SAI Guam offers full transparency by sharing its SAI PMF performance assessment report

In March 2019, when PASAI released their SAI Performance Measurement Framework (PMF) assessment of the Guam Office of Public Accountability (OPA), the SAI decided to share the results with all their stakeholders by publishing it on their website.

OPA was one of six Public Auditor’s offices taking part in a regional project – “Supporting SAI Performance Measurement” in the North Pacific region, and one of eleven SAIs involved across the whole PASAI region. The assessment was conducted by the Atmita Jonathan, Deputy Auditor General of the Republic of the Marshall Islands (RMI); Ayako Yamaguchi-Eliou, Performance Audit Manager of RMI, and the PASAI Director of Practice Development, Sinaroseta Palamo-Iosefo.

“The purpose of the assessment was to assist the OPA in identifying the strengths and weaknesses of its audit processes and capabilities against International Standards for Supreme Audit Institutions (ISSAIs) and other internationally established good practice…” the report’s Executive Summary stated.

The SAI PMF looked specifically into OPA’s independence and legal framework, internal governance and ethics, audit quality and reporting, financial management, assets, and support services, human resources and training, and communication with stakeholder management. With each topic, OPA was assessed and given a rating on whether the minimum international standards were met or not.

“Our office is grateful to PASAI and the regional team for conducting a thorough review of OPA’s operations and performance. We did notice a dip in our ratings between the draft submitted to OPA last year and the final report we just received, which was attributed to the quality assurance review conducted by the INTOSAI Development Initiative representative. Nevertheless, our office remains committed to addressing the areas in need of improvement, and, in fact, have already taken steps through the issuance of our Strategic Plan 2019-2023 that identifies how we planned to correct these deficiencies,” said Public Auditor Benjamin Cruz (pictured right).

PASAI Director of Practice Development, Sina Palamo-Iosefo, who is leading the SAI PMF assessment roll-out both in the region and beyond into the INTOSAI community, was thrilled by SAI Guam’s decision to publish the report on their website. She comments, ‘While we encourage SAIs to publish their reports and lead by example on being transparent and accountable, according to SAI PMF methodology, it’s up to the discretion of the Head of SAI whether to publish or not and how the report will be used and distributed. Guam OPA is leading the way with this resolute action and commitment to improvement.’

Read the report online

Download the report

For more information, please contact Vincent Duenas at 475-0390 ext. 210 or visit the website at www.opaguam.org.

Lessons to learn: SAI Chuuk's performance audit of Educational Development project

OFFICE OF THE CHUUK STATE PUBLIC AUDITOR

PRESS RELEASE NO. 2018-01

The Office of the Chuuk State Public Auditor (OCPA) announces the release of Audit Report No. 2018-01, a performance audit entitled Faichuk Educational Development and Research Project (FEDRP): With Issues on Expenditures and on Performance Outcomes and Deliverables, which covered the fiscal year 2016 to 2017. The audit report is available for public viewing online at http://www.fmocpa.com. Likewise, printed copies are available at the OCPA in Nepokos, Weno, Chuuk.

Public Auditor,
Manuel Jr San Jose

The Public Auditor’s authority is based on the Chuuk State Constitution Article VIII Section 9 and Truk State Law 6-21 which states in part: “The Auditor shall conduct audits of all financial transactions of all branches, departments, offices, agencies, and instrumentalities of the government, and of all accounts kept by or for them.”

We conducted the performance audit in accordance with US General Audit Standards.

The objectives of this audit included determining if (a) the spending of the project funds complied with relevant FSM/Chuuk laws and regulations, agreement, and with the terms and conditions of the contract; and, (b) the agreed output and outcomes for the project were effectively accomplished.

Based on our audit, we conclude that certain practices and expenditures of Rauchholz International Consulting (RIC) were not in accordance with laws, regulations and the terms and conditions of the agreement. One of the most important requirements of an entity receiving grant money is to establish and maintain financial management and internal control system. We found that the RIC had inadequate financial management and internal control system. The weakness in internal control over the project expenditures is an indicative of higher risk. The contract with the RIC, which was documented using a Memorandum of Understanding (MOU), requires that the RIC should comply with all applicable laws, rules, and regulations. In addition, the grant terms and conditions of the notice of grant award also require compliance with all laws and regulations governing the use of federal grant funds. Specifically, our audit has disclosed the following weaknesses:

1. Inadequate Financial Management System;

2. No Proper Segregation of Function in the Approval of Transactions

3. Inadequate Handling of Cash and Cash in Bank;

4. Expending of Funds for Certain Salaries and Wages Did Not Follow Laws and Regulations;

5. Expending of Funds for Certain Travels Did Not Follow Regulations and the Restriction on the use of the Funds for Foreign Travel;

6. Certain Expenditures Charged to Consumable were Not Allowable;

7. Certain Expenditures Charged to Contractual Account was not Properly Supported and/or Unallowable;

8. No Written Policies on Recording and Maintenance of Fixed Assets;

In addition, we found that there were inadequate delivery of project output and accomplishment of outcomes. Some activities need to be defined with measures that would demonstrate impact and benefits to the student.

We offered numerous recommendations to improve the issues and weaknesses noted in our audit.

We received ‘Management Response’ to the findings, which were mostly in disagreement. We included such response in the final report.

Read the report online

Download the report.

Printed copies are available from the OCPA in Nepokos, Weno, Chuuk.

Office of the Chuuk State Public Auditor P.O Box B Weno, Chuuk FM 96942

Tel: 691.330.8832/8835; Fax 691.330.8840

Assessment teams equipped to roll out the SAI PMF measurement tool across the PASAI region

PRESS RELEASE

Friday 10 May 2019

The SAI PMF Tool will strengthen governance in the Pacific

Nadi, Fiji: The Pacific Association of Supreme Audit Institutions (PASAI) in collaboration with the INTOSAI Development Initiative (IDI) facilitated a planning workshop on measuring the performance of public audit offices.

Fourteen participants from six government audit offices namely State Chuuk of the Federated States of Micronesia, Fiji, Kiribati, Pohnpei, Tonga and Vanuatu, including the facilitators and PASAI Secretariat, attended the workshop in Nadi, Fiji on 6-10 May 2019 at Novotel Nadi Hotel. The objective of the workshop is to build capabilities of public auditors in using a measurement tool, the International Organisation of Supreme Audit Institutions (INTOSAI) SAI Performance Measurement Framework (SAI PMF) to enable them to peer review each other’s performance.

Use of the SAI PMF tool was piloted in the Pacific region and implemented in other INTOSAI regions. Measuring the performance of SAIs ensures that government audit offices have the capacity and resources to conduct quality audits that contribute to good governance and make a difference in the lives of citizens.

The SAI PMF assessment will provide a true and clear baseline of performance built around six core organisational areas. Without this baseline, SAIs find it difficult to measure improvement against key performance indicators. Several PASAI SAIs already have this baseline information as a result of Phase 1 of the SAI PMF roll-out, and the SAIs participating in this workshop will now experience its practical application, as an assessment of their Offices will be conducted during the year. Future SAI PMF assessments will then map performance change over a period of time to feed into the SAI’s strategic planning activities.

Facilitated by Sinaroseta Palamo-Iosefo, PASAI’s Director Practice Development and Irina Sprenglewski, IDI’s SAI PMF Advisor, the workshop provided more than an overview of the importance of measuring and reporting on performance. Delegates were able to run through a number of realistic scenarios to strengthen their learning which will be useful when they conduct these assessments over the next few months.

Says Meresimani from the Fiji Auditor General’s Office, ‘It has been very illuminating to see how SAI PMF can be used to highlight areas of weakness and potential within each SAI. As it is an evidence-based tool, we learned first-hand how to use the tool by asking the right questions, obtaining proper evidence and finally by recording our responses in an effective and meaningful manner.’

The workshop has been the first activity funded under the new donor partnership established between PASAI and the EU under the Strengthening of public Finance Management and Governance in the Pacific Project. The Strengthening of Public Financial Management and Governance in the

Pacific Project aims to strengthen oversight over public financial management in the Pacific region, through improving the budgetary scrutiny, public financial oversight and accountability capacities of parliaments, supreme audit institutions and civil society within the region, aligning with international public financial oversight and accountability standards, and fostering citizen engagement and oversight. Strengthening of Public Financial Management and Governance in the Pacific Project is funded by the European Union (EU) and implemented by the United Nations Development Programme (UNDP).

PASAI and IDI were honoured to welcome UNDP representatives, Marine Destrez and Manjeet Singh, to the first day of the workshop. In her opening remarks, Ms Destrez explained that this workshop is part of a whole spectrum of activities included in a new pool of funding created by the European Union (EU) that is dedicated to strengthening public financial management (PFM). Funding programs such as these are essential to strong governance, she went on. Public financial management covers frameworks, institutions and tools and brings together diverse stakeholders at the different stages of the Public Finance cycle. Audit Institutions play an important role in the oversight of PFM plans, processes and results and are an essential part of the transparency and accountability landscape of PFM. Both PASAI and EU/UNDP anticipate great collaborations on these important issues.

PASAI also acknowledges the continuous support of the Australia Department of Foreign Affairs and Trade (DFAT) and New Zealand Ministry of Foreign Affairs and Trade (MFAT).

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For more information contact:

Mr. Tiofilusi Tiueti

Chief Executive PASAI Secretariat

Email: tiofilusi.tiueti@pasai.org

Telephone: +64 9 304 1275

Website: www.pasai.org

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PASAI's SAI PMF Planning Workshop in Fiji (May 2019) will ultimately strengthen governance

MEDIA RELEASE

For issue 3 May 2019

STRONG GOVERNANCE NEEDS QUALITY AUDITS

The Pacific Association of Supreme Audit Institutions (PASAI) together with the INTOSAI Development Initiative (IDI) will be holding a planning workshop on measuring performance of public audit offices in Nadi, Fiji on 6-10 May 2019 at Novotel Nadi Hotel.

Governance is strengthened through quality audits performed by competent and capable auditors. Measuring auditors’ performance ensures that government audit offices are capable and well-resourced to conduct quality audits that contribute to good governance and make a difference in the lives of citizens.

The planning workshop will prepare government auditors from State Chuuk of the Federated States of Micronesia, Fiji, Kiribati and Vanuatu to assess the performance of government audit offices using the International Organisation of Supreme Audit Institutions (INTOSAI) SAI Performance Measurement Framework (SAI PMF), a measurement tool adopted by the INTOSAI community.

Use of the SAI PMF tool was piloted in the Pacific region and implemented in other INTOSAI regions. It has proven to be very successful in identifying SAI strengths, weaknesses and development needs in a comprehensive range of organisational areas. As part of the ongoing roll-out and practical application of this program, an assessment of each participating Office will be conducted during the year.

Sinaroseta Palamo-Iosefo, PASAI’s Director - Practice Development, will lead the workshop along with IDI’s SAI PMF Advisor, Irina Sprenglewski. The director, who is also heavily involved in the refinement and application of the SAI PMF tool on a global SAI basis, states: ‘We are very fortunate in PASAI to have both the knowledge and experience of the SAI PMF process, and the funding provided by the European Union (EU) to bring this workshop directly to the region. The results so far have been very encouraging, and we now have a chance to embed and expand its usage to strengthen governance across the Pacific.’

EU representative Marga Peeters and UNDP representative Jean-Raphael Guiliani at PASAI’s Governing Board Meeting in Auckland, NZ, 28 Feb – 1 March 2019

The workshop is the first activity funded under the new donor partnership established between PASAI and the EU. It is supported by the United Nations Development Partner (UNDP), the Australia Department of Foreign Affairs and Trade (DFAT) and New Zealand Ministry of Foreign Affairs and Trade (MFAT).

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 For more information contact:

Mr. Tiofilusi Tiueti

Chief Executive PASAI Secretariat

Email: tiofilusi.tiueti@pasai.org

Telephone: +64 9 304 1275

The SAI PMF Assessment team for the Nauru SAI PMF assessment in 2018, with Sinaroseta Palamo-Iosefo far left and Irina Sprenglewski third from right.

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IDI’s Irina Sprenglewski interviews Naura SAI Head, Mr Manoharan Nair, during Nauru’s SAI PMF assessment (2018)