Reducing the frequency of audits to become an incentive to improve performance

15 may 2017 | TASS

“Any audit or inspection means a lot of stress for managers of any legal entity. And when audits are reduced to a minimum, this works as an effective incentive to improve the performance and, at the very least, results in the demands of people who benefit from the services provided by facility management companies being satisfied”, said expert with the Analytical Centre Dmitry Khomchenko in his interview to TASS.

Dmitry Khomchenko
Dmitry Khomchenko
Department for Sectors of Economy

“I cannot rightly say that this is bound to result in any global operational enhancement for management companies, but this is definitely a step in the right direction,” added Mr. Khomchenko.

Answering the questions from a TASS correspondent, the expert pointed out that there is also the other side of this problem: supervisory authorities are unable to cope with the amount of work they have assigned for themselves, so this would help the supervisors themselves because they really need to carry out fewer audits of bona fide facility management companies.

By way of a reminder, the reform of supervisory activities was named among the priority projects of the government. The key goals and objectives of the reform include reducing damage and risks to which the population is exposed, significantly reducing the administrative burden on business and improving the quality of government control. The reform involves 12 regulatory and supervisory authorities, providing for more than 25 types of supervision, the activities of 4 federal executive authorities – the Ministry of Economic Trade and Development, the Ministry of Justice, the Ministry of Communication and the Ministry of Labor – and of the regions. For purposes of program administration a Project Office was set up in the framework of the Analytical Centre.

The plan is for the reform to result in a 15% reduction of damage to values protected by the law (number of casualties, the incidence of diseases and poisonings, and the injuries toll under controllable risks) by 2018, and by 2025 the reduction is expected to reach 50% against the 2015 figure. The figures for damage under controllable risks are going to be 10% and 30% respectively. And the administrative burden on organizations and individuals associated with audits and supervision will go down by 20% and 50% respectively. And, for all that, the quality of audit and supervision performance is expected to be twice higher by 2025.