Artificial intelligence will be used to speed up the work of the Audit Office and to free up more productive time for auditors to conduct more on-site audits, the Auditor General, Andreas Papakonstantinou, stated on Friday before the House Finance Committee on Friday.
He also noted that 31 reports and 5 memoranda have been submitted to date, and it is estimated that a total of 45–50 reports will be issued by the end of 2026. The Auditor General appeared before the House Finance Committee on Friday to present the EY budget. The 2027 budget is the first to be submitted directly to the House of Representatives and does not exceed the spending ceiling set by the Ministry of Finance, namely €12.06 million, in accordance with the provisions of the relevant legislation, compared to approximately €11.26 million for 2026, representing an increase of approximately €0.81 million, or 7.2%. Of this amount, 82% relates to personnel expenses, 7.5% to consulting services, and 5% to software purchases.
ΣΧΕΤΙΚΑ ΑΡΘΡΑ
According to the memorandum submitted to Parliament and the statements made by the Auditor General before the Committee, in today’s modern and ever-changing environment, the demands on the Public Administration are increasing, and to meet them, there is a need for continuous improvement in work methods, leveraging experience, and adopting modern practices to ensure more effective work.
The Auditor General noted that the budget focuses on four pillars: improving the Service’s operations, strengthening cooperation and making better use of staff knowledge and experience, and ensuring higher-quality and faster completion of audits, with an emphasis on leveraging artificial intelligence as a key tool inconducting audits and preparing reports.
Mr. Papakonstantinou told the Members of Parliament that plans are underway to implement a major, co-funded project for the use of AI (AudifAI) to conduct an initial objective AI-based assessment and identify so-called “red flags,” explaining that these tools will significantly accelerate the process. He noted that 23 reports are currently in progress, and the goal by the end of the year is to reach a total of 45–50, with the possibility of publishing two per week.
As stated in the memorandum submitted to Parliament, technological upgrades alone are not sufficient, and the budget includes appropriations for staff training and professional development, both in Cyprus and abroad, with the aim of ensuring that audits identify significant risks in a timely manner, help correct weaknesses, strengthen accountability, and lead to better and more efficient management of public resources.
Statements by Members of Parliament – Responses from the Ministry of Finance
Members of Parliament posed questions and expressed concerns, with Savia Orfanidou of DISY raising the issue of the engineering positions included in the budget, under which, afterfive years, employees will be promoted from Grade A9 to Grade A11. She noted that the approach is different in the rest of the civil service, stating that this differentiation “we might be opening Pandora’s box and setting precedents for all positions in the public sector.”
AKEL MP Giorgos Koukoumas stated that it would be preferable to create additional permanent staff positions rather than purchase services. He asked whether on-site inspections to identify weaknesses in services operating on a 24-hour basis had increased, and if so, by how much.
Christiana Erotokritou of DIKO, Chair of the Finance Committee, asked whether the 5% for upgrading new software in relation to needs and audit procedures, and whether there are areas where savings can be made.
Andreas Papacharalambous of ELAM asked about audits of the Local Government Organizations (EOA) and the new structures that emerged from the local government reform, and whether this entails a redistribution of servicesby the Ministry of Interior to ensure it can cope.
From Alma, MP Odysseas Michaelides noted that seven permanent staff positions are planned and described the increase in consulting services as significant. He also questioned why there is a need for a Director position when there is already an Assistant Auditor General “who is paid 100,000 euros a year and has no duties.” He also pointed out that Maria Papa, the former civil defense administrator at grade A16, has been seconded to the EY and questioned why she, too, has not been assigned any duties.
Regarding the A9–11 positions, the Ministry of Finance’s Personnel Directorate stated that the Ministry had included a note on the matter, which was sent to Parliament. In response, the Auditor stated that there had been concerns regarding these positions and the practices in the broader public sector, but it was taken into account that auditors hold a chartered accountant degree, how many years it takes them to obtain it along with their degree, “and we considered that there should be no injustice; in other words, we equalized the time component.”
He also said that the same applies to the Energy Transmission System Operator, stating, “Let’s not be excessive; they are auditors, and that is the rationale.” When asked about potential savings, he replied that 80% of the budget consists of personnel expenses, so there will be no savings there. However, the General Manager said that there will be savings next year as the Agency’s energy upgrade is completed.
Regarding the procurement of services, he said that the Agency also prefers to have the expertise within the Agency; however, there are specialized areas—such as the GESY systems or IPODAMOS—that require specializedand expertise from outside.
Mr. Papakonstantinou also addressed the issue of on-site inspections, stating that the more of them there are, the better, and that performance improves for the staff as well because they form their own opinions and the inspection “goes more smoothly, and we experience that firsthand.”
As for regarding inspections in municipalities and the EOA, he replied that there is concern about the new procedures following the reform and that considerable time was spent on the Municipality of Paphos and the issues that arose with the acting mayor, but added that, in general, the signs are encouraging, though there are also issues that concern them and that they will address.
Responding to the comment regarding the utilization of Maria Papa, he said that the matter had been discussed with her, which is why he is mentioning it publicly, and that “if she cannot be utilized, we will look into having her return to her previous position.”
Regarding the Assistant Auditor General, Mr. Papakonstantinou explained that she is part of the management team and that efforts are being made to utilize her. “I won’t say anything more; he certainly needs to be working, but let’s leave it at that,” he said. In response to Odysseas Michailidis’s persistent remark that he isn’t working and that it’s unreasonable to ask for a director’s position while the Assistant “just sit around and participate in exhibitions without having any duties, and that another director must be hired because he can’t handle the job,” the Auditor General said that “he does not endorse what is being said, but the Assistant cannot perform the duties of a director—he is an Assistant Auditor General— the position we are requesting is for the role of director, and the Assistant’s role is different.”
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Source: KYPE
