PASAI Independence Resource Kit

Excerpt from the CBC website at : http://www.intosaicbc.org/pasai-independence-resource-kit/

PASAI has prepared this independence resource kit under as one of its strategic priority to strengthen SAI independence, and for the benefit of its members. The resource kit is now available on PASAI’s website, for use by SAI’s in the Pacific but also more widely. PASAI will update the kit to reflect development in SAI independence both in the Pacific and globally. Please read more on the PASAI page in the main menu on CBCs website or go to PASAIs website to find out more: http://www.pasai.org/introduction

Retaining Staff - We train them and then they leave!

Excerpt from the CBC website at : http://www.intosaicbc.org/retaining-staff/

As we implement the ISSAIs, especially the financial audit ISSAIs, we need professional staff but how do we train and re-train them? In one way or other this was a constant refrain in the formal and informal discussions at the recent Congress in Abu Dhabi. Once we have trained people, and especially once they have professional accounting qualifications, how do we pay enough to keep staff. This is not an easy one to solve and is something Auditors-General and Senior Managers wrestle with across the SAI community. But there are some solutions which I have seen work.

At base, it is important to understand the market in which a SAI operates. What is the going rate in the private sector or in other parts of the public sector for qualified accountants or auditors? It is useful to engage a consultancy body with experience of carrying out such comparator exercises? In one country where we did this the comparators were some of the private sector firms but also the Revenue Authority. Knowing the going rate is a useful starting point. A SAI may not need to match the private sector completely because working in the public sector brings many other benefits which are not available to the private sector – usually better pensions, access to wider training opportunities, longer holidays and shorter days, better job protection, a wider variety of work, and the public sector ethos of contributing to wider social benefits. However, having hard data of this kind makes it easier to make a defensible case for salary uplifts (if warranted) with Parliaments and Ministries of Finance.

In situations where a SAI needs to follow public sector wide salary bands, then it can be difficult to make a special case for improvements to the salaries of SAI staff. Again data on turnover or problems with recruiting qualified staff should be collected to help substantiate claims. But equally a SAI can forge links with other key public sector bodies needing to employ qualified financial experts for example the Ministry of Finance, Revenue Authority and Internal Audit Services and make a joint proposal to the Public Service Board or equivalent putting the case for a more market responsive salary scale for financial staff. Such cases can be made stronger if the SAI shows how recruiting qualified financial staff can generate efficiencies and not just lead to an increased staffing bill.

Where the SAI is a training organisation, then it risks losing a proportion of these staff once they gain their professional qualification. The UK NAO provides for this risk by training more than it wishes to eventually retain – recognising that even during training such staff are productive and play a major role in carrying out the routine aspects of the annual audits. At the same time, it is important that these trainees are well supported and motivated during training so that they can see a satisfying career in the NAO when they become qualified. Early in their career we seek to expose these newly qualified staff to a wide range of interesting assignments, to continue to invest in their professional development and to make sure they feel valued members of the organisation. In Rwanda a number of years ago, a colleague asked one of the shining middle-manager stars what it would take from the SAI to keep people like him in the office, as she had identified him as just the type of person the office would need in order to keep progressing. His reply was that a recognition such as that would go a long way. If he only knew that top management saw him as an important part of the office’s development and that they were willing to invest in him that would make a difference. He said nothing about the salary.

It is also sometimes practical to make sure that the accountancy or audit qualification offered by the SAI is one which is oriented to the public sector (so making private sector poaching less likely). In other situations, a SAI may choose to offer staff accounting or auditing certificates or diplomas which are at sub-professional level with only a few being taken through the full courses needed to become full members of the professional associations.

But staff will leave – and it is important that their leaving is managed well. They can be important ambassadors for the SAI when they move elsewhere, they can make useful contributions to improving public financial management elsewhere and in some cases they may want to come back with new skills and experiences into more senior roles in the SAI. It can be a win-win!

David Goldsworthy

Former Head of Technical Cooperation and International Relations , National Audit Office - ‎United Kingdom

2016 - Year in Review

The PASAI Chairman, Secretary-General and Secretariat would like to wish everyone a Merry Christmas and another fruitful year ahead.

Please view a glimpse of our programs during the calendar year in the video below.

Building capacity of auditors on Public Procurement

The Controller and Auditor-General of Samoa Fuimaono Camillo Afele is hosting the Pacific regional program on compliance audit of public procurement which is part of an international capacity building program developed and delivered jointly by the INTOSAI Development Initiative (IDI) and the Pacific Association of Supreme Audit Institutions (PASAI). 

Twenty-two auditors from Cook Islands, Fiji, Federated States of Micronesia, State of Pohnpei FSM, Papua New Guinea, Republic of Marshall Islands, Samoa, Solomon Islands, Tonga and Tuvalu are participating in this week-long review meeting, which commenced Thursday 15 December and will end on Tuesday 20 December 2016. 

The keynote speaker Honorable Salā Fata Pinati (Minister for Audit Office) formally opened this regional meeting by highlighting the important role that Supreme Audit Institutions (SAIs) play in ensuring accountable and transparent government procurement practices. The Controller and Auditor-General of Samoa also commented that “This regional program is the first being delivered in the global INTOSAI region and I am pleased to host it, because the subject matter of public procurement is a significant matter which affects all areas of public service delivery which my office is mandated to do.” 

The programme follows the co-operative audit approach with the main objective to support SAIs in moving towards International Standards of Supreme Audit Institutions (ISSAIs) compliance in the conduct of compliance audits. At this review meeting the participating teams obtained feedback from the facilitators/resource persons in relation to their draft audit reports and throughout the week teams were given the opportunity to enhance and improve their draft reports. The facilitators and resource persons for this review meeting is Mr Md Shofiqul Islam IDI program manager for PASAI, Ms Ingvild Gulbrandsen SAI Norway, Mr Ibrahim Aiman SAI Maldives, Ms Violet Roebeck-Fasavalu SAI Samoa and PASAI Director Technical Support, A’eau Agnes Tuiai-Aruwafu. The programme, which is part of the global ISSAI implementation initiative or 3i programme, spans a period of two years and provides blended support solutions by supporting participants in sustainably enhancing their professional and organisational capacity to audit more effectively public procurement. 

PASAI is the overarching regional working group of Supreme Audit Institutions in the Pacific region. We have 28 members that we work with to promote transparent and efficient use of public sector resources with the aim to make a difference to the lives of our citizens. The IDI acts as the capacity development secretariat of the INTOSAI (International Organization of Supreme Audit Institutions) which comprises of 192 SAIs. PASAI is a regional organisation of INTOSAI, which operates as an umbrella organisation for the external government audit community and has a worldwide global affiliation with SAIs around the world. 

PASAI acknowledged the financial support and collaborative ongoing joint partnership with IDI and the financial support of the Australian Government Department of Foreign Affairs and Trade (DFAT) and the New Zealand Ministry of Foreign Affairs and Trade (MFAT) including the Samoa Audit Office. 

L-R: Keynote Speaker Honorable Minister of Audit Office – Hon. Salā Fata Pinati, Controller & Auditor-General –Fuimaono Afele, INTOSAI Development Initiative (IDI) Program Manager PASAI region, Mr Md Shofiqul Islam 

Review Meeting participants 

Regional Workshop on Strengthening Oversight Functions of Public Financial Management through Internal and External Audit, held in Honiara, Solomon Islands

The Auditor-General’s Office of Solomon Islands (OAG) together with the Pacific Association of Supreme Audit Institutions (PASAI) and the Pacific Financial Technical Centre (PFTAC) hosted a Pacific regional workshop in Honiara, Solomon Islands from 5 to 9 December 2016 at the Heritage Hotel. The theme of this joint PASAI/PFTAC workshop ‘Strengthening Oversight Functions of Public Financial Management through Internal and External Audit’, is the first in the Pacific region where the objective was to impart knowledge about the critical roles played by External Audit (Audit Offices or also known as Supreme Audit Institutions (SAIs) and Internal Audit to improve and contribute to strengthening Public Financial Management to enhance the ability of governments to deliver key services to its citizens.

Twenty-seven auditors from respective SAIs (external audit) and Government Internal Audit divisions/agencies participated in this week-long workshop representing seven Pacific countries

– Cook Islands, Fiji, Papua New Guinea, Samoa, Solomon Islands, Tonga and Vanuatu. Participants were encouraged to consider co-operation and co-ordination with each other to maximize the benefits gained from working together. Towards the end of the workshop participants from internal and external audit offices of each country spent time to discuss possible collaboration and presented joint country strategies on avenues where they can work together. PASAI/PFTAC will continue to encourage this collaboration through follow up and continuing dialogue with these auditors.

In his opening remarks, the Solomon Islands Auditor-General Mr Peter Lokay stated “This first regional collaboration between Internal Auditors and External auditor is significant because it will promote good governance through contributions to accountability and transparency in the use of public resources, as well as to promote efficient, effective and economic public administration, to make a difference to the lives of our people in the Pacific.”

The regional workshop was developed and delivered by a highly experienced team including PASAI’s Director of Technical Support, Agnes Aruwafu (External Audit expert), Sue Morrison (Internal Audit expert), Chita Marzan, PFTAC’s PFM Expert together with invaluable input from Mr Paul Apps, Past President/Board of Directors of the Institute of Internal Audit [IIA

Australia]. A session was also delivered by Mr Mark Thompson and Vance Hetariki from Teammate Wolters Kluwer.

PASAI commended the Solomon Islands Office of the Auditor-General for their excellent support and for making this workshop a great success. This included arranging for delegates to be a part of the national “Walk Against Corruption” with them on International Anti-Corruption Day, 9th December and witnessing the launch of the National Anti-Corruption Strategy by the onourable Prime Minister Mr Manasseh Sogavare.

PASAI acknowledged the financial support of the Australian Government Department of Foreign Affairs and Trade (DFAT) and the New Zealand Ministry of Foreign Affairs and Trade (MFAT) and the collaborative ongoing joint regional partnership with PFTAC.

Workshop participants

Pacific Auditors participated in the “Walk Against Corruption” to celebrate International Anti-Corruption Day 9th December 2016 with OAG Solomon Islands. Photo taken with Solomon Islands Honourable Prime Minister and Auditor General of Solomon Islands 

International Anti-Corruption Day

Pacific Association of Supreme Audit Institutions (PASAI) Members Join the Global Fight against Corruption on International Anti-Corruption Day, 9 December 2016

During the PASAI 19th Congress in August 2016 in Pohnpei, Federated State of Micronesia, Pacific Auditors-General and Public Auditors as Heads of Supreme Audit Institutions (SAIs)  unanimously agreed for SAIs to participate incelebrating the “International Anti-Corruption Day”, 9th December 2016, as part of the global fight against corruption.  This was in line with the PASAI Congress Theme, “Fishing Together for a Pacific Free of Corruption and Poverty”. 

Today, all around the Pacific, PASAI members will be taking part to show their support and commitment to this important day, contributing towards achieving SDG 16 of the 2030 Agenda.  Activities that SAIs are planning to undertake will include school essay writing competitions, float competitions, market days, press conferences, media releases, publication of audit reports and many more as SAIs join many other organisations around the Pacific on International Anti-Corruption Day.

The United Nations stated, “Every year $1 trillion is paid in bribes while an estimated $2.6 trillion are stolen annually through corruption – a sum equivalent to more than 5 percent of the global GDP.  In developing countries, according to the United Nations Development Programme, funds lost to corruption are estimated at 10 times the amount of the official development assistance”. 

Supreme Audit Institutions (SAIs) play an important role in the fight against corruption not only in the Pacific but globally as watchdogs of the public purse.  Pacific SAIs can also contribute by advocating for legislative changes to strengthen national systems and institutions to fight corruption, working more closely with other government agencies, increasing public awareness of the issues through its audit reports and engaging with stakeholders in the fight against corruption and poverty.

PASAI Chairman and Public Auditor of Pohnpei State, Federated States of Micronesia, Mr Ihlen Joseph, commented that “the fight against corruption starts with our youth, if we can educate them early, they can contribute to building a culture and a society free of corruption and poverty”.  Mr Joseph leads the way in this initiative with the Pohnpei State Office of the Public Auditor (OPA) hosting an essay contest for high schools, and a float/parade contest for youth groups on the 9th December 2016.  Pohnpei OPA received financial assistance from the United Nations Development Programme Funding specifically for “International Anti-Corruption Day”. 

PASAI Secretary-General, and Controller and Auditor-General of New Zealand, Ms Lyn Provost emphasised that, “the fight against corruption requires collaboration and co-operation between SAIs, national institutions, anti-corruption agencies, civil societies, media organisations and the public at large.  Corruption is a serious crime that can undermine social and economic development in all societies. No country, region or community is immune.  We therefore have to be vigilant and to work together as a region and as organisations to do our part to address this epidemic that stifles economic development, prosperity and democracy”.

‘Communicating and Promoting Value and Benefits of SAI Workshop’ Suva, Fiji

The Pacific Association of Supreme Audit Institutions (PASAI) together with the Fiji Office of the Auditor-General (OAG) conducted the ‘Communicating and Promoting Value and Benefits of Supreme Audit Institutions (SAIs)’ workshop in Suva, Fiji on 5 – 9 December 2016. This was the third communications workshop delivered by PASAI this year, as part of its programme on communicating the value and benefits of SAIs. The OAG’s Directors and senior management attended the workshop with 30 participants.

Mr. Sairusi Dukuno, OAG Director of Corporate Services opened the workshop, welcoming the special guest speaker, Permanent Secretary of the Ministry of Economy, Ms Makereta Konrote, PASAI facilitators and workshop participants. Referring to the strategic priorities of the OAG, Mr Dukuno stated, “One of its strategic objectives is to motivate personnel to achieve their potential and nurture a conducive environment for professional and personal development through facilitating continuous learning and development programs for all levels. This five day workshop is a part of the continuous learning.”

Special guest speaker, Ms Konrote gave an encouraging speech, emphasising the important role that the OAG plays in keeping public officers responsible and accountable in how public funds are used. She referred to the principles in the International Standards of Supreme Audit Institutions (ISSAI) 12: The Value and Benefits of SAIs – making a difference to the lives of citizens, in her keynote speech. “Dissemination of information to citizens including Parliament and other stakeholders is crucial, so a comprehensive, clear and well-defined Communication Strategy will go a long way to achieving this objective. As auditors, you will also learn the core elements that need to be included while writing reports and the ability to convey information in an accurate, concise and a clear manner. We welcome strengthening of these skills and look forward to seeing the improvements in future reports from the Auditor General,” she said.

The workshop participants were enthusiastically engaged in sessions that included topics such as ‘Identifying SAI Stakeholders’, ‘Stakeholder Engagement’, ‘Communication Strategy Implementation’, ‘Report writing processes’, ‘Writing concisely’, and ‘Dealing with the Media’. The sessions were facilitated by PASAI Director of Practice Development, Sinaroseta Palamo- Iosefo and Communications Adviser, Tina Vaka.

PASAI acknowledges the support from the Fiji OAG in organising the workshop, and the valued support from the Australian Department of Foreign Affairs and Trade and the NZ Ministry of Foreign Affairs and Trade.

Photo: Fiji Office of the Auditor-General Directors and Senior management staff with the Permanent Secretary of Ministry of Economy, Ms Makereta Konrote (front row, second from the right) and PASAI workshop facilitators.

INTOSAI Leading by Example in Performance Measurement

In a historic day for public external auditing, the International Congress of Supreme Audit Institutions today unanimously adopted the SAI Performance Measurement Framework (PMF) as an official INTOSAI document. The SAI PMF is a holistic and evidence-based tool supporting the professionalization of SAIs. It enables SAIs to live up to public expectations of being credible institutions, and to measure and report on their performance.

The need for a framework to support SAIs to better measure their performance was identified at the 2010 INTOSAI Congress in South Africa. The INTOSAI Working Group on the Value and Benefits of SAIs was given the role, and a task team of volunteer SAIs and Donors established. SAI PMF development, consultation and piloting was coordinated by the INTOSAI-Donor Secretariat in the INTOSAI Development Initiative (IDI). INTOSAI published a Pilot Version of the SAI PMF in 2013, which was piloted in more than 20 volunteer SAIs from Brazil to Nepal (being the first to publish its assessment), and from Burkina Faso to the Slovak Republic during 2013-15. Experience from the pilot assessments, and global consultation, led to extensive lessons learnt and ultimately development and approval of the SAI PMF.

INTOSAI also gave its support to the SAI PMF Implementation Strategy for 2017-19, including the INTOSAI Capacity Building Committee taking on the role of INTOSAI strategic governance lead and a new SAI PMF unit within IDI taking the role of the operational lead for SAI PMF support. This will ensure SAI PMF is firmly anchored within INTOSAI, and provide support to SAI PMF as a tool that all heads of SAIs are encouraged to utilise, on a voluntary basis.

Meanwhile, SAIs around the world continue to utilise SAI PMF to support needs assessments, strategic planning and performance management. In 2016, Sierra Leone became the first country to conduct a repeat assessment, through peer review, providing objective evidence of performance improvement since its first assessment in 2012. In November, New Zealand completed its self-assessment, tabling a summary of the report in Parliament and publishing the assessment in full. Auditor General Lyn Provost noted that "the results were largely as expected, which is pleasing. However, the assessment has also identified a few areas which require more focus within our SAI, which should lead to further improvements in our performance".

Throughout 2016, SAIs across the Pacific have worked together, with support from IDI, to undertake peer-assessments through a coordinated, regional approach.

The development and piloting of SAI PMF represented a successful partnership effort between INTOSAI and the donor community. The INTOSAI-Donor Cooperation, involving INTOSAI and 23 international development partners, provided significant funding and strategic advice, built on experience from similar tools such as the Public expenditure and Financial Accountability (PEFA) framework. Individual assessments in different countries have been resourced by combinations of SAI's own resources, in-kind support from peer SAIs, and donor funding, especially from the Inter-American Development Bank in Latin America and the Caribbean. The Donor Community will remain involved in SAI PMF implementation, through voluntary membership of a SAI PMF Independent Advisory Committee, as well as by supporting implementation efforts at the regional and country level.

Contact Details

SAI PMF Secretariat in IDI: saipmf@idi.no

http://www.idi.no/artikkel.aspx?MId1=102&AId=704