Document Type : Original Article
Highlights
Summary
The present study is about oversight on the implementation of municipal budgets in Iran and France. Budget oversight monitors the execution of the budget. The implementation without oversight, it cannot achieve the goals related to the budget process, because in the step of implementation diversion by the municipality is done.
This article initially examines the methods and processes of oversight in two legal systems, and then tries to identify shortcomings and defects related to oversight, and finally with the adoption of some methods that used in France legal system, it will lead to improving the oversight process in Iran.
This article is descriptive and comparative. The rules and regulations are the main source of this article. Introduction provides definitions of the term oversight and puts it in three categories of administrative, parliamentary and judicial oversight. The term "oversight" is not used in a scientific filed and in a specific subject and is used in different fields. This word in public law means control and review of the actions of a government authority and an institution by another authority, whose purpose is to comply with the law. Oversight is categorized from various aspects. One of the important types of oversight is the by the nature which includes many sub-categories. Financial oversight is one of the type of nature oversight. This type of oversight is related to the budget implementation process and the alignment of the municipalities' financial performance with the budget. Today, the purpose of oversight on implementation budget is to measure program performance, efficiency, effectiveness and to maintain the financial balance of society.
In the first chapter, administrative oversight is discussed. Administrative oversight is controlling the legality of administrative actions, controlling expediency, and controlling efficiency and productivity. This control is exercised either by administrative officials who have administrative authority or by specialized. In administrative oversight the office exercises self-control. Its purpose is to ensure the correct performance and administrative process in terms of compliance of administrative affairs with rules and regulations and in terms of its efficiency. In Iran this oversight is exercised by the municipal finance director and the Ministry of interior.
The second chapter is about parliamentary oversight that is done by City Council (Council Municipal in France) and Supreme Audit Court. City Council is the local parliament that approves the municipal budget and oversight on the implementation. In practice, budgets are rarely implemented exactly as approved. City Council monitor on implementation through verification of municipal finance director, approval of municipal transactions, auditors reports, interpellation of mayor and liquidation of budget. Liquidation of budget report is one of the most important financial issues and is related to the issue of financial oversight. Liquidation of budget is a report that is prepared at the end of each year after the budget is executed and should reflect the results of the budget. This report is in fact an account of budget performance and must be approved by the city council.
In France, the administrative account and management account should be approved by Council Municipal. These two accounts are set from two different organs. In Iran, the municipality only prepares liquidation of budget.
In Iran One of the controversial issues in the oversight of municipalities is the jurisdiction of the Supreme Audit Court to monitor the municipal budget. Regarding the credits that are allocated to the municipality from the general budget, the oversight of Supreme Audit Court is clear, but there is disagreement about the internal budget of the municipality. Article 55 of the Constitution states: In accordance with the procedure specified by law the Supreme Audit Court will inspect and audit all the accounts of the ministries, government institutions and companies as well as other organizations that draw in any way on the general budget of the country, to ensure that no expenditure exceeds approved credits and that all sums are spent for their specified purpose. The Supreme Audit Court will collect all relevant accounts, documents, and records in accordance with law and submit an annual budget liquidation report, along with its own comments, to the Islamic Parliament of Iran.
In France, the regional and territorial chambers of accounts are independent courts that rule on the accounts of public accountants, examine management and audit the budget operations of regional authorities and their public institutions. The prefect may refer the budgetary situation of a local authority or public institution to the Court. The Court provides its expertise as an independent authority and expresses opinions. (www.ccomptes.fr)
The third section is about judicial oversight. Judicial oversight is the oversight by the judiciary on the actions, orders and decisions of government agents.
Judicial oversight can also be applied to judicial institutions.
In Iran, General Inspection Organization, administrative court and general court oversight on implementation of budget and in France, general court and administrative court do it.
In accordance with Article 174: An organization to be known as the General Inspection Organization will be constituted under the supervision of the head of the judiciary, in accordance with the supervisory rights of the judiciary over the conduction of affairs and correct implementation of laws by the government's administrative organs. The Jurisdiction and functions of this organization will be determined by law. According to the law of the National Inspection Organization, municipalities are subject to continuous inspection and monitoring according to a regular schedule, in which all their actions, including budget implementation, are inspected.
In accordance whit article 173:For the purpose of dealing with complaints, grievances and objections of people against Government employees, institutions or administrative regulations and redressing their rights, a court known as the Administrative High Court shall be established under the supervision of the Head of the Judiciary.
The Court of Administrative Justice indirectly monitors the legal implementation of the budget in municipalities by annulling some of the issues in the municipal budget approved by the city council.
The most important difference in two legal systems about budget monitoring are the difference in the oversight step. In Iran oversight is especially in the implementation step, but in France, oversight is especially in the adoption phase and before the execution of the budget.
