Latvia grants limited audit powers over parliament’s finances

Latvia’s parliament has voted to let the State Audit Office check the accuracy of its annual financial report, but the office will not be able to assess whether spending was necessary or effective, LSM reported on Thursday. Lawmakers approved amendments to the State Audit Office Law in their final reading.

The State Audit Office will be able to verify whether expenses, such as those for MPs’ business trips, cars and building renovations, were recorded correctly. It will not be able to conduct performance or compliance audits of parliament’s spending. The restrictions reflect the Saeima’s special constitutional status and the need to preserve institutional balance.

The first report could be expected in 2028. Whether the State Audit Office will be allowed to carry out a broader review of parliament’s spending remains unresolved. The issue had been discussed for years, and the amendments represent a compromise.

Until now, the Saeima was the only state institution whose spending was not audited by the State Audit Office, despite being funded from the state budget. Its annual financial report is checked by a sworn auditor selected through a tender, while the parliament’s Public Expenditure and Audit Committee also monitors its spending. This arrangement has been in place since 1923.

The independent auditor mainly checks whether the financial report is correct and accounting rules have been followed, rather than whether the money was spent effectively.