Strengthening Good Governance Through Financial Audits: The Albanian Experience – INTOSAI Journal

Author: Lorena Lici
Effective financial oversight is foundational to good governance. The Supreme State Audit Institution of Albania (KLSH) plays a vital role in safeguarding public resources, promoting accountability, and reinforcing trust in public institutions. This article shares key findings from the institution’s 2023 audit activities, assesses their impact on public sector governance, and identifies best practices applicable across INTOSAI member SAIs.
KLSH operates under a strategic framework aligned with its mission to support parliamentary oversight and ensure the efficient, effective, and economical use of public funds. Three overarching strategic goals are tracked through performance indicators. In 2023, KLSH issued 71 financial audit opinions, underscoring its commitment to accountability.
Key audit focus areas included:
The audits resulted in 1,024 recommended measures, categorized as corrective financial, damage compensation, disciplinary, and administrative. Verification of recommendation implementation showed mixed outcomes:
KLSH referred 67 audit reports to the Special Prosecution Against Corruption and Organized Crime and an additional 24 cases to local prosecutor offices. These referrals demonstrate the institution’s cooperation and role in combating corruption and enforcing accountability beyond administrative measures.
Citizen engagement with KLSH is increasing, evidenced by 368 information requests and complaints in 2023—primarily regarding local government operations. KLSH responded promptly to all actionable cases, contributing to its growing public credibility.
The Support for Improvement in Governance and Management (SIGMA) initiative, a joint initiative of the Organization for Economic Co-operation and Development (OECD) and the European Union issued a report in 2023 on Public Administration Principles, and acknowledged KLSH under Principles 16 and 31 as a trusted, capable actor promoting effective service delivery and fiscal integrity. Survey data revealed:
The Albanian SAI’s experience in 2023 exemplifies the important role of SAIs in promoting integrity, fiscal discipline, and trust in public governance. While challenges persist in implementation and enforcement, structured audits, cross-sector cooperation, and public engagement form the pillars of its success. These practices offer valuable insights for peer SAIs committed to improving public sector outcomes through financial oversight.
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