Audit of local budgets: the experience of the SAI in the EU

This analytical report is devoted to studying the issue of local budget audits in EU countries conducted by Supreme Audit Institutions (hereinafter referred to as SAIs). This study is an attempt to systematize SAI practices in the EU, find adaptive tools, and identify possible pitfalls of different local budget audit systems. The relevance of the study is dictated by changes in the legislation on the Accounting Chamber of Ukraine, in particular the expansion of its powers to audit local budgets.

The study focused on 12 unitary countries where SAIs have the relevant mandate. In six cases, we were also able to obtain additional information through in-depth interviews with SAI experts. The report contains a detailed description of the system and approaches to local budget auditing in each country studied, as well as a section with an overview.

The results show that despite a common methodological basis — INTOSAI standards — practices vary significantly between countries. Some SAIs operate centrally, others in a two-tier system or without a direct mandate at the local level. In most countries, audit planning is based on a risk-oriented approach, using both quantitative indicators and qualitative criteria. Institutional capacity, digital solutions, transparency of procedures, and alignment with strategic government objectives also vary significantly.