Nauru Department of Audit closes a 15 year audit gap

The Government of Nauru, especially the Nauru Department of Audit has reached a historical milestone because the Government of Nauru’s Public Accounts for 2013/2014 has been tabled during a Parliamentary session held yesterday 30 May 2017. This is the first time after a 15 year backlog. The Ministry of Finance has not been able to produce any public accounts or financial statements since 1998, therefore a huge part of the functions of the Nauru SAI could also not be carried out. The completion of this audit displays the professional and collaborative working relationship between the Ministry of Finance and Department of Audit, and proves that working together is all part of enhancing accountability and transparency and strengthening public financial management. 

Auditor-General of Nauru, Mr Manoharan is very appreciative to PASAI for the support provided to his office through the PASAI sub-regional audit support program and many other capacity building workshops that his staff have attended, including technical support from PASAI consultants. This support has helped build the capacity of his staff and enable his office to complete the first audit of 2013/2014 Governance on Nauru (GON) Public Accounts, particularly given that this is one of the smallest audit offices in the Pacific. 

However currently his staff numbers have been reduced to three audit staff consisting of two audit local staff and one GON contracted employee. They are currently auditing the 2014/2015 GON public accounts and soon the Ministry of Finance will issue the 2015/2016 GON public accounts. Once again the Nauru SAI will face the challenges of the lack of experienced and qualified staff. The lack of experienced and qualified staff has been the key challenge faced by the Auditor-General over the years. However, despite these challenges his office has managed to complete a number of compliance audits and issue reports to these ministries and an annual report to the Minister of Public Service, as per the Audit Act, and that is what he is also very proud of. 

PASAI has been monitoring and assessing closely these issues and challenges of Nauru SAI and have designed a regional programme, approved by the PASAI governing board, to be implemented in 2017 to not only achieve sustainability but ensure the Auditor General is supported throughout the year in completing the audit of GON Public Accounts and other audits as per its mandate. 

During the week of 22 May 2017, the PASAI Director of Technical Support visited Nauru to discuss this proposed regional programme and it was received positively by Mr Manoharan and his office. This regional programme involves providing pacific auditors from PASAI pacific SAIs as attachments for up to four months of the audit year, to assist in conducting audits, in particular 2014/2015 and 2015/2016 public accounts, in-house training and on the job mentoring and training. This approach will not only benefit and provide a workable solution for the Nauru SAI in terms of human resources, but it satisfies PASAI’s motto of “Pacific Auditors Working Together”. An expression of interest for these attachments will be advertised in June 2017 so that pacific auditors can provide this support as early as September 2017 for the next three years. 

PASAI congratulates the Auditor-General and his staff of the Nauru Department of Audit on achieving a huge milestone in the audit of the 2013/2014 Public Accounts thus closing a gap of a 15 year backlog and enhancing accountability and transparency in the use of public funds and resources by the government to benefit the lives of the people of Nauru. 

Auditor General of Department of Audit Nauru Mr Manoharan Nair holding the 2013/2014 Financial statements which includes his independent audit report, with his two audit staff Ms Gillian Itsimaera and Ms Valeni Natano

Two more Public Auditor’s Offices undergo performance measurement

The Pacific Association of Supreme Audit Institutions (PASAI) continues its support for public auditors in the North Pacific, to enhance their capabilities through measuring their performance. The Government of Guam’s Office of Public Accountability (OPA) and the Federated States ofMicronesia (FSM) State of Yap’s Office of the Public Auditor (Yap OPA) were assessed concurrently by two separate review teams on 15-19 May 2017.

A peer review team consisting of Ms. Atmita Jonathan, Deputy Auditor-General and Ms. Ayako Yamaguchi-Eliou, Manager for Performance Audit both from the Republic of Marshall Islands (RMI) Auditor-General’s Office and Mrs. Sinaroseta Palamo-Iosefo, PASAI’s Director of Practice Development, assessed the performance of the Government of Guam’s OPA. Ms Yukari Hechanova, Deputy Public Auditor and Ms Rodalyn Gerardo, Special Assistant facilitated the support from the OPA for the peer review team.

The performance of Yap OPA was assessed by a peer review team led by Mr Stoney Taulung, Public Auditor for Kosrae State of FSM along with Ms Emma Balagot, Audit Manager and Ms Alice George, Senior Auditor both from the Office of the Kosrae Public Auditor, and Ms Claire Kelly, PASAI consultant. Yap OPA’s support for the assessment was co-ordinated by Ms Leelkan P Southwick, Chief Investigator, Mr Bryan Y Dabugsiy, Senior Auditor and Ms Emma L Gilyan, Administrative assistant.

Assessing the performance of public auditors helps them gauge the status of their internaldevelopment purposes and enables them to demonstrate their credibility with external stakeholders. This assessment was conducted using the INTOSAI’s SAI Performance Measurement Framework (SAI PMF). The framework assesses a holistic performance of the SAI covering audit work, internal governance and ethics, relations with external stakeholders, and independence and legal framework. The peer review teams presented their preliminary assessment results to the respective PublicAuditors and staff at the completion of the week-long assessments.

As an elected government official, Ms. Doris Flores Brooks, Public Auditor for Guam, mentioned in her inaugural remarks earlier this year that she welcomed the assessment and is looking forward to the results to assist her Office in identifying areas of their operations that require improvement. During the assessment, she said she would publish the results of her Office’s performance assessment to demonstrate her commitment to strengthening accountability, transparency and integrity of government and public sector entities.

(l-r): Clariza Roque, Sina Palamo-Iosefo, Atmita Jonathan, Ayako Yamaguchi-Eliou, Yukari Hechanova, Doris Flores Brooks - Public Auditor and Rodalyn Gerardo.

Mr Achilles Defngin, Yap Public Auditor expressed his appreciation of the assessment saying, “The Office is very grateful for the opportunity to have another similar North Pacific SAI carry out the assessment. Yap OPA wants the assessment to identify the Office’s strengths and weaknesses and highlight where we can improve”.

(Front row, left-right: Concepcion Arles - Audit Manager, Alice George, Claire Kelly, Emma Balagot; Middle row, left-right: Bryan Y Dabugsiy, Irene Laabrug - Senior Staff Auditor, Leelkan P Southwick, Achilles Defngin, Stoney Taulung; Back row, left-right: Jesse Foruw – Investigator, Emma Gilyan and Berlinda Bay – Staff Auditor)

Guam OPA and Yap OPA are two of the six SAIs from the Northern Pacific who are participating in the second phase of the SAI PMF project in PASAI, a collaboration between the INTOSAI Development Initiatives (IDI), the Australian Department of Foreign Affairs and Trade (DFAT) and PASAI. This series of performance measurement will culminate with all six SAIs presenting and discussing their draft performance reports during a workshop to be held in the RMI in October 2017.

The implementation of SAI PMF is aligned with one of PASAI’s strategic goals, developing SAI’s performance measurement framework to assist with improving the delivery of SAI’s audit responsibilities in order to make a difference in the lives of citizens.

The two assessments were supported by the DFAT, IDI and the New Zealand Ministry of Foreign Affairs and Trade (MFAT).

Supporting performance measurement of public auditors continues in the North Pacific

The second phase of a regional project supporting the measuring of performance of public auditors in the Pacific continues. During the week beginning 1st May 2017, the performance of the Kosrae Office of the Public Auditor (KOPA) was assessed by a peer review team consisting of auditors from the Pohnpei Office of the Public Auditor (POPA) and the Cook Islands Audit Office (CIAO). Members of the peer review team were Mr Allen Parker, Director of Audit, CIAO, Mr Iso Ihlen Joseph, Public Auditor Pohnpei State, Ms Elaine Carl, Administrative Officer, POPA and Ms Alice Etse, Audit Manager, POPA.

The week long assessment was conducted using the SAI Performance Measurement Framework (SAI PMF), a global framework that enables SAIs to assess their performance against International Standards of Supreme Audit Institutions (ISSAIs) and other established international good practices for external public auditing. This assessment is part of a regional project, “Supporting SAI Performance Measurement in PASAI” – a collaboration between the INTOSAI Development Initiatives (IDI), PASAI and the Australian Department of Foreign Affairs and Trade (DFAT).

Mr Stoney Taulung, the Public Auditor of Kosrae and his staff, expressed their appreciation of the assessment and gratitude for the review. In particular he mentioned that the framework can be used to contribute to improved SAI capacity development through promoting the use of performance measurement and management, as well as identifying opportunities to strengthen and monitor SAI performance and accountability. Furthermore, the KOPA Audit Manager, Ms. Emma Balagot and KOPA staff also acknowledged the importance of the assessment and their acceptance of the preliminary findings as constructive feedback on areas where the SAI requires improvement.

All six SAIs from the Northern Pacific who are participating in the second phase of this project willbe presenting and discussing their draft reports during the reporting workshop to be held in the Marshall Islands in October 2017.

The implementation of SAI PMF is aligned with one of PASAI’s strategic goals, developing SAI’s performance measurement framework to assist with improving the delivery of SAI’s audit responsibilities in order to make a difference in the lives of citizens.

This assessment is supported by the Australian Department of Foreign Affairs and Trade (DFAT), INTOSAI Development Initiatives (IDI) and the New Zealand Ministry of Foreign Affairs and Trade (MFAT).

Effective Accountability through the strengthened Kiribati Audit Bill 2017 – Stakeholders workshops, Tarawa, Kiribati, 8 and 9 May, 2017.

Kiribati officials of government ministries and State-owned Enterprises (SOEs) attended two alternate workshops on ‘Effective Accountability through the strengthened Kiribati Audit Bill 2017 for audit entities’, held on the 8th and 9th May, 2017 at the USP Campus, Tarawa, Kiribati. “Greater knowledge and better understanding by audit entities of the citizens’ mandate, tendered through the new Kiribati Audit Bill 2017 for the Audit Office, is a catalyst for enhanced public service delivery, stronger stakeholder engagement, and effective public accountability and transparency in Kiribati” said Mrs. Matereta Raiman, Auditor-General of Kiribati, in her address to the workshop participants. The workshops were jointly conducted by the Kiribati National Audit Office (KNAO) and the Pacific Association of Supreme Audit Institutions (PASAI).

Nineteen staff from seven government ministries and twenty-four officials from various State-owned Enterprises attended these workshops on alternate days. The core content of the workshops was on the Kiribati Audit Bill in which staff from KNAO, led by the Auditor- General, presented and explained the main parts of the bill, which will be enforced once it is passed by Parliament in their next sitting. Interactive discussions were made by participants seeking better understanding and clarification on particular aspects of the bill. In particular, the implications of the various sections. The KNAO provided practical illustrations on how those sections would apply for their respective type of entities.

In addition, PASAI Chief Executive, Mr. Tiofilusi Tiueti provided an overview of PASAIand the state of accountability and transparency in the Pacific region, and emphasised the value and benefits of Supreme Audit Institutions (SAIs) in making a difference to the lives of citizens.

Mr. Tauaasa Taafaki, Aid Manager and Deputy Head of Mission for the New Zealand High Commission in Kiribati, during his opening speech left an inspiring challenge for participants to think carefully about these foreign concepts such as transparency, accountability, good governance, independence of the Auditor-General, strengthening public sector efficiency and effectiveness and value for money, to benefit our people and our citizens. He said, ”…we find ways to reduce or remove the tensions that exist between our traditional customs and our culture and these foreign concepts so that we can improve the quality of life for our people”. A valid challenge in reminding public sector officials on their duties of delivering quality public service.

The workshops were funded by the Government of Kiribati through KNAO, and also the Australia Department of Foreign Affairs and Trade and the New Zealand Ministry of Foreign Affairs and Trade through PASAI.

Photo above: Staff from government ministries participated in the workshop on Monday, 8 May 2017

Photo above: Officials from state-owned enterprises (SOEs) participated in the workshop on Tuesday, 9 May 2017

Measuring performance of public auditors in the Pacific

The Pacific Association of Supreme Audit Institution (PASAI) continues its support in measuring the performance of public auditors in the North Pacific. The performance of the Office of the Auditor-General (OAG) of the Republic of Marshall Islands (RMI) was assessed on 28th April to 5th May 2017 by a peer review team comprising of Mr. Haser Hainrick, Public Auditor, Mr. Kelly Samuel, Chief of Investigation, and Mr. Keller Phillip, Senior Auditor from the Office of the Federated States of Micronesia National Public Auditor (ONPA) and Mr. Kelepi Makakaufaki Jr, Deputy Auditor General from the Tonga Office of the Auditor-General (TOAG).

The review was conducted using the SAI Performance Measurement Framework (SAI PMF), a global framework that enables SAIs to assess their performance against International Standards of Supreme Audit Institutions (ISSAIs) and other established international good practices for external public auditing.

This assessment was carried out as part of a regional project – “Supporting SAI performance measurement in PASAI” administered by PASAI in collaboration with the INTOSAI Development Initiatives. It is the second of six assessments conducted in Phase II of this project.

Assessment team in action: (l to r): Haser Hainrick, Kelly Samuel, Kelepi Makakaufaki Jr, Keller Philip

The Auditor-General, Mr. Junior Patrick expressed his appreciation of the assessment. “We are happy that RMI OAG is being reviewed under the measurement tool (SAI PMF) adopted by the global organization of public auditors – INTOSAI, to assess and monitor performance of audit organizations. As an audit organization, we always tell our audit clients that the most important outcome of any audit or review is the correction of past deficiencies and that implementation of our audit recommendation is a step in that direction.  In the same respect, we look forward to the outcome of the review by our peers to identify opportunities to strengthen performance on both the audit domain and other operational aspects of our Office,” says Mr. Patrick.

In addition to conducting the assessment, the assessment team had the opportunity to experience the RMI’s Constitutional Day celebration on 1st May 2017. They participated in the parade of all government offices and entities, schools, private businesses and community members. Furthermore they enjoyed the local food, crafts and brilliant fireworks entertainment. 

The review team expects to complete and finalize the assessment report before the reporting meeting which will be held in RMI in October this year, to round up the series of assessments conducted for SAIs in the North Pacific.

This assessment is supported by the Australian Department of Foreign Affairs and Trade (DFAT), INTOSAI Development Initiatives (IDI) and the New Zealand Ministry of Foreign Affairs and Trade (MFAT).

Assessment team with Auditor-General, Junior Patrick (second from right) and RMI OAG staff, Atmita Jonathan (front left) and Ayako Yamaguchi-Eliou (right)