies, as well as weaknesses. The most substantial financial and administrative violations were also highlighted, besides the expected financial impact as a result of implementation of SAACB recommendations, and then the inclusion of all audit reports as issued by SAACB and classified according to sectors, while the third chapter is dedicated to review feedback of audited bodies. Data and information mentioned in this Report were derived by means of auditing over bodies subject to SAACB mandate, and the professional opinion was provided as said by Palestinian government auditing standards and standards of the International Organization of Supreme Audit Institutions (INTOSAI), taking into account feedback of audited bodies to all reports of As to the direct financial impact, actions of auditing and oversight and as a result of disclosure of substantial financial violations- led to retrieval of an amount of 17,763,428 USD to PNA treasury. On the other hand, an amount of 3,283,000 USD was spent as the SAACB budget for 2010, which means that each dollar spent on SAACB and its staff gets value added of 5 USD, from which the PNA and audited bodies benefit. The following table shows volume of reports issued for each sector: Name of sector No. of Financial Financial Change rate reports impact (2009) impact (2010) (2009) Local government 34 2,825,500 10,620, % NGOs , , % Economy 15 14,509, ,306-94% Government 31 76,543 3,078, % Infrastructure 18 24,960, ,186-97% Social and cultural ,178 1,506,907 services + 414% Total ,868,338 17,763,428-59% Figures in the table above show an increase in value of the direct financial impact, which was wasted at government, NGOs, local government and social services sectors (%3922, %317, %276 and %414 respectively). Financial impact dropped at economy and infrastructure (%94 and %97 respectively), which is shown in the following diagram.

4 Comparison of direct financial impact ( ) ,000,000 20,000,000 15,000,000 10,000,000 5,000,000 Social & cultural services Infrastructure Government Economy NGOS 0 Local government Throughout 2010, SAACB participated in tender committee meetings (395) as an observer, and it received 498 complaints, of which 178 were accomplished and 51 were reserved due to absence of mandate, non-eligibility of complainant or inaccuracy. 3 complainants were referred to court, 13 complaints were recommended to be examined by an audit team, 2 complaints were referred to Corruption Fighting Authority, 4 complaints were reserved since they are still pending before court and 35 electronic complaints were reserved for being unclear. Number of corruption cases referred to Corruption Fighting Authority during 2010 is 19, in addition to 5 cases referred to general prosecution. There are 151 reports issued in 2010 compared with 116 reports in 2009, in which the most important financial and administrative violations were recorded according to sectors, and they are organized as follows: 1- Local Government Authorities Sector: As a result of audit work carried out at Palestinian local government authorities and bodies (Ministry of Local Government and its directorates, municipalities, local council, village councils, project committees, joint service councils, Association of Palestinian Local Authorities and Municipal Development and Lending Fund), number of audit reports done in 2010 reached 34 financial, administrative and comprehensive reports, plus 5 complaints. These numbers represent %23 of total reports for the year, where 3 cases were referred to Corruption Fighting Authority because of misappropriation, stealing and misuse of public funds. From audit and oversight reports of 2010, it turned out that the most important positive developments in local government authorities sector are: - Reliability of some internal control components is improved at some local government authorities in 2010 in comparison with Organizational structures at some local government authorities were devised, developed and approved by local councils and Ministry of Local Government. The most substantial violations observed at local government sector in 2010 are: - Disclosure and follow up of several misappropriation cases at some local government bodies. The wasted amounts are 1,887,693 NIS and 200 JD at Burqeen Municipality, 584,657 NIS and 200 JD at Jamma'in Municipality, 781,014 NIS at Ramadeen Local Council, 450,000 NIS at Hares Local Council.

5 - In one incident, accountant of Burqeen Municipality used an amount 183,260 NIS of municipality funds for his personal benefit. - Local government sector in Palestine sustained heavy losses ( NIS) as a result of failure to pay overdue electricity bills at some local government authorities. - Total of commissions and bank interests because of overdraft from banks reached 743,194 USD during the fiscal year Furthermore, some local government authorities deducted overdue debts by virtue of municipal decisions unapproved by minister of local government, which caused loss of huge amounts (13,511,286 NIS and 58,516 JD), while total deductions in 2009 were estimated at 13,055,786 NIS and 151,789 JD. - It was noticed that percentage of lost water in 2009 is increasing significantly (%83 at some authorities). - Some local government authorities still have weak internal control systems in terms of division of work, tasks and powers. Moreover, absence of strategic planning was noticed in many authorities, which weakened efficiency and effectiveness of goals achievement. - Some local government authorities did not take needed care and diligence upon management, preservation and disposal of assets in accordance with provisions of laws and in a way that fulfills their interest. These acts were resulted in a direct negative impact (huge amounts of money), which affects ability of authorities to bear work load and face defect. - Weak spending audit procedures have resulted in weakness of strict internal control systems. - It turned out that some authorities spent amounts in a way that is not regarded among right aspects of expenditure mentioned in financial codes of local government bodies, such as grants and assistance from municipal accounts for institutions and individuals without approval from MOLG and without allocations in approved budgets. - Some transactions were done without sufficient supporting documents (tax invoices, clearance invoices and discount certificates), which helps tax evasion. - Some local government authorities have weak revenue collection, and some material resources from which municipalities could use were ignored, in addition to absence of control role in some municipal councils, where there was noticed that decisions are taken individually. Also, a considerable number of municipal council members resigned without actions being taken, there were violations as to salaries of some mayors and rewards for council members and some effective local authorities' laws, regulations and codes are unclear. Direct financial impact of audit reports: Total direct financial impact on PNA and local authorities treasuries will reach 37,275,893 NIS, 200,158 JD, 194,891 USD and 55,255 Euro (about 10,620,950 USD) upon applying recommendations of SAACB, turning them into resolutions and correcting financial mistakes mentioned in audit reports of this sector. Likewise, total financial impact of audit tasks in 2009 was 2,825,500 USD, which means an increase of 7,795,450 USD in 2010 (% 276 than 2009). This is a negative indicator about municipalities' performance, which is caused by weak audit and supervision of MOLG over local authorities, besides failure to hold municipal elections on time.

6 2- Government Sector (civil and security): As a result of audit work carried out at government sector (civil and security), represented in sovereign ministries, security agencies and the Judiciary, number of audit reports done in 2010 reached 31 comprehensive reports. This number represents %21 of total reports for the year, plus follow up 5 complaints. The most substantial violations observed at government sector (civil and security) in 2010 are: 1- There is multiplicity of references concerning spend of assistance at PNA president office and absence of guidelines application at assistance unit. There was weak control of vehicles custodianship, as more than one vehicle was found unlike law- in hands of some personalities. 2- It was noticed that value of cell phone bills for staff of secretariat general of council of ministers is exceedingly high, and that some vehicles are within custodianship of individuals and officers are not among cadre of council of ministers. It was also noticed that there an unreasonable enormity in organizational structure and high percentage of supervisory positions against executive ones in view of deactivation of some departments, tasks of some of which were distributed at other general departments. 3- Commitment to some provisions of Palestinian financial codes No. 43 of 2005 was weak, since there was no commitment to conditions of expenses liquidation through incomplete expenditure supporting documents, weak commitment to fixed limits of petty cashes, no commitment to the maximum limit of cashing, cheques that were not cashed within 6 months from issue date were not debited from bank account to 'deposit of non-withdrawn cheques', weak bookkeeping and regular financial reporting and failure to keep expenditure supporting documents at some security agencies, where they were closed at central financial department without keeping copies. 4- Violation of some provisions of general supplies law No. 9 of 1998, since there was no commitment to provisions of procurement and storehouse management, there was not any seals record shows staff who was entrusted with seals and no sufficient control over seals. Additionally, it turned out there is no proper fire extinguishing systems at storehouse of PNA president office, there is no record for supplies and fixed assets, no inventory for fixed assets has been conducted and there is no independent and well-organized storehouse that is compatible with general safety measures at some audited bodies. 5- Council of minister has taken decision No. 23 of 2006, by virtue of which a previous decision (No. 244 of 2005) was amended, regarding grant of diplomatic passports (VIP), and that amendment caused an increase in beneficiaries of these passports. The word 'previous' was added to many articles in the second clause; however, increasing beneficiaries diminish importance of diplomatic passport 6- There is not an integrated financial and administrative system to organize actions of governorates and takes its individuality into account. 7- Weak internal control units at some audited bodies. Direct financial impact of audit reports: Upon applying recommendations of SAACB, turning them into resolutions and correcting financial mistakes mentioned in audit reports of this sector, 3,078,650 USD will be retrieved to PNA treasury, and whereas total direct financial impact of auditing in 2009 was 76,543 USD, there was an increase of 3,002,107 USD in 2010.

7 3- Economy Sector: As a result of audit work carried out at economy sector, represented in Ministry of Finance and its departments, a number of ministries within this sector, Palestinian Investment Fund and the affiliate companies, number of audit reports done in 2010 reached 15. This number represents %10 of total reports for the year. The most substantial violations observed at economy sector in 2010 are: - There was waste of public funds, represented in duplicity of spending on items such as fuel, transport and salary allocations for some employees from Al-Hayat Publishing Co. and MOF at one time. Similarly, a resolution issued by council of ministers, regarding moving all civil servants to ministries, institutions or General Personnel Council, was not put into action. - It was also turned out there was weak commitment to some provisions of Palestinian financial codes, as MOF disbursed some expenses on behalf of responsibility centers and without referring to them, and some expenses were disbursed without legal bases or spending standards. Some advances against law were closed in 2009 irrespective of nature of violation, and social security bodies incurred expenses that are not among their classifications and are not considered assistance in the social sense. MOF did not follow up amounts due upon local authorities to assure they will pay them and to ensure there will not be any duplicity of payment. Moreover, no matching procedures have been undertaken, and some payments were disbursed from the MOF depreciation account without complete supporting documents or lack of reliability for some disbursements, in addition to cashing more than one payment for the same residential unit and for more than one person. At the level of property tax, MOF cut back appraisal value for some taxpayers without documented justifications by objections committee, and clearances were issued to some taxpayers despite financial benefits they owe, besides calculation of tax value that is, unlike law, based on tenancy agreement. - As to audit of 2008 balance sheet, audit teams could not audit the unclassified revenue account within balance sheet (9,299,000 USD) due to absence of related details. This amount makes a difference in trial balance account, where we were not able to carry out auditing for that amount; and therefore, we cannot know effect of that difference on the balance sheet if any. Also, Ministry of Tourism violated several provisions of Palestinian financial codes by incomprehensible lag in depositing revenues at levying times and making monthly and weekly reports on regular basis. It also turned out there is failure to follow up and levy receivables accrued for years, and the ministry violated clause 41/2 of SAACB law by failure to provide audit teams with project documents and agreements, especially the sustainable tourist development project funded by JICA, and the ministry collected fee of 35 NIS to issue tourist guide cards without depositing those amounts in its accounts, and receipt was done without vouchers. - National Center for Agriculture Research of the Ministry of Agriculture did not perform the work it was supposed to do and in consistency with its plans and size that helps development of agricultural sector, which caused waste of public funds, in addition to absence of efficient and effective performance at the Center. It was also found that most financial and administrative aspects suffer shortfalls and slackness due to ignorance of most of laws and regulations that govern work, as well as weakness and absence of internal control. - Several substantial violations appeared at the Ministry on National Economy, such as disburse of an apartment allocations for a high rank employee and his family (9600 NIS annually), whereas disburse of Gaza transport fees for the same employee

8 continued (809 NIS per month) with suspicions about authenticity of tenancy agreement. Furthermore, dwelling allocations (12,000 USD annually) are being spent for a high rank employee, paid by virtue of a cheque endorsed to his personal name and not for the benefit of a certain lessor. After auditing rents item, it was found that rent allocations are increasing, as their rate is %42 of total approved budget, which is a very high percentage against number of employees who dwell rented estates. Movement record and achievement reports of the vehicle bearing registration plate no show that it is being used by a director general in the ministry, while fixed transport fees (1200 NIS per month) are still being disbursed. Further violation the ministry committed is provision of three apartments for some of its staff while they continue to get fixed transport fees. Direct financial impact of audit reports: Upon applying recommendations of SAACB, turning them into resolutions and correcting financial mistakes mentioned in audit reports of this sector, 896,306 USD will be retrieved to PNA treasury, and whereas total direct financial impact of auditing in 2009 was 14,509,603 USD, there was an increase of 3,002,107 USD in Social & Cultural Services Sector: As a result of audit work carried out at social and cultural services sector, a number of ministries within this sector, number of audit reports done in 2010 reached 31 financial, administrative and comprehensive reports. This number represents %21 of total reports for the year, in addition to follow up many complaints in cooperation with legal affairs department. From audit and oversight reports of 2010, it was found that the most important positive developments in social and cultural services sector are: - Improvement of credibility level in internal control components at most audited ministries. - Provision of strategic plans during 2010 at some audited bodies. The most substantial violations observed at social and cultural services sector in 2010 are: - Internal control units at most of ministries are not functioning effectively and efficiently. - There are not clear, certain and written bases that govern how to determine country of medical treatment, whether if treatment is local or abroad. - There is not direct control by Ministry of Health over follow up of referrals at hospitals in question through means of field visits to referred patients. - There is not clear mechanism for clearing sessions and how to calculate cost of referrals to Israeli hospitals. - Violation of article 79 of the Basic Law by decision of minister of health to issue an incentive system based on collecting fees from patients without law regulating that process. - Proper medicines storage conditions are not available at MOH warehouses, and there is defect in procurement that increases amounts of spoiled items. - There were some remarks at supporting medical affairs, where there is shortage in provision of some hospitals with items such as medicine and spare parts for medical equipment, and there is no complete separate between medical waste and ordinary waste at some hospital sections. - The way by which medicines procurement tenders are set leads sometimes to excess volumes of medicines, which makes them expire.

9 - Violation of some provisions of Palestinian financial code, general supplies law and budgeting law at some ministries. - Violation of provisions 174 (clauses 1 and 2), 175, 262 and 236 of penal code No. 16 of 1960, through committing serious financial infringements such as falsification of signatures, fake job contracts and documents forging at Abu Jihad College. - Licensing fees levied by Ministry of Information are not legal, as there is not any law stipulates their legitimacy. - There are not approved laws and regulations that govern hajj seasons. Consequently, related mechanisms and procedures are not fixed and subject to change from year to year, which causes some infringements occasionally. - Absence of mechanisms and standards and required work bases for official delegates, guides and other delegations to hajj seasons. Direct financial impact of audit reports: Upon applying recommendations of SAACB, turning them into resolutions and correcting financial mistakes mentioned in audit reports of this sector, 1,506,907 USD will be retrieved to PNA treasury. Total direct financial impact of auditing in 2009 was 278,178 USD, which is an increase of 1,228,729 USD in 2010 (%442 more than 2009). 5- Infrastructure Sector: As a result of audit work carried out at infrastructure sector, number of audit reports done in 2010 reached 18 financial, administrative and comprehensive reports. This number represents %12 of total reports for the year, in addition to follow up 2 complaints and attending 234 tenders and 5 general auctions. The most substantial violations observed at infrastructure sector (Water Authority, Power Authority, public works and labor sector) in 2010 are: - Rewards were given for staff at Border Terminals Department (1,248,760 NIS) and PBC ( NIS) unlike provisions of article 40 (clause 4) of SAACB law, an act has resulted in spend of amounts out of PNA funds unlawfully. Border Terminals Department does not follow accounting system approved by MOF, does not prepare approved financial statements, does not close fiscal year and does not undertake bookkeeping unlike provisions of Palestinian financial codes. - There are not accounting records for revenues and expenses of 2009 at Industrial Zones Authority, bank reconciliations were not prepared regularly, pencils and correction fluids were heavily used and fees of development companies were set without legal basis. - Regarding the West Bank Water Authority, part of its expenses (1,404,927 NIS) was covered through levied water fees without being deposited in treasury general account, unlike provisions of budgeting law and Palestinian financial codes. The Authority accepts various unendorsed withdrawn cheques from the same taxpayer or from entities whose cheques were previously bounced (more than 1000 USD) contrary to provisions of Palestinian financial codes, an in addition to rent a digger the Authority owns for 3000 USD for each work day, and fees for installation of links and meters are collected and not deposited in treasury general account, unlike provisions of Palestinian financial codes. - Some employees, whom recruited by virtue of contracts, were placed without announcements or interviews at PBC, the West Bank Water Authority and Industrial Zones Authority, violating provisions of civil service law. Inconsistency between job description and academic qualification for some employees at PBC was noticed, unlike provisions 18 and 21 and executive regulations of civil service law. As to

10 Fatwa Authority, it was noticed that Jerusalem allowance is unlawfully paid for some employees; despite they bear PNA ID and do not live inside city of Jerusalem. Direct financial impact of audit reports: Upon applying recommendations of SAACB, turning them into resolutions and correcting financial mistakes mentioned in audit reports of this sector, USD will be retrieved to PNA treasury. Total direct financial impact of auditing in 2009 was 24,960,956 USD. 6- NGOs Sector: As a result of audit work carried out at NGOs sector, number of audit reports done in 2010 reached 22 financial, administrative and comprehensive reports. This number represents %15 of total reports for the year, in addition to follow up 11 complaints. The most substantial violations observed at NGOs sector in 2010 are: - Absence of effective oversight and accountability over NGOs sector, where failure was noticed at competent ministry as to follow up of organizations' financial and administrative actions. What's more, overseeing and steering role of general bodies and boards of directors was completely absent due to failure to assume legal jurisdictions or expiry of boards legal term, where percentage of organizations that lack proper oversight role is %43, not to mention that many organizations lack effective internal control units or strict internal control regulations, as their percentage reached %80. - Moreover, financial statements of 2009 that have been audited at some organizations do not fairly show actual financial status and accurate financial performance from all significant sides, where it was noticed that audit firms avoided mentioning some significant observations and ignored serious omission and modification in financial statements for the sake of unqualified opinion. Examples of these organizations include Palestine Football Federation, Women's Arab Union Society (el-bireh) and University Graduates Union (Hebron). Some organizations violated article 41 (clause 2) of SAACB law by reject and refrain to provide it with the necessary information and documents to complete audit, such as Palestinian Economic Policies & Studies Institute (Ramallah) and University Graduates Union (Hebron). Additionally, there is high risk involved in management and control of revenue cash at Palestine Football Federation and University Graduates Union, and also a defect in management of bank accounts of Palestine Football Federation, University Graduates Union, and South Hebron Chamber of Trade, Industry and Agriculture. - Absence of internal control systems led to weak financial and administrative control procedures and absence of commitment to provisions of effective law and regulations that govern their work and serve their interests, ending up with goals and purposes for which they were established. - Through audit procedures, it was found there is not clear methodology that directs actions and programs of NGOs in a way that serves the Palestinian national policies agenda and utilizes organizations as well as grants provided to them- in order to realize future objectives and mission: an independent Palestinian state. Direct financial impact of audit reports: Upon applying recommendations of SAACB, turning them into resolutions and correcting financial mistakes mentioned in audit reports of this sector, 208, USD will be retrieved to PNA treasury and 700,183 USD to NGOs. Total direct financial impact of auditing on PNA treasury in 2009 was USD and USD to NGOs, which means an increase of 690,871 USD more than 2009.

11 7- Legal Affairs and Public Complaints Dept.: Legal Affairs and Public Complaints Dept. received 498 complaints in 2010, of which 15 were referred from Achievements of 2010 are detailed as follows: - Total number of complaints: Complaints reserved as being 'accomplished': Complaints reserved by virtue of follow up outcomes: Complaints reserved for lack of jurisdiction: Complaints reserved for non-eligibility of complainant: Complainants referred to courts: 3. - Complaints reserved for being vague and lack of determined items: 4. - Complaints reserved for inaccuracy: Complaints recommended to be examined by an audit team: Complaints reserved to Corruption Fighting Authority: 2. - Complaints reserved for being considered before court: 4. - Complaints reserved for being unclear and/or lack of importance: 35 (electronic). The remaining complaints were referred to Bidding: Throughout 2010, the Bureau participated in meetings of central bidding committees as an observer. Number of tenders reached 395, distributed to tenders of Ministry of Public Works (190), general supplies (107), local government authorities (45) and miscellaneous departments (53). The most prominent observations are: - Some committee members arrived late to tender sessions. - Central bidding dept. failed to review and examine tenders before bidding. - Failure to explain the reason why prices do not include value added tax in Water Authority projects. - It was noticed there is frequent increase in prices of tenders against estimated value and with high percentages for Water Authority projects. - Central bidding committee of MOF frequently failed to initiate sessions on time and to sign session minutes the moment the committee convenes. - Three keys of box are held by the same committee member, who opens the box and gets envelopes. - Members of central bidding committee are replaced without reviewing council of ministers decision in this respect.

12 Foreword Based on functions and powers entrusted to me by virtue of provisions of article (48) of SAACB Act No. 15 of 2004, and in accordance with the presidential decree dated October 18, 2010, I hereby present the annual report of SAACB aspires to have typical state bodies operate according to the best international standards, practices and bases in such way that utilizes available resources to the fullest, and fulfills the expected benefit effectively. SAACB commitment to prepare regular audit reports about outcomes of actions is a real guarantee for sustainability of its mission, and also acts as an important indicator suggests that auditing could redress institutional work and overcome all challenges, so that integrity, transparency, accountability and corruption fighting are reinforced, and confidence of citizens and donors in PNA financial and administrative policies is increased. SAACB has already accomplished 151 financial, administrative and performance audit reports. SAACB also followed up 498 complaints from citizens and as a result of what is being brought up by public opinion. Throughout 2010, SAACB participated in 395 tender committee meetings as an observer, and number of corruption cases referred to Corruption Fighting Authority during 2010 is 19 cases, in addition to 5 cases were referred to general prosecution. Despite all problems and drawbacks, whether internal or external, that affected development and construction process, Palestine is now witnessing an institutional development and is emerging from ashes of destroyed institutions during the second Intifada, and it is moving with confidence toward the objective of building state of institutions and ending the Israeli occupation. Yours sincerely, Jamal F. Abu Baker Acting Chairman State Audit & Administrative Control Bureau

13 Introduction There is no doubt that having an external, effective and efficient audit body, with financial and administrative independence and full independent legal personality, to undertake tasks to which it is entrusted is a fundamental center and guarantee to protect general bodies and authorities and civil society institutions against misappropriation, negligence and misuse, as well as reduce financial and administrative deviations and realize objectives and responsibilities for which it was established. In this respect, State Audit and Administrative Control Bureau is a constitutional body established to implement provisions of Palestinian Basic Law, and pursuant to provisions of article 96 of the same law. The Bureau is legally considered the supreme audit institution of Palestine, and it has membership of the International Organization of Supreme Audit Institutions (INTOSAI), which comprises all supreme audit institutions around the world. The Bureau issued the annual report of 2010 to fulfill legal requirement stated in SAACB law No. 15 of 2004 (article 8), which stipulates that "The president of the Bureau shall submit annual reports, or upon request, including the result of the Bureau investigations, studies, researches, suggestions, the committed offences, the resulted responsibilities, the observations and the recommendations about them to the President of PNA, legislative council, and the cabinet in order to adopt the suitable actions". The Bureau has committed to present information and data about actions of the Bureau in order to strengthen accountability, transparency and legality of its audits over the audited bodies. This report aims at making sure that general performance at audited bodies is consistent with provisions of the effective laws, regulations, codes and instructions, and to disclose aspects of financial and administrative deviations, if any. Additionally, the report defines and assesses risks expected in institutional work in order to treat and overcome them, besides expressing professional opinion about audit outcomes on basis of international professional principles. Importance of the report lies in straighten work of audited bodies, and through assisting higher administrative levels and executive authorities to modify their polices, issue corrective resolutions and raise efficiency of institutional performance. Moreover, this report contributes to reinforcement of integrity, transparency, accountability and reliability of PNA general policies, prevents substantial financial and administrative violations and fights corruption. The report is divided into three main chapters, first of which is dedicated to review audit reports for government, economy, infrastructure and social and cultural services sectors. The second chapter tackles audit reports of local government authorities and NGOs, together with legal affairs and bidding, whereas third chapter reviews feedback of audited bodies to reports of 2010 as is. Throughout all stages of audit work (planning, field work and reporting), the Bureau is keen to abide by INTOSAI standards, Palestinian government auditing standards, INTOSAI code of conducts, supported with amended standards of International Federation of Accountants issued on February 25, The Bureau welcomes all constructive suggestions, views and remarks that are meant to offer high quality audits that are consistent with Palestinian government auditing standards and international financial auditing standards. Objective of which is to promote quality of audit reports in a way that realizes interest of nation, so as to build law and institutions state, to reinforce good governance, to disseminate and develop audit concept over Palestinian institutions and society.