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Free, online environmental audit training offered by iCED in February and March

The International Centre for Environment Audit and Sustainable Development (iCED)* in Jaipur, India seeks nominations from SAI heads for participants to attend free, online environmental audit training programmes.

International Workshop on “Renewable Energy Development Strategies and Mechanisms with special reference to Solar Energy” – course schedule
Dates: 5–9 February 2024
Complete the workshop nomination form by 29 January 2024.

11th International Training Programme (ITP) on “Introduction to Environmental Auditing” – course schedule (postponed from December 2023)
Dates: Choice of 11–15 or 18–22 March 2024
Complete the ITP nomination form by 4 March 2024

There is comprehensive information about the facilities and programmes available at iCED. Staff at iCED will be in touch with participants, if accepted, with the final schedule and other relevant information.

*iCED is a Global Training Facility of the INTOSAI WGEA

Website: http://iced.cag.gov.in/
Email: iced@cag.gov.in
Phone: 0141-2772009/ 2772012/ 2772000
Fax: 0141-2772011/ 2772030

SAI Chuuk releases its audit on the Chuuk Housing Authority

18 December 2023

The Office of the Chuuk State Public Auditor (OCPA) completed its Audit Report No. 2023-02 entitled Chuuk State Housing Authority: Not Aware of the Extent of Families in Housing Needs. The coverage of the audit was for the period beginning fiscal year 2020 to fiscal year 2022. The audit was conducted in accordance with the U.S. Generally Accepted Government Auditing Standards for performance audit. The objectives of this performance audit were to determine whether the Chuuk Housing Authority (CHA) spent its funds in accordance with the Chuuk State Financial Management Regulations and to determine the extent to which the Chuuk Housing Authority has been strategically managing its operations and effectively performing its function as mandated by the law.

The Authority used to provide loans for construction of housing units but, due to limited funding, was currently administering only an in-house CHA Loan Fund for house repair and renovation. The Authority operates on two budgets. The first budget was non-appropriated fund, which was being approved by the board for the operation of the CHA loan fund. The second budget was the appropriated fund passed by the Legislature and signed by the Governor. During three year period covered by the audit (FY2020-FY2022), the non-appropriated fund (loan fund) had average yearly collection of $145,051.65 while the average yearly appropriated budget was $67,182.50. The yearly average collections can be provided to only about 29 new loans.

The results of the audit disclosed that the CHA did not spend its funds in accordance with the Chuuk State Financial Management Regulations and other applicable laws for the spending of funds and managing its operations. The OCPA noted non-compliances with regard to loan processing documentations and internal control requirements for the operation of the CHA loan fund. Of the 25 samples of loan folders examined, there were 13 samples (52%) with non-compliance issues involving improper documentations of loans. Furthermore, the OCPA noted that CHA did not strictly follow the budget control procedures. The deficit spending was recurring problem in appropriated budget at an average of $7,000 per year or 10% over the budget while the cash operating losses were sustained in the operation of the loan fund at an average of $40,000 per year during the fiscal years covered by the audit. The OCPA also noted that the loan fund was used for expenditures not allowed by law, e.g., COVID 19 allowance, bonuses, and others. The Board approved these expenditures. The audit found that a total of $23,720 was spent for unallowable expenditures. Lastly, the OCPA noted at least nine conflicts of interest loans amounting $45,000. In the absence of related policy, these loans may have been prioritized and unnecessarily competed and crowded out the funds that were otherwise available to low-income households.

The OCPA also noted that the CHA has not been strategically managing its operation and effectively performing its functions that were mandated by the law. There was no strategic plan in place that will provide direction on how it could fulfill its functions mandated by the law. The CHA was not aware of the extent of families in housing needs. On current lending activities, the OCPA noted that the CHA and the Department of Administrative Services (DAS) could improve their operating efficiencies by refraining from being involved in the procurement of the construction materials on behalf of the borrower. Unnecessary administrative time was being consumed waiting for quotation, creating and issuing Purchase Order (PO) based on summary of quotations, and processing the disbursements for POed items. These activities must be transferred to the responsibility of the borrowers. Furthermore, the OCPA also noted that the CHA has not been efficiently managing its accounts receivables (AR) and accounts payables (AP). The CHA was not efficient in collecting loans. In FY 2021, the CHA had written-off $1.5 million bad debts or uncollectible accounts on loans for the construction of housing units. Of the new loans granted during the period covered by the audit, the accounts receivable as of September 30, 2022 amounting to $44,658.48 from 10 debtors either had no collection or missed the periodic installment. There was also absence of reconciled subsidiary ledgers for both Accounts Receivable and Accounts Payable which could result in potential misstatements of the financial statements, particularly the receivable and the payable balances.

On other matters, the CHA Executive Director, based on a Memorandum of Understanding (MOU), was asserting that CHA has uncollected receivable account since 2007 from the Chuuk Public Utility Corporation (CPUC) amounting to $219,838.82. It helped CPUC then in resolving power outages and in purchasing its fuel needs. The DAS Director confirmed that the money was indeed provided to the CPUC through several cash releases as decreed by the Governor. He also said that intention was to get back the money; hence, an MOU was signed. He further said that they kept requesting for reimbursement. Since the CHA needs the fund for their loan activities, the OCPA recommend that the CHA should continue requesting for the reimbursement of the amount.

The OCPA had several recommendations to improve the operation of the CHA. It should update loan policies and procedures that should include policy on conflict of interest. Furthermore, it should strictly follow the budgetary control. Also, it should implement long term strategic plan and should refrain from being involved in the procurement of the construction materials on behalf of the borrower. Furthermore, it should implement strategies that would ensure that receivables are collected on time and the subsidiary ledgers are reconciled. Lastly, there should be regular management information reports that should be provided to the Board on cash in bank, accounts receivable, uncollected accounts, net resources (net position), net income/losses, cash forecast, revenue and expense report, and fund status report to serve as the basis of their informed decision related to the operation of the CHA and to keep intact and sustain the value of the loan fund.

The OCPA requested a formal response from both the management of the CHA and the DAS. It received the management response from the CHA but not from the DAS. The CHA management generally agreed on some recommendations but explained that the deficit spending that has been recurring in the appropriated budget was the salary increase that was approved by the Board to be funded by the loan fund.

Press Release 2023-02

PASAI director visits Kiribati

Bairiki, Kiribati: Programme Director for the Pacific Association of Supreme Audit Institutions (PASAI), Susana Laulu, visited Kiribati last week to provide in-person technical support.

Auditor-General, Eriati Manaima, and his staff at the Kiribati Audit Office (KAO) hosted Ms Laulu during her mission.

The primary purpose of Ms Laulu’s trip was to assist and guide the staff responsible for the 2022 Financial Statements of Government (FSG) with the audit planning and process. PASAI’s central strategic priority is that its member audit offices complete high-quality audits of government accounts on a timely basis.

Ms Laulu explained, “It’s very important that auditors have a broad understanding of government operations, the nature of key components of the FSG, and linkages to the work of each ministry to ensure the government budget is appropriately expensed and accounted for.

“Auditing is much more than double-checking numbers. Effective auditors must build relationships, communicate well and know what the right questions are to obtain the relevant information.”

Ms Laulu discussed with KAO staff the challenges impacting workflow and timelines to the FSG audit, and how to manage those challenges with existing resources. 

On her final day in Kiribati, Ms Laulu paid a courtesy visit to senior staff at the Ministry of Finance and Economic Development. Accompanied by Audit Supervisor, Tematang Raimon, Ms Laulu met Accountant General, Toromon Metutera, and Deputy Accountant General, James Ruatu.

Before leaving Ms Laulu assured the Auditor-General that PASAI will continue its support of KAO online and in person where needed near the closing of the FY2022 FSG audit.

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

PASAI Programme Director, Susana Laulu (seated in centre) and Auditor General, Eriati Manaima (seated on far right) with staff from the Kiribati Audit Office

Left to right: Deputy Accountant General, James Ruatu; Audit Supervisor, Tematang Raimon; PASAI Programme Director, Susana Laulu; and Accountant General, Toromon Metutera

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Contact information:

Susana Laulu, Programme Director PASAI
E: Susana.Laulu@pasai.org P: +64 9 304 1275

PDF version of this media release

SAI Chuuk releases audit report on the Department of Health Services

4 December 2023

The Office of the Chuuk State Public Auditor (OCPA) completed its Audit Report No. 2023-01 entitled Chuuk State Department of Health Services: Issues Found on Documentation, Inventory System, and Warehousing. This audit covered the period beginning fiscal year 2020 to fiscal year 2022. It was conducted in accordance with the Generally Accepted Government Auditing Standards issued by the U.S. Comptroller General.

The objective of this audit was to determine whether the Chuuk State Department of Health Services (DHS) is effectively ensuring that financial transactions are compliant with applicable laws and regulations of Chuuk State, focusing on the proper filing and complete documentation of obligation and appropriate payment of government housing allowance. In addition, the second objective was to determine the efficiency and effectiveness of internal controls on pharmaceutical products, medical supplies. and donated items; focusing on inventory system and warehousing management.

The OCPA concluded the DHS did not comply with the Chuuk State Financial Regulation regarding the proper documentation and filing. Important documents were misplaced and untraceable. The OCPA found the documentation of $354,210.73 worth of payments was missing on file: $648,132 worth of payments was lacking supporting documents and, this cannot be substantiated. However, $356,480.27 of this amount represents document for formulation of pharmaceuticals which was explained as filed with the Division of Planning and Statistics. In addition, a total of $118,200 was overspent in housing allowance for three years caused by variance in rate and conflict of interest.

The OCPA also concluded that the DHS poorly managed its inventory and warehousing. The DHS was incurring a substantial amount estimated at $1.5million yearly for procurement of pharmaceutical products and medical supplies. And an estimated of about $1 million is left in the inventory. However, the pharmaceutical products were manually tracked using Microsoft Excel which is not updated timely, and there was no system for medical supplies and donated items. As a result, an estimated purchased of medical supplies worth of $432,514.32 was not properly accounted for. In addition, the OCPA noted that the inventory was stored in four different, fully packed warehouses.

The OCPA recommended proper filing of documentation and an updated policy on housing allowance. Regarding the inventory, the OCPA recommended for investment on new inventory system and bigger warehouse.

Press Release 2023-01

Pacific Island auditors trained on revised government auditing standards

Auckland, New Zealand: The Pacific Association of Supreme Audit Institutions (PASAI) has partnered with the Graduate School USA to train government audit office staff in congressional-style jurisdictions to conduct performance audits to new standards from today.

Sixty-one staff (30 female, 31 male) from the government audit offices of American Samoa, the Federated States of Micronesia (FSM), FSM Chuuk, FSM Kosrae, FSM Pohnpei, FSM Yap, Guam, the Marshall Islands, the Northern Mariana Islands and Palau are participating in the two part-day, online workshop from 28 to 29 November 2023.

These jurisdictions, concentrated in the North Pacific, are either American territories or are in ‘free association’ with the United States of America. As such, the government auditing standards they follow are American.

The course will cover the general standards for governmental auditing, such as ethical principles and quality control. It also includes the fieldwork and reporting standards for performance audits.

After an in-depth review of and update on the standards, participants will discuss the purpose and requirements of individual standards, with an emphasis on the recent changes.

PASAI Director (North), Doris Flores Brooks, was delighted by the response of PASAI members to the opportunity to learn about the revisions to the standards.

“We are pleased to be meeting the demand for training that is tailored to the needs of government auditors working in Congressional systems,” she said.

PASAI is sponsoring the course being offered by the Graduate School USA through its Pacific Island and Virgin Island Training Initiatives (PITI-VITI) programme. Its Oregan-based instructor, Drummond Kahn, has trained Pacific Island auditors over many years.

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

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Contact information:

Doris Flores Brooks, Programme Director (North) PASAI
E: Doris.FloresBrooks@pasai.org P: +64 9 304 1275

PDF version of this media release

PASAI director visits American Samoa

Pago Pago, American Samoa: Director Practice Development for the Pacific Association of Supreme Audit Institutions (PASAI), Sinaroseta Palamo-Iosefo, visited American Samoa last week on a knowledge-sharing mission.

The primary purpose of Ms Palamo-Iosefo’s trip was to collaborate with the American Samoa Government Territorial Audit Office (TAO) on opportunities for PASAI to support building its capabilities and improving audit quality.

With most of the TAO’s 11 personnel joining the office in 2022 and the Territorial Auditor, Mike Edmonds, being appointed to the head position just last month, the timing was optimal for familiarising staff with PASAI’s work in the Pacific Island region. This includes technical assistance with strategic audit planning, capability development in multiple audit streams and support to improve other aspects of operations such as human resources and external communications.

Ms Palamo-Iosefo discussed the results of an assessment of the TAO that had been completed using the internationally recognised Performance Measurement Framework. Such assessments identify areas for improvement in all areas of an audit office’s operations.

Advocacy of and support pursuing audit office independence are among PASAI’s top strategic priorities, so Ms Palamo-Iosefo also discussed the TAO’s approach to achieving true financial and operational independence to enable it to fully deliver its mandate.

Ms Palamo-Iosefo explained to staff the use of audit planning templates to comply with international auditing standards. Adherence to the standards enhances audit quality and ensures sustainability of audit practice.

Finally, in keeping with best practice, Ms Palamo-Iosefo completed a quality assurance review of one of the TAO’s performance audits.

Ms Palamo-Iosefo left with agreed action points and was satisfied the trip’s objectives had been met.

“We now have a good sense of the nuances of the TAO, its staff and the environment in which it operates,” she said.

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

Territorial Auditor, Mike Edmonds (centre) and PASAI Director Practice Development, Sinaroseta Palamo-Iosefo (second from right, front row) with staff from the American Samoa Government Territorial Audit Office

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Contact information:

Sinaroseta Palamo-Iosefo, Director – Practice Development PASAI
E: sina.iosefo@pasai.org P: +64 9 304 1275

PDF version of this media release

Performance auditor with over 30 years of experience joins PASAI

Auckland, New Zealand: The Pacific Association of Supreme Audit Institutions (PASAI) has welcomed an accomplished and very experienced performance audit professional, Mike Scott, to its Secretariat team.

Mr Scott was appointed to the new role of Director Performance Audit in time for him to attend the latest meeting of PASAI’s Governing Board on 7 and 8 November.

Among Mr Scott’s important duties is providing technical support to six of our member SAIs who are participating in a global cooperative audit of climate change adaptation actions.

He will also lead a quality assurance review programme, initially for nine of PASAI’s member offices, and develop a continuing education programme to build the capacity of performance auditors in the Pacific region.

Mr Scott comes to the Secretariat from, most recently, an audit and assurance managerial role at New Zealand’s Department of Internal Affairs, occasionally acting at a director level. This followed two years leading the Performance Team at New Zealand Police and coordinating performance audit training for the Australasian Council of Auditors-General (ACAG).

Prior to that Mr Scott spent nearly 12 years as the Assistant Auditor-General of Performance Audit at the Office of the Auditor-General in New Zealand. This followed three years in other senior performance audit roles there.

However, Mr Scott started his lengthy audit career back in 1987, spending 17 years in a variety of roles at the National Audit Office of the United Kingdom.  

PASAI Chief Executive, Esther Lameko-Poutoa, is pleased to have Mr Scott join the Secretariat staff.

“Mike’s breadth of performance audit experience in multiple audit offices and government agencies, coupled with his achievements coordinating ACAG training, make him ideally suited to this new role at PASAI,” she said.

Mr Scott expressed his own enthusiasm for the role, saying, “I am excited and privileged to join PASAI and contribute to the great support that it provides to Pacific auditors.”

When not on overseas missions, Mr Scott will primarily work from his home office north of Wellington, New Zealand. This is similar to the arrangements for three other PASAI directors who are regionally based in Fiji, Guam and Samoa.

Mr Scott qualified as a Chartered Accountant in 1991 and is a Fellow of the Chartered Institute of Public Finance and Accountancy (FCPFA). He is a member of the Greytown Volunteer Fire Brigade, and eagerly follows professional rugby and football competitions.

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

 

Mike Scott

 

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Contact information:

Esther Lameko-Poutoa, Chief Executive PASAI, Auckland, New Zealand
E: secretariat@pasai.org P: +64 9 304 1275

PDF version of this media release

Pacific Island auditors trained to strengthen government entity compliance

Auckland, New Zealand: The Pacific Association of Supreme Audit Institutions (PASAI) is training more Pacific Island government audit office staff to conduct compliance audits to international standards from this week.

Sixty-four staff (33 female, 31 male) from supreme audit institutions (SAIs) in American Samoa, Fiji, FSM Pohnpei, FSM Yap, Kiribati, Papua New Guinea, Samoa and Vanuatu are participating in the six part-day, online workshop from 25 to 29 September and 2 October 2023.

PASAI programme directors, Susana Laulu, Sinaroseta Palamo-Iosefo and Meresimani Vosawale-Katuba, are facilitating the eight-module workshop covering all phases of the compliance audit process.

Ms Laulu explained compliance audits are meant to enhance public sector and government entity compliance with laws, regulations, executive directives, policies and procedures.

“The training will cover the main concepts of compliance audit, how to identify potential audit topics and the different phases of the audit process from planning, gathering evidence, evaluating evidence and forming conclusions, to reporting audit findings and following up implementation of audit observations.

“It highlights the importance of understanding the country’s governance ecosystem in identifying significant areas to be considered as potential topics for a compliance audit as well as those factors that will ensure a quality audit is conducted effectively and efficiently,” she said.

It is envisioned that by ensuring Pacific Island auditors are trained to conduct compliance audits in accordance with international standards and best practices, government accountability, transparency and integrity will be strengthened in the longer term.

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

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Contact information:

Susana Laulu, Programme Director PASAI, Auckland, New Zealand
E: susana.laulu@pasai.org P: +64 9 304 1275

PDF version of this media release

Annual Report now available

The PASAI Annual Report 2022–23, along with copies of past reports, is now available on the Annual Reports page. It was approved by members at PASAI’s Annual General Meeting on 8 September 2023.

We report on our progress using our Performance Reporting Framework. This includes comprehensive reporting on 27 performance measures related to our five Strategic Priorities. PASAI’s financial statements for the year ending 30 June 2023 are also appended to the report.

PASAI’s 35th Governing Board meeting

Auckland, New Zealand: The Pacific Association of Supreme Audit Institutions (PASAI) held its 35th Governing Board meeting online on 8 September 2023.

John Ryan, Secretary-General PASAI and Auditor-General of New Zealand, chaired the meeting attended by all board members, PASAI Secretariat staff and a representative from the New Zealand Ministry of Foreign Affairs and Trade (MFAT).

The Governing Board endorsed the Annual Report and Financial Statements for presentation at the Annual General Meeting of PASAI Incorporated, held later that day. Staff from RSM New Zealand joined the meeting to explain to board members what they audited and to express their “unmodified” (clean) opinion of PASAI’s accounts and performance reporting for the financial year ending 30 June 2023.

The Governing Board also received a presentation of the indicators against which PASAI measures its progress.

Work developing PASAI’s next 10-year Strategic Plan continued, with board members providing feedback on draft strategic priorities. Esther Lameko-Poutoa, Chief Executive PASAI, provided members with a forecasted budget for this period.

A report of the independent evaluation undertaken by Tetra Tech International Development was tabled at the meeting. The findings and recommendations of the report informed the drafting of the future Strategic Plan.

The Secretariat expresses its gratitude to the Governing Board members for their ongoing assistance and acknowledges the support of its development partners, MFAT and the Australian Department of Foreign Affairs and Trade (DFAT).

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Contact information:

Esther Lameko-Poutoa, Chief Executive PASAI, Auckland, New Zealand
E: secretariat@pasai.org P: +64 9 304 1275

PDF version of this media release

Free online introduction course on environmental auditing running again

INTOSAI’s Working Group on Environmental Auditing (WGEA) is again running its course, Introduction to Environmental Auditing in the Public Sector.

Developed by project lead, the National Audit Office of Estonia, in close collaboration with various supreme audit institutions, the online training is offered in English through the University of Tartu.

The aim of this course is to give an overview of the main environmental management principles, discuss the importance and complexity of the concept of sustainable development, introduce the most common governance tools that are used in environmental management, and put all this into a practical environmental auditing context.

The course takes place from 25 September to 22 October 2023, is fully online, free of charge and self-paced. Performance auditors can get more information and register online.

Participants who successfully complete all tasks will receive a digital certificate from the University of Tartu.

North Pacific auditors gather in Guam to learn the fundamentals of scrutinising government expenditure

Hagåtña, Guam: The Pacific Association of Supreme Audit Institutions (PASAI) is training entry-level government audit office staff from the north Pacific on the fundamentals of public sector auditing this week.

Twenty-three staff (14 female, nine male) from supreme audit institutions (SAIs) in the Federated States of Micronesia and its four states of Chuuk, Kosrae, Pohnpei and Yap; Guam; the Marshall Islands; the Northern Mariana Islands and Palau are participating in the five-day face-to-face workshop from 21 to 25 August 2023.

PASAI programme directors, Doris Flores Brooks and Susana Laulu, are delivering the training with the Supervising Accountability Auditor, Vincent Duenas, of the Office of Public Accountability in Guam.

Including local senior staff in the facilitation team will build the capacity at the SAI to facilitate in-house training.

The comprehensive training includes modules on the role of SAIs, the public financial management system, key phases of the audit process, auditing standards and stakeholder communication. Participants will also deliver their own presentations during the workshop.

PASAI Chief Executive, Esther Lameko-Poutoa summarised the training, saying, “All public sector auditors need to understand the framework for and elements of public sector auditing.

“Knowing about the role of SAIs, who the key stakeholders are, the ethical responsibilities, the whole audit process and other information about the public sector enables auditors to carry out their responsibilities effectively and efficiently.”

By the end of the workshop, participants should have an increased understanding of what a SAI does, its role in providing external scrutiny of public sector activities and finances, the audit process, auditing standards and the different types of audits.

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

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Contact information:

Esther Lameko-Poutoa, Chief Executive PASAI, Auckland, New Zealand
E: secretariat@pasai.org P: +64 9 304 1275

PDF version of this media release

iCED's next six months of environmental audit training

The International Centre for Environment Audit and Sustainable Development (iCED)* in Jaipur, India seeks nominations from SAI heads for participants to attend upcoming environmental audit training programmes.

This follows a joint invitation from the Chair of the INTOSAI Working Group on Environmental Auditing (WGEA) and the Comptroller and Auditor General of India.

25 or 26 September 2023

International Webinar on “Audit of Blue Economy, Issues and Challenges with special reference to SDG 14”

Nomination deadline: 8 September 2023

Email nominees’ name and their email addresses to iced@cag.gov.in. iCED may then request nominees to complete the registration form.

4–16 December 2023

11th International Training Programme (ITP) on “Introduction to Environmental Auditing”

Nomination deadline: 3 November 2023

Complete the ITP nomination form and email it to iced@cag.gov.in to nominate SAI candidates.

5–9 February 2024

International Workshop on “Renewable Energy Development Strategies and Mechanisms with special reference to Solar Energy”

Nomination deadline: 5 January 2024

Complete the workshop nomination form and email it to iced@cag.gov.in to nominate SAI candidates.

There is comprehensive information about the facilities and programmes available at iCED. Staff at iCED will be in touch with participants, if accepted, for further arrangements.

*iCED is a Global Training Facility of the INTOSAI WGEA

Website: http://iced.cag.gov.in/
Email: iced@cag.gov.in
Phone: 0141-2772009/ 2772012/ 2772000
Fax: 0141-2772011/ 2772030