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Court of Audit Act


General Provisions

Article 1
(Status of the Court of Audit)

(1) The Court of Audit of the Republic of Slovenia (hereafter referred to as the Court of Audit) is the supreme audit institution for the supervision of state accounts, the state budget and all public spending in the Republic of Slovenia.

(2) In relation to other state authorities, the Court of Audit is an autonomous and independent state authority.

(3) The acts under which the Court of Audit exercises its auditing powers may not be challenged before courts or other state authorities.

Article 2
(Headquarters of the Court of Audit)

(1) The Court of Audit shall have its headquarters in Ljubljana.

(2) The Court of Audit may have organisational units outside its headquarters.

Article 3
(Rules of Procedure of the Court of Audit)

(1) The Court of Audit shall have its Rules of Procedure. These shall be adopted by the Court of Audit in consent with the National Assembly.

(2) The Rules of Procedure of the Court of Audit shall regulate in detail the methods and procedures regarding the exercise of the auditing powers of the Court of Audit under this Act.

(3) The Rules of Procedure of the Court of Audit shall be published in the Official Gazette of the Republic of Slovenia.

(4) The Court of Audit may further regulate its organisation and work methods with other general acts.

Article 4
(Mutatis Mutandis Application of Other Legal Provisions)

Should the exercise of auditing powers of the Court of Audit reveal an issue not provided for by this Act, appropriate provisions of the law governing the administrative procedure shall apply mutatis mutandis.

Article 5
(Public Nature of Work of the Court of Audit)

(1) The work of the Court of Audit shall be public. The public nature of the work performed by the Court of Audit shall be assured in the manner as provided by this Act and by the Rules of Procedure of the Court of Audit.

(2) At least once a year, the Court of Audit shall submit a report on its work to the National Assembly for its consideration.

(3) The report referred to in the preceding paragraph must contain information on measures taken under Article 29, paragraphs (11) and (14), and under Articles 30 and 38 of this Act.

2. Composition and Organisation of the Court of Audit

Article 6
(Members of the Court of Audit)

(1) The members of the Court of Audit shall be the President of the Court of Audit and two Deputy Presidents, i.e. the First and the Second Deputy President of the Court of Audit.

(2) Any citizen of the Republic of Slovenia, with at least university qualifications, who is an expert in a discipline of relevance for the exercise of the powers of the Court of Audit, has a command of at least one world language, and has not been a member of the Government of the Republic of Slovenia during the period of the last four years preceding the appointment, may be appointed Member of the Court of Audit.

(3) The Members of the Court of Audit shall be appointed by the National Assembly.

Article 7
(Term of Office of Members of the Court of Audit)

(1) Members of the Court of Audit shall be appointed for a term of nine years from the date when they assume office.

(2) Should a new Member of the Court of Audit not be appointed by the date on which the term of the outgoing member of the Court of Audit has expired, or if the newly appointed Member of the Court of Audit cannot assume office on the day after the term of the outgoing Member of the Court of Audit has expired, the outgoing Member of the Court of Audit shall continue to perform his/her duties until the newly appointed member of the Court of Audit assumes office.

(3) The President of the Court of Audit shall notify the President of the Republic about the expiry of the term of office of any Member of the Court of Audit no sooner than six (6) months and no later than five (5) months prior to the expiry of such term of office.

(4) In the case of the relief or dismissal of the President or either of the Deputy Presidents of the Court of Audit prior to the expiry of his/her term, the President of the National Assembly shall immediately notify thereof the President of the Republic and the First Deputy President or the President of the Court of Audit, as the case may be.

Article 8
(Appointment of Members of the Court of Audit)

(1) Having received the notification referred to in paragraph (3) or (4) of the preceding Article, or having been advised that the proposed candidate for the President or the Deputy President of the Court of Audit has not received the necessary majority of deputies' votes in the National Assembly, the President of the Republic shall without delay publish in the Official Gazette of the Republic of Slovenia a call for registration of possible candidates for the office of President or Deputy President of the Court of Audit, as the case may be.

(2) The registration of possible candidates for the office of President or Deputy President of the Court of Audit shall be sent to the President of the Republic no later than thirty (30) days after publication, except in cases of relief or dismissal of the President of the Court of Audit prior to the expiry of his/her term, and in cases referred to in the last paragraph of this Article, where the period shall be no later than fifteen (15) days after the call was published. The registration must be substantiated. A written statement by the registered possible candidate declaring that he/she is willing to accept the candidature must be attached.

(3) The President of the Republic shall propose to the National Assembly a candidate for the President of the Court of Audit from among the registered possible candidates for the office of President of the Court of Audit. The President of the Republic shall propose to the National Assembly a candidate for the First and a candidate for the Second Deputy President of the Court of Audit from among the registered possible candidates for the office of Deputy President of the Court of Audit.
The President of the Republic shall submit the proposal within thirty (30) days after the expiry of the period referred to in paragraph (2) above. The proposed candidature must be substantiated. A written statement by the candidate declaring that he/she is willing to accept the candidature must be attached.

(4) The National Assembly is obliged to vote on the proposed candidate for the Member of the Court of Audit within thirty (30) days after the submission of the proposal. Voting is by secret ballot. The proposed candidate is appointed if the majority of votes of all deputies are cast in his/her favour.

(5) The proposed candidate for the Member of the Court of Audit shall attend the session at which the National Assembly decides on his/her candidature.

(6) Should the proposed candidate for the Member of the Court of Audit not receive the necessary majority of deputies' votes, the President of the National Assembly shall immediately notify the President of the Republic thereof.

Article 9
(Oath and Assumption of Office of Members of the Court of Audit)

(1) Following the appointment, the Member of the Court of Audit shall take the following oath before the National Assembly: "I swear that l will exercise my functions in accordance with the
Constitution and law and perform my duties honestly, conscientiously and impartially".

(2) The newly appointed Member of the Court of Audit shall take up office no later than three months after having taken the oath.

(3) If the term of office of the outgoing Member of the Court of Audit has not yet expired, the newly appointed Member of the Court of Audit shall take office on the expiry of the term of office of the outgoing Member of the Court of Audit.

Article 10
(Relief or Dismissal of Members of the Court of Audit)

(1) Any Member of the Court of Audit may only be relieved or dismissed from office prior to the expiry of his/her term in the following cases:
1- if the Member submits a statement of resignation to the National Assembly;
2- if the Member is sentenced to imprisonment for a criminal offence;
3- if the Member has become permanently incapable of performing his/her duties;
4- if the Member ceases to meet the requirements for a Member of the Court of Audit;
5- if the Member does not act in accordance with the Constitution and the law.

(2) A formal initiative for the dismissal of a member of the Court of Audit under Item 5 above may be submitted by not less than 15 deputies of the National Assembly. The initiative shall contain a description of the alleged violations of the Constitution or law, as the case may be, and shall include evidence of such violations.

(3) The working body of the National Assembly responsible for budgetary and other public finance control shall consider the initiative referred to in the preceding paragraph. If the initiative has not been submitted in accordance with the preceding paragraph, the working body shall call on those who have submitted the initiative to supplement it within a given time limit. Should the initiative not be supplemented within the specified time, it shall be deemed to have not been submitted.

(4) The Member of the Court of Audit who has been proposed for dismissal has the right to respond, in writing or in person at the session of the working body, to any alleged violation of the Constitution or law of which he/she has been accused.

(5) Having considered the case, the working body shall either accept or reject the initiative. The working body shall accept the initiative by the majority of votes of all its members. If the initiative is accepted, the working body shall report to the National Assembly on the found violations of the Constitution or law and shall propose to the National Assembly that the concerned Member of the Court of Audit be dismissed on those grounds.

(6) A Member of the Court of Audit shall be relieved or dismissed, and subject to the termination of his/her term of office, on the day on which the National Assembly is satisfied with the rationale as stated under Items 1, 2, 3 and 4 of paragraph (1) of this Article or on the day on which the National Assembly has dismissed him/her in accordance with the preceding paragraph.

Article 11
(Senate of the Court of Audit)

(1) The President of the Court of Audit and the two Deputy Presidents of the Court of Audit constitute the Senate of the Court of Audit.

(2) The Senate of the Court of Audit shall:
1- adopt the Rules of Procedure of the Court of Audit in consent with the National Assembly;
2- decide upon issues within the remit of its powers under this Act.

Article 12
(President of the Court of Audit)

(1) The President of the Court of Audit shall act for and represent the Court of Audit; he/she shall be the State Auditor General and the Head of the Court of Audit.

(2) In his/her capacity of State Auditor General, the President of the Court of Audit shall have the following responsibilities:
1- to direct and approve the exercise of the powers of the Court of Audit by determining its programme of work and signing the acts of the Court of Audit;
2- to prescribe the rules for the phases of audit activity; and to issue guidelines and instructions to that end;
3- to order, as appropriate, official supervision of audit assignments; and to issue a supervision order to that end;
4- to convene and conduct the sessions of the Senate of the Court of Audit;
5- to conduct any other business in accordance with this Act.

(3) In his/her capacity of the Head of the Court of Audit, the President of the Court of Audit shall have the following responsibilities:
1- to determine the rules of operation of the Court of Audit by issuing instructions and regulations;
2- to define the draft budget of the Court of Audit and to co-ordinate the draft with the approved state budget;
3- to decide on labour law issues at the Court of Audit; and to issue decisions to that end;
4- to allocate assignments at the Court of Audit; and to issue orders to that end, if necessary;
5- to exercise other powers provided by law.

Article 13
(Deputy Presidents of the Court of Audit)

(1) The Deputy Presidents of the Court of Audit shall carry out the functions of State Auditor General as authorised by the President of the Court of Audit.

(2) The First Deputy President of the Court of Audit shall:
1- deputise for the President of the Court of Audit during his/her absence;
2 - in the case of early termination of office of the President of the Court of Audit, perform the duties of the office of President of the Court of Audit until the appointment of a new President of the Court of Audit.

Article 14
(Supreme State Auditors)

(1) The Court of Audit shall have up to six Supreme State Auditors.

(2) Any citizen of the Republic of Slovenia who has appropriate professional qualifications and has a command of at least one world language may be appointed Supreme State Auditor. A person is deemed to have appropriate professional qualifications for Supreme State Auditor, if he/she holds an academic title and has appropriate experience, or has a university education and holds the title of certified state auditor under this Act or the title of certified auditor under the law that regulates auditing.

(3) The President of the Court of Audit shall appoint a Supreme State Auditor and shall relieve him/her of duty by issuing a decision. The appointment shall be for a period of nine years.

(4) Supreme State Auditor shall take office after having taken the oath referred to in Article 9, paragraph (1), of this Act before the President of the Court of Audit.

(5) Supreme State Auditors shall head audit units and exercise auditing powers of the Court of Audit under this Act and in accordance with the authorities delegated to him by the President of the Court of Audit. The President of the Court of Audit shall appoint a special Supreme State Auditor to be responsible for the audit of local government.

(6) Supreme State Auditors shall be accountable for their work to the President of the Court of Audit.

Article 15
(Secretary of the Court of Audit)

(1) The Court of Audit shall have a Secretary.

(2) Any citizen of the Republic of Slovenia who has at least university qualifications and has a command of at least one world language may be appointed Secretary of the Court of Audit.

(3) The President of the Court of Audit shall appoint and dismiss the Secretary of the Court of Audit by issuing a decision. The appointment shall be for a period of nine years.

(4) The Secretary of the Court of Audit shall:
1- coordinate the work of support services of the Court of Audit;
2- manage the administration of the Court of Audit;
3- be the authorizing officer for the implementation of the budget of the Court of Audit;
4- undertake other tasks as ordered and pursuant to the authorities delegated to him by the President of the Court of Audit.

(5) The Secretary of the Court of Audit shall be accountable for his work to the President of the Court of Audit.

Article 16
(Incompatibility of Office at the Court of Audit with Other Offices
and with the Engagement in Other Work and/or Activities)

(1) The office of Member of the Court of Audit, the office of Supreme State Auditor and the office of Secretary of the of Court of Audit (hereafter referred to as "office at the Court of Audit") shall not be compatible with:
1- office in a state body, in local community bodies or in bodies of political parties or of trade unions;
2- participation in the work of a state body, of a local community body or with a bearer of public authorities;
3- membership in a management or supervisory body of a commercial company, public utility, trust, institution or in a cooperative;
4- pursuance of any occupation or gainful activity which by law is not compatible with any public office.

(2) Any other office of the holder of office at the Court of Audit referred to in paragraph (1), Item 1, above shall end on the day of his/her taking office at the Court of Audit.

(3) Holders of office at the Court of Audit must cease pursuing their work or activity referred to in paragraph (1), Items 2, 3 and 4 above, within three months at the latest after having been appointed. Anybody who fails to do so ceases to hold office at the Court of Audit.

(4) Holders of office at the Court of Audit are obliged, within three months at the latest after having been appointed, to submit to the National Assembly a written statement on their income status in accordance with the Incompatibility of Holding Public Office with Profitable Activity Act (Official Gazette RS, Nos 49/92 and 50/92 – as amended).

Article 17
(Impermissible Relations of Holders of Office at the Court of Audit
Between Themselves and with Auditees)

(1) Holders of office at the Court of Audit shall not be related by blood in the direct line to all times removed and in the collateral line to four times removed.

(2) No holder of office at the Court of Audit shall be married to oror living in an extramarital union with another holder of office at the Court of Audit, or be related by marriage to twice removed.

(3) No holder of office at the Court of Audit may participate in or decide on any Process of audit in cases where he/she is in business contacts with or in the direct or collateral line to inclusive four times removed related to, or married to, regardless of whether the marriage has been dissolved, or living in an extramarital union with or related by marriage to inclusive three times removed to the auditee, persons authorized by the auditee, its legal representatives, members of its governing or management bodies or persons responsible. No holder of office at the Court of Audit may participate in and decide on any Process of audit in cases where he/she had been employed with the auditee if a period of at least two years has not elapsed since the end of such employment.

Article 18
(Services within the Court of Audit)

(1) The Court of Audit shall have audit services and support services.

(2) All work in the services within the Court of Audit shall be carried out by citizens of the Republic of Slovenia who are assigned to positions at the Court of Audit.

(3) The positions and requirements for obtaining individual positions referred to in the preceding paragraph shall be defined by a general act issued by the President of the Court of Audit.

(4) The Court of Audit may employ trainees in accordance with the law.

Article 19
(Experts of the Court of Audit)

(1) The Court of Audit may, in undertaking the functions within its powers, involve experts in the preparation of its diagnosis or opinion.

(2) Any person with appropriate professional expertise may be appointed expert of the Court of Audit. The expert may be an individual or a legal entity (expert institution).

(3) A foreign citizen who is a recognised expert in a discipline of relevance for the exercise of the powers of the Court of Audit may likewise be appointed expert of the Court of Audit.

(4) The President of the Court of Audit shall appoint experts of the Court of Audit and shall relieve them of duty by issuing a decision. The appointment shall be made for an indefinite period of time.

(5) The appointed expert acquires the status of an expert of the Court of Audit on the day of taking the oath before the President of the Court of Audit. In the case of an expert institution, its representative officer shall take the oath. The oath shall read as follows: "I/we swear upon my/our honour that I/we will carry out my/our expert work conscientiously, impartially and in accordance with the rules of science and professional knowledge; that I/we will present my/our findings and opinions exactly and completely and that I/we will permanently protect any information which constitutes a state, official, business, industrial or military secret.

(6) An expert appointed under paragraph (3) of this Article who does not have a command of the Slovene language, shall take the oath from the preceding paragraph using an official translation of the text.

(7) Upon taking the oath, the expert shall be entered into the directory of experts of the Court of Audit.

(8) The expert of the Court of Audit may refer to his/her status only when presenting a diagnosis or an opinion upon the request of the Court of Audit; in any other case only with the permission of the President of the Court of Audit.

(9) The Court of Audit shall be responsible for audit findings also in cases where they are based on the opinion or diagnosis of an expert.

3. Powers of the Court of Audit

Article 20
(Auditing Powers)

(1) The Court of Audit shall audit the business operation of users of public funds:
1- it may carry out regularity and performance audits;
2- it may audit any act on past operations as well as any act on planned business operation of any user of public funds.

(2) The act referred to in paragraph (1), Item 2, of this Article may be any act prescribed by law or any special financial statement or report which the user of public funds is obliged to prepare at the request of the Court of Audit.

(3) Auditing of business operation under this Act shall be the obtaining of relevant and sufficient data to express an opinion on the business operation of the auditee:
1- Regularity audits provide relevant and sufficient data to enable an opinion to be expressed on compliance of operation with regulations and guidelines that any user of public funds is required to observe in the conduct of business operation;
2- Performance audits provide relevant and sufficient data to enable an opinion to be expressed on economy, efficiency and effectiveness of business operation.

(4) The opinion issued by the Court of Audit on the business operation of the auditee must be respected by every state body, local community body and the relevant user of public funds.

(5) The user of public funds under this Act shall be:
1- any legal entity of public law or a unit thereof;
2- any legal entity of private law provided that one of the following applies:
- it has received financial support from the budget of the European Union, state budget or local community budget;
- it performs public services or provides public goods on concession basis;
- it is a commercial company, bank or insurance company in which the state or a local community holds the majority share;
3- any physical person provided that one of the following applies:
- he/she has received financial support from the budget of the European Union, state budget or local community budget;
- he/she performs public services or provides public goods on concession basis.
(6) In the process of audit under this Act, it shall be deemed that the business operation of a user of public funds comprises:
1- all actions by the user of public funds, which have impact on his/her receipts and disbursements, revenues and expenses or assets and liabilities, respectively (business operation in the restricted sense);
2- all actions by the user of public funds, which have impact on the state of public assets, public debt, the provision of public goods or the state of the environment (business operation in the broader sense).

(7) In addition to audits carried out under of this Act, the Court of Audit shall conduct other audits, if so provided by a specific law.

Article 21
(Consulting Users of Public Funds)

The Court of Audit shall consult the users of public funds as follows:
1- it shall provide recommendations at the time of performing the audit and in the report referred to in Article 28 of this Act;
2- it may make comments on working drafts of laws and other regulations;
3- it may participate in meetings and seminars on public finance issues;
4- it shall put forward proposals in the report referred to in Article 5, paragraph (2), of this Act;
5- it may express opinions on public finance issues.

Article 22
(Issuing Certificates for Titles of Auditors)

(1) The Court of Audit shall issue certificates for the titles of State Auditor and Certified State Auditor.

(2) The State Auditor Certificate may be issued to a person who fulfils the following requirements:
1- holds a professional title;
2- has relevant work experience;
3- has gathered sufficient number of points from audit achievements;
4- has passed the examination for the title of State Auditor.

(3) The Certified State Auditor Certificate may be issued to a person who meets the requirements referred to in Items 1 to 3 above and who has passed the examination for title of Certified State Auditor.

(4) The certificates from paragraph (1) of this Article are public documents.

(5) Requirements for the acquisition of the titles and conditions for the issuance of auditor certificates referred to in paragraph (1) of this Article shall be specified in detail in the general act of the Court of Audit issued by the President of the Court of Audit.

Article 23
(Issuance of Auditing Standards and Manuals)

The Court of Audit shall issue by itself or in co-operation with the Slovenian Institute of Auditors, auditing standards for reviewing the business operation of users of public funds in the Republic of Slovenia; the auditing standards shall apply to the exercise of auditing powers of the Court of Audit, including audit manuals and other professional literature important for the development of the audit profession.

4. Exercise of Auditing Powers

Article 24
(General Rules of Auditing)

(1) The Court of Audit must conduct audits:
1- in accordance with generally accepted auditing principles and rules;
2- in accordance with international standards of auditing published in the Slovene language.

(2) The Court of Audit shall conduct audits in accordance with auditing standards that shall be defined in Instructions issued by the President of the Court of Audit and published in the Official Gazette of the Republic of Slovenia.

(3) The Court of Audit must protect all obtained information which constitutes a state, official, business, industrial or military secret.

(4) In the exercise of its auditing powers, the Court of Audit may rely upon a report prepared by an auditing company.

(5) The Court of Audit shall undertake the audits referred to in Article 20, paragraph (7), of this Act in accordance with the methods and procedures determined by this Act.

Article 25
(Selection of Audits)

(1) Within the framework set by the law, the Court of Audit shall independently decide which audits they will carry out in any individual period of time.

(2) In determining the audits to be carried out in a certain calendar year, the Court of Audit shall consider proposals made by deputies and working bodies of the National Assembly, Government, ministries and local community bodies. They must consider at least five proposals from the National Assembly from which at least two must be given by opposition deputies and a further two by working bodies of the National Assembly.

(3) The report referred to in Article 5, paragraph (2), of this Act must contain:
1- a list of all audit proposals made by deputies and working bodies of the National Assembly;
2- clear evidence as to which audits have taken into account the proposals noted in the preceding Item.

(4) Every year, the Court of Audit must audit:
1- the regularity of the implementation of state budget (the regularity of state activities);
2- the regularity of business operation of the public institute of health insurance;
3- the regularity of business operation of the public institute of pension insurance;
4- the regularity of business operation of a suitable number of urban and other municipalities;
5- the business operation of a suitable number of public utilities providers;
6- the business operation of a suitable number of providers of non-commercial public services.

(5) The audits under Items 2 and 3 above shall be limited to the regularity of business operation relating to the compulsory insurance scheme.

Article 26
(Pre-Audit Enquiry)

(1) The Court of Audit may, prior to the commencement of audit, demand the user of public funds to provide all information which they consider relevant to their audit, including bookkeeping documents, data and other documentation, and make other enquiries necessary for the planning or conducting the audit.

(2) The demand for submission of data must be fulfilled within eight (8) days from its delivery.

Article 27
(Commencement of Process of Audit)

(1) The Court of Audit shall start the process of audit by issuing a decision on the undertaking of audit.

(2) An objection against the decision on the undertaking of audit is permitted. The objection must be filed within eight (8) days from the delivery of the decision.

(3) The Senate of the Court of Audit shall decide on the objection and issue an order by which the objection is dismissed, refused or accepted as justified.

(4) The objection shall be considered justified, if it is shown that the audit is not within the auditing powers of the Court of Audit. The ruling on dismissal or refusal of objection is not subject to appeal.

(5) The user of public funds who has received the decision on the undertaking of audit (hereafter referred to as the auditee) shall enable the authorized staff of the Court of Audit to carry out the examinations necessary for achieving audit objectives (hereafter referred to as undertaking the audit).

(6) Undertaking the audit shall comprise:
1- an examination of the system or of certain sub-systems of the business operation and accounting of the auditee;
2- an examination of bookkeeping and other documents related to the business operation of the auditee;
3- an examination of the premises, facilities and equipment used by the auditee in their business operation;
4- any other audit actions necessary to achieve the audit objectives.

(7) If the authorized representative of the Court of Audit who is performing the audit believes that suspicion exists that some violation or criminal offence has been committed, he/she may seize the documentation, for up to eight (8) days. He/she shall issue a certificate of the seizure.

(8) Should the auditee make it impossible for the authorized staff of the Court of Audit to commence their audit within fifteen (15) days after the decision on the undertaking of audit has been delivered, or should in the course of audit the authorized staff of the Court of Audit estimate that the auditee is not willing to cooperate with the auditors, the Court of Audit may issue to the auditee an order for the submission of documents; the order shall contain a list of bookkeeping and other documents on business operation to be submitted by the auditee. The Court of Audit may issue several supplements to the order for the submission of documents.

(9) The order for the submission of documents must be fulfilled within eight (8) days from delivery. The same applies to any supplement to the order.

Article 28
(Completion of Process of Audit)

(1) The Process of audit shall be completed by issuing an audit report. In the audit report, the Court of Audit shall provide their opinion on the business operation of the auditee.

(2) Before the audit report is issued, the auditee shall be invited to a clearance meeting. He/she shall receive a draft audit report to serve as the basis for discussion. If the audit is carried out at several auditees (a cross-sectional audit), the draft audit report is provided to individual auditees in sections that are relevant to them.

(3) No clearance meeting shall be necessary, if the auditee notifies the Court of Audit in writing, within eight (8) days from delivery, that no disclosure in the draft audit report is challenged.

(4) There may be several clearance meetings. The first meeting shall take place no sooner than eight (8) and the last one no later than thirty (30) days after the draft audit report is delivered.

(5) Clearance meetings shall be conducted by the auditor authorized by the Court of Audit and shall normally take place at the registered office of the auditee.

(6) If no auditee's representative attends the clearance meeting, it shall be deemed that the auditee does not challenge any disclosure in the draft audit report, except where, within three (3) days after the clearance meeting, the auditee's representative has proved that he/she did not attend the meeting for some justified reason.

(7) At the clearance meeting, the auditee's representative may:
1- challenge individual disclosures in the draft audit report;
2- present explanations to audit disclosures.

(8) Should the Court of Audit acknowledge that the challenge to an audit disclosure (referred to under Item 1 above) is substantiated, such disclosure shall be excluded from the audit report. The Court of Audit may carry out some additional audit tests before excluding any disclosure.

(9) Explanations referred to under Item 2 of paragraph (7) above may be included in the audit report.

(10) After clearance meetings, the auditor authorized by the Court of Audit shall submit the draft audit report, including the auditee's comments, if any, to the competent Member or to the Supreme State Auditor of the Court of Audit. The competent Member or Supreme State Auditor of the Court of Audit shall review the audit report and auditee's comments, and shall establish whether the comments are justified, whether the findings are based on documentary evidence, and whether the audit procedures have been carried out in accordance with auditing standards. Having evaluated the comments to and the findings of the audit, the competent Member or the Supreme State Auditor shall issue a proposed audit report and deliver it, within 15 days after the final clearance meeting to the auditee and to those auditee's officers who were responsible in the period covered by the audit performed. In those cases were no clearance meeting is necessary (see paragraph (3) above), the competent Member of the Court of Audit shall issue the proposed audit report within 10 days after having received auditee's notification that no disclosure in the draft audit report is challenged.

(11) The auditee and the auditee's officer who was responsible in the period covered by the audit may file an objection against any audit disclosure in the proposed audit report. The objection shall be filed with the Court of Audit.

(12) The time-limit for filing objection against an audit disclosure in the proposed audit report shall be eight (8) days and commences the day after the proposed audit report was delivered to the auditee and/or to the auditee's officer who was responsible in the period covered by the audit.

(13) The President of the Court of Audit may order that the opinion of an expert of the Court of Audit is obtained on the proposed audit report as a whole or on any individual part thereof.

(14) If an audit disclosure in the proposed audit report is challenged (an objection as referred to in paragraph (11) above), or some doubt has been expressed in the opinion from the preceding paragraph about professional correctness of a disclosure, such disclosure shall be considered to be disputable.

(15) The Senate of the Court of Audit shall decide on any disputed disclosure in the proposed audit report within fifteen (15) days following the receipt of the objection referred to in paragraph (11) above. It may decide that:
1- the disputed disclosure be excluded from the audit report;
2- the disputed disclosure be maintained in the audit report in unchanged form;
3- the disputed disclosure be maintained in the audit report in a form defined by the Senate.

(16) The audit report shall be delivered to:
1- the auditee;
2- the auditee's officer who was responsible in the period covered by the audit;
3- the National Assembly;
4- other authorities which, in the opinion of the President of the Court of Audit, shall be informed of the audit disclosures.

(17) If the auditee or the auditee's officer who was responsible in the period covered by the audit has filed an objection against an audit disclosure in the proposed audit report, he/she shall, upon the delivery of the audit report, also receive a response to the objection. The Senate of the Court of Audit determines and issues the response.

(18) No legal remedy is available against the response from the preceding paragraph.

(19) Both the draft audit report and the proposed audit report shall be confidential documents.

Article 29
(Post-Audit Procedure)

(1) The user of public funds in whose business operation the irregularities or inefficiencies have been disclosed, must submit to the Court of Audit, except in the case referred to in paragraph (3) of this Article, a report on the remedial actions taken with regard to the disclosed irregularities and inefficiencies (hereafter referred to as response report). The response report must be submitted within the time-limit defined by the Court of Audit in the range between thirty (30) to ninety (90) days and shall commence on the day following the date on which the audit report was delivered to the user of public funds.

(2) The response report shall be verified by signature and seal of the responsible officer of the user of public funds. The response report shall be an official document.

(3) No response report shall be required in cases where the audit report contains the statement that appropriate corrective measures for the remedy of disclosed irregularities and inefficiencies have already been taken in the course of the audit.

(4) The Court of Audit may undertake an audit to verify the credibility of the response report.

(5) If the Court of Audit estimates that the response report does not provide for a satisfactory remedy of a disclosed irregularity and inefficiency, it shall be deemed that the user of public funds has violated the requirement for operational efficiency. Unsatisfactory remedy of any material irregularity or material inefficiency is deemed to be a serious violation of the requirement for operational efficiency.

(6) Materiality of irregularities and inefficiencies in the business operation of a user of public funds shall be judged in accordance with guidelines issued by the President of the Court of Audit.

(7) If the requirement for operational efficiency has been violated, the Court of Audit may issue a call for remedial action. The call shall be issued to the relevant authority which the Court of Audit considers to be able, within the scope of its powers, to take action against the user of public funds who has been violating the requirement for operational efficiency.

(8) The authority to which the call for remedial action was delivered shall submit to the Court of Audit a report on the actions taken or an explanation of the omission of action within thirty (30) days after receipt of the call.

(9) If the requirement for operational efficiency has been seriously violated, the Court of Audit shall notify the National Assembly.

(10) Having received such notification as set out in the preceding paragraph, the working body of the National Assembly responsible for budgetary and other public finance control shall adopt, after a discussion to which a representative of the user of public funds has also been invited, within the scope of its powers, a decision on measures to be taken in respect of the serious violation of the responsibility for operational efficiency.

(11) If the requirement for operational efficiency has been seriously violated, or if there is a violation of Article 27, paragraphs (8) and (9) of this Act, the Court of Audit shall also issue:
1- the call for the dismissal of the officer responsible;
2- a press release.

(12) In the call referred to under Item 1 of the preceding paragraph, the Court of Audit shall name the person or persons who shall be dismissed. The call for their dismissal shall be issued to the relevant authority which the Court of Audit considers to be able to carry out or initiate the procedure for dismissal.

(13) Should the Court of Audit establish that the supervisory board of a local community does not perform its functions, or does not perform them appropriately, it shall propose to the local community council that it relieves the board of its duties.

(14) The authority which has received the call for the dismissal of the responsible officer shall decide upon the call and notify the Court of Audit of its decision in writing within fifteen (15) days after receipt of the call.

Article 30
(Motions to Misdemeanours Judge and to State Prosecutor)

In the case of a justified suspicion that a violation or criminal offence has been committed, the Court of Audit shall propose the commencement of proceedings against such violation or file the motion for prosecution, as appropriate.

5. Conditions for the Work of the Court of Audit

Article 31
(Resources for the Work of the Court of Audit)

(1) Resources for the work of the Court of Audit shall be determined by the National Assembly upon a proposal made by the Court of Audit and shall form a constituent part of the state budget.

(2) Financial statements of the Court of Audit shall be audited by an auditing company, selected by the National Assembly upon the proposal of its working body responsible for budgetary and other public finance control.

(3) The Court of Audit shall submit to the National Assembly the report issued by the auditing company.

Article 32
(Support by Government Services)

(1) The tasks for which the Court of Audit has no appropriate service of its own shall normally be carried out for the Court of Audit by the relevant Government services.

(2) The tasks from the preceding paragraph are particularly those connected with the preparation and implementation of public procurement for the needs of the Court of Audit.

6. Employment Provisions

Article 33
(Employment Status of the Members of the Court of Audit)

(1) Members of the Court of Audit shall be officials of the Court of Audit.

(2) The National Assembly shall issue both the act on assumption of office and the act on termination of office for each Member of the Court of Audit.

(3) The period from the date of their commencement of office to the date of their termination of office shall be counted as years of service for each Member of the Court of Audit.

(4) The President of the Court of Audit shall be entitled to the salary as determined for the President of the Constitutional Court.

(5) The Deputy Presidents of the Court of Audit shall be entitled to the salary as determined for a constitutional judge.

(6) Other benefits and rights of Members of the Court of Audit shall be determined in accordance with the provisions of laws regulating such rights for officials in state bodies.

(7) Members of the Court of Audit who, prior to their appointment, were employed in a state body, public company or public institution, shall have the right, within three months after the termination of their office as Member of the Court of Audit, to return to the duties they had previously performed or to another job which equates to the nature and degree of their professional qualifications.

Article 33.a
(Rights of Members of the Court of Audit after the Termination of their Office)

(1) The member of the Court of Audit whose office has ceased and who, for objective reasons, cannot continue with his previous work or obtain some other appropriate employment, and has not fulfilled the minimum conditions to qualify for a retirement pension without any reduction in accordance with the regulations governing the mandatory pension and disability insurance, or special provisions which govern the right to the retirement pension, shall be entitled, until he obtains employment or starts pursuing a gainful activity, or until he fulfils the indicated conditions for retirement, to compensation in the amount of 80 percent of the last monthly salary that he received in performing his office, but no longer than for a period of nine months after the termination of his office as a member of the Court of Audit. If instead of the last salary he received compensation, the compensation referred to in this paragraph shall be determined based on the last monthly salary that he would have received in performing his office.

(2) The entitlement to compensation referred to in the preceding paragraph can be prolonged pending the fulfilment of the conditions for retirement indicated in the preceding paragraph, but only for six more months at the longest.

(3) The member of the Court of Audit who had performed his office as a member already before the expired term of office, shall be entitled to receive compensation for an additional period of three months for any previous term of office.

(4) The period of receiving compensation shall be computed into the pension qualifying period of the member of the Court of Audit whose office has ceased. During this period he shall enjoy social insurance according to regulations governing the social security of the employed while upon retirement he shall be further entitled to severance pay.

(5) The member of the Court of Audit whose office as a member has ceased within one year after his appointment, shall not be entitled to compensation.

Article 33.b
(Exercise of the Right to Compensation)

(1) The right to compensation shall be decided upon by the competent working body of the National Assembly.

(2) To be able to exercise the right to compensation, the member of the Court of Audit whose office has ceased, should within 15 days after the termination of his office submit to the competent working body of the National Assembly an application for the exercise of the right to compensation as well as evidence of compliance with the conditions for entitlement to compensation. Should it not be possible to return to work under the previous employer, it is necessary to show why the return is not possible.

(3) The application for the exercise of the right to compensation shall be decided upon by the competent working body of the National Assembly not later than 14 days from its submission by decision.

(4) The right to receive compensation shall cease, if the member of Court of Audit whose office has ceased starts performing another office before the expiry of the period during which he is entitled to compensation, or obtains employment, starts pursuing a gainful activity or fulfils the minimum conditions to qualify for a retirement pension without any reduction in accordance with the regulations governing the mandatory pension and disability insurance, or special provisions which govern the right to the retirement pension.

(5) The member of the Court of Audit whose office has ceased shall be obliged to notify during the period of receiving compensation the competent working body of the National Assembly and the authority paying compensation about all the receipts for performing his duties not later than seven days after receiving the payment. The amount of compensation due to the member of the Court of Audit whose office has ceased in accordance with the first paragraph of the preceding Article, shall be reduced by the amounts received after payment of taxes and mandatory contributions, which shall be calculated as of the next payment of compensation.

(6) The member of the Court of Audit whose office has ceased shall, in order to avoid the provisions on the duration and the amount of compensation, not be allowed to enter into agreements on deferred payments and other arrangements that would be contrary to the purpose of the right to compensation.

(7) Should the member of the Court of Audit whose office has ceased act contrary to the fifth and sixth paragraph of this Article, he shall no longer be entitled to compensation and shall be obliged to return the amounts of compensation unduly received.

(8) Compensation, social security contributions and severance pay shall be paid from appropriations of the Court of Audit.

Article 34
(Employment Status of Supreme State Auditors)

(1) The Supreme State Auditor is an official of the Court of Audit.

(2) The President of the Court of Audit shall issue both the act on assumption of office and the act on termination of office for each Supreme State Auditor.

(3) The period from the date of their commencement of office to the date of their termination of office shall be counted as years of service for the Supreme State Auditors.

(4) The Supreme State Auditor shall be entitled to a base salary equal to 90 per cent of the salary determined for the constitutional judge.

(5) Other benefits and rights of Supreme State Auditors shall be determined in accordance with the provisions of laws regulating such rights for officials in state bodies.

Article 35
(Employment Status of Secretary of the Court of Audit)

(1) The Secretary of the Court of Audit is an official of the Court of Audit.

(2) The President of the Court of Audit shall issue both the act on assumption of office and the act on termination of office for the Secretary of the Court of Audit.

(3) The time from the date of the commencement of office to the date of his/her termination of office shall be counted as years of service for the Secretary of the Court of Audit.

(4) The Secretary of the Court of Audit is entitled to a base salary equal to 90 per cent of the salary to which a Supreme State Auditor is entitled.

(5) Other benefits and rights of the Secretary of the Court of Audit shall be determined in accordance with the provisions of laws regulating such rights for officials in state bodies.

Article 36
(Employment Status of Staff in Services within the Court of Audit)

(1) All staff working in the services within the Court of Audit shall have the employment status of persons employed with state bodies.

(2) The decision on employment and the decision on termination of employment shall be issued by the President of the Court of Audit.

(3) All staff working in the services within the Court of Audit shall be entitled to a salary no less than the salary of employees as determined in the provisions defining the salaries in state bodies. The base pay may be increased by up to 30 per cent due to the special requirements of work with the Court of Audit (hereafter referred to as the institutional allowance).

(4) The persons entitled to institutional allowance, the level of institutional allowance for individual categories of beneficiaries and the method of calculating the institutional allowance shall be determined in the general act of the Court of Audit issued by the President of the Court of Audit.

(5) Other benefits and rights of persons employed in the services within the Court of Audit shall be determined by the provisions of laws regulating such rights for officials in state bodies.

(6) All staff working in the services within the Court of Audit may only hold office or be engaged in any activity or work outside the Court of Audit if this does not damage the reputation of the Court of Audit; the President of the Court of Audit shall decide about it on a case-by-case basis.

(7) The decision from the preceding paragraph shall not prejudice the right of to organize or be a member of a trade union.

Article 37
(Fees of Experts of the Court of Audit)

An expert of the Court of Audit is entitled to charge a fee for his/her expert work, and be remunerated for the costs incurred in connection with his/her expert work.

7. Penal Provisions

Article 38
(Violation by Acting Officer or Individual)

(1) Should the user of public funds who has received the request for submission of data fail to carry out the request (Article 26, paragraph (2)) in due time, the acting officer of the user of public funds shall be fined EUR 2,000 for such violation.

(2) Should the auditee who has received the order for submission of documents fail to submit to the Court of Audit all documents listed in the order or in the supplement to the order for the submission of documents (Article 27, paragraphs (8) and (9)) in due time, the acting officer of the auditee shall be fined EUR 2,000 for such violation.

(3) Should the user of public funds in whose operations irregularities or inefficiencies have been disclosed and for which the provision of Article 29, paragraph (3) does not apply, fail to submit to the Court of Audit the response report (Article 29, paragraph (1)) verified by signature and stamp of the acting officer (Article 29, paragraph (2)) in due time, the acting officer of the user of public funds shall be fined EUR 2,000 for such violation.

(4) Any individual who has committed an act referred to in paragraphs (1), (2) and (3) hereof shall be fined EUR 600.

(5) Should the authority to which the call for action has been transmitted fail to submit to the Court of Audit the report on the actions taken or an explanation of the omission of action (Article 29, paragraph (8)) in due time, the acting officer of the authority shall be fined EUR 2,000 for such violation.

(6) Should the authority which has received the call for the dismissal of the acting officer fail to decide upon such call or to notify the Court of Audit of its decision (Article 29, paragraph (14)) in due time, the acting officer of the authority shall be fined EUR 2,000 for such violation.

(7) The Court of Audit shall be the misdemeanour authority deciding upon violations and imposing fines under this Article.

(8) Proceedings for the violation under this Article shall be conducted and decided upon by an official of the Court of Audit who meets the conditions stipulated by the Act governing violations and the regulations adopted on the basis thereof.

Article 38.a
(Violation concerning the Exercise of the Right to Compensation)

(1) A fine of EUR 1,000 shall be imposed on the member of the Court of Audit whose office has ceased, if during the period of receiving compensation he fails to notify in accordance with Article 33.b, paragraph (5) of this Act the competent working body of the National Assembly and the authority paying compensation about all the receipts for performing his duties or if during the period of receiving compensation he enters into agreement on deferred payment or other arrangement contrary to Article 33.b, paragraph (6) of this Act.

(2) The exercise of the right to compensation shall be supervised by the Budget Supervision Office acting as a misdemeanour authority.

8. Transitional and Final Provisions

Article 39
(Transition Period)

(1) Within six months after the entry into force of this Act, the Senate of the Court of Audit shall adopt their Rules of Procedure and submit them to the National Assembly for consent.

(2) Within six months after the entry into force of this Act, the Court of Audit shall publish their first Instructions referred to in Article 24, paragraph (2) of this Act in the Official Gazette of the Republic of Slovenia.

(3) Control procedures for which the final report has not been issued by the date of entry into force of the present Act shall be completed under the hitherto valid regulations.

Article 40
(Continuity of Term of Office of the President and Deputy President of the Court of Audit)

(1) The President of the Court of Audit who has been appointed in accordance with the Court of Audit Act (Official Gazette RS No 48/94; hereafter referred to as 1994 Act) shall, after this Act has entered into force, continue to hold office of the President of the Court of Audit until the expiry of the term for which he/she has been appointed under the 1994 Act.

(2) The Deputy President of the Court of Audit who has been appointed in accordance with the 1994 Act shall, after this Act has entered into force, continue to hold office of the First Deputy President of the Court of Audit until the expiry of the term for which he/she has been appointed under the 1994 Act.

Article 41
(Continuity of Term of Office of Members of the Court of Audit)

(1) The Member of the Court of Audit who has been appointed in accordance with the 1994 Act and has, before the entry into force of this Act, not held the office of President or Deputy President of the Court of Audit (hereafter referred to as Member of the Court of Audit under 1994 Act) shall, after the entry into force of this Act, hold the office of Supreme State Auditor pursuant to Article 14, paragraphs (5) and (6), until the expiry of the term for which he/she has been appointed under the 1994 Act.

(2) A Member of the Court of Audit under the 1994 Act is entitled to a salary as determined for the constitutional judge and other rights under Article 33, paragraphs (3), (6), (7), (8), (9) and (19) of this Act.

(3) A Member of the Court of Audit under the 1994 Act shall be relieved or dismissed from office prior to the expiry of his/her term if:
1- the Member himself/herself so requests;
2- the Member has been sentenced to a term of imprisonment for a criminal offence;
3- the Member has become permanently incapable of performing his/her duties;
4- the Member ceases to meet the requirements for Member of the Court of Audit under the 1994 Act;
5- the Member does not act in accordance with this Act or the oath referred to in Article 8, paragraph (1) of the 1994 Act.

(4) A Member of the Court of Audit under the 1994 Act may be relieved or dismissed from office prior to the expiry of his/her term if the National Assembly establishes the occurrence of one of the reasons from the preceding paragraph and decides on early dismissal on that ground. The term of office of the Member of the Court of Audit under the 1994 Act shall terminate on that day.

Article 42
(Constitution of the Senate of the Court of Audit)

(1) Within fifteen (15) days from the entry into force of this Act, the President of the Court of Audit shall propose the candidate for the Second Deputy of the President of the Court of Audit. The proposed candidate must be one of the Members of the Court of Audit under the 1994 Act.

(2) The National Assembly must vote on the proposed candidate for the Second Deputy President of the Court of Audit within thirty (30) days after the submission of the proposal. Voting shall be by secret ballot. The proposed candidate for the Second Deputy of the President of the Court of Audit shall be appointed if the majority of votes of all deputies are cast in his/her favour.

(3) The proposed candidate for the Second Deputy President of the Court of Audit shall attend the session at which the National Assembly decides on his/her candidature.

(4) Should the proposed candidate for the Deputy President of the Court of Audit not receive the necessary majority of deputies' votes in the National Assembly, the President of the Court of Audit shall propose a new candidate. The new proposal shall be submitted within fifteen (15) days from the voting at which the previous proposal did not obtain the required majority of deputies' votes.

(5) The Member of the Court of Audit under the 1994 Act who has been appointed Second Deputy President of the Court of Audit shall hold office of the Second Deputy President of the Court of Audit until the expiry of the term for which he/she has been appointed Member of the Court of Audit under the 1994 Act.

Article 43
(Salaries of Deputy Presidents of the Court of Audit)

Deputy Presidents of the Court of Audit who have been appointed Members of the Court of Audit under the 1994 Act shall be entitled, until the expiry of their term, to a salary equal to the salary of the Members of the Court of Audit under the 1994 Act increased by one half of the difference between the salary of a Member of the Court of Audit under the 1994 Act and the salary of the President of the Court of Audit.

Article 44
(Termination of Validity)

(1) On the day when this Act enters into force, the Court of Audit Act (Official Gazette RS No 48/94) shall cease to be valid.

(2) On the day when this Act enters into force, the part of Article 18, paragraph (1), of the Execution of Judgments in Civil Matters and Insurance of Claims Act (Official Gazette RS, No 51/98) which determines that the order issued by the Court of Audit of the Republic of Slovenia for remedy of illegal acts is deemed to be a court decision and, consequently, an executory title, shall cease to be valid.

Article 45
(Entry into Force of this Act)

This Act shall enter into force on the fifteenth day after its publication in the Official Gazette of the Republic of Slovenia.

Published in Official Gazzette Repubic Slovenia, No. 11/01 and 109/12.
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