Nowogrodziec councillor under prosecutor’s scrutiny? The chair of the Audit Committee raises questions about integrity

Audit Committee – guardian of public trust

Audit committees are fundamental components of all organizations. An Audit Committee is a supervisory body entrusted with a high degree of confidence. Members of Audit Committees consciously take upon themselves duties related to monitoring and supervising the activities of the organization they joined of their own free will.

Being a member of an Audit Committee means being aware of the expectations of the other members of the organization, who rely on their integrity to ensure honest oversight of the organization’s statutory activities.

What is the case involving the councillor from Nowogrodziec about?

I am deliberately discussing the qualities and duties of Audit Committees at length in order to refer to the information contained in the article Councillor accused. It concerns the committee meeting documentation. As we read, a councillor of the Nowogrodziec Municipal Council—specifically, the chair of the Audit Committee—allegedly changed the wording of a resolution giving an opinion on budget execution.

This is precisely where we reach the reason I tried to demonstrate the degree of integrity required of members of all Audit Committees. Within local-government structures, this is a committee of fundamental importance. The public trusts councillors, and councillors trust the members of the Audit Committee. The chair is their head, and therefore the person deemed most worthy of trust. The public entrusts its representatives with multimillion-zloty funds in confidence, convinced that they are in “good hands” and that the budget will be implemented honestly and purposefully.

Budget oversight – behind the scenes of an inspector’s work

What emerges from this situation? Professionally, I have dealt with analyzing and auditing all kinds of budgets, both company budgets and public funds. I perform these tasks for the public good, with seriousness and substantive knowledge—otherwise there is no point. I myself also served as chair of the Audit Committee in the Nowogrodziec municipality, and on the County Council as a committee member. There were occasions when audits resulted in motions to return money to the municipal treasury or motions to refer specific matters to the prosecutor’s office. Everywhere there are only people, and consequently different practices and interpretations of the law. That is what the Audit Committee is for: to ensure reliability and compliance with legally mandated procedures.

Committee members must accept that their actions will not win them popularity and that their motions will not necessarily please local-government officials. But that is their task. A properly conducted audit makes it possible to correct an error or prevent it from continuing in the future. A properly conducted audit is valuable in itself, even if it does not make the auditors popular.

Questions the prosecutor must answer

The account we have read raises questions about the motives that led the chair to commit this act, but the court will probably examine them. I, however, am interested in what prompted the chair of the Audit Committee of the Nowogrodziec Municipal Council, after having previously taken an oath, to take such a step.

I do not think he did it on his own initiative; I see neither a reason nor an interest. What was there in the budget execution that would have required such conduct? Will the court take an interest in this aspect? It cannot be that the committee chair alone is stigmatized and that is the end of the matter.

Discharge, RIO and the limits of oversight

To be clear, both the Audit Committee and the Regional Accounting Chamber examine budget execution, which forms part of the motion to grant or refuse discharge. The criterion applied when granting discharge is not the purposefulness of public spending, but its compliance with the law, chiefly with resolutions of the Municipal Council. The desperation of those involved may—but need not—have consisted in concealing money spent while bypassing certain legal aspects. This too should be investigated by the law-enforcement authorities—I trust that it is.

Let us not hide the fact that an honest auditor must reckon with ostracism; this is not a popular role. Because of my profession, I was prepared for such a fate, and it still takes its toll. However, by taking on such a duty, one must be aware that even when one is right, one will not always receive expressions of recognition and sympathy.

Integrity above all

Nothing can justify people responsible for supervising compliance with the law breaking that law. By virtue of his position, the chair himself benefits from special legal protection. However, one cannot “have one’s cake and eat it too”—and this is not about glucose levels.

Let this situation be an example to others. All it takes is honesty. It is unpopular in our times, but it brings peace of mind—believe me.