The INTOSAI Capacity Building Committee newsletter is now available.
Please CLICK HERE to access.
Tuvalu leads the way in strengthening SAI independence and the role of Public Accounts Committee
The Pacific Association of Supreme Audit Institutions (PASAI) in partnership with the Office of the Auditor-General of Tuvalu, delivered a four-day workshop involving Public Accounts Committee (PAC) members, Parliamentarians, audit entities and other stakeholders, in Tuvalu from the 3 – 8 March 2017. The workshop was aimed at strengthening the financial oversight and external scrutiny roles of the Public Accounts Committee (PAC), and the role all other stakeholders play in upholding public accountability and transparency in Tuvalu.
On day 1, Friday 3rd March, 2017, representatives from seven audit entities attended and discussed relevant audit issues including the need to form an Institute of Accountants for Tuvalu, the quality assurance process over the completion of audits, and the independence and the composition of the Public Accounts Committee during the workshop. These audit entities were the Tuvalu Electricity Corporation, Tuvalu National Provident Fund, Tuvalu Development Bank, Tuvalu Maritime Institute, Telecom Corporation, Tuvalu Broadcasting Corporation and the National Bank of Tuvalu.
The workshop continued on Monday and Tuesday 6th and 7th March 2017, for members of parliament in which eleven of the 15 members of Parliament of Tuvalu, including the Honourable Prime Minister, Hon. Enele Sopoaga, and cabinet members attended. The Honourable Prime Minister stressed the importance of the value PASAI can contribute to the work of the Pacific Forum through its work in the Region. During the sessions, the members held discussions, among other issues, on the proposed Tuvalu Public Accounts and Budget Committee Bill currently before the Speaker which enhances the role of the PAC and its ability to provide effective financial oversight and external scrutiny on the reports of the Audit Office and all government entities.
In December 2016, Tuvalu Parliament passed the new Audit Act 2016, which enhances the independence of the Office of the Auditor-General and includes a provision on financialindependence for the Office, the first country in the South Pacific (excluding Australia and New Zealand) to achieve this.
The Honourable Speaker, Hon. Otinielu Tauteleimalae Tausi, closed the session for Parliamentarians on Tuesday, 7th March 2017, by thanking the PASAI facilitators for a very short, but very important exercise. “While we as Parliamentarians are not auditors, it was good to be reminded of the importance of having checks and balances in place, and for Members of Parliament to always keep the principles of accountability and transparency in mind when undertaking their duties”. The four day programme concludes with a final session for all other stakeholders including media organisations, civil societies, non-government organisations and permanent secretaries on Wednesday, 8th March 2017.
This is the seventh workshop PASAI has delivered in the Region with the aim to build the capacity of the Members of Parliament who are also Members of the Public Accounts Committee to better understand their role in providing financial oversight of public expenditure.
The workshop was co-presented by the PASAI Advocacy Team, Mr Eroni Vatuloka, PASAI Advocate, Ms Aolele Su’a Aloese, Director of Advocacy, Engagement and Financing, the Auditor-General of Tuvalu, Mr Eli Lopati, and the Tuvalu Director of Planning, Budget and Aid Co-ordination, Mr Niuatui Niuatui, who presented on the Tuvalu national budget processes.
This programme comes under Strategic Priority 2 - Advocacy for governance, accountability and transparency of PASAI’s long-term strategic plan. PASAI appreciates the assistance provided by the Auditor-General of Tuvalu and his staff, and also acknowledges the valued support from the Australian Department of Foreign Affairs and Trade and the NZ Ministry of Foreign Affairs and Trade.
Photo Above : Members of Parliament including Public Accounts Committee Members and workshop facilitators from PASAI and Tuvalu Office of the Auditor-General.
Photo above: Participants to the workshop from Audit Entities represented mainly by Chair of Board of Directors of State Owned Enterprises and Accounting Staff of Public Bodies of Tuvalu
Photo above: Auditor-General of Tuvalu, Mr Eli Lopati, addressing the participants from audit entities
The INTOSAI Journal Special INCOSAI Edition
EXCERPT FROM: INTOSAIJournal@updates.gao.gov
The special INCOSAI edition of the International Journal of Government Auditing is now available online at www.intosaijournal.org.
You can also download the Journal here!
This issue is dedicated to INCOSAI XXII in Abu Dhabi, United Arab Emirates, and we ask you to follow us on INTOSAI’s journey to success!
Inside you will find features on the INTOSAI Strategic Plan 2017-2022, as well as Achieving Global Sustainability and Professionalization.
Additional highlights include articles on how working together can help cultivate success, such as the multi-lateral exchange of knowledge and ideas that led to the endorsement and approval of the Working Group on Big Data.
Throughout this edition of the Journal, you will find tons of photos along with inspirational quotes and video interviews on what success for INTOSAI looks like to some of our delegates.
In addition to the Journal’s website, you can find audit community news and images through our Facebook postings www.facebook.com/intosaijournal, Twitter feed www.twitter.com/@INTOSAIJournal and Instagram photos www.instagram.com/intosaijournal.
Haiying Jiang, Director-General of International Cooperation of the National Audit Office of China: Learn and Progress with Friends
Haiying Jiang, Director-General of International Cooperation of the National Audit Office of China
China’s first Auditor-General, Mr Yu Mingtao, is turning 100 years old in 2017. He was appointed Auditor-General in 1983 when the National Audit Office of China was established. In a recently published book, he recalled the early days when he, as the new Auditor General heading a new SAI, found the biggest challenge being that “there was no professional capacity to rely on, no working experience to borrow from and no ready laws or regulations to follow, not even theoretical books about auditing was to be found.” Starting from scratch, the National Audit Office of China on the one hand, actively explored ways of audit based on Chinese reality; and on the other hand, intensified international exchanges with foreign SAIs to introduce useful experiences to China. Mr Yu said: -“Experiences of various countries are valuable for us to learn”.
As a matter of fact, even before the SAI was established, China started to learn from SAIs in other countries. In September 1981, Mr Servando Fernandez-Victorio y Camps, then President of Tribunal de Cuentas del Reino of Spain, visited China. As the first head of a SAI visiting China, he talked to a Chinese audience on government auditing, a session the audience described as enlightening. The National Audit Office of China was formally established in September 1983 and joined INTOSAI in the same year, then ASOSAI in the following year. After joining these international organizations, exchanges with foreign SAIs were widely conducted on the platform of international auditing organizations and on a bilateral level. Through these exchanges, Chinese auditors broadened their views, learned and benefited greatly from good practices of other SAIs. Many SAIs provided support and assistance in capacity building to SAI China in this period, such as the SAIs of Spain, Canada, Germany, Australia, Sweden, France, UK, the Netherlands, India, Pakistan, Malaysia and Indonesia, to name just some of them. Chinese auditors were sent to study audit practices in foreign SAIs and audit experts from these SAIs were invited to China to train Chinese auditors.
The former Auditor-General of Australia Mr Ian McPhee, once visited China in the 1980s, as a trainer for an audit training programme. When he visited China again in 2011 as Auditor-General of Australia, he brought with him photos of the training programme participants, taken in China. Some of the participants, still working with CNAO, could confirm what an important learning experience this programme had been for them and how they had used the techniques they learned, in their audit projects and therewith achieved better results. With this valuable support and help, the National Audit Office of China made fast progress in government auditing. And the learning helped greatly, not only the National Audit Office of China, but also Chinese local audit institutions. Mr Liu Jiayi, Auditor-General of China, believes that audit theory and practice in China is open and inclusive, and has achieved development by drawing on the experiences and practices of auditing of other countries.
In the National Audit Office of China, we never forgot the assistance we received from other SAIs. At seminars on audit practices, in seminar papers, in books about auditing, authors and auditors, and even past Auditor-General like Mr Yu, mention from time to time, how much we benefited by learning from other SAIs. Successful technical assistance projects with SAIs of Spain and Germany were told by older generation of auditors to the younger generation auditors at their induction training programme in the Office. The National Audit Office of China knows well the value of helping each other and the importance of being open and sharing ideas with others in developing audit practices.
As an ancient Chinese poem says: “We get what we need from others, we should also give what we have to others in need”.
We are very happy to share our good practices with other SAIs. Now the National Audit Office of China maintains friendly exchanges with many SAIs worldwide. CNAO has helped train auditors at the request of some SAIs, including seminars, workshops and training programmes. Initiated by the Auditor-General, the National Audit Office of China also cooperated with the Nanjing Audit University to operate a Master Programme for international auditors to study in China under a Chinese Government scholarship. There has been increasing attention on Chinese audit practices such as IT auditing, accountability auditing, real time auditing, public works auditing and environmental auditing et al. Delivering presentations at seminars or attending discussions with auditors from other SAIs, Chinese auditors have learned a lot from other auditors. As the Head of International Relations, I am often told by my colleagues how they have enjoyed attending and lecturing international training programmes, because interactions with the participants is also a good learning experience for the trainers. The truth is that learning is never one way, the more you share with others, the more you learn.
Over 2000 years ago, a Chinese scholar once said: -“Learning alone without any friends, one is cut off from the world and knows little”.
George Bernard Shaw said something similar “If you have an apple and I have an apple and we exchange these apples, then you and I will still each have one apple. But if you exchange ideas, then each of us will have two ideas”. This is exactly how we should learn, learn by sharing with friends and peers, learn by exchanging ideas. The audit community knows this better than many others, for what INTOSAI promotes exactly, is - “Mutual Experience benefits all”.
Achieving Impact and Reinforcing Accountability – Sierra Leone's Perspective
Achievements At A Glance
- Successful capacity development in a post-conflict environment
- Improved transparency through unprecedented publication of audit reports, and PAC hearing broadcasts
- Improved accountability for use of public funds through 21% increase in audit coverage
- Real-time audit of Ebola funds strengthened accountability and financial management
- National Integrity Award for stance against corruption
- Demonstrating SAI improvements, through repeat performance assessments
The Challenge
The Audit Service Sierra Leone (ASSL) became an operational independent organization in 2004. In a country context marked by a post-conflict legacy, high youth unemployment, poverty, corruption, weak governance structures and fragile legal environment following the end of the civil war in 2002, Sierra Leone is considered to be among the 10 poorest countries in the world according to the 2015 United Nations Human Development Index.
ASSL faced internal challenges early on. The lack of a strategic plan and audit manuals; low audit coverage; limited human and financial resources, as well as little to no information technology facilities and infrastructure were just some of the obstacles they encountered.
Externally, audited public institutions were without basic systems and documentation, which hampered ASSL´s ability to perform audits.
Parliament was not reviewing audit reports. In fact, audit reports were not published nor were audit recommendations considered. The SAI’s role within the Public Financial Management (PFM) system was weak, particularly given the lack of tools designed to provide oversight regarding the effective utilization of public monies.
The Response
Once fully operational, ASSL immediately embarked on comprehensive capacity development programs led by the United Kingdom Department of International Development (DFID). The goal: strengthen ASSL’s institutional and professional capacity and fulfill its mandate within demanding national limitations.
As of 2016, ASSL’s picture has drastically improved in part as a result of the following activities which are aligned with the INTOSAI-Donor Cooperation principles:
- Strong SAI Leadership. This has distinguished the organization with country stakeholders, as well as development partners, leading to high levels of SAI ownership when planning capacity development.
- Long term and scaled-up support. DFID has backed ASSL through organizational, institutional and professional capacity development technical assistance. DFID’s leading role has evolved over the years into a facilitative one, where it now supports ASSL-led initiatives in developing guidance and capacity in financial, compliance and performance audits. ASSL has also benefited from support provided by other development partners, including the African Development Bank; the European Commission; and the World Bank, all of which have harmonized efforts in accordance to ASSL’s strategic plans and core programs.
- SAI participation at the international arena. ASSL has been capitalizing on INTOSAI global public goods and regional capacity development programs by AFROSAI-E region and IDI.
- ASSL underwent two assessments under the SAI Performance Measurement Framework (PMF), one in 2012 and one more recently in 2016, producing evidence-based measurements over a period of time that continue to identify areas for improvement.
- ASSL will also receive support from the SAI Capacity Development Fund (CDF) financed by SECO (Switzerland) and administrated by the World Bank, towards strengthening professional capacity.
- Public Financial Management (PFM) Reforms. PFM reforms have promoted timely and regularly published reports by the Auditor General. The “2014- 2017 PFM Strategy of Sierra Leone” incorporates ASSL observations.
The Results
Comparing ASSL´s performance in 2002 to 2016 shows tremendous improvements attributed to various capacity development activities.
- ASSL has implemented sound strategies and policies addressing core audit processes and organizational structures including strategic planning, professional training and stakeholder management, leading to the delivery of significant results despite limited human and financial resources.
- Repeated PEFA assessments indicate the scope, nature and follow-up of external audit has consistently improved since 2007, including a 21% expansion in audit coverage; enhanced quality of financial and compliance audit work; and the establishment of performance audit as an audit area.
- Strengthened ASSL-Public Accounts Committee (PAC) relationships have led to improved parliamentary scrutiny of audit reports; public access to ASSL´s reports; and publicly broadcast PAC hearings.
- Budget support development partners extensively use ASSL’s outputs to monitor fiduciary risk and incorporate into dialogue with Sierra Leone’s government.
- ASSL’s impact includes the office’s prompt audit on the 2015 Management of Ebola Resources. The report on mismanagement and corruption in the use of Ebola aid funds allowed for strong debates among stakeholders and resulted in increased pressure for accountability.
- In 2015, the Auditor General was awarded with the National Integrity Award by the Anti-Corruption Commission for her distinguished service in the protection of the national resources and strong stance against corruption.
ASSL must remain steadfast in its efforts to combat obstacles and achieve a positive impact on accountability, good governance, and transparency. ASSL continues to develop. According to the 2014 PEFA assessment, ASSL needs to remain focused on increasing audit scope, further cultivating specialized audit areas and ensuring that its reports are being acted upon. PAC follow-up on recommendations is still a challenge.
We have embraced the sustained support given by our development partners and harmonization development programs with our strategic plans. We hope the intense development assistance to ASSL can continue until we reach a level of matureness where we can make an impact based on our own sustainable capabilities.–Mrs. Lara Taylor-Pearce, Sierra Leone Auditor General
The story in other languages:
The Intosai-donor Cooperation
The INTOSAI-Donor Cooperation is a strategic partnership between donors and the Supreme Audit Institution (SAI) community.
Purpose: to improve SAI performance in developing countries through scaled-up and more effective support.
Guiding Principles: development of country-led strategic plans; donors respecting SAI country leadership; and improved coordination of support.
Members: To date, 23 donor organizations and INTOSAI
(who comprise the INTOSAI-Donor Steering Committee) have signed the Memorandum of Understanding.
For more information, visit us online at www.idi.no/en/intosai-donor-cooperation.
SAI Bhutan Responding to Emerging Challenges
Achievements At A Glance
- Enhanced SAI credibility and audit quality through applying international standards
- Audit report on public debt management debated in Parliament:
• Public debt policy and debt-thresholds established
• New Finance Department to ensure public debt levels remain sustainable - Leading by example in accountability, through publishing assessment of its own performance
- New strategic plan to further enhance public confidence in the SAI
The Challenge
For roughly 45 years, Bhutan has been on the United Nation’s list of least developed countries that face severe long-term structural impediments to growth. The country was established as a democratic constitutional monarchy in 2008. While the country has experienced some advancement, challenges remain namely from risks associated with:
- High external public debt
- Projected large hydropower-related revenues
The Royal Audit Authority of Bhutan (RAA) was established as an autonomous public audit body in 1985. With a broad mandate and strong legal framework for enforcing audit recommendations, the RAA is also backed by the nation’s constitution that stresses the entity’s importance in conducting performance audits.
Yet, despite these significant advantages, recent performance assessments show that the RAA still experiences difficulty in conducting audits that meet quality standards expected from the international audit community and making a difference to the lives of citizens.
The Response
The RAA has initiated several development programs in an effort to address the challenges. Upon adopting the International Standards of Supreme Audit Institutions (ISSAI) framework in 2010 when it was approved at INCOSAI, the RAA has received support through several mechanisms developed by the INTOSAI-Donor Cooperation:
- Global Stocktaking. The 2010 Global Stocktaking of needs and support provided to the SAI Community resulted in the World Bank’s funding of the 3i Program, where RAA completed Phase 1 in December 2014. The program, implemented by the INTOSAI Development Initiative (IDI) aims to support SAIs in ISSAI implementation. As part of the 3i Program, the RAA carried out ISSAI Compliance Assessments (iCATs) to identify gaps, as well as raise awareness of ISSAI requirements.
- Global Call for Proposals. Following the Global Call for Proposals in 2011, the Austrian Development Agency (ADA) backed the RAA’s project proposal designed to enhance professionalism in the delivery of audit services. As part of this project, to be operational from 2012-2017, several audit manuals and policies have been developed, among them a policy document on auditing from a gender perspective.
- SAI PMF Assessment. The Office of the Auditor General of Norway and the INTOSAI-Donor Secretariat conducted a peer review in 2014 using the pilot SAI Performance Measurement Framework (PMF). Afterwards the final report was published.
- SAI Capacity Development Fund (SAI CDF). The RAA has support from the SAI CDF, financed by SECO (Switzerland) and administered by the World Bank to further enhance ISSAI implementation, focusing on improving audit quality in all audit streams.
The Results
In 2013, the RAA, with support from ADA, conducted three pilot audits following the new ISSAI framework. According to the SAI PMF assessment, the pilot audits scored significantly higher than other reviewed audits, providing evidence of the program’s success and RAA’s performance improvement. The SAI PMF assessment also provided input toward the RAA’s new strategic plan for 2015 - 2020, which was finalized and published in 2016
The impacts associated with professionalizing audits has extended beyond the SAI, particularly in the realm of public debt, which is a key national challenge. The RAA participated in the IDI public debt auditing program funded by the Norwegian Ministry of Foreign Affairs. The RAA’s audit report on public debt management, completed in 2014, was debated extensively in the Parliament of Bhutan and received positive feedback by the Ministry of Finance (MOF).
External support has been instrumental in enhancing the institutional capacity of our audit office.–Dasho Tshering Kezang, Auditor General of Bhutan
Based on the audit recommendations, the MOF developed a Public Debt Policy that was put into effect August 18, 2016, and provides both a single overall threshold, as well as sector-specific thresholds for external debt. This new policy specifies total external debt should not exceed 25% of total goods and services exports.
Shortly after the policy’s implementation, the MOF established a new department of Macroeconomic Affairs, whose mission is to "maintain a sustainable level of public debt".
Bhutan’s Auditor General has emphasized the importance of internal ownership to development projects. As a result, the activities are primarily carried out by internal staff, ensuring RAA project ownership and product usefulness. External support has also been aligned behind RAAs strategic plan.
All of these factors have contributed to the positive results in Bhutan.
Implementation of ISSAIs is a long term endeavor, and the RAA recognizes more work is needed to ensure audits are performed coherently across the organization and to make the changes sustainable. The RAA has, therefore, included ISSAI-implementation as one of the goals in its Strategic Plan for 2015-20.
The story in other languages:
- ARABIC : CLICK HERE
- FRENCH: Le Bhoutan : Répondre aux nouveaux défis
- SPANISH: La EFS Bután Responde a los Desafíos Emergentes
The Intosai-donor Cooperation
The INTOSAI-Donor Cooperation is a strategic partnership between donors and the Supreme Audit Institution (SAI) community.
Purpose: to improve SAI performance in developing countries through scaled-up and more effective support.
Guiding Principles: development of country-led strategic plans; donors respecting SAI country leadership; and improved coordination of support.
Members: To date, 23 donor organizations and INTOSAI
(who comprise the INTOSAI-Donor Steering Committee) have signed the Memorandum of Understanding.
For more information, visit us online at www.idi.no/en/intosai-donor-cooperation.
PASAI Governing Board Meets in Auckland, NZ
The PASAI Governing Board held their 16th meeting in Auckland, NZ from 23 – 24 February, 2017 as part of their commitment to providing strategic direction, governance and leadership to the work of PASAI in the Pacific Region. Among the main issues that they deliberated on during the meeting were PASAI’s Operational Plan 2017/18 – 2012/22 and related budget, and PASAI’s funding strategy. Important discussions were held with PASAI’s two main donors the Australian Department of Foreign Affairs and Trade (DFAT) and New Zealand Ministry of Foreign Affairs and Trade (MFAT) on continuous support for PASAI. The Board also commended the work undertaken in implementing PASAI’s strategic plan in response to SAI members needs. There was also valuable contributions to the meeting from PASAI’s developing partners, DFAT, MFAT, World Bank and the Pacific Islands Forum Secretariat (PIFS).
“The Board Meeting was a success with some fruitful contributions by members in ensuring that proposed programmes are in line with the objectives of PASAI, affordable, clear expected outcomes and with realistic targets,” said Mr Ihlen Joseph, Chairman of the Board and Public Auditor of Pohnpei State, Federated States of Micronesia.
Details of PASAI Board members and past Board Meetings are found HERE.
The incoming Congress Chairperson, Auditor-General of Tuvalu, Mr Eli Lopati also advised the Governing Board of the theme for this year’s PASAI Congress being “Promoting Value and Benefits of SAIs through Effective Communication.” He assured the Governing Board that his office is ready to welcome everyone to his island for the 20th PASAI Congress in August, 2017.
PASAI would like to acknowledge DFAT and MFAT, World Bank, the Asian Development Bank (ADB), INTOSAI Development Initiative (IDI) and PIFS for their continued support of PASAI and its work in the region.
Photo above: The PASAI Governing Board members.
Photo above: PASAI Governing Board members with Development Partners and PASAI Secretariat staff.
