State-Own Companies Face Challenges in Slovenia
The Slovenian Agency for Public Oversight (APOA) has released its quarterly report on the status of state-owned companies, highlighting challenges faced by these entities.
Overview of State-Owned Companies
According to the report, there are currently 170 public interest entities (PIEs) under APOA’s oversight. These include companies in which the state holds a majority stake or has significant influence.
Auditing Process
The report reveals that 18 audit firms have been appointed as PIE auditors, with a mandatory three-year inspection cycle. This is intended to ensure transparency and accountability in the auditing process.
Funding
APOA receives funding from various sources, including:
- State budget
- Tariffs
- Compensation for costs incurred by imposing measures
- Fees for issuing and renewing licenses
- Fee paid by audit firms for oversight compensation (0.9% of their annual income)
Challenges Faced by APOA
The agency is facing challenges in recruiting staff, particularly experienced certified auditors. Currently, there are nine people working at APOA, including five inspectors. The plan is to increase staffing to 13 people, including six or seven inspectors, by 2023.
APOA also faces challenges due to:
- Staff shortages
- Changes in auditing rules
- Reduction in the number of certified auditors
- Low audit prices
- Interpretation of EU legislation
Cooperation with Other Regulatory Authorities
APOA cooperates with other national regulatory authorities, such as:
- Bank of Slovenia
- Securities Market Agency
- Insurance Supervision Agency
- Financial Administration of the Republic of Slovenia
This cooperation aims to improve performance in areas related to financial markets and auditing.
Annual Reports
The agency is required to publish annual reports, which must be audited annually and approved by the Ministry of Finance, Government, and National Assembly of the Republic of Slovenia. These reports provide information on measures taken, review of auditing quality, and administrative measures imposed on certified auditors and audit firms.
Q&A Session
Main Challenges Faced by State-Own Companies in Slovenia
A: Staff shortages, changes in auditing rules, reduction in certified auditors, low audit prices, and interpretation of EU legislation.
Funding Sources for APOA
A: Funding comes from various sources, including the state budget, tariffs, compensation for costs incurred by imposing measures, fees for issuing and renewing licenses, and a fee paid by audit firms for oversight compensation (0.9% of their annual income).
Current Staffing Situation at APOA
A: There are currently nine people working at APOA, including five inspectors. The plan is to increase staffing to 13 people, including six or seven inspectors, by 2023.
Cooperation with Other Regulatory Authorities
A: APOA cooperates with the Bank of Slovenia, Securities Market Agency, Insurance Supervision Agency, and Financial Administration of the Republic of Slovenia to improve performance in areas related to financial markets and auditing.