How Do Companies Review Your GPA
Regional financial audit
In the statutory examination cycle, usually of 4 - 5 years, the GPA checks "its municipalities", nationwide, whether they have in the past examination period in the budget, cash and accounting, economic management and accounting as well as asset management of the Municipality as well as its special and trust assets have complied with the statutory provisions ("legality check").
The scope of the examination includes
- the entire community economy,
- the financial and economic circumstances of the municipalities in the audit period, taking into account the medium-term financial planning,
- the efficiency of the municipalities with regard to the obligation to continuously fulfill their tasks,
- the legality of the administrative action in the financially effective administrative areas,
- the activities of the bodies to be audited in municipal companies and institutions under private law,
- the budgetary and economic management of these companies and institutions under private law (within the framework of § 103 GemO)
as well as, in the New Municipal Budget and Accounting,
- the examination of the opening balance sheets and annual financial statements,
- the presentation of the actual asset, earnings and financial position.
Outside of the regular audits, the GPA can only carry out the general financial audit - in individual cases - at the express request of the Ministry of the Interior or the higher legal supervisory authorities. This means in particular that the GPA neither has a "right of self-entry", nor can it act at short notice on the initiative of third parties. The same applies to the submission of expert opinions within the framework of the examination-related tasks.
In addition to the audit, i.e. on site, as part of an audit assignment, further and preventive advice to the municipalities is of great importance. The auditors support the administrations - within the limits set by the municipal self-government guarantee - in essential legal, assessment and expediency matters of the entire budget and economic management and financially effective activity.
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