Presentation by L. Marcinkowski, SIGMA (English), Regional Conference for Supreme Audit Institutions of the European Neighbourhood South Region, June 2018
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Presentation by L. Marcinkowski, SIGMA (English), Regional Conference for Supreme Audit Institutions of the European Neighbourhood South Region, June 2018
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Presentation by L. Marcinkowski, SIGMA (English), Regional Conference for Supreme Audit Institutions of the European Neighbourhood South Region, June 2018
- 1. ยฉ OECD Regional Conference for Supreme Audit Institutions of the European Neighbourhood South Region Being a model organisation through leading by example Lech Marcinkowski, SIGMA 20 June, 2018 Tunis, Tunisia
- 2. A model organisation โข SAIs should demonstrate they deserve their independence through being a model organisation o โSAIs only deserve trust if they themselves are objectively judged as being credible, competent and independent and can be held accountable for their operations. In order to make this possible, they need to be model institutions โฆโ (ISSAI 12) โข ISSAIs 1, 10, 11, 12, 20, 21, 30, 40; Fundamental Auditing Principles 1
- 5. 4
- 6. Expectations for Transparency and Accountability โข Make public their mandate, responsibilities, mission and strategy โข Apply high standards of integrity and ethics for staff at all levels โข Manage operations economically, efficiently, effectively, and in accordance with laws and regulations and report publicly on these matters โข Be subject to independent external scrutiny, including external audit of their operations, and make available these reports to stakeholders 5
- 7. SAI Planning and Performance โข Do you consult and make public your strategic and annual work plan? โข Do you prepare and publish annual performance (activity) report? o Key performance indictors o Annual financial statement/report o External feedback such as website consultations, stakeholders satisfaction surveys โข Do you undergo external scrutiny ? o External audit of the financial statement/report and the KPIs o Results of audit made public 6
- 8. Performance & Quality Review โข Do you have periodic independent review ? o for example peer review โข Is there a periodic external reviews of quality control framework โ o designed and operating effectively โข Are the Internal/External reviews of quality published? o websites o annual reports 7
- 9. Ethics โข Are you committed to ethical behaviour? โข Do you have Code of Ethics/Conduct? o Annual confirmation of compliance with code of ethics/conduct o Conflict of interest declarations for each audit engagement โข Do you raise awareness of your staff? o Induction of new staff o Annual/regular updates for all staff o IntoSAINT โ integrity assessment tool 8
- 10. Reporting on Audits โข Are your audit reports made public? o Website o Summary reports โข Are your recommendations implemented? o Follow-up reports o Monitoring systems โข databases/electronic systems โข some countries make these public โข Do you engage with parliament and stakeholders? (covered in tomorrowโs session) 9
- 11. โข Is your SAI a model organisation? โข Are you leading by example? 10
Editor's Notes
- To be able to fulfil their functions and ensure their potential value to citizens, SAIs need to be seen as trustworthy. SAIs only deserve trust if they themselves are objectively judged as being credible, competent and independent and can be held accountable for their operations. In order to make this possible, they need to be model institutions, setting an example from which others in the public sector and the auditing profession at large can learn. ISSAI 12 expectations Ensuring appropriate transparency and accountability of SAIs Ensuring good governance of SAIs Complying with the SAIโs Code of Ethics Striving for service excellence and quality Capacity building through promoting learning and knowledge sharing PRINCIPLE 8: Ensuring appropriate transparency and accountability of SAIs PRINCIPLE 9: Ensuring good governance of SAIs PRINCIPLE 10: Complying with the SAIโs Code of Ethics PRINCIPLE 11: Striving for service excellence and quality PRINCIPLE 12: Capacity building through promoting learning and knowledge sharing
- To be able to fulfil their functions and ensure their potential value to citizens, SAIs need to be seen as trustworthy. SAIs only deserve trust if they themselves are objectively judged as being credible, competent and independent and can be held accountable for their operations. In order to make this possible, they need to be model institutions, setting an example from which others in the public sector and the auditing profession at large can learn. ISSAI 12 expectations Ensuring appropriate transparency and accountability of SAIs Ensuring good governance of SAIs Complying with the SAIโs Code of Ethics Striving for service excellence and quality Capacity building through promoting learning and knowledge sharing PRINCIPLE 8: Ensuring appropriate transparency and accountability of SAIs PRINCIPLE 9: Ensuring good governance of SAIs PRINCIPLE 10: Complying with the SAIโs Code of Ethics PRINCIPLE 11: Striving for service excellence and quality PRINCIPLE 12: Capacity building through promoting learning and knowledge sharing
- The notion of transparency refers to the SAIโs timely, reliable, clear and relevant public reporting on its status, mandate, strategy, activities, financial management, operations and performance. In addition, it includes the obligation of public reporting on audit findings and conclusions and public access to information about the SAI. SAIs publish (on website) a variety of information to demonstrate transparency Organisational structure Senior management travel/hospitality expenses Senior management remuneration Senior Management register of interests Environmental Impact reports Payments to suppliers over a certain threshold Contracts awarded over a certain threshold Audit quality reports SAIโs Financial statements are audited and public SAIs make public what their total budget is and report on the origin of their financial resources and how those resources are used. SAIs measure and report on the efficiency and effectiveness with which they use their funds. SAIs assess and report on their operations and performance in all areas SAIs may also use audit committees (with majority of independent members)
- Consultation on and publication of strategic and annual work plan Publication of annual performance (activity) report Key performance indictors Annual financial statement/report External feedback such as website consultations, stakeholders satisfaction surveys Independent external scrutiny External audit of the financial statement/report and the KPIs Results of audit made public Planning ISSAI 12 principle 8 should make pubic its strategy ISSAI 20 Principle 3 SAIs communicate the scope of audit activities that they undertake under their mandate Good practices โ consultation and publication on strategic and annual plans Performance reporting Annual performance (activity) reports used to Demonstrate managing operations economically, efficiently, effectively and in accordance with laws and regulations and reports publicly on these matters ISSAI 20 Principle 6 SAIs assess and report on their operations and performance in all areas SAIs measure and report on the efficiency and effectiveness with which they use their funds SAIs may use performance indicators to assess the value of audit work for Parliament, citizens and other stakeholders SAIs follow up their public visibility, outcomes and impact through external feedback Annual Financial Statement ISSAI 20 Principle 6 SAIs make public what their total budget is and report on the origin of their financial resources (parliamentary appropriation, general budget, ministry of finances, agencies, fees) and how those resources are used. SAIs measure and report on the efficiency and effectiveness with which they use their funds Who audits the auditors ISSAI 12 - SAIs should be subject to independent external scrutiny, including external audit of their operations, and make available these reports to stakeholders. ISSAI 20 Principle 6 - SAIsโ financial statements are made public and are subject to external independent audit or parliamentary review Many SAIs have performance indicators. Some SAIs have dedicated public reports on this topic. Some performance indicators used: Number of performance reports Rate of SAIs audit plan execution Rate at which recommendations are implemented Financial/non-financial benefits resulting from SAIโs recommendations implemented Number of testimonies/presentations before Parliament/Congress Timeliness of audit report finalisation A number of SAIs use external feedback such as website consultations, stakeholders satisfaction surveys, media coverage. - SAIs employ sound management practices, including appropriate internal controls over its financial management and operations. This may include internal audits and other measures. - SAIsโ financial statements are made public and are subject to external independent audit or parliamentary review. - SAIs assess and report on their operations and performance in all areas, such as financial audit, compliance audit, jurisdictional activities (SAIs constituted as Courts), performance audit, programme evaluation and conclusions regarding government activities. - SAIs maintain and develop skills and competencies needed to perform the work to achieve their mission and meet their responsibilities. - SAIs make public what their total budget is and report on the origin of their financial resources (parliamentary appropriation, general budget, ministry of finances, agencies, fees) and how those resources are used. - SAIs measure and report on the efficiency and effectiveness with which they use their funds. - SAIs may also use audit committees, made up of a majority of independent members, to review and provide input to their financial management and reporting processes. - SAIs may use performance indicators to assess the value of audit work for Parliament, citizens and other stakeholders. - SAIs follow up their public visibility, outcomes and impact through external feedback.
- ISSAI 12 Principle 9.2 SAIs should periodically submit their performance to independent review, for example peer review A number of SAIs have been subject to peer reviews and the results have been posted on their websites. ISSAI 12 Principle 11.6 SAIs should establish a monitoring process that ensures that the SAIโs system of quality control, including its quality assurance process, is relevant, adequate and operating effectively. ISSAI 20 Principle 4 SAIs should implement an appropriate system of quality assurance over their audit activities and reporting and subject such system to periodic independent assessment to ensure that their quality management framework is suitably designed and operating effectively SAIs also conduct internal reviews of their audits. A good practice some SAIs employ is to publish the results of internal/external quality reviews on their websites, in their annual reports or a report on quality ISSAI 20 Principle 9 SAIs publicly report the results of peer reviews and independent external assessments
- ย IntoSAINT, a tool to assess the vulnerabilities and the maturity of the integrity controls of SAIs and to strengthen integrity in SAIs. Once the SAI sets the example, the focus can shift to integrity of the public sector of the SAIโs country.
- ISSAI 20 Principle 7: SAIs report publicly on the results of their audits and on their conclusions regarding overall government activities. - SAIs make public their conclusions and recommendations resulting from the audits unless they are considered confidential by special laws and regulations. SAIs report on the follow up measures taken with respect to their recommendations SAIs also report publicly on overall audit outcomes, e.g. the governmentโs overall budget implementation, financial condition and operations and, overall financial management progress Reports published when submitted to Parliament, President or other appropriate body Example sof SAIs providing high level summary reports to make more undrerstandble ISSAI 20 Principle 8: SAIs communicate timely and widely on their activities and audit results through the media, websites and by other means. - SAIs communicate openly with the media or other interested parties on their operations and audit results and are visible in the public arena. SAIs encourage public and academic SAI reports are available and understandable to the wide public through various means (e.g. summaries, graphics, video presentations, press releases). interest in their most important conclusions