|
|
14
within the Department of Finance that is also responsible for cash management, facilitating
close integration of the two functions. Debt management operations are overseen by an Asset
and Liability Management Committee. The committee is chaired by the director of the
Federal Finance Administration (FFA), and includes a representative of the SNB. The
committee meets quarterly and reviews cash and debt management operations, and risk
control. In order to provide a government guarantee, the government needs an appropriation
in the annual budget. Thus, de facto parliament approves all guarantees.
19.
There is no standardized legal framework for privatization.
1.2.5
Only one corporation, Swisscom, has been (partly) privatized. The process was orderly and
transparent. However, there is no standardized legal framework for such operations. At the
subnational level, some cantons have undertaken privatization projects.
B. Open Budget Processes
The budget preparation process: clarity and consistency of process and presentation
20.
The budget calendar and process are clearly defined and are followed in
practice; budget documentation is comprehensive and clear.
2.1.1
The legal base for preparing the budget is clearly set out.16 The budget preparation process is
outlined in Box 5. The fiscal year is on a calendar year basis. Budget preparation commences
in January with the FFA preparing a medium-term financial plan and budget guidelines.
Departments prepare their budget proposals in March and April. These are reviewed by the
FFA in May and June; approved by the federal council; and sent to parliament three months
prior to the winter session and four months prior to the beginning of the new fiscal year. The
budget documents sent to parliament have been streamlined recently into five volumes, and
are both comprehensive and clear (Box 6).
16 See Arts. 100, 126, 159, 167, and 183 of the Constitution; the Law of the Parliament of December 13, 2002;
the Finance Law of October 7, 2005; and the Ordinance on Finance of April 5, 2006. The legal base is described
in FFA, Principes Applicable à la Gestion des Finances, January 2008. This document also sets out the
indicative timetable for budget preparation (page 54), though the detailed timetable that each year is prepared
by the FFA is not published.
15
Box 5. The Budget Preparation Process in Switzerland
The fiscal year is set on a calendar year basis. The process of preparing the budget is divided into the
following five phases. The only date fixed in law (Finanzhaushaltsgesetz, FHG, Art. 29) is the submission of
the budget and financial plan to parliament (end-August). The timetable for the other steps in the budget
process is set out in the guidelines of the federal council.
Due Dates
Activities
Phase 1:
FFA prepares the medium-term fiscal framework (financial plan), and
January-February
expenditure ceilings for the forthcoming budget year, on the basis of
macroeconomic and revenue projections. The federal council approves the
guidelines and timetable for preparing the budget and the financial plan. Budget
guidelines are issued to departments, along with the expenditure ceilings.
Phase 2:
Departments prepare their budget bids on the basis of the budget guidelines and
March-April
detailed departmental instructions issued to the budget units. Departments must
submit their bids to the FFA before the end of April.
Phase 3:
Departments discuss their spending proposals and priorities with the FFA. At the
May-June
beginning of June, the federal council reviews the macrofiscal outlook and
approves the budget proposal and the medium-term financial plan.
Phase 4:
The FFA prepares the detailed budget proposals and the financial plan, which
July-August
are approved by the federal council for submission to parliament by the end of
August.
Phase 5:
The budget proposals are discussed by the two finance committees who prepare
September-December
a draft resolution for consideration by a plenary session of parliament. The
budget must be adopted by the end of December.
Source: FFA, Principes Applicable à la Gestion des Finances, January 2008.
The process of discussions within parliament is complex and lengthy, reflecting the existence
of two chambers of equal authority, and gives a strong role to the finance committees of the
two chambers.17 Parliament has unfettered powers under the Constitution to amend the
budget, subject to application of the debt brake rule. In practice, however, such amendments
are quite limited.
17 The budget bill is sent back and forth between the two chambers of parliament up to three times. If there are
still differences between the two chambers, the budget is sent to a “reconciliation committee,” comprising
members of both chambers. In case of extreme differences, parliament has the option of sending the budget
back to the federal council for revision, but this has not happened in practice.
16
Box 6. Budget Documentation
The Federal Budget documents presented to parliament in August comprise five volumes. Volume 1 is
intended to be a stand-alone summary of the budget. Volumes 2A and 2B contain the appropriations (credits)
by department and agency, with more detailed information in Volume 2B. Volume 3 provides information
supplementary to Volume 1, including more detailed and multi-annual information of the macroeconomic
forecasts, expenditures, and taxes. Volume 4 provides information on the special accounts (two EBFs,
technical institutes, and the alcohol board). Volume 5, the financial plan, presents the medium-term revenue
and expenditure estimates for the three years following the budget year. After parliament has made any
amendments and approved the budget, Volume 6 is published: it contains the final detailed appropriations.
The annual financial statements follow an identical structure, but do not include Volumes 5 and 6.
The medium-term framework and policy basis for the budget
21.
Budget forecasts and underlying macroeconomic assumptions are clearly
presented and generally realistic.
2.1.2, 4.3.3
The federal government’s macroeconomic forecasts are produced by an inter-departmental
group of experts led by the State Secreariat for Economic Affairs (SECO). A representative
of the SNB also participates as an independent observer, and the SNB produces and
publishes its own economic forecasts. The forecasts, which are produced four times a year,
are for the current year and one year ahead only. To compile the out-years in the medium-
term fiscal forecasts, the FFA uses its own estimates of potential growth. The forecasts are
accompanied by a press release, and a lengthy explanatory bulletin is also published.18 The
latest data available on the general government fiscal outturn available to the expert group is
approximately two years old, which makes forecasting government consumption difficult.
The alternative forecast scenario included for the first time in the 2009 budget documents, in
response to the economic downturn, was compiled by the FFA after consultation with the
expert group. While the expert group meets with external parties as part of developing its
view of economic developments, this process is not formalized, and there is no external
review of the official forecasts before they are finalized.
A recent academic study covering the period 1997-2006 found that the government’s
forecasting record compares favorably with private forecasters.19 The average error in the
one-year ahead GDP forecast of the government’s group of experts, on which the federal
18 Published by SECO at www.seco.admin.ch/themen/prévisionsconjuncturelles.
19 Government officials have conducted internal assessments of historical forecast accuracy, but these have not
been published, although it is intended to publish such an assessment in 2009 in conjunction with presenting the
forecasts in fan chart form to illustrate the degree of uncertainty around the point estimates.
17
budget is based, was 0.9 percent.20 Strengthening the processes for compiling the
macroeconomic and fiscal forecasts would help mitigate the impact of forecasting error.
22.
A statement on medium-term fiscal policy objectives is included in the budget
documents.
2.1.2
A presentation of the government’s medium-term fiscal policy objectives and priorities is
included with the annual budget estimates. Assumptions for GDP growth (real and nominal),
as well as for inflation, interest rates, and exchange rates, are precisely specified. The
government prepares a financial plan, equivalent to a medium-term budgetary framework
(MTBF) covering the upcoming budget year and the three following years, which is
presented with the macroeconomic projections. The financial plan is prepared on a rolling
basis, so that the estimate for year two becomes the starting point (or baseline) for the
preparation of the following year’s budget.
23.
Fiscal rules and targets are clearly stated and explained in the budget
documentation.
2.1.2
The Constitution (Art. 126) requires expenditures not to exceed revenues over the medium
term. The federal law states that the maximum level of expenditure (excluding extraordinary
expenditure) must be equal to the estimated revenues multiplied by a “cyclical factor.” This
fiscal rule (the “debt brake”) has been applied since 2003 and should ensure that the nominal
debt remains constant over the cycle, excluding any extraordinary expenditures and revenues
(Box 7). The debt brake rule appears to have been effective in constraining debt: the gross
public debt of the Federation as at end-2007 was 24 percent of GDP (for the general
government it was 44 percent), and was projected to be 20.7 percent by end-2008, compared
with 28 percent of GDP in 2002. Parliament recently passed an amendment to the debt brake
rule that, from 2010, requires extraordinary expenditures incurred in any year to be offset
over the business cycle.
24.
Major new revenue and expenditure initiatives are normally described in the
budget documents, but there is no summary statement of their economic and budgetary
impact.
2.1.3
An estimate of the expected budgetary cost and economic impact of any new policy measure,
law or regulation is presented to the federal council when such a measure is proposed.
However, although the budget documents do record such information, they do not include a
table summarizing the estimated fiscal impact of all new policies and laws. Proposals for new
20 Source: La Qualité Des Previsions Economiques Suisse, Aurelio Mattei, Professor a l’Universite de
Lausanne, available at www.hec.unil.ch/amattei/qualite.pdf.
18
Box 7. The Debt Brake Rule in Switzerland
The federal government’s “debt brake” rule, introduced in 2003, specifies a one-year ceiling on federal
government expenditures (excluding extraordinary expenditures) equal to predicted revenues adjusted by a factor
reflecting the cyclical position of the economy. The cyclical factor is determined as a ratio of the level of trend real
GDP to expected real GDP. Thus, it is possible for the government to run a deficit in a recession and a surplus in a
boom, but over the cycle deficits and surpluses would have to cancel out. Over the longer term, the gross debt will
remain constant in nominal terms so that it is likely to fall steadily as a ratio of GDP. However, this assumes that
extraordinary expenditures are zero, as they are excluded from the debt brake. In 2008, extraordinary expenditures
amounted to CHF 11 billion. Following the recent amendment of the debt brake rule, as of 2010 extraordinary
spending will be included.
In the cantons, many different fiscal rules exist. The cantons of Fribourg, Nidwalen, St. Gallen, Solothurn, and
Zürich have introduced a very strict rule, including sanction mechanisms. The cantons of Aargau, Bern,
Graubünden, Luzern, and Wallis have somewhat milder rules where an increase of debt during recessions is
permitted. The cantons of Appenzell, Ausserrhoden, Basel Stadt, and Ticino have only weak rules. The remaining
cantons have no fiscal rule.
Most of the cantons have also set formal rules to regulate the finances of the communes. The degree of control
varies substantially from canton to canton. Only a few communes have a debt brake imposed by the canton. Most
cantons, however, monitor financial indicators such as the self-financing coefficient in the budget and intervene if
these indicators develop adversely.
taxes, or changes in existing taxes, are not included in the budget. The Department of
Finance, however, provides a summary of relevant tax policy objectives and changes in tax
rates and other measures in the commentary accompanying the budget figures.
Fiscal sustainability analysis
25.
An assessment of fiscal sustainability is included in the budget documentation.
2.1.4
The “debt brake” rule described above is the main central policy instrument used by the
federal government to maintain fiscal sustainability. As noted, the rule is used during the
preparation of the annual budget and the MTBF to calculate the expenditure ceilings that are
compatible with the federal government’s medium-term fiscal policy objectives. The federal
debt/GDP ratio in Switzerland is relatively low by international standards (the preliminary
estimate for 2008 is 22.8 percent). Fiscal sustainability and the application of the fiscal rule is
described in the budget documentation. The federal council is required to publish, on a
regular basis, development scenarios on specific government functions that take account of
long-term trends, such as population aging, that will impact public finances. The first such
report, on health and long-term care, was published in January 2008. The FFA has also
published a study of long-term fiscal sustainability which projects the impact of expected
19
demographic developments on age-dependent public expenditures (old-age, disability, health,
and long-term care) from 2005 to 2050.21 The baseline scenario shows the ratio of general
government debt to GDP rising to 130 percent by 2050, and an estimated fiscal gap of
1.4 percent of GDP. This report will be updated on a regular basis.
Coordination of budgetary and extrabudgetary activities
26.
Mechanisms for the coordination and management of budgetary and
extrabudgetary activities are well defined.
2.1.5
As noted in Section I.A, the extrabudgetary funds of the federation can be divided into two
categories. First, the four special funds (sonderrechnungen)―comprising the funds for
technical universities, railways, transport infrastructure, and the alcohol monopoly
board―are closely integrated into the budget process. Their budgets are discussed and
approved by parliament at the same time as the federation budget and, as noted, information
is published in a separate volume of the budget documentation.
Second, the Social Security Fund (SSF)—which combines three separate funds for old age
(AVS), disabilities (AI), and military and maternity insurance (EO)—is a legal entity that
invests and manages the assets owned by the social security system (currently valued at
around CHF 22 billion). It has no responsibility in relation to policy, legislation, and
oversight of the system (which are dealt with by the Social Security Office within the Federal
Department of Home Affairs) or operations and administration (receipts of social security
contributions and payments of pensions and other benefits), which are managed by a large
network of offices, mainly based in the cantons, and a central clearing house―La Centrale de
Compensation―which is formally an office of the Department of Finance, with some
700 staff, based in Geneva. Most of the costs of these administrative and operational
functions are financed by transfers to the budget out of the income of the SSF, and are clearly
identified in the budget documents. The budget of the SSF is determined by the fund’s
governing board, which is appointed by the federal council. In making projections of social
security finances, the fund uses the government's short-term economic forecasts of
unemployment and inflation, supplemented by its own assumptions for long-term
projections. The SSF may obtain treasury advances to finance shortfalls within specified
limits. Unemployment insurance is also an extrabudgetary fund with its own legal status.
Accounting and reporting on budget execution
27.
Accounting and internal control procedures provide a reliable basis for financial
management, and facilitate both effective expenditure control and the management of
assets and liabilities.
2.2.1
21 FFA, Long-Term Sustainability of Public Finances in Switzerland, April 2008.
20
As more fully discussed below, the federal government follows an accrual accounting basis
for both budgeting and accounting. A system using an off-the-shelf SAP package is used for
both budgeting and accounting by all federal departments and agencies. The system tracks
expenses and investment expenditures against the corresponding appropriations, and operates
an automated control system to ensure that these transactions are within budgetary limits.
Commitment control is exercised by the system where orders or other contractual documents
exist. In other cases, control is exercised when the invoice is booked. The control is against
the annual appropriation limits for each line item. No other in-year funding limits are used.
Long-term commitments are approved by parliament separately from the annual
appropriation process, are recorded in the system, and disclosed in the financial statements.
Arrears are not considered an issue.
Detailed accounting and internal control procedures are decentralized, with clear roles and
responsibilities of federal departments and offices. The procedures related to financial
management are set out in four main documents: the New Accounting Model (NAM), the SAP
System Manual, the Accounting Policies Manual, and the Internal Control System
Guidelines. Departments and offices are responsible for ensuring that they operate internal
control procedures that are consistent with the detailed guidelines provided by the
Department of Finance. Secretaries general of departments and directors of offices are
required to certify annually as part of the financial statements, that these statements have
been correctly prepared, internal control procedures have operated effectively, and no
irregularities have occurred. The quality of financial management, internal control and
reporting systems and processes are subject to internal evaluation from time to time, e.g., the
introduction of the NAM involved a major review and overhaul of the systems and processes.
Departments may also take initiatives to undertake internal evaluation of their own systems
and processes and those of offices. For example, the Department of Environment, Transport,
Energy, and Communications (DETEC) is currently planning to undertake such an evaluation
during 2009. The results of the evaluation will be presented to the department’s secretary
general.
A treasury single account (TSA) for the budget entities is in place, which facilitates effective
internal control of spending. Departments and agencies may not open bank accounts without
the approval of the Department of Finance, and usually do not have such accounts.
28.
The accounting system is capable of producing accurate in-year reports on
central government budget outturns.
2.2.1
As indicated above, a single accounting system is used by all federal departments and offices
with an integrated chart of accounts (CoA) and budget classification. The accounting system,
particularly the CoA, is designed to support the dual perspectives of the NAM (Box 8).22 The
22 The impetus for NAM appears to have come from a growing a realization that a simple cash-based
framework was inadequate to meet the financial and other management needs of the government and
(continued... )
21
Box 8. Accrual Budgeting and Fiscal Policy—The Swiss Model
The federal government adopted the accrual basis for budgeting and financial reporting with effect from the
2007 budget. Referred to as the New Accounting Model (NAM), this framework emphasizes two main
objectives, also referred to as the “dual perspectives” of NAM: fiscal policy management at the macro level,
and a focus on performance of government departments and other administrative units. Enhancing transparency
of the public finances through the adoption of internationally recognized accounting concepts and standards is
also stated to be an objective of the NAM.
The government’s fiscal policy objective is expressed through the debt brake rule described in Box 7. This
requires revenue and expenditure to be balanced over the business cycle. The debt brake rule is essentially a
cash concept and the financing and cash flow statement of the budgetary central government, derived from the
income statement and balance sheet in accordance with internationally accepted accounting practice, is the
reporting tool used to monitor compliance with the rule.
At the level of departments and agencies, the performance objective requires a focus on cost of government
activities regardless of the timing of the related cash flows. Accordingly, budget appropriations are for accrual-
based expenses including noncash items such as depreciation. In addition, investment expenditures are
separately appropriated. Appropriations are defined at a reasonably detailed line item level and distinguish,
through the CoA, cash, noncash, and intra-government items or charges. For this purpose, accounts payable are
posted in the accounts denominated as “cash” and the usual timing difference―whereby liabilities incurred in
one year may be settled in cash in another year―is not considered to present any difficulties with cash
management or for the purposes of debt brake rule.
Appropriation controls are exercised at these detailed levels for each appropriation line item. By this simple
mechanism, the system ensures that any appropriation for a noncash item, e.g., depreciation, cannot be spent in
cash. For departments and offices, the budget comprises a budgeted income statement (accrual based) and an
investment statement. No separate cash-flow budgets for departments and agencies are included in the
published budget documents, although such information is available. Unutilized appropriations lapse at the
year-end, although in exceptional circumstances departments may request the approval of the Department of
Finance to carry forward specific amounts. For legal purposes, appropriations authorize, and are considered
utilized by, commitment or the incurrence of accrual-based expenses and capital expenditure.
A SAP-based system is used by all the departments and offices to prepare and execute the budget, and carry out
accounting and reporting functions. The system automatically controls the level of expense or expenditure
against the annual budgets at the level of detailed line items. The annual financial statements of the federal
government include, for each department and agency, an income statement and an investment statement
showing actual expenditure and comparison with the budget.
parliament. While cash remained important for the management of fiscal policy at the macro level, the need to
manage the agencies’ performance based on costs rather than simply cash expenditure was an important factor
underlying the change. The cantons, who had already implemented accrual accounting some years ago, also
pressed for harmonization. The implementation of NAM, including the IT systems, took almost seven years to
complete. While capacity issues presented some challenges, and particular difficulties were experienced in
connection with the introduction of internal service charges, overall the implementation process was relatively
smooth compared to the experience of some other countries.
22
use of an integrated budgeting and accounting system, and the adoption of a new accounting
model based on internationally recognized standards, have facilitated the generation of
accurate and more comprehensive reports about not just cash flows but also stocks of assets
and liabilities during the year and at the year-end. While the cantons are adopting a
harmonized model of their own, the key difference with the NAM is that the application of
international public sector accounting standards (IPSAS) is not mandatory under this
framework.
Variances between appropriations and actual spending, both at the aggregate level and at the
department/office level, are disclosed in the annual financial statements. In addition, detailed
budget execution reports for the budget sector as a whole are produced monthly with a time
lag of one month.
General government reports are published once a year. The federal system in Switzerland
makes the process of data collection and consolidation a time consuming one. This is partly
due to the delays in receiving the necessary information from all cantons and communes.
Another factor is the need to make consolidation adjustments to eliminate the effects of
application of different accounting policies by the cantons and communes. The federal
government has no authority to mandate any accounting policies on the cantons; the move
toward greater harmonization noted above is a voluntary arrangement.
29.
The legislature receives timely in-year reports on budget outturns, and
undertakes a mid-year review.
2.2.2
Budget execution reports on the federal government budget, including information on
estimated actual revenue and expenditure for the full year, are presented to the legislature and
made publicly available in June and September. These reports are integrated with
supplementary budgets and related reviews. A third report is produced in November for the
finance minister, but is not published. In addition, monthly budget execution data for the
budgetary central government as a whole by economic line items are produced for use within
the administration with a time lag of three weeks, but are not made public. Annually, key
financial data and the annual unaudited financial statements are issued to the legislature and
made publicly available within, respectively, 6 and 14 weeks after the year-end. As more
fully discussed below, the audit is completed later.
30.
Supplementary revenue and expenditure proposals during the fiscal year are
presented to the legislature in a manner consistent with the original budget
presentation, and follow a similar set of procedures as the annual budget.
2.2.3
Supplementary budgets are presented to the legislature in June and December. Spending
increases through supplementary budgets are not encouraged and have generally not involved
significant outlays compared to the total budget (during 2000-07, they averaged CHF 800
million, equivalent to 1.5 percent of total expenditures). Supplementary budgets, in
conjunction with conservative revenue forecasts, are the main mechanism for managing the
23
risk of unexpected in-year variations to revenues and expenditures. There is no contingency
provision within the central government budget. In addition, departments have very limited
authority to transfer funds between credits (parliamentary appropriations), and standing
legislative authority for spending is limited to just a few items (and does not include, for
instance, debt servicing).
31.
The audited final accounts are available within four months of the end of the
fiscal year.
2.2.4
Audited financial statements of the federal government are submitted to parliament within
four months of the end of the fiscal year. However, the auditor’s opinion on the financial
statements is not attached to the financial statements published by the Department of
Finance. This is because the financial statements are published in April, while the audit
report is normally signed in May. Parliament is presented with a complete package including
the financial statements and the separate audit report. However, the effect of this system is
that the published financial statements do not contain any evidence that they have been
audited or any indication of the type of the opinion (e.g., unqualified or qualified for any
reason) provided by the Swiss Federal Audit Office (SFAO). Finally, as detailed below, the
audit report indicates that the audit covers only part of the published financial statements
package. This creates the risk that ordinary readers would not appreciate that some parts of
the financial statements have been audited and others have not.
The annual financial statements include a detailed comparison of actual outturns with the
estimates included in the budget. The presentation of the budget and the annual financial
statements are similar, facilitating the process of comparison of outturns and budget
estimates. Explanations also cover variances with the previous financial year. In line with the
federal system of Switzerland, the accounts of cantons and communes are not included. The
financial statements are published in four volumes (Box 6). The external audit report on the
financial statements indicate that the audit does not cover Section 1 of Volume 1 and
Volumes 2B and 3. In other words, the audit covers Volume 1 excluding Section 1,
Volume 2A, and Volume 4.
C. Public Availability of Information
Commitment to timely publication of fiscal data
32.
A calendar for releasing fiscal data is announced in line with special data
dissemination standard (SDDS) commitments, and fiscal information concerning the
federal government is comprehensive and readily available to the public. 3.3.1, 3.3.2
The federal authorities are committed to publishing data on central government operations
monthly, within a month of the end of the period; data on central government debt quarterly
within a quarter; preliminary data on general government and the SSF annually, within six
months of the end of the year; and final general government data annually, within one year.
24
Actual publication is typically within these periods, except for general government data,
where there is a long delay (see below).23 Data are published on the FFA’s website and on
the IMF’s SDDS website.24 An advance release data calendar is announced for fiscal data, in
accordance with Switzerland’s adherence to the SDDS, and is mostly adhered to.25 The
Federal Budget Law requires annual publication of a financial statement and budget, and a
forecast over the three years following the budget. Parliament introduced a requirement in
2006 for two in-year reports on budget execution, including revised estimates of the budget
outturn. In addition, regulations on the collection of statistical data require the FFA to report
fiscal data in accordance with the methodology of the IMF’s GFSM 2001.26
The coverage and quality of budget documents
33.
The budget documents cover federal government fiscal activities comprehensively,
but do not provide data on general government or the SSF.
3.1.1, 3.1.4
The focus of the budget documents is the central government. There is no information on the
financial performance or position of subnational governments. While the federation has no
control over the fiscal stance or fiscal policies of the cantons, the general government fiscal
position is relevant for assessing the appropriateness of the federation’s fiscal stance,
particularly during economic slowdowns when an activist fiscal policy is under
consideration. There is also no information in the published budget documents on the
finances of the SSF.
34.
Defense expenditures are comprehensively covered in the budget.
3.1.1
Defense expenditures are appropriated in the same manner as any other expenditures, and are
included in the federal government’s financial plan. Multi-year commitments under defense
procurement contracts are included for information in the budget. Defense spending is
subject to the same internal control procedures as other federal spending. Two of the federal
government’s 13 internal audit units are located within the department of defense, with one
responsible for defense procurement. Defense spending is audited by the SFAO, and is
subject to the usual parliamentary oversight.
23 See
http://www.bfs.admin.ch/bfs/portal/en/index/themen/systemes_d_indicateurs/economic_and_financial/data.html;
and Switzerland, Annual Observance Report of the Special Data Dissemination Standard for 2007, at
http://dsbb.imf.org/vgn/images/AnnualReports/2007/CHE_SDDS_AR2007.PDF.
24 See www.efd.admin.ch; and http://dsbb.imf.org/Applications/web/sddshome/.
25 The public is informed of this practice through a regular notice in the monthly Die Volkswirtschaft / La Vie
économique published by the Federal Office for Development and Labor.
26 The compilation and publication of data are governed by the Federal Law on Statistics (10/09/92) and the
corresponding ordinance, and the Federal Law on Data Protection (06/19/92).
25
Coverage of fiscal reporting
35.
Fiscal reporting covers all of the central government.
3.1.1, 3.1.4
The federal government’s fiscal reports cover all of budgetary central government, including
the four special funds. The SSF is included in the general government sector, not the central
government, and reports separately. There is no uniform classification system for the general
government, which complicates the production of general government data.
36.
The budget documentation does not provide information on the fiscal position of
subnational governments or the finances of public corporations.
3.1.6
As noted previously, cantons and communes are independent fiscal entities under the Swiss
Constitution and, while there is some national harmonization of statistical reporting
requirements under the Statistics Law, there is no legal basis for the federation to require
cantons to report their budget or fiscal outturn data. In practice, the FFA collects and
consolidates fiscal data from cantons and the largest communes. However, while the
accounting models of some of the large cantons are comparable to the federal NAM, many
are not, and this necessitates time-consuming adjustments to the statistics to produce general
government data. As a result, there is a time lag of about 20 months before final general
government data is available, although interim data are produced within around 8 months.
With respect to state-owned enterprises (SOEs), although two large corporations conduct
significant QFAs, (Swiss Post and Swiss Rail), there is no overview of the state corporation
sector or information on individual QFAs. While each SOE publishes independently audited
financial statements in a timely manner, there is no consolidated report on the financial
position and performance of the SOE sector.
Past and forecast fiscal data in the budget
37.
The budget document discloses the main fiscal aggregates for two years prior to
the budget year, and three years beyond the budget year.
3.1.2
The standard tables in the budget documents, both for fiscal aggregates and detailed
information, show the final outturn for revenues or expenditures two years prior to the budget
year, but only the budgeted numbers for the current year (the year prior to the budget year).
The tables do not show the estimated outturn for the current year. Volume 5 of the budget
documents presents detailed three-year forward estimates of departments and agencies.
Treatment of fiscal risks
38.
Comprehensive information on fiscal risks is not presented in the budget
documents, although for the first time in 2009 they contained an alternative
macroeconomic and fiscal scenario.
3.1.3
26
In general, the budget documents do not provide information that is specifically intended to
identify and, where practicable, quantify the risks to which the budget is exposed. For
instance, the sensitivity of the fiscal aggregates to marginal changes in economic or other
forecasting parameters is not shown. Nor is full information on contingent liabilities provided
in the budget documents, or details of other sources of fiscal risk such as QFAs. In light of
adverse economic developments, the 2009 budget documents did contain a brief alternative
macroeconomic and fiscal scenario, thus providing an alternative view of how the economy
and the budget might develop.
39.
Only limited information on contingent liabilities is included in the budget
documents, and a statement of contingent liabilities is presented in the financial
statements.
3.1.3
Information on contingent liabilities is published in Notes to the Financial Statements, with a
brief narrative on the largest elements, including data on gross exposures. The annual budget
documents contain a separate appropriation for the estimated cost of calls on guarantees.
However, they do not present comprehensive information on contingent liabilities.
40.
Tax expenditures are extensive, but only limited information is published on
them.
3.1.3
There is a significant volume of federal tax expenditures in Switzerland (possibly equivalent
to around 10 percent of total federal revenues, depending on the benchmark used), and
additional tax exemptions have been introduced in recent years. Under current law, the
federal government is obliged to publish a Public Subsidy Report every six years. The report
includes a chapter on tax expenditures, but does not provide a complete coverage of such
expenditure.27 The FTA is compiling its own comprehensive report on tax expenditures, with
quantitative estimates using both a comprehensive income tax and a consumption tax as
baselines.
41.
Some significant QFAs are carried out by public corporations, although budget
subsidies also finance the cost of some non commercial activities.
3.1.3
Public corporations are required by law to comply with strategic directions set by the federal
government, which are published. Swiss Post, Swisscom, SBB, and Skyguide have mandates
to provide universal services, namely, to provide services at adequate prices nationwide in an
effort to equalize living conditions in the country. Most of the corporations are profitable,
although three of them (Swiss Post, Swiss Railway, and Swisscom) are required to provide
services on a non-commercial basis, e.g., to service all regions of the country at reasonable
27 According to the IMF’s Manual on Fiscal Transparency (2007), tax expenditure is defined as “revenues
foregone as a result of selective provisions in the tax code. They may include exemptions from the tax base,
allowances deducted from gross income, tax credits deducted from tax liability, tax rate deductions, and tax
deferrals.”
27
prices.28 The general policy framework provides that public corporations finance these
services through cross-subsidies (in the case of Swiss Post, in part from revenues earned on
legal monopolies enjoyed in the letter market). Public corporations are also exempt from
certain taxes. There are payments from the federal budget for the supply of some non-
commercial services, and written agreements covering the services being purchased. This
applies particularly to Swiss Rail, where the federal government appropriates a substantial
sum (CHF 1.5 billion in 2008) for rail infrastructure investments through the Rail Fund, and
subsidies for regional rail services. There was also a budget subsidy of CHF 30 million in
2008 to Swiss Post to deliver newspapers, which is substantially less than the actual cost.
Information on the QFAs of public corporations is generally not presented in the annual
federal budget, or in the corporations’ annual reports. Swiss Post is, however, required to
report to PostReg (the authority responsible for regulating postal services) on the costs of its
universal service obligations, and the revenues derived from legal monopoly services.
PostReg includes these details in one of its reports.29
Publication of data on debt, other liabilities, and financial assets
42.
Comprehensive information is published on federal debt.
3.1.5
In accordance with Switzerland’s subscription to the SDDS, data on the gross public debt of
the federal government are published each quarter, within a quarter of the end of the period.
Federal debt is reported by maturity (short- and long-term, and medium-term debt), and by
currency. Debt servicing costs are separately identified in government fiscal reports. The
medium-term financial plan, published with the annual central government budget, presents
forecasts of debt servicing expenditures for the three years beyond the budget year. In
accordance with the government’s accounting standards, the use of derivatives in debt
management is disclosed in Notes to the Annual Financial Statements. As a one-off exercise,
the federal government prepared in 2006 a comprehensive debt report. This report included
time-series data of all levels of government, and an analysis of developments in the various
components of debt. There is detailed reporting within government of performance in
managing the debt portfolio against a debt management strategy, but no details of this
strategy are published.
28 As provided, for example, by Art. 92.2 of the Constitution with respect to postal and telecommunication
services. The Constitution is silent on how these universal services are to be financed.
29 Swiss Post has estimated the cost of their universal service obligation at CHF 212 million in 2007. This figure
has been independently audited, and published in a report by PostReg (the agency responsible for regulating the
postal market). Other estimates of QFAs provided informally to the mission by the authorities are
CHF 150 million for the universal service obligation of Swisscom, and CHF 50 million for the under-financing
of the cost of newspaper delivery by Swiss Post. See http://www.news-
service.admin.ch/NSBSubscriber/message/attachments/12501.pdf, pp. 15-16.
28
43.
Information is published on civil service pension obligations and guarantee
exposures.
3.1.5, 1.2.4
The main nondebt liabilities of the federal government are for civil service pensions.
Following reforms in recent years, these are now defined contribution schemes, with some
residual protection from the government for the nominal value of pensions. Publica, the
federal civil service pension fund, publishes data on its financial performance and position.30
However, the government’s obligation to pay civil service pensions is not recognized as a
liability on the government’s balance sheet. The NAM only requires information to be
disclosed in the Notes to the Financial Statements. The NAM defines contingent liabilities,
and each agency is required to maintain a register of them. A short narrative on the largest
contingent liabilities is presented in the Notes to the Annual Financial Statements. Although
public private partnerships (PPPs) are under consideration for infrastructure projects, there
are currently no projects at the federal level (although there are some at the cantonal level).
44.
Information on government financial assets is published.
3.1.5
The government publishes a full balance sheet according to international standards
(IPSAS)―the limited departures from IPSAS do not apply to financial assets. The
accounting policy is to value financial assets at market value. There are financial assets
portfolios managed by the SSF and by Publica, each invested in a diversified portfolio
appropriate to the structure of their liabilities. Information on the asset allocation and
performance of these funds is published on their websites.
Analysis of long-term public finances
45.
Analyses of long-term finances were first published in 2008, and will be updated
on a regular basis.
3.1.7
As noted, the federal government has published a long-term development scenario on health
and long-term care, and a study of long-term fiscal sustainability. There is a requirement to
publish a development scenario on a regular basis, and it is anticipated that the study on long-
term fiscal sustainability will also be updated periodically.
Guide to the budget
46.
A clear and simple guide to the budget is available to the public.
3.2.1
Volume 1 of the annual budget documents contains an accessible, stand-alone 60-page
summary of the main elements of the budget, and contains user-friendly graphs and tables. It
presents the objectives of the budget, summarizes the economic outlook, and provides an
30 See http://www.f.publica.ch/page/content/index.asp?MenuID=527&ID=1026&Menu=2&Item=11.2.1.
29
overview of revenues and revenue sharing with the cantons, expenditures and capital
investments, and debt. There is a short summary of the budgets of the special funds. Tables
present the budget aggregates in both cash and accrual form, together with key fiscal
indicators, and the operation of the debt brake is explained. In addition, the FFA issues a
seven-page press release summarizing the main features of the budget presented to
parliament and the medium-term finance plan.31
Budget classification
47.
The annual budget presentation is generally consistent with international
standards, but remains primarily inputs-based.
3.2.2
Revenues, expenditures, and financing items are clearly distinguished, and expenditures are
presented on a gross basis. The classification system is compatible with that of the IMF’s
Government Finance Statistics (GFSM 2001), and facilitates the generation of GFS-
consistent reports. Budget appropriations are classified by each of the seven federal
departments, by unit within each department, and by economic object (with the exception of
agencies funded on a global basis, as explained below). There is no output or program
classification in the appropriations, and parliamentary control is at a detailed level of line
item. The CoA follows the budget classification, and budget execution reports mirror the
budget appropriations.
General government balance
48.
The overall fiscal balance of the federal government is the main indicator of the
fiscal position.
3.2.3
The fiscal rule that guides budget policy, the “debt brake,” is defined in cash terms, and the
overall balance, expressed in cash terms, is the focus of policy attention. There is detailed
reporting in the budget and final accounts of compliance with the debt brake rule. An accrual
measure of the overall balance is also presented in the budget and reported against. As noted,
data on the general government balance are not presented in the budget.
Results-oriented budgeting and reporting
49.
In general, budgeting remains on a line item inputs basis, although some
agencies have global budgets and performance indicators.
3.2.4
Most units and agencies are appropriated on the basis of detailed line item inputs―that is,
parliament authorizes credits at the level of economic object of expenditure (e.g., the
compensation of employees, the use of goods and services, subsidies) rather than on the basis
service.admin.ch/NSBSubscriber/message/attachments/13061.pdf.
30
of programs or outputs. There is very limited flexibility to transfer credits between line items
during budget implementation. For many units, the budget does not contain any performance
information. However, 23 agencies―many of which provide specific services to other units
or to the public―are funded on the basis of global budgets, and have substantial flexibility to
adjust the mix of inputs during budget implementation. Their budgets presented to parliament
contain high-level product groups (outputs), and some performance indicators. They have
four-year agreements signed with the federal council, with key performance indicators that
are monitored by the departments concerned. After expansion of the scheme in 2007, nearly
30 percent of federal spending (operating expenses) is provided through agencies funded on a
global basis. Consideration is being given to further extending the scheme to additional
agencies.
D. Assurances of Integrity
Integrity of budget and accounting processes
50.
Budget data are reliable, and the variances between budget appropriations and
actual outturns of the main fiscal aggregates are disclosed to the public.
4.1.1
Table 2 shows deviations between the original budget and the final outturn for 2005-07, for
the main expenditure and revenue components. The deviations for ordinary recurrent primary
expenditure, which comprises over 75 percent of total expenditure, vary from 1.9-3.4
percent, while deviations for the two largest taxes (income tax and VAT) are 1.4-3.4 percent
and .01-2.9 percent, respectively. However, some of the smaller components (e.g., the
railway fund, withholding tax, and stamp duty) are subject to larger forecast errors.
Table 2. Switzerland: Revenue and Expenditure Forecasting
Performance, 2005-07
(Percent absolute deviation between original budget and final outturn)
2005
2006
2007
Expenditure
Ordinary recurrent primary
2.2
3.4
1.9
expenditure
Interest expenditure
7.9
7.0
3.1
Revenue
Income tax
1.4
3.4
1.4
VAT
0.1
2.9
0.2
31
51.
Internationally accepted accounting standards are used to compile fiscal data of
the federal government, and a statement on the accounting basis is included in the
budget and final accounts documents.
4.1.2
Financial statements are prepared in accordance with IPSAS, with some exceptions that are
specified in government regulations. Notable departures from IPSAS include the following:
•
civil service pension liabilities are not recognized but disclosed in the Notes to the
Financial Statements;
•
military weapons and related equipment are not recognized as assets but treated as
expenditures; and
•
consolidated financial statements of all entities controlled by the federal
government―public corporations, for example―are not produced.
The accounting policy on pension liabilities was decided partly to avoid raising expectations
that the government may be called upon to inject additional capital in publicly-owned
entities. However, the amounts calculated in accordance with the requirements of
international standards (including International Accounting Standard (IAS) 19) and the effect
of any departure from the standards, are disclosed in the Notes to the Financial Statements.
Military weapons are not capitalized, which is consistent with the recommended treatment in
GFSM 2001. On the issue of coverage of consolidated financial statements, the authorities
have adopted a phased approach. In the first phase, starting in 2007, only budget entities are
included in the financial statements, in accordance with the wishes of parliament. In the
second phase, commencing in 2009, the autonomous agencies that are considered closely
linked to the federal government would be consolidated. The issue is to be further reviewed
in 2013 to consider, inter alia, whether other controlled entities such as public corporations
and the SSF are to be included in the consolidated financial statements.
A full set of financial statements, incorporating an income statement, balance sheet, cash
flow statement, and notes, is prepared in accordance with IPSAS for the budgetary central
government as a whole. In addition, investment expenditures are set out in a separate
statement that facilitates comparison with the corresponding budget appropriations.
Individual federal departments or offices are not treated as separate reporting entities and are
not required to produce such complete financial statements. Instead, only income and
investment statements are published for these units. As discussed above, financial statements
are set out in four volumes and contain detailed information and comparison with the budget
and the previous year’s outturn data.
32
Reconciliation practices
52.
The process of accounts reconciliation and fiscal reporting are effective.
4.1.3
Under the NAM, a full set of double-entry based financial statements is produced; these
incorporate a standard reconciliation of accounts. The statements include (i) a cash flow
statement, which reconciles cash receipts and payments with the change in cash balances;
(ii) a balance sheet, which reconciles movements in assets and liabilities with the income
statement; and (iii) notes that reconcile cash flows with operating activities and the operating
results. The accounting information is regularly reconciled with bank accounts and budget
appropriations within four months after the year-end and is consistently tracked during the
year.
53.
Major revisions to historical fiscal data and any changes to data classification
are explained.
4.1.3
The most recent changes to data classification occurred as part of the introduction of the
NAM. This involved a change in the accounting basis as well as the budget classification and
CoA. In addition, accounting policies had to be revised to ensure compliance with IPSAS.
The main changes were in the balance sheet. Although under the old system a balance sheet
was produced, the NAM required revaluation of assets and liabilities leading to a decrease in
value―sometimes significant―of assets; reductions in excessive provisions; and the
recognition of some assets and liabilities for the first time. The cash flow statement under the
NAM is more comparable to the previous version, although there have been some
reclassifications leading to a loss of comparability of data at the detailed level. While
expense data were affected by both the change in accounting basis and CoA, the impact on
revenue data was less significant. As part of the transition, the Department of Finance
prepared and submitted additional documentation in response to specific inquiries, e.g., from
parliament.
Internal oversight
54.
Public servants are subject to a code of behavior.
4.2.1
Ethical behavior, pay, and employment in the federal government are regulated by the federal
law for public personnel (Bundespersonalgesetz), and in the regulations for public personnel
(Bundespersonalverordnung). Cantons and communes often have similar regulations. A
proposed amendment to the federal law includes a new article on whistle blowing. This is
intended to encourage civil servants to give notice of irregularities that come to light in the
performance of their duties, while protecting them from retaliatory action. There is no special
federal agency responsible for ensuring that compliance with the government’s anti-
corruption policies is monitored and enforced.
33
55.
Civil service employment procedures are clear and well understood.
4.2.2
Entry into the civil service is by open and competitive process. Promotion is determined by
seniority and performance, with a strong emphasis on the latter. External application for
senior positions is open and encouraged. The law gives only limited opportunity for
managers to dismiss staff, but they have significant flexibility in hiring and promoting staff,
especially in units that operate with a global budget.
56.
Procurement rules and practices meet international standards, and are well-
known and observed in practice.
4.2.3
There is a sound legal framework for procurement at the federal and cantonal level.32 The
regulations require that all private or state-owned companies that submit tenders for
procurement contracts above a certain threshold make their bids public. At an administrative
level, a procurement commission is responsible for setting the overall strategy and policies
for procurement. A separate central procurement office is responsible for all civilian
procurement, while military procurement is handled by ArmaSuisse. In addition, traveling by
public officials is managed by a dedicated travel unit. The implementation of procurement
procedures is subject to review by both internal and external auditors.
57.
Purchases of public assets are undertaken in an open manner, and any major
transactions are separately identified in the budget and fiscal reports.
4.2.4
Purchases by federal departments and offices are generally covered by the procurement
procedures discussed above. Investment activities by entities such as the pension fund are
covered by separate laws, regulations, and procedures. No major sales of public assets have
taken place recently or planned for the near future. Under the NAM and the requirements of
IPSAS, major transactions in financial and nonfinancial assets should be disclosed in the
financial statements.
58.
Internal audit is based on a risk management approach and is effective;
however, its responsibilities compared to those of external audit is not clearly
distinguished.
4.2.5
Internal audit is not mandatory for each department and office. Departments take a risk
management approach in assessing the need for internal audit functions―also referred to as
the financial inspectorate―in their offices. The Swiss Federal Audit Office (SFAO)―the
supreme audit institution of the Swiss Confederation―can also request the federal council to
form new internal audit units.
32 With effect from January 1, 1996, Switzerland has been a signatory to the World Trade Organization (WTO)
Government Procurement Agreement (GPA).
34
The Federal Auditing Act of 1967 governs the operations of the SFAO, as well as the
activities of the internal audit units (Art. 11). The law stipulates that the financial
inspectorates are responsible for the control of financial management in their domain.33 They
are assigned to the executive management, but operate independently in the fulfillment of
their audit functions. The rules and regulations of the internal audit units are subject to
approval by the SFAO, which is also responsible for coordinating and supervising (see
below) the effectiveness of their work. The SFAO may also issue technical directives on
audit methodology and procedures, although in practice only one such directive has been
issued to put in place mandatory standards in respect of the internal auditors’ role in auditing
the annual financial statements. The internal audit units are required to submit their annual
audit programs and all audit reports to the SFAO. Any deficiencies identified by the internal
audit process that are considered of a fundamental nature, or of significant financial
importance, must be immediately brought to the attention of the SFAO. The SFAO is also
responsible for training and development of the internal audit staff.
Internal audit standards are developed in accordance with Swiss standards of internal audit,
which, in turn, are based on the international standards issued by the Institute of Internal
Auditors (IIA). A review of the quality and effectiveness of the internal audit function is
carried out by the SFAO once every five years. The main issues that have arisen as a result of
internal audit assignments in the recent past concern the implementation of the NAM.
Internal audit found that capacity to implement the new accounting procedures was weak
both in the Department of Finance and other departments and offices. Departments are
making efforts to improve their capacity in this area.
Clarity of internal control and independence of tax administration
59.
The FTA and FCA agencies have effective internal monitoring and control
mechanisms.
4.2.6
The FTA and FCA make extensive use of computerized systems, with taxpayers being able
to access the systems for information and to lodge tax returns. While the SAP system is used
for financial management purposes, other special purpose systems are employed to manage
tax and customs affairs. According to a World Bank study conducted in 2008, which made
use of a logistics performance index, the FCA systems rank fifth in a comparison with other
countries. The FTA systems are due for a major overhaul to improve capacity for monitoring
and analysis. The FTA and FCA both have well established internal audit functions and IIA
standards are followed. These agencies are also subject to external audit by the SFAO. There
is a code of conduct for tax officials, consistent with the ethical guidelines for the public
service. Taxpayers’ rights and appeals and complaints processes are set out in relevant
33 The authorities have explained that the term “control” in this context should be interpreted not as “control”
but as “audit.” In this case, the English translation of the law, which uses the term “control,” should be clarified.
35
legislation.34 Unlike some other countries, no information on the results of the complaints
review process by the FTA and FCA is published, so that taxpayers have no guidance on
these important interpretations of the law.
60.
The FTA and FCA are operationally independent; only limited information on
their activities is made publicly available.
4.2.6
The FTA and FCA have been established through legislation that sets out their functions,
powers, and responsibilities. Administratively, they are part of the Department of Finance.
The agencies are operationally independent. The procedures for appointment and dismissal of
their directors are the same as for other government agencies. Both agencies submit formal
reports to the Department of Finance three times a year. These reports are confidential and
are only provided to the secretary general of the Department of Finance, though the FCA
makes some information available to the public at least once a year. In addition, press
releases are issued three times a year by the Department of Finance showing statistics of
revenue collection and an associated commentary.35 As part of its annual report to
parliament, the Department of Finance also reports on the activities and financial operations
of the revenue authorities.
Independent external oversight
61.
External audit is independent of the executive branch, and its mandate covers all
federal government activities.
4.3.1
The external audit function is not explicitly mentioned in the Federal Constitution, as
recommended under the relevant international standard―the 1998 Lima Declaration of the
International Organization of Supreme Audit Institutions (INTOSAI). Federal law defines the
SFAO as the supreme financial supervisory organ of the Swiss Confederation. The SFAO is
an independent office, headed by a director who is appointed, for a period of six years, by the
federal council, subject to approval by the federal assembly. The federal council may also
dismiss the director for serious infringement of his or her duties, subject to an administrative
court appeal to the federal court. The federal assembly’s approval is not required for such
dismissals. The budget of the SFAO is passed to parliament without modification by the
executive. Parliament determines the total financial resources and emoluments of the SFAO.
The SFAO submits its reports directly to the legislature, as described below.
The SFAO is responsible for auditing all federal government administrative units,
parliamentary services, federal courts, and corporations owned more than 50 percent by the
confederation. It has the power to audit the use made by cantons of federal moneys (e.g.,
subsidies, loans, and advances), provided such audits are permitted by a federal law or
34 Some of this information is published―see http://www.admin.ch/ch/d/sr/c173_320_4.html.
35http://www.news-service.admin.ch/NSBSubscriber/message/attachments/13542.pdf.
36
decree. In the absence of such legal authority, the SFAO may only audit the use of federal
funds with the consent of the cantons. The SFAO may be invited to participate in discussions
concerning the preparation of the budget and the annual accounts, and to advise on matters
concerning appropriation requests. Finally, as discussed above, the SFAO has a close
relationship with internal audit units in departments, and is responsible for approving related
regulations, monitoring their effectiveness, ensuring coordination of their activities, and
providing them with training.
The SFAO is a member of INTOSAI. For financial audits, the SFAO follows the auditing
standards issued by the International Auditing and Assurance Standards Board (IAASB).
INTOSAI standards are followed for performance auditing assignment. These standards are
incorporated in the audit manual. The activities of the SFAO have been subject to two recent
peer reviews by the supreme audit institutions of Germany and Norway, and their findings
have been positive.
62.
The SFAO has adequate capacity to perform the external audit role.
4.3.1
The SFAO has about 95 staff, of which 65 are auditors and specialists. Thirty-three staff have
appropriate professional qualifications. Audit teams include the appropriate specialist staff.
Specialist areas are financial supervision, IT-audits, construction and procurement audit, and
evaluation of economic efficiency and cost effectiveness. The SFAO may also engage
experts where the execution of its responsibilities requires special expertise that is not
available in-house.
63.
External audit reports are submitted to the legislature but not always published,
and audit findings are systematically monitored.
4.3.2
The SFAO prepares a report on each audit and transmits it to the joint committee on finance
of parliament. Other relevant documentation, including a summary of each report and
comments on the SFAO’s findings by the audited agency is also submitted. The joint
committee considers the audit reports. In addition, the SFAO submits an annual report to the
joint committee in which it sets out the nature and focus of its audit activities, its main
findings and conclusions, and any audits that remain pending and the reasons for the delay.
The annual report―which is published―also lists all the SFAO reports that have been
publicly released. The SFAO decides alone whether to publish any audit report or evaluation
report (Art. 14.2 of the Federal Auditing Act). If a specific audit report that has not been
published were requested, it would generally be made available, though this is not
mandatory. The joint committee monitors all cases of pending audit and noncompliance with
regulations or other issues raised by the SFAO to ensure that they are resolved.
37
64.
The government finance statistics unit within the FFA has the primary role in
producing fiscal data, and acts with the required institutional independence.
4.3.4
The FFA is authorized by law (Bundesstatistikgesatz and Statistikerhebungsverordnung) to
prepare the fiscal data of general government. The FFA rather than the Federal Statistics
Office has the primary responsibility in this area. Article 3 of the federal statistics law
requires that the government units which are assigned to produce federal statistical data be
technically independent. Further, the government finance statistics unit within the FFA is a
signatory to the Swiss Charter of Public Statistics which serves as a professional code of
ethics for Swiss statistical institutions and their employees.
III. IMF STAFF COMMENTARY
65.
At the federal level, Switzerland currently meets most aspects of the fiscal
transparency code and, in most areas, matches best international practice. Recent
initiatives such as the introduction of accrual accounting and budgeting, a NAM that is based
on IPSAS, streamlined budget documentation, and a risk management framework covering
all government departments, are impressive steps forward.
66.
Although the Fund was not requested to review the transparency of fiscal
operations and documentation at lower levels of government (cantons and communes),
their activities constitute more than two-thirds of general government. Crucial areas of
policy are the prerogative of the cantons, and these can significantly affect the overall fiscal
stance and the composition and impact of spending and revenue. Further efforts could be
made to reduce the very long lags (currently around 20 months) in collecting and compiling
general government fiscal data, because these prevent timely analysis of fiscal trends and
prospects, and may impede the specification and implementation of federal fiscal policy.
Information on the fiscal position of general government should be given greater prominence
in the federal government’s budget documents and other fiscal statements and assessments.
67.
At the federal government level, all four pillars of the code are well addressed:
•
Clarity of roles and responsibilities. There is a clear definition of general government
and a closely prescribed and comprehensive legal framework governing public
finances and the budget process. The fiscal role of the executive and legislative
branches of government, and the legal framework for the management of public
finances, are clearly defined. Public corporations (which are all nonfinancial entities
at the federal level) conform to sound principles of strategic planning, regular
reporting, and corporate governance, though they carry out some significant QFAs.
Regulation of the private sector is clear and light, and contractual arrangements
between the government and the private sector―including procurement rules―are
accessible and clear. The legislative basis for taxation is complex given the
38
multiplicity of federal and cantonal codes for some taxes, but transparent and well
understood; and tax administration and taxpayers’ rights are clearly defined and well
implemented.
•
Open budget preparation, execution, and reporting. The budget process is governed
by a precise legal framework, and the timetable is well defined. Macroeconomic
forecasts are prepared on a regular basis, and their accuracy compares favorably with
private sector counterparts. A coherent medium-term fiscal framework provides a
clear context for budget decisions. Fiscal targets and rules (principally, the debt brake
rule) are clearly described and openly discussed. Proposals for new measures are
accompanied by estimates of their fiscal impact. Supplementary budgets are prepared
on a regular timetable (twice a year), and are subject to a similar process of discussion
and review by parliament as the original budget. Budget execution is controlled and
monitored according to clear regulations and standards, which minimize opportunities
for irregularity. A comprehensive risk management policy is being implemented by
departments.
•
Public availability of information. Fiscal data on the central government are
comprehensive and readily available to the public. Comprehensive statistics on public
debt are disclosed. Data are published on certain non-debt liabilities and exposure to
federal government guarantees. An assessment of long-term trends in public finances
was first published in 2008. A clear and simple guide to the budget is available to the
public. In general, budgeting remains on a heavily itemized, input-oriented basis; only
a limited number of agencies has global budgets and performance indicators.
•
Assurances of integrity. Fiscal data are prepared broadly in line with the IPSAS
standard. The process of accounts reconciliation is effective. Major revisions to
historical fiscal data and their classification are explained. Rules for public
procurement, and the employment and ethical behavior of civil servants are clear and
generally well observed. Internal audit is effective though not yet comprehensively
applied across all government departments. Procedures for internal control and
monitoring of tax administration are well managed. The SFAO has a sound legal
basis; its reports are submitted to parliament—though not all are made publicly
available—and there are well-understood mechanisms to ensure follow up of audit
findings.
68.
There are some areas, however, where the authorities could consider taking
further measures, in consultation with parliament where appropriate, to enhance fiscal
transparency and the presentation and management of fiscal risks. These are summarized
below.
39
Disclosure of additional fiscal information by the federal government
69.
Support provided by the federal government and the SNB to UBS and other
financial institutions affected by the global crisis is reported in, respectively, the
confederation’s and the SNB’s financial statements, supplemented by quarterly updates
by the SNB. However, in order to provide a comprehensive assessment, the federal
government should consider publishing in its financial statements information on the SNB’s
support operations alongside the report of its own activities.
70.
The government should publish its findings on tax expenditures and regularly
update them. Tax expenditures do not need to be appropriated each year, thereby escaping
scrutiny and the need to compete with other fiscal priorities in the budget process. Over time,
tax expenditures can result in insidious erosion of the tax base. The volume of tax
expenditures is significant, as a recent study by the FTA indicates. The government is aware
of the importance of keeping tax expenditures in check. It could consider publishing an
annual tax expenditure statement with the annual budget.36
71.
The government should make an effort to disclose information on specific fiscal
risks, including contingent liabilities and QFAs, with the budget, in line with the IMF’s
Guidelines for Fiscal Risk Disclosure and Management, and eventually publish a single
statement of fiscal risks.37 In particular, the universal services provided by Swiss Post, Swiss
Rail, and others are partly financed through cross-subsidies, which represent a form of
interpersonal redistribution, and taxes and transfer payments from the budget are considered
more desirable to support such activities from a transparency perspective. QFAs are
disclosed only to a very limited extent.
72.
The Social Security Funds should be clearly distinguished. Apart from the
unemployment insurance scheme, the other three funds are jointly operated. The old age and
disability pension funds are cross-financing each other, with the first fund running persistent
surpluses that are used to finance the deficits of the second. Clearly, separating the three
funds would make the financial health of each of them more transparent and facilitate the
necessary policy discussion about the sustainability of current policies. Parliament has
already passed a bill to separate the old-age and disability pension funds into two separate
funds. A referendum on the issue will be held in September 2009. In addition, an overview of
the finances of the social security sector and its relationship with the budget in the short to
medium term, in the context of an assessment of long-term fiscal sustainability, should be
included in the budget documents. More forward-looking information on the finances of the
36 While estimating the fiscal impacts of tax expenditures is complex and time consuming, the FTA has already
completed a substantial amount of work on this, which could be published initially, if necessary, as work in
progress.
37 QFAs undertaken by public corporations should also be reported in their annual reports, including an estimate
of their financial impact.
40
special funds would also be useful. Together, these measures would provide a better basis for
assessing the sustainability of current fiscal policy.
73.
More information should be published on the sensitivity of the budget to changes
in macroeconomic variables and an alternative macroeconomic and fiscal scenario,
building on the useful analysis already published by the government. This would provide
a better basis for assessing the uncertainties surrounding the budget.38 In addition, the federal
government could consider extending and formalizing the process of external review of
macroeconomic forecasts and assessments of economic developments.
74.
An overview of the finances of public corporations could also be provided in the
budget. Some corporations receive significant funding from the budget, and others conduct
QFAs, making it important to consider their financial position and profitability in the context
of fiscal policy.
75.
Additional information should be reported on public debt management, namely,
the debt management strategy and performance against it, and the impact of parameter
changes on debt-servicing costs.
76.
A summary statement of all new policy measures that are reflected in the budget
proposals, with an estimate of their fiscal impact, should be published, to supplement the
summary data on expenditure by tasks already provided in Volume 3 of the budget
documents.
77.
Each federal government department should be encouraged to publish an
annual report that summarizes relevant information concerning their goals and objectives,
strategic priorities, operational risks, financial results, and nonfinancial performance. This
would be in line with practice in many OECD countries.
Accounting and financial reporting
78.
The government should consider moving towards fuller compliance with IPSAS.
Several steps are required to complete this task. Civil service pension obligations should
either be recognized in accordance with IPSAS or, if such compliance is considered to lead to
amounts being recognized that would impair the fair presentation of the financial position of
the federal government, this should be clearly explained, and the SFAO should express its
opinion on this issue. So far as military assets are concerned, even if these are not recognized
as assets in order to achieve compliance with GFSM 2001, consideration should be given to
disclosing in the notes the carrying value (i.e., the value at which the assets would be
recognized in the balance sheet) and other relevant details. Finally, we welcome the
38 In that context, budget tables should show, for the year prior to the budget year, the expected outturn for that
year, and not just the original (or amended) budget.
41
authorities’ intention to extend the coverage of the financial statements in accordance with
IPSAS. The medium-term aim should be to produce consolidated financial statements for the
central government and all entities controlled by it (including public corporations and the
SSF).
Audit
79.
The independence of the SFAO, or the perception of it, could be further
enhanced in line with IPSAS. Consideration should be given to modifying Art. 2.2 of the
Federal Act of the SFAO and remove the power of the federal council to dismiss the SFAO.39
Instead, parliament should be given this power. The protection of the court should be
retained. Consideration could also be given to reviewing and revising Art. 7 of the Act to
remove any of the non-audit services which may be perceived as potentially presenting a
conflict of interest; and to revising Art. 11 of the Act with a view to transferring the functions
of supervision, developing regulations and methodologies, coordination, and training of
internal auditors from the SFAO to the executive―for example, by establishing a centralized
harmonization unit within the Department of Finance.40 41 Many European countries have set
up such a unit, a practice that is recommended by the European Commission.42Art. 12 could
be modified to eliminate any possible interpretation that the federal council can arbitrate if
the audited entity objects to a decision by the SFAO.
80.
The audit report should clearly express an audit opinion on the financial
statements subject to audit. This should go beyond the current practice of simply
confirming compliance with legal requirements, and include an opinion on whether the
statements present a true and fair view or are presented fairly in all material respects. Even if
the legal requirements in Switzerland mandate another form of wording, the auditor’s
responsibility to form such an opinion remains unchanged. Consideration should be given to
including such a requirement in the law on the SFAO.43
39 The INTOSAI’s Lima Declaration, for example, stipulates that the procedures for removal from office should
be embodied in the Constitution and may not impair the independence of the members.
40 The INTOSAI guidelines on conflicts of interest stipulate that when such non-audit services are provided,
“the auditors should ensure that such advice or services do not include management responsibilities or powers,
which must remain firmly with the management of the audited entity.”
41 The SFAO takes the view that transferring functions such as supervision, preparing regulations and
methodology, coordination and training from the SFAO to the executive―for example by establishing a unit
within the Department of Finance―could result in a decrease of independence of internal audit. However, in the
IMF’s view, the existing practice may impair the independence of the SFAO.
42 See European Commission, 2006, Welcome to the World of PIFC: Public Internal Financial Control.
43 International Standard on Auditing (ISA) 700.
42
81.
The published annual financial statements should include the audit report.
Consideration should be given to modifying the current practice of publishing unaudited
financial statements first and the audit report later, in order to ensure that general readers are
in no doubt about the audit status of the financial statements, in line with the practice in most
OECD countries.
Next steps
82.
The government will want to consider, in consultation with parliament and other
stakeholders, which of the above recommendations fits best with its strategy for
improving fiscal transparency and strengthening risk management. In the Fund’s view,
the following measures are quite straightforward, however, and could be introduced
relatively quickly, preferably (if appropriate) as part of the budget for 2010:
•
Publishing in the federal government’s financial statements information on the SNB’s
support operations for UBS alongside the confederation’s own activities to strengthen
financial institutions.
•
Preparing and publishing additional and readily available data on fiscal risks, such as
contingent liabilities, QFAs, and the finances of the SSF, which could be developed
over time into a comprehensive fiscal risk statement to be published with the budget.
•
Publishing more timely information on general government finances, even if it
initially requires using preliminary or estimated data.
•
Including preliminary projections of revenues for 2009 in the 2010 budget.
•
Publishing statistics and other information on tax expenditures.
•
Supplementing the basic macroeconomic and fiscal forecasts with additional
scenarios and variability analysis, and extending the external review of
macroeconomic forecasts.
•
Including a summary of the fiscal impact of new policy measures introduced in the
budget.
•
Including the SFAO’s audit opinion with the published final accounts.
Appendix I. Summary Assessment of Practices
Principles and Practices
Summary Assessments
Comments
Clarity of Roles and Responsibilities
1.1.
The government sector should be
Observed
distinguished from the rest of the public
sector and from the rest of the economy.
1.1.1
The structure and functions of government
Observed
should be clear.
General government is defined consistently with
Government Finance Statistics (GFS) principles,
and is well covered in the budget process.
1.1.2
The fiscal powers of the executive, legislative,
Observed
and judicial branches of government should be
well defined.
The fiscal roles of the executive and legislative
branches are clearly defined in law.
1.1.3
The responsibilities of different levels of
Observed
government, and the relationships between
them, should be clearly specified.
The responsibilities of different levels of
government and the relationships between them
are complex, but clear and well understood.
1.1.4
Relationships between the government and
Observed
public corporations should be based on clear
arrangements.
The relationship between government and
public corporations is clear.
1.1.5
Government relationships with the private
Observed
sector should be conducted in an open
manner, following clear rules and procedures.
Government relationships with the private sector
are conducted in an open manner. The laws
governing this relationship are clear.
Principles and Practices
Summary Assessments
Comments
1.2.
There should be a clear and open legal,
Observed
regulatory, and administrative framework
for fiscal management.
1.2.1
The collection, commitment, and use of public
Observed
funds should be governed by comprehensive
budget, tax, and other public finance laws,
The legal framework for management of public
regulations, and administrative procedures.
finances is clear and comprehensive.
1.2.2
Laws and regulations related to the collection
Observed
of tax and nontax revenues, and the criteria
guiding administrative discretion in their
All taxes, fees, and other charges are based in
application, should be accessible, clear, and
law; legislation is fragmented and complex, but
understandable. Appeals of tax or nontax
well publicized.
obligations should be considered in a timely
manner.
1.2.3
There should be sufficient time for consultation
Observed
about proposed laws and regulatory changes
and, where feasible, broader policy changes.
The influence of the public on proposed laws,
regulatory changes, and broader policy changes
is unusually high.
1.2.4
Contractual arrangements between the
Observed
government and public or private entities,
including resource companies and operators of
Contractual arrangements between the
government concessions, should be clear and
government and public or private entities are
publicly accessible.
limited. There are no PPPs at the federal level.
1.2.5
Government liability and asset management,
Observed
including the granting of rights to use or exploit
public assets, should have an explicit legal
There is a clear legal framework for managing
basis.
public debt. There is no legal framework for
privatization, but only one corporation has been
(partly) privatized.
Principles and Practices
Summary Assessments
Comments
Open Budget Process
2.1
Budget preparation should follow an
Observed
established timetable, and be guided by
well-defined macroeconomic and fiscal
policy objectives.
2.1.1
A budget calendar should be specified and
Observed
adhered to. Adequate time should be allowed
for the draft budget to be considered by the
The budget calendar and process are clearly
legislature.
defined and are followed in practice; budget
documentation is clear and comprehensive.
2.1.2
The annual budget should be realistic, and
Observed
should be prepared and presented within a
comprehensive medium-term macroeconomic
Budget forecasts and underlying
and fiscal policy framework. Fiscal targets and
macroeconomic assumptions are clearly
fiscal rules should be clearly stated and
presented and generally realistic. A statement
explained.
on fiscal policy objectives is included in the
budget documents. Fiscal rules (the “debt
brake”) and targets are clearly explained.
2.1.3
A description of major expenditure and
Largely observed
A summary statement of the fiscal impact
revenue measures and their contribution to
of new policy measures could be included
policy objectives, should be provided.
Major new revenue and expenditure initiatives
in the budget documentation.
Estimates should also be provided of their
are normally described in the budget
current and future budgetary impact and their
documents, but there is no summary statement
broader policy implications.
of their economic and budgetary impact.
2.1.4
The budget documentation should include an
Observed
assessment of fiscal sustainability. The main
assumptions about economic developments
An assessment of fiscal sustainability is
and policies should be realistic and clearly
included in the budget documentation, and
specified, and sensitivity analyses should be
analyses of long-term trends such as population
presented.
aging that will impact public finances are also
published.
Principles and Practices
Summary Assessments
Comments
2.1.5
There should be clear mechanisms for the
Observed
coordination and management of budgetary
Mechanisms for the coordination and
and extrabudgetary activities within the overall
fiscal policy framework.
management of budgetary and extrabudgetary
activities are well defined.
2.2
There should be clear procedures for
Observed
budget execution, monitoring, and
reporting.
2.2.1
The accounting system should provide a
Observed
reliable basis for tracking revenues,
commitments, payments, arrears, liabilities,
Accounting and internal control procedures
and assets.
provide a reliable basis for a modern financial
management system that facilitate effective
expenditure control and management of assets
and liabilities.
2.2.2
A timely mid-year report on budget
Observed
developments should be presented to the
legislature. More frequent updates, which
The accounting system is capable of producing
should be at least quarterly, should be
accurate in-year reports on central government
published.
budget outturns. The legislature receives timely
in-year reports on budget outturns, and
undertakes a mid-year review.
2.2.3
Supplementary revenue and expenditure
Observed
proposals during the fiscal year should be
presented to the legislature in a manner
Supplementary budgets are presented to the
consistent with the original budget
legislature twice a year in a manner consistent
presentation.
with the original budget presentation, and follow
a similar set of procedures as the annual
budget.
2.2.4
Audited final accounts and audit reports,
Largely observed
The published annual financial statements
including reconciliation with the approved
should include the audit report. The audit
budget, should be presented to the legislature
The audited final accounts are available within
report should clearly express an audit
and published within a year.
six months of the end of the fiscal year.
opinion on financial statements subject to
Principles and Practices
Summary Assessments
Comments
audit. This should go beyond the current
practice of simply confirming compliance
with legal requirements, and include an
opinion on whether the statements present
a true and fair view or are presented fairly
in all material respects.
Public Availability of Information
3.1
The public should be provided with
Largely Observed
comprehensive information on past,
current, and projected fiscal activity and on
major fiscal risks.
3.1.1
The budget documentation, including the final
Observed
accounts, and other published fiscal reports
The budget documents and fiscal reporting
should cover all budgetary and extrabudgetary
activities of the central government.
cover all of the central government.
3.1.2
Information comparable to that in the annual
Largely observed
It is important to present both the budget
budget should be provided for the outturns of
and the estimated outturn data for the
The budget documents disclose the main fiscal
at least the two preceding fiscal years,
current year, to provide more of a picture of
together with forecasts and sensitivity analysis
aggregates and detailed data for the two years
the reliability of budget data.
prior to the budget year, and three years beyond
for the main budget aggregates for at least two
the budget year. For the current year (the year
years following the budget.
prior to the budget year), budget tables show
only the budgeted numbers, not the estimated
outturn. Volume 5 of the budget presents
detailed forward estimates of departments and
agencies for three years following the budget
year.
3.1.3
Statements describing the nature and fiscal
Largely not observed
It is important to present information on tax
significance of central government tax
expenditures in the annual budget, and
expenditures, contingent liabilities, and QFAs
The budget documents contain only limited
expanded treatment of fiscal risks (fiscal
should be part of the budget documentation,
information on contingent liabilities, and none onsensitivity, QFAs, and full information on
together with an assessment of all other major
tax expenditures or QFAs. For the first time, in
contingent liabilities), including with regard
fiscal risks.
2009 the budget contained an alternative
to financial sector support operations.
macroeconomic and fiscal scenario.
Principles and Practices
Summary Assessments
Comments
3.1.4
Receipts from all major revenue sources,
Observed
including resource-related activities and
foreign assistance, should be separately
identified in the annual budget presentation.
3.1.5
The central government should publish
Observed
information on the level and composition of its
debt and financial assets, significant nondebt
Comprehensive information is published on
liabilities (including pension rights, guarantee
public debt. The annual financial statements
exposure, and other contractual obligations),
report information on civil service pension
and natural resource assets.
obligations, guarantee exposures, and financial
assets.
3.1.6
The budget documentation should report the
Not observed
It is important to provide an overview of the
fiscal position of subnational governments and
finances of subnational governments, and
the finances of public corporations.
The focus of the budget documents is the
of the public corporations sector, in the
central government. There is no information on
annual budget documents.
the financial performance or position of
subnational governments or public corporations.
3.1.7
The government should publish a periodic
Observed
Analyses of long-term finances were first
report on long-term public finances.
published in 2008, and will be updated on
Both a long-term scenario for spending on
a regular basis.
health and long-term care, and long-term fiscal
projections have been published.
3.2
Fiscal information should be presented in a
Largely Observed
way that facilitates policy analysis and
promotes accountability.
3.2.1
A clear and simple summary guide to the
Observed
budget should be widely distributed at the time
of the annual budget.
Volume 1 is an accessible 60-page summary of
the main elements of the budget. It is
accompanied by a seven-page press release.
Principles and Practices
Summary Assessments
Comments
3.2.2
Fiscal data should be reported on a gross
Largely observed
basis, distinguishing revenue, expenditure, and
financing, with expenditure classified by
The annual budget presentation is generally
economic, functional, and administrative
consistent with the GFSM 2001 standard.
category.
3.2.3
The overall balance and gross debt of the
Largely observed
Since 2007, the federal government has
general government, or their accrual
presented the overall balance on both cash
equivalents, should be standard summary
The overall balance of the federal government isand accrual basis.
indicators of the government’s fiscal position.
the main indicator of the fiscal position.
They should be supplemented, where
An overview of the finances of the social
appropriate, by other fiscal indicators, such as
security system should be presented in the
the primary balance, the public sector balance,
annual budget documents.
and net debt.
Some outturn information on the general
government balance would be useful as an
input to determining the appropriate federal
fiscal stance.
3.2.4
Results achieved relative to the objectives of
Largely not observed
The number of agencies appropriated on
major budget programs should be presented to
the basis of global budget was doubled in
the legislature annually.
In general, budgeting remains on a line item
2007. Consideration is currently being
inputs basis, although some agencies have
given to the future of the scheme.
global budgets and performance indicators.
3.3
A commitment should be made to the
Observed
timely publication of fiscal information.
3.3.1
The timely publication of fiscal information
Observed
should be a legal obligation of the government.
There are specific commitments to timely
publication.
3.3.2
Advance release calendars for fiscal
Observed
information should be announced and adhered
to.
Principles and Practices
Summary Assessments
Comments
Assurance of Integrity
4.1
Fiscal data should meet accepted data
Observed
quality standards.
4.1.1
Budget forecasts and updates should reflect
Observed
recent revenue and expenditure trends,
underlying macroeconomic developments, and
Budget data are reliable and the variance
well-defined policy commitments.
between budgeted and actual outturns of the
main fiscal aggregates are disclosed to the
public.
4.1.2
The annual budget and final accounts should
Observed
The government should consider moving
indicate the accounting basis used in the
towards fuller compliance with IPSAS. In
compilation and presentation of fiscal data.
The federal government adopted IPSAS with
particular, civil service pension liabilities
Generally accepted accounting standards
effect from 2007. Financial statements disclose
should be disclosed or the reasons for
should be followed.
accounting policies. The budget and financial
departure from IPSAS disclosed. Coverage
statements are prepared on a comparable
of financial statements should be
accrual basis.
extended, and consolidated financial
statements of all controlled entities should
be prepared.
4.1.3
Data in fiscal reports should be internally
Observed
consistent and reconciled with relevant data
from other sources. Major revisions to
Internationally accepted accounting standards
historical fiscal data and any changes to data
are used to compile fiscal data, and a statement
classification should be explained.
on the accounting basis is included in the
budget and final accounts documents.
4.2
Fiscal activities should be subject to
Largely Observed
effective internal oversight and safeguards.
4.2.1
Ethical standards of behavior for public
Observed
servants should be clear and well publicized.
Public servants are subject to a code of
behavior which is widely observed.
Principles and Practices
Summary Assessments
Comments
4.2.2
Public sector employment procedures and
Observed
conditions should be documented and
accessible to interested parties.
Civil service employment procedures are clear
and well understood.
4.2.3
Procurement regulations meeting international
Observed
standards, should be accessible and observed
in practice.
Procurement rules and practices meet
international standards, and are well known and
observed in practice.
4.2.4
Purchases and sales of public assets should
See answer to 4.2.3
be undertaken in an open manner, and major
transactions should be separately identified.
4.2.5
Government activities and finances should be
Largely observed
The roles and responsibilities of internal
internally audited, and audit procedures should
audit should be clarified in accordance with
be open to review.
Internal audit is based on a risk management
international standards.
approach and is effective; however, its
responsibilities compared to those of external
audit is not clearly distinguished.
4.2.6
The national revenue administration should be
Largely not observed
legally protected from political direction, ensure
taxpayers’ rights, and report regularly to the
The FTA and FCA are operationally
public on its activities.
independent; only limited information on their
activities is made publicly available.
4.3
Fiscal information should be externally
Largely Observed
scrutinized.
4.3.1
Public finances and policies should be subject
Observed
The independence of the SFAO or the
to scrutiny by a national audit body or an
perception of it, should be further
equivalent organization that is independent of
External audit is independent of the executive
enhanced.
the executive.
branch, and its mandate covers all federal
government activities.
Principles and Practices
Summary Assessments
Comments
4.3.2
The national audit body or equivalent
Largely observed
organization should submit all reports,
including its annual report, to the legislature
External audit reports are submitted to the
and publish them. Mechanisms should be in
legislature but not always published, and audit
place to monitor follow-up actions.
findings are systematically monitored.
4.3.3
Independent experts should be invited to
Largely not observed
The federal government could consider
assess fiscal forecasts, the macroeconomic
extending and formalizing the external
forecasts on which they are based, and their
While the inter-departmental expert group
review of macroeconomic forecasts.
underlying assumptions.
discusses its macroeconomic forecasts with
external parties, this process is not formalized,
and there is no external review of official
forecasts.
4.3.4
A national statistical body should be provided
Observed
with the institutional independence to verify the
quality of fiscal data.
The government finance statistics unit within the
FFA has primary responsibility for preparing
fiscal data, and acts with the required
institutional independence.
Appendix II. Public Availability of Information—A Summary
Budget and Fiscal Report
Included in Budget/Report
Paragraph
Code
Element
Documents?
Available to the Public?
Reference
Reference
1.
Central government (CG)
Yes
Yes (published/
21
2.1.1
budget estimates
internet)
2.
CG defense expenditures
Yes
Yes
35
2.1.1
3.
CG EBFs (including special
Yes, special funds
Yes, special funds
27
2.1.2
development funds, SSF, and
resource revenue funds)
No, SSF
Yes, SSF
4.
CG budget outturns
Yes, two years prior to budget
Yes, website of FFA, and
30
2.1.2
No, one year prior to budget
SDDS
5.
CG budget forecasts
Yes, for budget plus following three
Yes, in Volumes 2A, 2B,
22
2.1.2
years
and Volume 5 (medium-
term finance plan)
6.
CG contingent liabilities
Full details in budget on one
Yes, in Notes to Financial
40
2.1.3
guarantees program.
Statements
No contingency provision in budget
7.
CG tax expenditures
No
Some information in six-
41
2.1.3
yearly subsidy report
8.
CG QFAs
No
At least one quantitative
42
2.1.3
estimate published in
report of PostReg
9.
Macroeconomic assumptions
Yes, Volumes 1 and 3
Yes, through SECO press
22
3.1.3
release each quarter
10.
Analysis of fiscal risks/sensitivity
No sensitivity analysis
No
39-42
3.1.5
analysis
An alternative macroeconomic
Yes
scenario in 2009 budget (Volume 3)
11.
CG debt
Yes (stock, and medium-term debt
Yes
43
2.1.4
servicing)
Budget and Fiscal Report
Included in Budget/Report
Paragraph
Code
Element
Documents?
Available to the Public?
Reference
Reference
12.
CG financial assets
No
Yes, in accrual financial
45
2.1.4
statements
13.
Sustainability analysis
No
Long-term reports on
26, 46
3.1.1
fiscal sustainability and
health spending in 2008.
14.
General government budget
No
No
29, 49
2.1.5
estimates
15.
CG monthly/quarterly reports on
Monthly reporting on central
Yes
29
3.4.1
fiscal outturn
government outturn on FFA and
SDDS websites
16.
General government
No
No, annual fiscal outturn
29
3.4.1
monthly/quarterly reports on
available on FFA and
fiscal outturn
SDDS websites
17.
CG final accounts
Yes, for final outturn for two years
Yes, annual financial
32
3.4.2
prior to budget.
statements
No, for final outturn one year prior to
budget
18.
Consolidated general
No
No
32
3.4.2
government final accounts
Procedure for Deviations
Page 1 of 11
Procedure for Deviations
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Revision Date:
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Procedure for Deviations
Page 2 of 11
TABLE OF CONTENTS
INTRODUCTION
3
1.1 REASON FOR CHANGE
3
1.2 SCOPE
3
1.3 LEGISLATION & STANDARDS
3
1.4 COMPANY REQUIREMENTS
4
1.5 STOPPING UNSAFE WORK
4
1.6 DOCUMENT REVIEW
4
1.7 SSOW SPECIFIC CROSS REFERENCE
4
1.8 LANGUAGE FACILITATION
4
1.9 PROCEDURE SUMMARY
4
2
DEFINITIONS
5
3
RESPONSIBILITIES
5
3.1 SITE MANAGER (SM) / SITE CONTROLLER (SC) / OFFSHORE INSTALLATION MANAGER
(OIM)5
3.2 AREA AUTHORITY (AA)
5
3.3 TECHNICAL AUTHORITY (TA)
5
4
DEVIATION APPROVAL PROCESS
6
4.1 APPLICATION FOR DEVIATION APPROVAL
6
4.2 REQUIREMENTS FOR APPROVAL
6
4.3 PROLONGED OR FREQUENT DEVIATIONS
6
5
WORK CONTROL (PERMIT TO WORK REQUIREMENTS)
7
6
APPENDICES
7
APPENDIX A: AUTHORIZATION FOR LOCAL DEVIATION
8
APPENDIX B: PROCEDURE SUMMARY
9
APPENDIX C: FEEDBACK & IMPROVEMENT SUGGESTIONS
10
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Procedure for Deviations
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INTRODUCTION
1.1 REASON FOR CHANGE
Operations within BP Azerbaijan / Georgia are supported and controlled by:
BP Group and subsidiary policy
BP Azerbaijan / Georgia procedures
Business Unit management system and other manuals, procedures, standing
instructions, local rules, etc
However, occasions may occur where the best solution to an operational need
involves deviating from one or more of the above requirements due to specific
circumstances at the time.
1.2 SCOPE
The contents of this procedure are applicable to all BP owned and managed sites /
installations in Azerbaijan and Georgia. Contractors working on BP owned or
managed sites / installations are also responsible for alignment with this procedure.
This document does not replace the procedures prepared and adopted by specialist
contractors. Neither does it supersede any national and local regulatory
requirements.
This procedure contributes to compliance with the “HSE expectations” contained in
“getting HSE right”, the „Golden Rules of Safety‟ and the Control of Work (CoW)
standard that the Hazards associated with BP activities are identified and that the
risks are assessed and managed.
All guidelines contained shall be regarded as the minimum requirements for BP
owned or managed sites / installations in Azerbaijan and Georgia.
This dispensation process should be used whenever it is deemed necessary to
deviate from current practice, standards and procedures on a specific work site.
This procedure defines:
Who needs to authorise deviations
The conditions which must be met before authorisation is given
The vehicle for documenting the process
1.3 LEGISLATION & STANDARDS
The aim of this Safe System of Work is to achieve ”no accidents”, “no harm to
people” and “no damage to the environment”. To achieve this aim, this SSOW
complies with National Legislation (Ref. Law of the Azerbaijan Republic on Technical
Safety, 02.11.1999), the terms of the Production Sharing Agreement (PSA) and
mandatory BP Standards.
The best International Oil Industry practice has been adopted to reduce the level of
risk to ALARP.
Control Tier:
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Procedure for Deviations
Page 4 of 11
In the absence of local regulations, BP Group Standards will apply. In addition,
appropriate UK and US regulations and industry best practice have been considered
in setting suitable goals and targets.
1.4 COMPANY REQUIREMENTS
It is a company requirement that all deviations are subjected to an assessment of risk
to demonstrate that risks have been reduced to as low a level as reasonably
practicable
(ALARP). This can be achieved by complying with the Company‟s
existing standards. Where compliance with Company standards cannot reasonably
be achieved, a formal level 2 Risk Assessment will be undertaken to identify any
additional controls and demonstrate that risks remain as low as reasonably
practicable. Whether by compliance with Company Standards or through level 2 Risk
Assessment, the Company‟s Golden Rules of Safety must be complied with. Golden
Rules are non-negotiable.
1.5 STOPPING UNSAFE WORK
To stop the continuation of potentially unsafe work at the earliest possible stage, the
Control of Work (CoW) Policy and this procedure for Deviations make it very clear
that all personnel are obliged and have the authority to “STOP” the work that they
consider to be unsafe.
1.6 DOCUMENT REVIEW
This document will be reviewed on an annual basis when users from the sites /
installations will have an opportunity to propose changes to the existing processes
and procedures. The document Technical Authority will be responsible for
coordinating this review.
1.7 SSOW SPECIFIC CROSS REFERENCE
This procedure shall, where appropriate, be used in conjunction with this suite of
AzSPU Procedures referenced below.
Document Number
Title of Procedure
AZSPU-HSSE-DOC-00060-2
Permit To Work
AZSPU-HSSE-DOC-00063-2
Task Risk Assessment
AZSPU-HSSE-DOC-00012-2
Authorization
AZSPU-HSSE-DOC-00002-2
BP Control of Work Standards
1.8 LANGUAGE FACILITATION
Due to the various languages spoken at sites / installations, there is a necessity to
assist all with “an ease of understanding”. Therefore, the development and use of
information tools are available.
1.9 PROCEDURE SUMMARY
A Procedure Summary has been developed in a form of a leaflet, which can be
carried by the Line Supervisors while conducting their day-to-day work tasks. The
Leaflet summarizes the contents of this procedure for Deviations. The Procedure
Summary can also be used as a guideline for Line Supervisors to deliver their daily
toolbox talk. (See Appendix A)
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Procedure for Deviations
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2 DEFINITIONS
SM
Site Manager
SC
Site Controller
OIM
Offshore Installation Manager
SSOW
Safe System of Work
ALARP
As Low as Reasonably Practicable
PTW
Permit to Work
3 RESPONSIBILITIES
3.1 SITE MANAGER (SM) / SITE CONTROLLER (SC) / OFFSHORE INSTALLATION
MANAGER (OIM)
The Site Manager / Site Coordinator / Offshore Installation Manager have final
responsibility for authorising a deviation and ensuring the relevant requirements of
the deviation are met from:
BP Standards
Practices and procedures
3.2 AREA AUTHORITY (AA)
The Area Authority is responsible for:
Informing the Site Manager / Site Coordinator / Offshore Installation Manager
at the earliest opportunity of the need to apply for deviation from standards,
practices and procedures or a national regulation
Identifying and specifying the standards, practices and procedures or national
regulation(s) from which deviation is sought, along with the reason
Seeking specialist technical advice where required to carry out the associated
risk assessment
Carrying out a risk assessment and identifying mitigating measures
Distributing the original, and copies of, the completed request with approvals
Ensuring that all mitigating measures are in place
3.3 TECHNICAL AUTHORITY (TA)
The relevant technical authority is accountable for:
Assessing the incremental risk to the operation with respect to the required
dispensation
Assessment of the identified mitigation requirements from the asset
requesting the deviation
Identification of additional technical mitigation requirements should they be
required.
Reviewing current practices and updating as required following assessment
Supporting the asset in obtaining dispensation from the company self
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Procedure for Deviations
Page 6 of 11
regulated standards, e.g. Group Standards and ETP‟s
Technical Authority should also provide an approval in case of deviation request for
non-compliance with ETP or Site Technical Practice and the process is to record it as
MoC.
The Register of Engineering and Technical Authorities, and Discipline Responsible
Engineers retains in dk:
\\Bp1bakis003\baku_office\Operations\engineering\EngWebPage\EngineeringFunctions\EA-
TA-DRE.xls
4 DEVIATION APPROVAL PROCESS
4.1 APPLICATION FOR DEVIATION APPROVAL
Applications for site specific dispensation are submitted to the Site Manager / Site
Coordinator / Offshore Installation Manager at the place of operation using pro forma
illustrated in Appendix A.
For such applications, the attached form should be used to document the:
Regulation, procedure, practice recommendation, etc., from which a deviation
is required
Required duration of the dispensation
Requested deviation
Justification for the deviation
Risk assessments carried out
Mitigating measures to be implemented
Signatures of those in charge of processing the request
4.2 REQUIREMENTS FOR APPROVAL
The Site Manager / Site Coordinator / Offshore Installation Manager at the place of
operation have the authority for final approval for deviations from BP standards,
practices and procedures.
In order to authorise dispensation for a deviation, the Site Manager / Site Coordinator
/ Offshore Installation Manager is responsible for ensuring that:
A risk assessment has been properly carried out in accordance with AZSPU-
HSSE-DOC-00063-2 Task Risk Assessment
Appropriate technical endorsement from the specific practice or standard has
been obtained
Mitigating measures have been identified and appropriate actions implemented
Interim procedures have been produced and distributed to all relevant
personnel
Written dispensation has been received from the relevant national authorities
(if the deviation involves a national regulation)
4.3 PROLONGED OR FREQUENT DEVIATIONS
If it proves necessary to deviate from a practice, standard, regulation or procedure for
a prolonged period of time, or if the same deviation is requested on a frequent basis,
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Procedure for Deviations
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the person handling the request is responsible for implementing measures to either:
Change the practice, standard, or procedure in order to bring it into line with
what needs to be done
or...
Change the method of work to bring it into line with the practice, standard,
regulation or procedure.
5 WORK CONTROL (PERMIT TO WORK REQUIREMENTS)
All work requiring an authorised deviation from BP standards, practices and
procedures or a national regulation shall be carried out under a permit to work. This
provides the vehicle for the Site Manager / Site Coordinator / Offshore Installation
Manager to ensure that all agreed precautions are in place before the work proceeds.
Note: The pro-forma illustrated in Appendix A is to be used for recording the
deviation authorisation. This form must be attached to the permit and must be
brought to the attention of the Performing Authority before he signs the permit.
6 APPENDICES
APPENDIX A: Authorization for Local Deviation
APPENDIX B: Procedure Summary
APPENDIX C: Feedback & Improvement Suggestions
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Procedure for Deviations
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APPENDIX A: AUTHORIZATION FOR LOCAL DEVIATION
Authorization for Local Deviation (Pro-forma)
1. Procedure, Standard, Regulation:
2.Duration:
From:
To:
Date/Time:
Date/Time:
3. Site/Department:
4.Requested Deviation:
5. Justification:
6. Risk Assessment:
7. Mitigation Actions:
8. Requirements and Endorsement by Relevant Technical Authority:
Technical Authority Name:
Sign/Date:
Approval (delete as appropriate):
YES
NO
Deviation proposed by:
Deviation approved by:
(SM/SC/OIM)
Sign/Date:
Sign/Date:
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Procedure for Deviations
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deviation is sought, along with the reason
¾ Risk Assessment carried out
APPENDIX B: PROCEDURE SUMMARY
¾ Seeking specialist technical advice where required to
¾ Mitigation measures to be implemented
carry out the associated Risk Assessment
¾ Signatures of those in charge of processing the request
¾ Carrying out the Risk Assessment and identifying
Authorisation for Local Deviation Pro-forma
mitigation measures
DEVIATIONS
¾ Obtaining endorsement from the appropriate Technical
1. Procedure, Standard,
2.Duration
Authority
Regulation:
¾ Distributing the original, and copies of, the completed
From:
To:
Reasons for Change
request with approvals
Date/time
Date/time
¾ Ensuring that all mitigating measures are in place
3. Site/Department:
Operations within BP Azerbaijan and Georgia are supported and controlled
by:
4.Requested deviation:
Technical Authority
¾ Law and Statutory Regulations
¾ BP Group and Subsidiary Policy
The relevant Technical Authority is accountable for:
¾ BP Azerbaijan / Georgia Procedures
¾ Business Unit management System and other manual, procedures,
Assessing the incremental risk to the operation with
5. Justification:
standing instructions and local rules
respect to the required dispensation
Assessment of the identified mitigation
However, occasions may occur where the best solution to an operational
requirements from the asset requesting the
need involves deviating from one or more of the above requirements due to
deviation
specific circumstances at the time.
6. Risk assessment
Identification of additional technical mitigation
Dispensation Process
requirements should they be required.
Reviewing current practices and updating as
7. Mitigation actions:
This dispensation process should be used whenever it is deemed necessary
required following assessment
to deviate from current practices, standards and procedures on a specific
work site and defines:
Supporting the asset in obtaining dispensation from
¾ The process for authorising a deviation from a company practice,
the legislation, standard or practice form the
standard or procedure
relevant parties including but not limited to:
8. Req’ments & Endorsement by Relevant Technical Authority:
¾ Who needs to authorise deviations
o National bodies for legislation
¾ The conditions which must be met before authorisation is given
¾ The vehicle for documenting the process
o BP Group for e.g. Group Standards and
ETP‟s
Tech Auth:
Sign./date:
Prolonged or Frequent Deviations
o Local AzSPU Technical Authorities for
Approval (delete as appropriate):
YES
NO
dispensation from the AzSPU HSEMS
If it proves necessary to deviate from a practice, standard, regulation or
Deviation proposed by:
Deviation approved by: SM/SC/OIM
procedure for a prolonged period of time, or if the same deviation is
Technical Authority should also provide an approval in case of
requested on a frequent basis, the person handling the request is
deviation request for non-compliance with ETP or Site
Sign./Date:
responsible for implementing measures to either:
Technical Practice and the process is to record it as MoC.
Sign./Date:
¾ Change the practice, standard or procedure in order to bring it into line
with what needs to be done
Control of Work (PTW Requirements)
Requirements for Approval
¾ Change the method of work to bring it into line with the practice,
standard or procedure
All work requiring authorised deviation from BP standards,
In order to authorise dispensation for a deviation, the SM, SC or OIM is
practices, procedures or National Regulation shall be carried out
responsible for ensuring that:
Roles & Responsibilities
under a PTW.
¾ A Risk Assessment has been properly carried out
¾ Appropriate technical endorsement has been obtained
The Site manager (SM) / Site Controller (SC) / Offshore Installation Manager
This provides the vehicle for the SM, SC or OIM to ensure that
¾ Mitigating measures have been identified and appropriate actions
(OIM) have responsibility for authorising a deviation from:
agreed precautions are in place before work proceeds.
implemented
¾ BP Standards
¾ Interim procedures have been produced and distributed to all relevant
¾ Practices and procedures
Application for Deviation Approval
personnel
Applications for specific dispensations are submitted to the SM,
The Area authority is responsible for:
SC or OIM at the place of operation using the pro forma
illustrated in section 3.1 of this procedure. For such applications
¾ Informing the Site manager, Site controller or Offshore
the form should be used to document the:
Installation Manager at the earliest opportunity of the need
¾ Standard, procedure and practice recommendation from
to apply for a deviation from standards, practices,
which a deviation is required
procedures or a National Regulation
¾ Required duration of the dispensation
¾ Identifying and specifying the standards, practices,
¾ Requested deviation
procedures or National Regulation(s) from which a
¾ Justification for the deviation
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Procedure for Deviations
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APPENDIX C: FEEDBACK & IMPROVEMENT SUGGESTIONS
Procedure Feedback & Improvement Suggestions
Project Name: ______________________________
Date: ______________________________________
Name:_____________________________________
Badge Number: _____________________________
Procedure Reference: ________________________
Procedure Title: _____________________________
Improvement Suggestions (Write below your improvement suggestions)
Forward your Improvement Suggestion to the H&S Manager
at the Central HSSE Office, Hyatt Tower 2, 6th Floor
Signature: _____________
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Document Number: << AZSPU-HSSE-DOC-00011-2>>
Print Date: 7/24/2010
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Procedure for Deviations
Page 11 of 11
Revision/Review Log
Revision Date
Authority
Custodian
Revision Details
11 October 2004
Alan McNulty
Esmira
Initial Issue as controlled document
Akhundova
25 January 2008
Alan McNulty
Abbas Islamov
General:
(CH&S Manager)
(Safety Team
Throughout the procedure the document
Leader)
numbering for referred procedures has been
changed from UNIF to AzSPU.
Section 1. Introduction:
1.2 Scope; Wording changes.
The following are inclusion to Section 1.
They are: 1.2 Scope; 4 additional paragraphs
added. 1.3 Legislation & Standards, 1.4
Company Requirements, 1.5 Stopping Unsafe
Work, 1.6 Document Review, 1.7 SSOW
Specific Cross References (new doc control
numbers), 1.8 Language Facilitation, 1.9
Procedure Summary
Section 2. Definitions:
New section
Section 3. Roles & Responsibilities:
3.1 Site Manager; Site Controller and Offshore
Installation Manager added. Foot Note added.
Added new paragraph - 3.3 Technical Authority.
Section 4. Deviation Approval Process:
Figure 1; Authorization for Local Deviation Pro-
Forma. Additional line added for approval of
Technical authority. This pro-forma has been
moved to Appendix A.
Appendices.
In addition to Appendix A, 2 new appendices
have been included to the document as follows:
Appendix A: Procedure Summary
Appendix B: Feedback & Improvement
Suggestions
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Procedure for Authorization
Page 1 of 21
Procedure for Authorization
AZSPU-HSSE-DOC-00012-2
This number supersedes UNIF-HSE-PRO-104-C2
Authority:
AzSPU CH&S Manager
Custodian:
AzSPU Central Safety TL
Scope:
AzSPU
Document
Administrator:
Document Asset Technician
Issue Date:
21 October 2004
Issuing Dept:
AzSPU Central H&S
Revision Date:
25 April 2008
Control Tier:
2
Next Review
25 April 2009
Date:
Control Tier:
<<2>>
Revision Date: 25 April 2008
Document Number: << AZSPU-HSSE-DOC-00012-2>>
Print Date: 7/24/2010
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Procedure for Authorization
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TABLE OF CONTENTS
1
INTRODUCTION
3
1.1 PURPOSE
3
1.2 SCOPE
3
1.3 LEGISLATION & STANDARDS
3
1.4 COMPANY REQUIREMENTS
4
1.5 STOPPING UNSAFE WORK
4
1.6 DEVIATIONS
4
1.7 DOCUMENT REVIEW
4
1.8 SSOW SPECIFIC CROSS REFERENCES
4
1.9 LANGUAGE FACILITATION
4
1.10
PROCEDURE SUMMARY
4
2
DEFINITIONS
5
3
FUNCTIONS AND RESPONSIBILITIES
6
3.1 SITE MANAGER / SITE CONTROLLER / OFFSHORE INSTALLATION MANGERS
6
3.2 AREA AUTHORITY
6
3.3 PERFORMING AUTHORITY
6
3.4 AUTHORISED GAS TESTER LEVEL 1
6
3.5 AUTHORISED GAS TESTER LEVEL 2
6
3.6 AUTHORISED GAS TESTER LEVEL 3
6
3.7 AUTHORISED LEAK TESTER
7
3.8 ISOLATING AUTHORITY
7
3.8.1
Process Isolators
7
3.8.2
Electrical Isolators
7
3.9 FIREWATCHER
8
3.10
PERMIT TO WORK COORDINATOR
8
3.11
RADIOLOGICAL PROTECTION SUPERVISOR
8
3.12
RESPONSIBLE ELECTRICAL PERSON (REP)
8
4
TRAINING AND COMPETENCY REQUIREMENTS
8
5
AUTHORISATION PROCESS
12
5.1 AUTHORISATION ASSESSMENT
12
5.2 LETTER OF AUTHORISATION AND STATEMENT OF COMPETENCY
12
5.3 AUTHORISATION VALIDITY
13
5.4 AUTHORISATION REGISTER
13
5.5 RECORDS
13
APPENDIX A: GENERAL LETTER OF AUTHORISATION
14
APPENDIX B: ELECTRICAL AUTHORISATION CERTIFICATE
15
APPENDIX C: ELECTRICAL COMPETENCY CERTIFICATE
16
APPENDIX D: ELECTRICAL TRAINING CERTIFCATE
17
APPENDIX E: ELECTRICAL ASSESSMENT CHECKLIST
18
APPENDIX F: PROCEDURE SUMMARY
19
APPENDIX G: FEEDBACK & IMPROVEMENT SUGGESTIONS
20
Control Tier:
<<2>>
2
Revision Date: 25 April 2008
Document Number: << AZSPU-HSSE-DOC-00012-2>>
Print Date: 7/24/2010
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Procedure for Authorization
Page 3 of 21
1
INTRODUCTION
Key functions are defined within the AzSPU Safe Systems of Work that must be fulfilled in order to
ensure that the controls are in place to provide the safe execution of specific activities. Examples of
such functions include:
Area Authority (Permit to Work System)
Radiological Protection Supervisor (Radioactive Source Management)
Authorised Gas Tester Level 1 (Confined Space Entry)
Note: Authorised functions are only assigned to personnel who have completed the necessary
training and have been properly authorised.
PURPOSE
The purpose of this document is to define the:
Key functions and responsibilities involved in the Safe Systems of Work procedures
Training and competency required for personnel fulfilling those functions
Authorisation process for each defined function.
SCOPE
The contents of this Safe System of Work are applicable to all BP owned and managed
sites/installations in Azerbaijan and Georgia. Contractors working on BP owned or managed
sites/installations are also responsible for alignment with this SSOW.
This document does not replace the procedures prepared and adopted by specialist contractors.
Neither does it supersede any national and local regulatory requirements.
This SSOW contributes to compliance with the “HSE expectations” contained in “getting HSE right”.
All guidelines contained shall be regarded as the
“minimum” requirements for BP owned or
managed sites in Azerbaijan and Georgia.
This procedure applies to:
All BP Azerbaijan / Georgia premises where hydrocarbons are processed or handled
Any BP Azerbaijan / Georgia or contractor premises where work is carried out under the BP
Azerbaijan / Georgia Permit to Work system
LEGISLATION & STANDARDS
The aim of this Safe System of Work is to achieve ”no accidents”, “no harm to people” and “no
damage to the environment”. To achieve this aim, this SSOW complies with National Legislation,
the terms of the Production Sharing Agreement (PSA) and mandatory BP Standards.
The best International Oil Industry practice has been adopted to reduce the level of risk to ALARP.
In the absence of local regulations, BP Group Standards will apply. In addition, appropriate UK and
US regulations and industry best practice have been considered in setting suitable goals and
targets.
Control Tier:
<<2>>
3
Revision Date: 25 April 2008
Document Number: << AZSPU-HSSE-DOC-00012-2>>
Print Date: 7/24/2010
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Procedure for Authorization
Page 4 of 21
COMPANY REQUIREMENTS
It is a company requirement that all tasks are subjected to an assessment of risk to demonstrate
that risks have been reduced to as low a level as reasonably practicable (ALARP). This can be
achieved by complying with the Company‟s existing standards. Where compliance with Company
standards cannot reasonably be achieved, a formal level 2 Risk Assessment will be undertaken to
identify any additional controls and demonstrate that risks remain as low as reasonably practicable.
Whether by compliance with Company Standards or through level 2 Risk Assessment, the
Company‟s Golden Rules of Safety must be complied with. Golden Rules are non-negotiable.
STOPPING UNSAFE WORK
To stop the continuation of potentially unsafe work at the earliest possible stage the Control of Work
(CoW) Policy and this Authorization procedure make it very clear that all personnel are obliged and
have the authority to “STOP” the work that they consider to be unsafe.
DEVIATIONS
This procedure is written in sufficient detail that it should be able to be applied consistently at all
sites
/ installations. There may still be the requirement for some local rules covering site
/
installation specific logistical/administrative arrangements and local variations in responsibilities to
reflect differences in organisational arrangements. These local rules should not deviate from the
core processes within this document. Any form of deviation from this procedure, including but not
limited to local rules, shall be requested and authorised in accordance with SSOW, Deviations from
Regulations and Procedures procedure (Doc. No: AZSPU-HSSE-DOC-00011-2).
DOCUMENT REVIEW
This document will be reviewed on an annual basis when users from the sites / installations will
have an opportunity to propose changes to the existing processes and procedures. The document
Technical Authority will be responsible for coordinating this review.
SSOW SPECIFIC CROSS REFERENCES
This procedure shall, where appropriate, be used in conjunction with this suite of AzSPU
Procedures referenced below.
Document Number
Title of Procedure
AZSPU-HSSE-DOC-00060-2
Permit To Work
AZSPU-HSSE-DOC-00063-2
Task Risk Assessment
AZSPU-HSSE-DOC-00048-2
Energy Isolations-Electrical
AZSPU-HSSE-DOC-00049-2
Energy Isolations-Process
AZSPU-HSSE-DOC-00013-2
Confined Space Entry
AZSPU-HSSE-DOC-00058-2
Management of Radioactive Materials & Radiation
Generators
AZSPU-HSSE-DOC- 00002-2
BP Control of Work Standards
AZSPU-HSSE-DOC- 00088-2
Control of Work Training Policy
LANGUAGE FACILITATION
Due to the various languages spoken at sites / installations, there is a necessity to assist all with “an
ease of understanding”. Therefore, the development and use of information tools are available.
PROCEDURE SUMMARY
A Procedure Summary has been developed in a form of a leaflet, which can be carried by the Line
Supervisors while conducting their day-to-day work tasks. The Leaflet summarizes the contents of
this Authorisation procedure. The Procedure Summary can also be used as a guideline for Line
Supervisors to deliver their daily toolbox talk. (See Appendix F)
Control Tier:
<<2>>
4
Revision Date: 25 April 2008
Document Number: << AZSPU-HSSE-DOC-00012-2>>
Print Date: 7/24/2010
PAPER COPIES ARE UNCONTROLLED. THIS COPY VALID ONLY AT THE TIME OF PRINTING. THE CONTROLLED VERSION OF
THIS DOCUMENT CAN BE FOUND AT http://docs.bpweb.bp.com/dkazspu/component/hssesms
Procedure for Authorization
Page 5 of 21
2
DEFINITIONS
AA
Area Authority
AAA
Affected Area Authority
AEP
Authorised Electrical Person
AGT
Authorised Gas Tester
AIP
Authorised Instrument Person
ALARP
As Low as Reasonably Practicable
BUL
Business Unit Leader
BOC
Break of Containment
CBT
Computer Based Training
CCR
Central Control Room
CEP
Competent Electrical Person (AIP, AEP, SAEP & REP)
CMAS
Competence Management Assurance System
COSHH
Control of Substances Hazardous to Health
COW
Control of Work
CRO
Control Room Operator
CSE
Confined Space Entry
CW
Cold Work
DH
Department Head
FW
Fire Watcher
FP
Formal Procedure
HWNF
Hot Work Naked Flame
HWSP
Hot Work Spark Potential
IA
Isolating Authority
ICC
Isolation Control Certificate
IRA
Isolation Risk Assessment
LSA
Low Specific Activity
L2RA
Level 2 Risk Assessment
LTI
Long-Term Isolations
MOC
Management of Change
NORM
Naturally Occurring Radioactive Materials
OIM
Offshore Installation Manager
ORA
Operational Risk Assessment
PA
Performing Authority
PTW
Permit to Work
PTWC
Permit to Work Coordinator
PUL
Performance Unit Leader
RA
Risk Assessment
REP
Responsible Electrical Person
SAEP
Senior Authorised Electrical Person
SARA
Stand Alone Risk Assessment
SC
Site Controller
SM
Site Manager
SSOW
Safe System of Work
STT
Sanction to Test
TA
Technical Authority
TBT
Toolbox Talk
Control Tier:
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5
Revision Date: 25 April 2008
Document Number: << AZSPU-HSSE-DOC-00012-2>>
Print Date: 7/24/2010
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Procedure for Authorization
Page 6 of 21
3
FUNCTIONS AND RESPONSIBILITIES
SITE MANAGER / SITE CONTROLLER / OFFSHORE INSTALLATION MANGERS
The Site Manager / Site Controller / Offshore Installation Manager are responsible for the safety of
all personnel at the site and for the safe execution of all work carried out at the site. With specific
regard to this procedure this responsibility covers:
Ensuring that the personnel are competent to carry out any task for which they are authorised
Communicating the individual responsibilities to those personnel appointed under this
procedure
In addition, the Site Manager
/ Site Controller
/ Offshore Installation Manager have overall
responsibility for the implementation of the Permit to Work procedure and its supporting procedures
at the site or offshore installation. This includes the responsibility for:
Ensuring that the Permit to Work system is subject to active assurance.
Acting upon all recommendations of the assurance process and proposing system
improvements
AREA AUTHORITY
Personnel fulfilling the function of Area Authority are responsible, within the limits of their
designated area, for the:
Safety of personnel and the safe execution of all activities
Operation of the Permit to Work system and supporting procedures
In addition, as Affected Area Authorities (an Area Authority whose area of responsibility will be
affected by work being undertaken principally in another area and under the control of another Area
Authority) they are required to be aware of, and be in agreement with, all work activities taking
place that have a potential impact on their particular area of responsibility and control.
The Responsible Electrical Person will act as affected Area Authority for any electrical work carried
out on the site (Ref. 3.12).
PERFORMING AUTHORITY
The Performing Authority is the person who requires the work to be done or who will perform the
work. Performing Authorities shall act as the senior person in charge of work controlled by a Permit
to Work and are responsible for safety at the work site.
AUTHORISED GAS TESTER LEVEL 1
An Authorised Gas Tester Level 1 is authorised to test for the presence of flammable gas or vapour,
toxic gas and oxygen. In particular the Authorised Gas Tester will document and record gas test
results as defined in AZSPU-HSSE-DOC-00013-2 - Procedure for Confined Space Entry.
AUTHORISED GAS TESTER LEVEL 2
An Authorised Gas Tester Level 2 is authorised to test for the presence of flammable gas or vapour.
AUTHORISED GAS TESTER LEVEL 3
An Authorised Gas Tester Level 3 is an individual, usually the Performing Authority, who is
approved by the Ste Manager, Site Controller or Offshore Installation Manager as having
undergone practical instruction on the use and interpretation of the results from both portable and
Control Tier:
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Revision Date: 25 April 2008
Document Number: << AZSPU-HSSE-DOC-00012-2>>
Print Date: 7/24/2010
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Procedure for Authorization
Page 7 of 21
personal gas monitors. The AGT 3 has no authority to record gas test results on the PTW; their
responsibility is only for continuous monitoring.
AUTHORISED LEAK TESTER
An Authorised Leak Tester is authorised to test for the presence of leaks. In particular the
Authorised Leak Tester will perform document and record leak test results as defined in AZSPU-
HSSE-DOC-00055-2 - Leak Testing
ISOLATING AUTHORITY
Process Isolators
Process isolators are responsible for the identification, specification, application, removal and
recording of Process Isolations (Process / Mechanical Isolations).
Electrical Isolators
Electrical Isolators are responsible for the specification, application, removal and recording of
Electrical Isolations (Control/ Electrical/ Telecom Isolations).
Senior Authorized Electrical Personnel (SAEP)
Electrical personnel who have been formally assessed by the site Electrical Technical Authority (or
delegate), and authorized by the Offshore Installation Manager / Site Manager / Site Controller, to
switch, isolate and test electrical equipment greater than 100v the upper level of authorization will
be detailed on the Electrical Authorization Certificate (see Appendix B), can act as an isolating
authority under the Safe Systems of Work for electrical systems with voltage levels up to and
greater than 1000V. As described in AZSPU-HSSE-DOC-00048-2 Procedure for: Energy Isolation
- Electrical.
Note: Where switching or isolation interfaces with an external organization the authorization may
also include an assessment by the external organization or the State Energy Control
Authorized Electrical Personnel (AEP)
Electrical personnel who have been formally assessed by the site REP, and authorized by the
Offshore Installation Manager / Site Manager / Site Controller, to switch, isolate and test electrical
equipment with voltage levels less than one thousand volts (1000V) and act as an isolating
authority under the Safe Systems of Work for electrical systems with voltage levels less than
1000V. As described in AZSPU-HSSE-DOC-00048-2 Procedure for: Energy Isolation - Electrical
Authorized Instrument Personnel (AIP)
Instrument personnel who have been formally assessed by the site REP, and authorized by the
Offshore Installation Manager / Site Manager / Site Controller to switch, isolate and test control,
instrument and telecom equipment with voltage levels less than fifty volts (50V), can act as an
isolating authority under the Safe Systems of Work for control, instrument and telecom systems with
voltage levels less than
50V phase to earth. As described in AZSPU-HSSE-DOC-00048-2
Procedure for: Energy Isolation - Electrical
Competent Isolator (CI)
In special circumstances individuals can be assessed as competent isolators by the site REP and
authorized by the Offshore Installation Manager / Site Manager / Site Controller for specific items of
Control Tier:
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Revision Date: 25 April 2008
Document Number: << AZSPU-HSSE-DOC-00012-2>>
Print Date: 7/24/2010
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Procedure for Authorization
Page 8 of 21
equipment providing that they have completed the formal training and have been assessed as
competent, as described in AZSPU-HSSE-DOC-00048-2 for: Energy Isolation - Electrical
FIREWATCHER
Personnel competent in the use of fire fighting equipment that they are expected to handle as
described in AZSPU-HSSE-DOC-00060-2 Procedure for: Permit to Work.
PERMIT TO WORK COORDINATOR
Personnel authorized to act as a permit to work coordinator (some times this function is covered by
the site control room operator and the area authority) as described in AZSPU-HSSE-DOC-00060-2
Procedure for: Permit to Work
RADIOLOGICAL PROTECTION SUPERVISOR
Personnel authorised to act as a Radiological Protection Supervisor are authorised to supervise the
handling of radioactive sources and test for radiation levels as described in AZSPU-HSSE-DOC-
00058-2 Management of Radioactive Materials & Radiation Generators.
RESPONSIBLE ELECTRICAL PERSON (REP)
This is a role under the „Safe System of Work‟ or „Permit to Work system‟ to clearly identify which
authorized person, has the responsibility for the electrical system. The REP is nominated by the
Offshore Installation Manager / Site Manager / Site Controller from those persons having the
highest level of authorization required for that site / installation.
The REP will:
Approve any switching programs
Countersign permits with electrical content where the Area Authority isn‟t electrically
competent, ensuring that the isolation has been correctly designed and the Isolating Authority
has the appropriate authorization level for the work
Assess and recommend site personnel for authorization to AEP, AIP, and CI
As described in AZSPU-HSSE-DOC-00060-2 Procedure for: Permit to Work and AZSPU-HSSE-
DOC-00048-2 Procedure for: Energy Isolation - Electrical.
4
TRAINING AND COMPETENCY REQUIREMENTS
The requirements for training, competency evaluation and authorisation are given in Table 1:
Training and Competency Requirements for Authorisation and available in CoW Training Policy as
described in AZSPU-HSSE-DOC-00088-2.
Authorized Gas Testing (Level 1, Level 2 and Level 3) is available in computer based training
format.
Authorization shall cease if the person moves to a new post, even if the new post is on the same
site.
Control Tier:
<<2>>
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Revision Date: 25 April 2008
Document Number: << AZSPU-HSSE-DOC-00012-2>>
Print Date: 7/24/2010
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Procedure for Authorization
Page 9 of 21
Table 1: Training and Competency Requirements for Authorisation
Function
Training
Competency
Valid (yrs)
Authorized by
Evaluation/Assessment
Site
PTW Area
Course evaluation test
2
Operations
Manager/Site
Authority.
and competency
Manager
Controller/Offs
assessment against the
hore Installation
minimum requirements
Manager
of CMAS by Operations
Manager
Area Authority
PTW Area
Course evaluation test
2
Site
(AA)
Authority.
and competency
Controller/Site
Excavations (for
assessment by Site
Manager/OIM
1
onshore only).
Controller/DH/HSEA
Performing
PTW Performing
Course evaluation test
2
Area Authority
Authority (PA)
Authority.
and competency
assessment by Area
Authority/DH/HSEA
Authorized Gas
AGT.
Course evaluation test
2
Site
Tester
and competency
Controller/Site
PTW Performing
assessment by
Manager/OIM
Authority.
HSEA/AGT
Level1/Prod Supv/Site
Controller
Authorized
PTW Performing
Course evaluation test
2
Site
Leak Tester
Authority.
and competency
Controller/Site
assessment by Area
Manager/OIM
AGT.
2
Authority/DH/HSEA
Competent
PTW Performing
Course evaluation test
2
Site
Isolator
Authority.
and competency
Controller/Site
assessment by Site
Manager/OIM
Responsible Electrical
Person (REP)
Control Tier:
<<2>>
9
Revision Date: 25 April 2008
Document Number: << AZSPU-HSSE-DOC-00012-2>>
Print Date: 7/24/2010
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Procedure for Authorization
Page 10 of 21
Function
Training
Competency
Valid (yrs)
Authorized by
Evaluation/Assessment
Authorized
PTW Performing
Course evaluation test
2
Site
Instrument
Authority.
and competency
Controller/Site
Person (AIP)
assessment by Site
Manager/OIM
Electrical Energy
Refresher
Responsible Electrical
Isolation.
identified at
Person (REP)
discretion of
authorizing
person
Comp’Ex (on
5
hydrocarbon sites).
First aid Level 2 for
Electrical shocks.
2
Authorized
PTW Performing
Course evaluation test
2
Site
Electrical
Authority.
and competency
Controller/Site
Person (AEP)
assessment by Site
Manager/OIM
Electrical Energy
Refresher
Responsible Electrical
Isolation.
identified at
Person (REP)
discretion of
authorizing
person
First aid Level 2 for
2
Electrical shocks.
Comp’Ex (on
hydrocarbon sites).
5
Senior
PTW Performing
Course evaluation test
2
Site
Authorized
Authority.
and competency
Controller/Site
Electrical
assessment by BP
Manager/OIM
Electrical Energy
Refresher
Person (SAEP)
Electrical TA / or
Isolation.
identified at
nominated delegate
discretion of
authorizing
person
First aid Level 2 for
2
Electrical shocks.
Comp’Ex (on
hydrocarbon sites).
5
HV/LV switching.
5
Control Tier:
<<2>>
10
Revision Date: 25 April 2008
Document Number: << AZSPU-HSSE-DOC-00012-2>>
Print Date: 7/24/2010
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Procedure for Authorization
Page 11 of 21
Function
Training
Competency
Valid (yrs)
Authorized by
Evaluation/Assessment
Responsible
PTW Area
Course evaluation test
2
Site
Electrical
Authority.
and competency
Controller/Site
Person (REP)
assessment by BP
Manager/OIM
Electrical Energy
Refresher
Electrical TA / or
Isolation.
identified at
nominated delegate
discretion of
authorizing
person
First aid Level 2 for
2
Electrical shocks.
Comp’Ex (on
hydrocarbon sites).
5
HV/LV switching.
5
Authorized
PTW Performing
Course evaluation test
2
Site
Telecomms
Authority.
and competency
Controller/Site
Person
assessment by Site
Manager/OIM
Electrical Energy
Refresher
Responsible Electrical
Isolation.
identified at
Person (REP)
discretion of
authorizing
person
First aid Level 2 for
2
Electrical shocks.
Process Isolator
PTW Performing
Course evaluation test
2
Site
Assessor
Authority. (EI P
and competency
Controller/Site
program is part of
assessment by Area
Manager/OIM
PA training)
Authority
Process Isolator
PTW Performing
Course evaluation test
2
Site
Authority. (EI P
and competency
Controller/Site
program is part of
assessment by Process
Manager/OIM
PA training)
Isolator Assessor
Radiological
Radiological
Course and written
3
Site
Protection
Protection.
examination by external
Controller/Site
Supervisor
trainer
Manager/OIM
Fire Watcher
PTW Performing
Course evaluation test
2
Area Authority
Authority.
and competency
assessment by Area
Authority
Control Tier:
<<2>>
11
Revision Date: 25 April 2008
Document Number: << AZSPU-HSSE-DOC-00012-2>>
Print Date: 7/24/2010
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Procedure for Authorization
Page 12 of 21
Function
Training
Competency
Valid (yrs)
Authorized by
Evaluation/Assessment
Confined Space
Confined Space
Course evaluation test
2
Site
Entry Attendant
Entry.
and competency
Controller/Site
assessment by Area
Manager/OIM
Authority
Confined Space
Confined Space
N/A
2
N/A
Entry Entrant
Entry.
Permit to work
PTW Area
Course evaluation test
2
Site
Co-coordinator
Authority.
and competency
Controller/Site
assessment by Site
Manager/OIM
Controller/HSEA/DH
5
AUTHORISATION PROCESS
Note: No person shall be authorised under this procedure until they have completed the required
training and the competency evaluation detailed in Table
1: Training and Competency
Requirements for Authorisation and where required a written statement of competency has been
received from the assessor by the authoriser.
Note: For any authorization the requirements can be only satisfied by completion of the
appropriate training course and assessment by the authorizing person.
AUTHORISATION ASSESSMENT
For authorization for Isolation Authorities a candidate who successfully meets the pre-requisite
standards, will be assessed further by the Process Supervisor or Responsible Electrical Person or
the Electrical Technical Authority (or nominated delegate)
For Isolation Authorities-Electrical this part of the assessment will be based on written, oral and
practical demonstration of knowledge.
The candidate will provide written responses to a selection of question relating to Safe Systems of
Work and facility specific information.
The candidate will also be asked to demonstrate on site appropriate site knowledge, and how to
apply the Safe Systems of Work to an appropriate operational exercise.
The REP will assess competency of Authorized Instrument Persons (AIP), Authorized Electrical
Persons (AEP) and Competent Isolators (CI). The Electrical Technical Authority (or delegate) will
assess the competency of candidates for the Senior Authorized Electrical Persons (SAEP) or those
persons who will fulfil the role of Responsible Electrical Person (REP).
LETTER OF AUTHORISATION AND STATEMENT OF COMPETENCY
Authorisation is recognised by a letter to the individual (see Appendix A general authorization and
Appendix B for electrical authorisation), clearly stating the level and duration of authorisation. If
required, the competency assessor shall supply a written statement of competency to the
Control Tier:
<<2>>
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Revision Date: 25 April 2008
Document Number: << AZSPU-HSSE-DOC-00012-2>>
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Procedure for Authorization
Page 13 of 21
authorizer. (see Appendix C for electrical competency).
AUTHORISATION VALIDITY
Authorisation shall be valid for the maximum duration stated in Table 1 which corresponds with the
refresher training requirements associated with the duties.
Note: Authorisation shall cease if the person moves to a new post, even if the new post is on the
same site.
AUTHORISATION REGISTER
The Site Manager/ Site Controller/ Offshore Installation Manager shall maintain a register of all
personnel authorised at their facility. This register will be stored on Documentum and accessed via
the Azerbaijan Business Unit web site. This register shall be available within the facility at the
location from where permits are normally issued.
RECORDS
Central HSE L&OD team will keep all training attendance records in Learning Management system
(VTA).
The site will retain a signed copy of all certificates formally issued. It is the site managers
responsibility to do this. They may be kept as electronic copies within Documentum.
Control Tier:
<<2>>
13
Revision Date: 25 April 2008
Document Number: << AZSPU-HSSE-DOC-00012-2>>
Print Date: 7/24/2010
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Procedure for Authorization
Page 14 of 21
APPENDIX A: GENERAL LETTER OF AUTHORISATION
{Date}
Letter of Authorisation under the Safe Systems of Work Procedures
This letter authorises {full name
} to under take the duties of {postion
} at {site/
facility
}in accordance with the requirements of BP AZSPU (delete as appropriate from
the listing of Permit to Work System; AZSPU-HSSE-DOC-00060-2) AZSPU-HSSE-DOC-
00048-2 Energy Isolation - Electrical; AZSPU-HSSE-DOC-00049-2 Energy Isolation -
Process; AZSPU-HSSE-DOC-00013-2 Safe Systems of Work - Confined Space Entry;
AZSPU-HSSE-DOC-00052-2 Gas Detection Equipment; AZSPU-HSSE-DOC-00058-2
Management of Radioactive Materials & Radiation Generators. This authorisation is valid
for a period of {X
} years or until termination of employment in your present position.
For BP Azerbaijan/Georgia
{Name}
Signature: ………………………….
{Authorizing post holder}
Accepted by:
Control Tier:
<<2>>
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Revision Date: 25 April 2008
Document Number: << AZSPU-HSSE-DOC-00012-2>>
Print Date: 7/24/2010
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Procedure for Authorization
Page 15 of 21
APPENDIX B: ELECTRICAL AUTHORISATION CERTIFICATE
Electrical Authorization
Certificate
Add individuals NAME: ………………………………………
Was found to be competent to operate safely in the following areas
Mechanical isolations for systems of less than 1000V
Control and Instrumentation systems with voltages less than 50V
Electrical circuits with voltages less than 1000V
Electrical distribution systems with voltages less that 1000V
Electrical circuits with voltages less that 33kV
Electrical distribution systems with voltages less than and including 33kV
Electrical distribution systems with voltages of 110KV
Specific equipment type at voltage level See attached training certificate
Role of Responsible Electrical Person for name of site / installation
Assessor Name……………………………………………………
Date…………………………………………………………………
This certificate authorizes the above name person as a
Competent Isolator (CI)
Authorized Instrument Person (AIP)
Authorized Electrical Person (AEP)
Senior Authorized Electrical Person (SAEP)
For ……………………………………………………………………………………………..……site
For a period of…………………………………………………………………………………….years
Authorized By……………………………………………………………………………………………
Date…………………………………………………………………………………………………...……
Accepted By……………………………………………………………..……………………………….
Date………………………………………………………………………………………………………...
Details of any restrictions to this authorization:…………………………………………………..
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
Control Tier:
<<2>>
15
Revision Date: 25 April 2008
Document Number: << AZSPU-HSSE-DOC-00012-2>>
Print Date: 7/24/2010
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Procedure for Authorization
Page 16 of 21
APPENDIX C: ELECTRICAL COMPETENCY CERTIFICATE
Electrical Competency
Certificate
Name:
Role: (AIP, AEP, SEAP, REP)
Site Location:
Experience: (experience in job, formal training, etc)
Site Knowledge: (generation, HV distribution including busbar architecture HV switching procedures, LV switching
arrangements, knowledge of site operating basis, earthing apparatus, battery and UPS systems etc, as appropriate to authorisation
level)
Site Practical: (awareness of electrical risks, switching, earthing apparatus, ICC, PTW, TRA etc)
Electrical Procedures: (questionnaire completed)
Assessment performed by:
Accepted by:
DATE:
Control Tier:
<<2>>
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Revision Date: 25 April 2008
Document Number: << AZSPU-HSSE-DOC-00012-2>>
Print Date: 7/24/2010
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Procedure for Authorization
Page 17 of 21
APPENDIX D: ELECTRICAL TRAINING CERTIFCATE
Competent Isolator
Training Certificate
Name of Trainee:
Site Location:
Equipment trained on:: (Specific equipment types Manufacture and Model Number etc)
Operations trained in: (Specific operation that the training has covered, attach any specific operations instructions)
Training assessment: (Assessment of the training which will cover specific knowledge of an equipment hazards or site
procedures covering this equipment)
Assessment performed by:
Accepted by:
Date:
Control Tier:
<<2>>
17
Revision Date: 25 April 2008
Document Number: << AZSPU-HSSE-DOC-00012-2>>
Print Date: 7/24/2010
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