Further development of Internal Control System and Internal Audit in the public administration of the Republic of Latvia – Phase II

Further development of Internal Control System and Internal Audit in the public administration of the Republic of Latvia – Phase II

The project was implemented from October 2023 to December 2025 under the Technical Support Instrument (TSI). The project has laid solid foundations for a modern, professional and strategically oriented public Internal Audit system in Latvia. By reinforcing institutional frameworks, professional capacities and a culture of integrity and performance, it has contributed to more effective and efficient use of public expenditure and stronger trust in public administration. Continued commitment and follow-up will be critical to consolidate and build on these achievements.

Context

The Republic of Latvia endorsed the National Reform Programme 2019 for Latvia for the implementation of the Europe 2020 Strategy, which outlines government measures to address structural challenges, including sustainable economic growth, job creation, and improved opportunities for citizens, while ensuring fiscal stability and high-quality public services. The programme highlights the need to increase efficiency and accountability in the public sector. Based on this, the Council recommended strengthening accountability and efficiency, particularly in local authorities and public enterprises. Consequently, Latvia faced an urgent need to further develop public internal control systems and strengthen public internal audit functions to safeguard public and EU funds and enhance transparency and management accountability.

Support delivered

The project was implemented by the provider. It supported the department for Internal Audit of the Ministry of Finance in Latvia through workshops, stakeholder coordination, diagnostic analyses and manuals, as well as study visits in Vienna and Linz (Austria). 

Results achieved

The Internal Audit function in Latvia has become more professional, better regulated, and more capable of delivering high quality assurance and advisory services. Internal control systems at central and local level have been strengthened, the risk of unaudited areas has been reduced, and the tools to safeguard public and European funds have been significantly improved. The project has laid a solid and sustainable foundation for continued development of public Internal Audit in Latvia, directly supporting transparent, efficient and effective management of public finances and reinforcing public trust in state institutions.