Internal and Civil Audit Tools

Through measurement of the good governance approach provided by the European Label of Governance Excellence (ELoGE), the Integrated Municipal Governance Model (IMGM) has been developed to operationalize and continuously improve municipal structures, processes, and activities. Use of the Model aims to support the acquisition of the ELoGE and contribute to the process of continuous development of the standards of the quality of good governance. The Model is expected to enable municipalities to provide more integrated, inclusive, fair, effective, and trustworthy activities for supporting the acceleration of sustainable development and improving the quality of life.

The diffusion and development of an integrated governance approach at the municipal level can be enhanced with effective internal and civic auditing mechanisms. An internal audit is an auditing tool as well as a mechanism for the effective management of institutional risks. Similarly, civic auditing is valuable not only for contributing to the development of good governance at municipalities but also for increasing the level of trust for civic actors (e.g., citizens assembly, civil society organizations CSOs). Therefore, within the IMGM project, internal and civic audit tools were developed.

The Benefits of AuditingTools for the European Label of Governance Excellence

Supports the diffusion of sustainable, inclusive, and democratic local good governance,
Helps the adoption and implementation of good governance principles in the municipal structures, workings, and activities,
Provides the opportunity for increasing the quality of decision-making and resource allocation by the municipality,
Contributes to the development of good governance monitoring and assessment culture among civil society actors,
Helps the enhancement of trust between the municipality and CSOs,
Provides an opportunity to identify the strengths and weaknesses of good governance in the municipality,
Supports the quality of institutional workings at the municipality.

At the tables, both internal audit and external civic audit indicators are defined. Municipal internal auditors and civic society actors can contribute the improvement of good governance quality at local governments through monitoring and evaluation with this table.

Principle 1. Citizen Participation, Fair Conduct of Elections, and Representation

Is there a policy for stakeholder participation at the municipality?
Is there a stakeholder map of the municipality? Does the map include all social groups? Have the stakeholders been prioritized according to policy areas?
Did the municipality conduct preliminary research about the expectations, needs, and demands of the identified stakeholders?
Are the targeted stakeholders for participation informed with a note regarding the topic to which they will participate? Is there a diversified information sharing for various groups (e.g., illiterate, immigrants)?
What kind of tools are used for stakeholder participation? Are interactive tools systematically used such as workshops, interviews, focus groups etc.
In which areas do stakeholder participation take place? Are participation areas in tandem with policy issues aiming at participation?
Despite those proposed in the policy area, is there any service provision and planning that takes place without participation? Why has this happened?
Are good governance principles incorporated into the competences of relevant units? Are they applied in everyday processes?
Did the stakeholders receive feedback with explanations regarding the suggestions made, the ones adopted, and which participator methods were used?

Is there a systematic, inclusive, and official consultation mechanism for municipal councilors and municipal directorates? If yes, is it regularly observed?
Is there an inclusive policy of the municipality regarding relations and engagements with the citizens assembly and CSOs? If yes, is it regularly observed?
Are the citizens assembly and CSOs consulted at the early stages of the decision-making processes?
Are the citizens assembly and CSOs provided with relevant information in prior participation processes?
As key stakeholders, are the citizens assembly and CSOs called upon for participation at all of the governing processes?
Did the municipality form its stakeholder list according to location, population, age, gender, income, impairment, and employment status as well as fragile social groups?
Is there a current list and data base of policies and plans prepared through participation?
Are there standards and rules for civic engagement and participation for municipal directorates?
Does the municipality publish regular, data based, and integrated reports about civic engagements and participation?

Principle 2. Responsiveness

Did the municipality act in accordance with internal regulations and rules when reaching decisions? If not, what were the reasons?
Does the municipality take decisions according to the evaluations based on data, research findings, reports etc.? If there were discrepancies, what were the reasons?
Is there an integrated system for monitoring the demands, complaints, and suggestions received? Are the demands, complaints, and suggestions regularly and meaningfully reported by the relevant units and also monitored?
Does the municipality respond to the demands in a timely fashion? What is the rate of response? If there are discrepancies, what were the reasons?

Are there clear regulations and rules for citizen assemblies and CSOs to monitor the actions of all managers and counselors taking part in decision-making processes?
If there is a need for the revision of policy and service delivery, are these revisions made on the basis of the research, reports, and consultation provided by citizens assembly and CSOs?
Does the municipality respond to the lawful needs of the citizens assembly and CSOs within a reasonable time?
Do the citizens assembly and CSOs avail themselves of the complaint mechanism used by the municipality and receive response?

Principle 3. Efficiency and Effectiveness

What are the completion rates of the objectives set out in the strategic plan and performance program? What are the reasons for the differences? Have there been any precautionary actions for improvement? What are these improvement actions?
Were the budget and expenditure comparatively assessed? What are the differences? Have there been any precautionary actions for improvement?
Does the municipality’s performance management system operate in compliance with the regulations?
Is there a municipal monitoring system for the good practices done by other municipalities? Did the municipality adapt any good practice from other municipalities?
Does the municipality annually perform an assessment of its capabilities and resources based on the results? After the assessment, did the municipality identify its improvement points? Is there a plan for these improvements?
Is there an annual training plan? Are the training topics in line with the identified improvement points?
Is the municipality’s information and technology system working according to internally accepted standards? Is there a gap in the data protection system?

Can the citizens assembly and CSOs easily follow up on the objectives and results of municipality? In this regard, can they access meaningful and quality driven information?
Does the municipality cooperate with the citizens assembly and CSOs for the implementation of prospective public policies?
Does the municipality exchange with the citizens assembly and CSOs on national and international good practices? Does it share information with the public on this practice?
Does the municipality spend money for more effective and efficient working with the citizens assembly and CSOs?
Does the municipality possess a protocol for cooperation and partnerships with CSOs?

Principle 4. Openness and Transparency

Are the decisions of the municipal council published at the municipality’s website? Are the reports, research findings, and data used for decision-making published?
Are the reports of municipal council commissions published on the municipality’s website?
At what rate does the municipality respond to the applications for information requests? Are there reasons for non-disclosure? Are the explanations provided for non-disclosure?
Does the municipality publish a citizen scorecard?

Are there processes and mechanisms which are understandable and widely available for the citizens assembly and CSOs to object to the decisions of the municipality?
Are there opportunities and tools for regular and easy communication between the citizen assembly, CSOs, and municipality?
Does the municipality actively inform the citizens assembly and CSOs about the relevant issues?
Do the citizens assembly and CSOs receive information about the municipality’s annual work program?

Principle 5. Rule of Law

What are the reasons for the current lawsuits against the municipality?
What are the rates of positive and negative results of the lawsuits?
Are there new lawsuits arising from past ones with negative judgements? What are the number of current lawsuits?

Are the type and number of pending lawsuits between CSOs and the municipality annually published?
Do the citizens assembly and CSOs have information about the complaints and requests for information made to the municipality?

Principle 6. Ethical Conduct

Have the ethical rules been shared with citizens?
Is there an ethics commission? Is there a report by the ethics commission?
How many times has the ethics commission been gathered annually? Have there been any corruption controls and investigations made recently? Was the evidence gathered, defenses made, the complainant, and witnesses heard throughout the investigation? What were the outcomes of the investigation(s)? Have the relevant authorities been informed?
Was there any public interest damage claim in the audit of the Court of Accounts? If there were such a claim(s), were any actions taken towards the person(s) involved?
Have there been any cases of corruption related lawsuits against the municipality as a result of a complaint? How were the lawsuits ended?
Has there been any case of investigation conducted by the central administration at municipality on the basis of ethical grounds?

Is there any mechanism available for the citizens assembly and CSOs to apply in the instances of corruption cases and public interest protection?
Are there defined ethical principles and processes regarding the relationship between the municipality and civil society? Is there a fair and impartial engagement system with civil society?
Is the information shared regarding the complaints made by citizens and other stakeholders about ethical matters as well as their results?
Are there ethical standards and rules for the functioning of municipal units? Can civil society actors easily access them?

Principle 7. Competence and Capacity

At the beginning of every year, are training programs prepared for the personnel’s development? At these programs, are the training defined for the personnel at different units? Is the training schedule drawn up?
Have the promotion and postings, rewarding, and sanctions been made according to legislation and regulations?
Are recruitments made according to legislation, competencies, and skills required?
Is there a job description for each position at the municipality?
Has a personnel satisfaction survey been made at the municipality? Have development and action plans been prepared according to the results?

Does the municipality support the capacity building of the citizens assembly and CSOs?
Does the municipality conduct training, seminars, etc. for its personnel in civil society relations?

Principle 8. Innovation and Openness to Change

Is there an innovation policy of the municipality?
Is there a unit responsible for research and development at the municipality? Does this unit report its annual activities and share what areas it has developed suggestions and to whom it has forwarded?
Does the municipality assess its research activities every year according to a strategy?
Does the municipality have a smart city strategy? Is the strategy implemented according to a plan? If there are differences and deviations, what are the reasons for these?

Does the municipality transfer innovative practices from the citizens assembly and CSOs?
Does the municipality run research and development activities in cooperation with civil society actors? Are innovations made according to these activities?
Does the municipality use information and communication technologies for making civil society relations more integrated, effective, and efficient?

Principle 9. Sustainability and Long Term Orientation

Have municipal units been informed about what sustainability means as well as how to plan and implement activities?
Did the municipality harmonize its planning of development activities with upper scale policies and plans? (e.g., sustainable development goals, national development plan) Is there a system of coordination with relevant institutions working on the same issues?
Does the municipality take into consideration the issues of climate change, biodiversity, immigration, demographic change, economic area development, city development etc. when planning its infrastructure investments?
Does the municipality assess the city’s historical heritage, ecological, social, cultural, education, and employment issues in its planning and activities?

Does the municipality assess the needs of future generations with civil society actors at its planning processes?
Are there cooperation and partnerships with CSOs in the area of sustainable development? Has information shared about the joint activities and projects been implemented?

Principle 10. Sound Financial Management

Is there an internal audit unit at the municipality?
Is there an internal control system at the municipality? Is it working effectively?
Are procurement, tender, and payment actions implemented in accordance with existing regulations?
Are financial reports prepared in comparison with budget spending and past periods? Are differences and deviations in these explained? Are corrective actions determined and shared publicly?
Are the reports of Court Accounts shared to the relevant stakeholders?
Are the reports of the municipal council’s audit commission accessible to stakeholders?
Is there citizen budget practice? Is it effectively implemented?
Are there mechanisms to prevent the municipality’s short- and long-term borrowings which may jeopardize future investments and services? Are they effectively implemented?
Does the municipality publish consolidated financial reports consisting of the accounts of municipal companies? Are the past differences explained with the reasons and relevant corrective actions are shared?

Does the municipality prepare service pricing relying on the research and inputs of civil society actors as well as protecting public interest?
Is the municipal budget prepared with the participation of the citizens assembly and CSOs? Is there a participatory budgeting practice?
Does the municipality publish information about the budget allocations and expenditure for civil society relations and cooperation?
Does the municipality receive grants or in-kind support from national and international CSOs? If yes, is the information shared regarding their type and amounts?
Is there a citizen budget or similar practice regarding financial affairs that informs civil society?

Principle 11. Human Rights, Cultural Diversity and Social Cohesion

Are the planning and activities of the municipality inclusive of all social groups? Are the activities, services, and investments of the municipality fairly distributed for all social groups?
Is there an integrated social policy of the municipality? Are the services, investments, services, and activities planned, implemented, and controlled in accordance with this policy’s objectives? Are deviations assessed, corrective actions formulated and implemented?
Are there policies, activities, and investments for the protection, assistance, and development of children, women, and other disadvantageous groups?
Are there integrated policies and plans for the empowerment of disadvantageous groups? Are investments, services, and activities prepared in accordance with this policy? Are the implementation results comparatively assessed with the objectives of this policy?
Are there municipal council commissions or working groups on equality, human rights, and cultural diversity?

Does the municipality carry out activities in cooperation with civil society actors for the protection of all citizens from discrimination and exclusion?
Does the municipality deploy the local cultural and social assets in support of the activities of civil society actors?
Does the municipality act in cooperation with civil society actors for intercultural cohesion and engagements in order to enhance social solidarity?
Does the municipality prepare policy and plans for disadvantageous social groups with the participation of civil society actors?
Does the municipality promote dialogue and cooperation among various social groups for the purpose of increasing diversity and cohesion?

Principle 12. Accountability

Are the decisions of the municipal council published on the website? Are the reports, research, and data for decision-making shared?
Are the reports of municipal council commissions published on their website?
At what rate does the municipality respond to applications requesting information? What are the reasons for non-disclosure?
Does the municipality publish a citizen budget?
Does the citizens assembly publish an annual activities report?

Does the municipality regularly prepare integrated, data based, and comparable reports for the activities carried out with citizens assembly and CSOs?
Can the citizens assembly and CSOs access the relevant reports and documents of the municipality?
Do the citizens assembly and CSOs regularly undertake activities for monitoring and evaluation? If yes, does the municipality support this process with practical steps?

Data and Information Sources for Civil Audit

There are various document and data sources for the use of civil society actors in monitoring and evaluating the activities of municipalities. Some of these sources are listed below:

Laws, regulations, and guides
Municipal website and social media accounts
Municipal council decisions
Reports of municipal council commissions
Strategic plan, performance program, and annual activities report
Budget and other financial documents
Institutional documents on the tasks and responsibilities of municipal directorates
The right to information mechanisms
The report of the Court of Accounts

Citizens assembly and CSOs can use the above documents, information, and data sources for the purpose of the civil auditing of municipalities. These groups can share the results of this audit with municipal council members and the public at large.

On behalf of citizens, the processes of monitoring, evaluation, and influencing the decisions and activities of municipal actors by the citizen assembly and CSOs would improve the quality of good governance, support continuous development, and increase the level of trust between the municipality and civil society.