In 2025, the State Audit Office of Latvia completed 39 audits and drafted 46 audit reports. Work continues on 15 audits, of which 12 are performance audits, 2 are compliance audits and 1 is financial audit. The significance of the completed audits is confirmed by the results of a survey*, in which 94% of opinion leaders recognised the audit topics selected by the State Audit Office of Latvia as socially significant.
“The year 2025 was dynamic for the State Audit Office of Latvia, as we introduced significant changes in public sector auditing, concluded a number of significant audits and raised issues of importance to society by highlighting opportunities for improvement in the use of public resources. The recommendations provided by the State Audit Office of Latvia have served as a springboard for changes in the state and local and regional government sectors this year as well. In its turn, we plan to launch audits in 2026, in which we will pay special attention to national security and defence, health sector, human resources development, the quality of state administration at national and municipal levels, as well as the processes of national economy and digital transformation. I would like to thank the team of the State Audit Office of Latvia for what they have accomplished this year because it is the result of professional, high-quality work that meets high standards,” emphasised Auditor General Edgars Korčagins.
Audit reports, interim reports and reviews published during the year:
- In JANUARY, an audit of the management of energy policy was published by concluding that significant improvements were needed in its implementation. The current management did not ensure targeted progress towards achieving the ambitious goals of the National Energy and Climate Plan and did not offer a clear solution on how to finance the measures necessary to achieve the goals.
- In FEBRUARY, an audit of the planning and implementation of the policy of a cohesive society was published. Conclusion was that the policy of a cohesive society implemented by the Ministry of Culture was not targeted and did not provide measurable results, it lacked clear planning, coordination and specific achievable indicators. There was also no complete information available on the funding of the sector and its spending.
- In the audit of the Port Development Fund published in APRIL, it was discovered that a significant part of the funds of this institution were spent uneconomically and illegally in some cases. In its turn, the review on the establishment of a militarized sculpture composition at the Ādaži Military Base found that the successful implementation of the project required in-depth study and practical participation of stakeholders, a more thorough and coordinated approach of the National Armed Forces of Latvia, the State Defence Military Sites and Procurement Centre, and the Ministry of Defence. In April, 25 financial audit reports on the 2024 annual reports of ministries and central government institutions were also published. For the second year in a row, all opinions on the accuracy of the annual financial statements were unqualified; however, they highlighted opportunities to save budget funds and problems related to the calculation of average earnings.
- In MAY, a review report on the implementation and use of artificial intelligence (AI) in state administration was published by outlining several challenges. The lack of a unified strategy for the development and safe use of AI in state administration in Latvia was one of them. Also in May, we informed the public about how the government supervised the investment made into airBaltic during COVID-19. Conclusion is that none of the monitoring levels such as the Ministry of Transport, the airBaltic Council, the Cabinet of Ministers had taken sufficient actions that would potentially facilitate the recovery of the state investment.
- In June, an audit report was published on the accuracy of the 2024 annual financial statement of the Ministry of Transport.
- In AUGUST, the audit on municipal administrative commissions published concluded that they were an ineffective, outdated solution in the administrative violation process. The State Audit Office of Latvia calls for abandoning the collegial form of commissions in the administrative violation process by moving to a simpler and more efficient model, thus reducing bureaucracy and administrative burden. In August, the annual financial audit of the annual consolidated financial statement of the Republic of Latvia (ACFS) was concluded and an opinion was provided on its accuracy again with reservations. The most significant reason was the annual tax report of the State Revenue Service of Latvia, which was still not auditable.
- Three audits were concluded in SEPTEMBER. The audit on municipal incentives the incentives granted by local and regional governments (e.g. allowances, compensations, discounts, co-financing) were very diverse and costly for local and regional governments whereas the Single Information System for Incentives (SISI), which was mandatory for local and regional governments and which the Ministry of Smart Administration and Regional Development (MSARD) intended as a solution for administering incentives and informing population, was currently not fully usable. Its implementation requires technical solutions that require financial investments from local and regional governments, which they currently do not have. In addition, the system is not adapted to the diversity of incentives and different administrative practices. In its turn, the audit on inpatient healthcare detected that, unfortunately, more than 700 million euros allocated to hospitals annually that was almost 40% of the healthcare budget were spent to maintain the historically fragmented hospital network, rather than to provide patients with equal and high-quality healthcare The financial audit on the accuracy of the annual financial statement of the Headquarters Multinational Division North for the year ended 31 December 2024 was also completed in September, with two reports prepared. Since the audit reports and the recommendations implementation plan were classified as “NATO RESTRICTED”, they were not published.
- The audit on introduction of cloud computing services in state administration published in OCTOBER, concluded that it had not been sufficiently targeted so far. An interim audit report was also drafted on legality of payments made by the Rēzekne Technical School. While performing audit procedures at the Rēzekne Technical School on settlement of accounts with service providers, possible fraudulent activities were detected such as intentional falsification of payment documents with the aim of transferring funds to third parties.
- In NOVEMBER, a review report on the implementation of military reinforcement on the eastern border of Latvia was published by summarising the most important facts on the progress to date and challenges in the implementation of anti-mobility measures, including the need to ensure more effective interdepartmental cooperation. An interim audit report on civil and military cooperation in the field of medical support was also prepared. Although several significant steps have already been taken in Latvia to strengthen civil and military cooperation in the field of medical support, the audit nevertheless indicated areas in which further decisive and targeted development was required.
- In DECEMBER, an interim audit report on the retrofitting process of apartment buildings in Latvia was published. The audit revealed that due to the rapid increase in retrofitting costs and insufficient funding, even motivated residents were often forced to postpone their decision on retrofitting, as they faced unpredictability of costs and insufficient support. Several audits were completed in December, the results of which are scheduled to be published in early 2026: “Does disability status achieve its purpose and is granted in the best possible way?”, “Is the national policy to curbing the shadow economy effective?”, “How to provide a sufficient number of police officers?” and “Implementation of the reform of the remuneration system in state administration”.
The State Audit Office of Latvia meets with the Saeima Public Expenditure and Audit Committee regularly to inform about the progress of implementing the recommendations identified and provided in the audits. It also cooperates with other Saeima committees by explaining the results of the audits and promoting their use in parliamentary oversight.
Information on the recommendations provided by the State Audit Office of Latvia and the status of their implementation is available to anyone interested on the Recommendation Implementation Platform of the State Audit Office of Latvia. The information is updated twice a year on March 1 and September 1. The Platform provides access to recommendations from audits that have at least one unimplemented recommendation.
Information on all current audits can be viewed on the website section of the State Audit Office of Latvia “We are currently auditing”, and on completed audits in the section “Completed audits”. In its turn, more detailed information on risk assessment and determining audit topics is available HERE.
A significant contribution to the professional development of other supreme audit institutions. This year, experts from the State Audit Office of Latvia also shared best practices by organising and conducting training, thus providing support in strengthening the capacity of the supreme audit institutions of Azerbaijan, Dominica, Laos, Moldova, Ukraine, and Uzbekistan.
Cooperation with law enforcement and other competent authorities for the application of responsibility
The State Audit Office of Latvia has the authority to examine how public funds are used, as well as to provide recommendations to improve their management. The State Audit Office of Latvia does not have the right to punish, but in accordance with the law, it must report violations identified during audits to the responsible authorities and monitor their examination. This year:
- Five criminal proceedings have been initiated in law enforcement institutions for possible abuse of official position, paying illegal compensation, organising procurements, allowing illegal actions with municipal property, as well as for other possible criminal offenses in connection with the report of the State Audit Office of Latvia; 42 criminal proceedings (including 15 at the trial stage) that were initiated after audits in previous years are ongoing;
- One conviction for a criminal offense against property has entered into force;
- Inspections have been initiated for 2 possible administrative violations; 2 officials have been held administratively liable;
- Case management continues in 6 initiated proceedings for compensation for losses caused as a result of illegal actions identified during an audit.
TOP successes / events
- On 1 May 2025, the “Independent Auditor’s Single Report Project” was concluded and amendments to the State Audit Office Law of Latvia entered into force by marking the most significant changes in the State Audit Office’s auditing over the past 20 years, since a new approach to financial audits was introduced, henceforth providing only one audit report on the accuracy of the ACFSS. This was the last year when the State Audit Office of Latvia drafted 27 separate financial audit reports and opinions (14 ministries, 12 central government institutions and the ACFSS).
- An ex-post assessment report on the recovery process has been prepared, with the intention of also initiating changes to the State Audit Office Law of Latvia.
- A new Strategy 2026-2029 of the State Audit Office of Latvia and a strategy implementation plan have been developed.
- Following the audit “Action of local and regional governments with forest resources”, the Manual for Local and Regional Governments has been supplemented with a new chapter on forest governance and management.
- Self-assessment questionnaires have been developed to support public procurement practitioners, as well as a guide for local and regional governments in the field of business promotion and investment attraction.
- Several informative events based on public sector auditing have been organised for state and municipal institutions, such as a workshop on current financial audit issues and a forum for internal auditors.
- As part of Foundation “Mission Possible” school program “Ready for Life”, experts of the State Audit Office of Latvia have visited 26 schools across Latvia this year by meeting more than 530 children and young people. The material for the game “Do You Know What State Money Is?” has been sent in digital format to 12 schools.
- The State Audit Office of Latvia, as the chair of the Working Group on Municipality Audit (WGMA) of the European Organisation of Supreme Audit Institutions (EUROSAI), organised a seminar and annual meeting of the Working Group by bringing together more than 50 delegates from 23 European SAIs, as well as municipal policymakers and academics. In 2025, the Working Group developed a compendium on audit reports in the field of pre-school and general education and a report on the mandates of SAIs in the field of municipalities.
- “Think BIG! Testing a New Approach for Recommendations”. The article was published in the journal of the International Organisation of Supreme Audit Institutions (INTOSAI), which is created by the US supreme audit institution. The work of the professionals of the State Audit Office of Latvia has been recognised with a prestigious international award receiving the Elmer B. Staats Award for the article “Think BIG! Testing a New Approach for Recommendations”. The article was published in the journal of the International Organization of Supreme Audit Institutions (INTOSAI), which is run by the U.S. Government Accountability Office.
- The State Audit Office of Latvia continues to support the SAI Dominica with the agreement being signed on Phase 2 of the project.
- For the State Audit Office of Latvia, an activity-based office will be created by reducing the area of the premises used by 58% from 2027 and saving at least 343.3 thousand euros each year.
About the State Audit Office of Latvia
The State Audit Office of the Republic of Latvia is an independent, collegial supreme audit institution. The purpose of its activity is to find out whether the actions with the financial means and property of a public entity are legal, correct, useful and in line with public interests, as well as to provide recommendations for the elimination of discovered irregularities. The State Audit Office conducts audits in accordance with International Standards of Supreme Audit Institutions of the International Organization of Supreme Audit Institutions INTOSAI (ISSAI), whose recognition in Latvia is determined by the Auditor General. Upon discovering deficiencies, the State Audit Office of Latvia provides recommendations for their elimination, but it informs law enforcement authorities about potential infringements of the law.
Additional information
Ms Gunta Krevica
Head of Communication Division
Ph. 23282332 | E-mail: gunta.krevica@lrvk.gov.lv
* In October-November 2025, independent research company RAIT Custom Research Baltic Ltd. conducted a study commissioned by the State Audit Office of Latvia on the assessment of the image and work of the State Audit Office of Latvia from the perspective of opinion leaders. As part of the study, representatives of parliament, municipal politicians, representatives of the non-governmental sector, representatives of audited entities, representatives of the law enforcement sector, representatives of the academic environment and representatives of the mass media were surveyed.