By Sinaroseta Palamo-Iosefo, Director – Practice Development, PASAI

The global coronavirus pandemic (COVID-19) is requiring Pacific governments to quickly react to the circumstances they find themselves in. These reactions include establishing new protective health strategies, review of priorities,  activating emergency legislation including declaring a state of emergencies. The impact of these reactions is in many cases a regional or nationwide lockdown.  At the same time, governments need to maintain essential government services.

This situation is complex for all countries but in a  developing environment such as the Pacific, the challenge is even greater. With limited resources, sub-standard infrastructure and lack of capacity there is much for the government to consider including the inevitable adverse socio-economic impacts.

In a time of stress and crisis service delivery becomes more complex and there is a significantly increased risk of fraud. In the public sector at this time the risk of fraud or loss of funds and/or public resources falls particularly into areas such as procuring of needed health equipment, distribution of economic stimulus package, allocation of targeted donor grants,  and integrity or completeness of reporting related to policy implementation.

As of 2 April, of the 18 COVID-free countries, 10 are from the Pacific[1]. We are thankful that some countries in our region have been able to avoid this virus up until now and we hope that this continues to be the case. However, even for those without cases, we are aware that the prevention measures being taken still place those countries, along with those actively fighting the virus, at risk of fraud or financial and non-financial reporting stresses.

SAIs being responsive to changing environments

One of the key objectives of INTOSAI-P-12 “The Value and Benefits of Supreme Audit Institutions-making a difference to the lives of citizens” is for SAIs to demonstrate their ongoing relevance to citizens, parliament and other stakeholders. This objective is extremely relevant at this time of crisis. We encourage each SAI to apply the key underlying principle of this standard and during this pandemic to be responsive to the changing environment. It is important for the SAI to focus on the emerging risks and to consider how you can contribute by supporting your citizens, Parliament, and stakeholders using your unique position in the public financial management system.

SAIs to refocus and revise Annual Audit Plans

During a time such as this COVID-19 crisis, it is critical that SAIs are a credible voice. This may be an opportunity to achieve beneficial change and to improve public sector delivery. It is important for SAIs to focus on being well informed. Having a good understanding of the situation, and awareness of developments at global, regional, and national levels will assist the SAI to identify issues and risks and opportunities to contribute.

COVID-19 is not business as usual for our citizens, Parliament or stakeholders and neither can it be for us as SAIs – whether here in the Pacific or elsewhere around the world.  As SAIs we should respond to this unprecedented global challenge by revisiting our audit programs. There will be things we had planned to do that are no longer appropriate at this time and new issues and risks that we need to respond to. We suggest SAIs should identify areas of high potential risks particularly associated with essential public services, and also look at issues and risks in new initiatives, and programs and spending responding to COVID-19. Prioritise audits to be performed, develop an innovative audit approach, and consider ways to provide effective audit reports at this time.

Taking this approach will assist your SAI to demonstrate relevance and responsiveness to public interests and Parliament and stakeholder risks as they seek to combat COVID19.  

One area of particular risk and public interest in government procurement during this time of emergency.  With unprecedented levels of procurement occurring that were not expected or planned for using usual systems and processes this is an area of high risk.

We encourage you to consider how your SAI can adapt to be relevant during this current crisis. We plan to continue to share tips and hints to assist you as this crisis continues. Next week we will be sharing guidance from a report we published last year about procurement to assist your work in this area.

  -------------------------------------------------------------------------------------------------------------------------

The Pacific Association of Supreme Audit Institutions (PASAI) is the official association of supreme audit institutions (SAIs) in the Pacific region, and a regional organisation of INTOSAI, that promotes transparent, accountable, effective and efficient use of public sector resources in the Pacific.  It contributes to that goal by helping its member SAIs improve the quality of public sector auditing in the Pacific to recognised high standards.  Due to the global coronavirus pandemic (COVID19), this has restricted PASAI’s delivery of our programs to our Pacific members and in lieu of this PASAI will be providing a series of blogs on various topics that may help auditors think about some implications to service delivery as a result of COVID19.  

For more information refer www.pasai.org

[1] https://www.rnz.co.nz/news/world/413417/covid-19-the-countries-without-the-deadly-virus