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Audit reporting, done with style

Reporting on the reporting

By Tiofilusi Tiueti, Chief Executive, PASAI

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A few weeks ago, we had the very great pleasure of passing on outstanding news from the Audit Office of New South Wales, when they won several awards for their 2016/2017 Annual Report at the Australasian Reports Awards in Sydney, Australia.

After winning the overall ‘Report of the Year’ category last year, the team - headed up by Margaret Crawford, Auditor-General for New South Wales - were thrilled to repeat their success by grabbing a gong in three different categories, including awards for the best online annual report and best governance reporting, and the much-coveted gold award for reporting.

We were especially thrilled for this team because we know, first-hand, how difficult it is to lift  auditing reports beyond what is basically clear and correct to what could be considered to be engaging, informative and, perhaps most importantly, completely transparent.

In fact, even though our programmes and the support we’ve rolled out for our Strategic Priority 2 on Advocacy and Engagement underpin all this, excellence in report-writing is still one of those goals we all have in PASAI that seem very obvious to note down and commit to achieving, but not so easy to implement.

At this very moment, for instance, I’m in the process of gathering the source data and information for the 2017/18 Annual Report, and the challenges are many. How do we combine input from many different SAIs, initiatives and programmes, strategic priorities and even individuals, while making it consistent, relevant and readable? How do we present information that lights us up as auditors but may not be so interesting – or even understandable – to a member of the public? How do we show how much we’ve done and where and when we’ve done it, without drowning the reader in data?

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The answer is … like this. Just like the NSW Audit Office has done, by combining clarity and complex information into visual, digestible chunks. By being just as open and transparent about the things we haven’t achieved as we are about the highlights and success stories. By striving continually to improve our written (and verbal!) communication in every respect, remembering at all times who exactly we’re writing for, and to what purpose. 

So this isn’t just a shout out to NSWAO in their moment of glory. It’s also a thank you – for taking the lead on a priority that we’ve started upon but maybe not taken as far as we could. We’ll be aiming to tread a similar path in the future.

 

Tiofilusi Tiueti, Chief Executive, PASAI

 

 

 

 

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Investigating the IntoSAINT Integrity Tool in Mexico City

Investigating tools to strengthen integrity in SAIs and the public sector in Mexico

By Sarah Markley, PASAI’s Deputy Secretary-General

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At the beginning of July, I had the privilege of representing PASAI and New Zealand’s Office of the Auditor-General at a meeting of the IntoSAINT (International Organisation of Supreme Audit Institutions Self-Assessment Integrity) working group in Mexico City. The SAI of Mexico is the chair of the IntoSAINT working group and they were supported to host the meeting by funding from the INTOSAI Capacity Building Committee.

It was a fabulous trip in all respects – especially in regards to hearing all the latest about the INTOSAI Self-assessment of Integrity tool, IntoSAINT.

IntoSAINT is a self-assessment tool that all SAIs and other public entities can use for analysing integrity risks and assessing the maturity of their integrity management systems. The self-assessment is conducted during a structured two-day workshop. Moderated by a trained facilitator, the workshop evaluates the perceptions and experiences of a cross-section of staff related to integrity systems of the organisation. At the end, the facilitator provides management recommendations for better supporting the integrity of the organisation in question. The organisation gets a great base on which to further develop and refine its integrity policy, while, at the same time, staff benefit by learning about integrity awareness.

The IntoSAINT tool fits with the SAI Performance Measurement Framework (PMF) assessment, referred to in SAI 4(i). If you use the IntoSAINT tool, your SAI PMF score will improve. It is also compatible with the INTOSAI Development Initiative ‘SAIs fighting corruption’ programme that is already underway in the PASAI region. In addition, the IntoSAINT tool provides a way to carry out the assessment of integrity that is now required, so that a SAI can assert that it is fully compliant with the ISSAI 30 Code of Ethics for SAIs.

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The tool was originally developed by the Netherlands Court of Audit about eight years ago, to enable public sector entities to evaluate the integrity risks and the maturity of integrity systems and controls. It has been used in SAIs across the globe, in both developing and developed countries, and OLACAFs and the SAI of Mexico have also had a good level of uptake in public sector organisations.

The results will vary significantly depending on the maturity of the systems and controls already in place. One of the things I think is particularly effective about the tool is that it cuts through the “tick box” approach to assessing what integrity controls are in place, and enables an evaluation of whether the controls are operating effectively. For example, an organisation may have a code of conduct, conflict of interest policy, rotation policy or a gift declaration policy. However, does a cross-section of employees feel that these are applied equally to all staff? 

The working group spent time at the meeting considering how to further improve the tool, drawing on the experiences over recent years and bringing together materials that have developed into a revised set of programme resources. The goal of the working group is to see the tool formally endorsed at INCOSAI 2019.

In the PASAI region, integrity system maturity may vary widely, but there is a consistent drive to improve. The New Zealand Government strongly encourages the development of good governance systems in the Pacific, and it supported our participation in this meeting primarily with the goal of evaluating whether the tool could be a worthwhile addition to PASAI’s toolbox.

I was really impressed by the achievement in other regions as a result of using the IntoSAINT tool. I think it could be very valuable in the PASAI region and could also be useful to test the quality of New Zealand’s own already highly developed integrity systems.

Of course, rolling out anything in PASAI is dependent on funding – so gauging the interest of PASAI member organisations and then seeking funding partners will be critical to bringing PASAI into the IntoSAINT programme.

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I will be presenting more information about IntoSAINT at the upcoming PASAI Governing Board and Congress in August and holding discussions with our twinning partners about their interest in the tool.

My thanks to MFAT and their funding that enables New Zealand to support PASAI and enabled me to participate in this meeting, and also to SAI Mexico for being such gracious hosts and enthusiastic champions for improving integrity in our SAIs and our public sector entities.

 

In addition to being PASAI's Deputy Secretary-General, Sarah Markley is a Sector Manager, Local Government, in the Office of the Auditor-General of New Zealand. 

 

Reimagining SAI Reform in Somalia - PASAI Guest Blog

Reimagining SAI Reform in Somalia  

Guest blog by H.E Mohamed M Ali, Auditor General FGS

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Just a few weeks ago, David Goldsworthy, the principal consultant at Development Action and a fellow speaker at IFAC and PAFA’s Fragile States Conference, wrote an article asking readers to imagine walking into their office on the first day and finding no computers, limited equipment, and few qualified accountants. This was the very real scenario when I first assumed my post as the 8th Auditor General of the Federal Republic of Somalia in August 2017.

Prior to this, for over two decades, I lived and worked in the United States—mostly in Washington DC — in both in the private and public financial sectors, having only traveled to Somalia briefly in 2015 and 2016. So, when I received a phone call last summer to serve my country, I was both humbled and thrilled. My initial reaction was to put together a brief plan outlining how to assess critical conditions within the Office of Auditor General (“OAG”). This assessment would indicate how Somalia compared to the global community. 

You can imagine how I felt when I first entered the OAG, with my briefcase in hand, only to find standards below my expectations—the above-mentioned situation playing out. Less than 20 percent of the staff had the credentials and qualifications that were necessary to run the institution. There were not enough desks, and no computers or other accompanying technology.  

Starting from almost ground zero was not easy. I constantly received messages from development partners seeking to assist on various tasks, but each one was unaware of what the previous donor had to offer. While I appreciated the eager attitudes and assistance, the lack of coordination was evident and counterproductive to our objectives in the OAG. Accordingly, I responded to all of the interested donors, informing them that I needed at least one month to make my own assessments of the situation on the ground.

During that time period, I saw an institution that existed by name alone, stuck in the 1990s in terms of work product, human capacity, resources, and infrastructure, striving to fulfil a mandate outlined in an outdated Audit Law. I knew that a prosperous Somalia required a robust public financial management accountability system and that the OAG would play a pivotal role in this reform process. And with the support of the INTOSAI Development initiative we developed a new three-year strategic plan in order to begin this process. 

Subsequently, I invited all of the donor partners to a conference to present the strategic plan to harmonize resources into an efficient and effective manner. We recently commenced our first year of the strategic plan and are now undergoing our operational plan phase. My goal is to employ talented, local Somalis to build up our capable human resources through various capacity building projects. Additionally, we are working to bring in long-term international advisors from the financial and legal sectors to lay the framework and assist the Auditor General to rebuild an effective institution. We want to continue the efforts to modernize the OAG and establish standards equivalent to those of neighbouring countries. Most of all, we want to eventually transfer the knowledge necessary to maintain consistent progress. Over the next three years we will track our progress through annual reports to ensure accountability and maintain the trust of our Parliament, government, donor partners, and citizens of Somalia. 

Somalia is a unique example. The country is undergoing a transformation from a centralized form of government to a federal state system. As such, one must take into consideration the challenges facing the federal government to juggle between the complexities of developing a new political system and reforming federal institutions. While our model is not perfect, it is right for Somalia. In fact, our OAG model is now used as a case study for other fragile states as an example on how to approach development partners in a productive, coordinated, and collective way. 

I am realistic, but that does not mean I should not set attainable goals and continue to push for progress. Somalia will require reasonable change with the proper resources, donor support, and the political willingness to make sure this all works. As the leading accountants and auditors in the government, it is up to us to lead the way and seize opportunities to fulfil the promise that tomorrow will be better than yesterday.

 

H.E. Mohamed M. Ali was appointed Auditor General of Federal Government of Somalia on 3 August 2017. He has more than fifteen years of experience in the public and private sectors where he managed financial operations, audits, resource allocation, small and large contracts, and negotiated disputes. During his tenure in public service, Mr. Ali served in senior positions in the Government of the District of Columbia in Washington, D.C. He also worked in the private sector in telecommunications industry. Mr. Ali has also cofounded and served as Executive Director of Somalia Forward Group, a consulting and advisory organization that serves leading businesses, governments, non-government organizations, and not-for- profits that are dedicated to rebuilding Somalia. Mr. Ali attained his Master of Business Administration from the University of Maryland University College, Graduate School of Management and Technology. He also holds a Bachelor of Science from George Mason University where he majored in Accounting.

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