Introduction. SAI Independence Programme. Introduction. What does SAI. Independence. stand for? Independent SAIs make difference. Programme.

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1 SAI Independence Programme SAI Independence Programme Introduction What does SAI Independence stand for? Independent SAIs make difference Programme Objective Programme Implementation Strategy Introduction Effective SAIs deliver value and benefits and make a difference to the lives of citizens by contributing to accountability, transparency and integrity, staying relevant and leading by example. To be able to deliver these value and benefits as envisaged in ISSAI 12, a SAI needs an enabling and conducive institutional framework, this includes as a primary requirement. Both the Lima and Mexico INTOSAI declarations define this SAI. SAI also finds central place in the March 2012 UN General Assembly resolution 66/209 promoting the efficiency, accountability, effectiveness and transparency of public administration by strengthening SAIs, which recognized that supreme audit institutions can accomplish their tasks objectively and effectively only if they are independent of the audited entity and are protected against outside influence. The importance of independent SAIs is also underlined by the Sustainable Development Goals (SDGs) contained in the United Nations Agenda 2030 and adopted in September Goal 16 of the SDGs provides for the building of effective, accountable and inclusive institutions at all levels. Target 16.6, which aims at developing effective, accountable and transparent institutions at all levels, is of particular importance for the contribution of independent SAIs to sustainable development. In reality, many SAIs in the INTOSAI community still fall well short of the level of institutional capacity and defined in the Mexico Declaration. (institutional capacity is not defined in the Mexico declaration) Much work has already been done to promote, especially by the INTOSAI General Secretariat, some INTOSAI regions, some SAIs providing bilateral support and other development partners. However, as the 2014 IDI Global Survey indicates SAIs continue to face challenges in terms of their. Given SAI needs and the importance of this issue to the effectiveness of SAIs, IDI has initiated this programme to contribute to the ongoing efforts. This write up describes the pilot programme that will be launched in The objective of the programme is greater SAI. The programme is expected to run from

2 What does SAI stand for? INTOSAI s Lima and Mexico Declarations established the essential role of independent SAIs. ISSAI 10 recognizes the following eight principles of SAI Independence: 1. Legal Status: the existence of an appropriate and effective legal framework that spells out the extent of SAI 2. Heads of SAIs: of SAI Heads and Members, including security of tenure and legal immunity in the discharge of their duties 3. Operations: sufficiently broad mandate and full discretion in the discharge of SAI functions 4. Access to information: auditors are entitled to be granted unrestricted access to information 5. Reporting audit : right and obligation to report on their work 6. Effective follow-up systems: existence of effective follow-up mechanisms on SAI recommendations 7. Content and timing of audit reports: freedom to decide the content and timing of audit reports and to publish and disseminate them 8. Resources: financial and administrative autonomy; availability of appropriate human, material and monetary resources UN Resolutions 66/209 and 69/228 stipulate importance of independent SAIs 1. The UN Resolution 66/209 recognizes that SAIs can accomplish their tasks objectively and effectively only if they are independent of the audited entity and protected against outside influence 2. Through the Resolution 69/22, the UN has encouraged: Member States to apply, in a manner consistent with their national institutional structures, the principles of of SAIs as set out in the Declarations of Lima and Mexico, and to give due consideration to the and capacity building of SAIs as well as of the improvement of public accounting systems in the context of the Post 2015 Development Agenda 2

3 Independent SAIs make a difference The IDI is currently working on a SAI Strategic Management framework, which is also aligned to SAI PMF. This framework envisages a well-functioning SAI as one that delivers value and benefits for the citizens of their countries. SAIs deliver value by conducting high quality audits and reporting on them without fear or favour, to contribute to the accountability, transparency and ethical behaviour of those charged with governance. SAIs would also add value by contributing to the fulfilling of SDGs commitments made by their nations. In order to deliver on their core mandate SAIs require not just a professionally qualified staff and organisational systems they need a de jure and de facto robust institutional framework and SAI in critical areas identified by ISSAI 10. As such SAI is not an end in itself, but one of the most critical capacities required by an SAI to fulfil its larger mission of delivering value. All SAIs in INTOSAI are at different places on the continuum. SAI needs to be looked at not only in relation to ISSAI 10, but also in relation to the local context and environment of the SAI. The provisions of ISSAI 10 will have different meaning and be applicable in different ways in different environments. INTOSAI also recognizes that one of the most effective ways SAIs can promote and protect their is by clearly and consistently demonstrating the value and benefits of the SAI and its work. SAIs need to be able to demonstrate that they deserve their before they get support to lobby for greater. This also means that when a SAI embarks on its journey, it needs to ensure that it is ready to take on that. Value and benefits of SAI SAI capacity SAI institutional capacity SAI organisation systems + professional staff capacity SAI outputs SAI outcomes SAI contribution to impact SAI culture + leadership B accountability reporting Internal governance and ethics + A C Independence + legal framework SAI core services FA standards, process, quality + PA standards, process, quality + CA standards, process, quality + Judgement process other core services + Corporate services + HRM + Professional staff development Public confidence in government financial systems Value & Benefits delivered by contributing to SDGs Improve compliance with laws and regulations Stakeholders engagement in accountability F Communication and Stakeholder management Audits recommendations implemented E D Public confidence in the SAI + Country governance, political, social, cultural + public financial management environment 3

4 A few examples of initiatives to support/promote SAI Support to SAI INTOSAI General Secretariat Advocacy for SAI Independence with UN and in various other fora UN Resolutions 66/209 and 69/228 Peer Reviews of 7 SAIs on Commonwealth Conference of Auditors General Position paper: Making SAI a reality Campaign for SAI across Commonwealth Regions initiatives PASAI: Advocacy for SAI AFROSAI and CREFIAF: Bilateral support to individual SAIs This IDI Programme will complement the various initiatives of INTOSAI bodies and regions and other partners already underway in this regard. SAI in the new INTOSAI Strategic plan : Advocating for and supporting the of SAIs appears as the Crosscutting Priority 1 in the new INTOSAI Strategic Plan INTOSAI strongly advocates for and supports legal frameworks that call for comprehensive audit mandates, unlimited access to needed information, and allows for the unrestricted publication of SAI reports. INTOSAI supports SAI organizational and financial because only fully independent, capable, and professional SAIs can ensure accountability, transparency, good governance, and the sound use of public funds. The objectives and the intended of this programme are therefore in line with the new INTOSAI Strategic plan priorities 4

5 1 2 3 Programme Description Objective: Support SAIs in achieving greater. Independence is an evolving construct and a continuous work stream for an SAI. With this programme, IDI intend to support SAIs towards implementing the 8 principles of ISSAI 10 within their context. Cooperation Partners: INTOSAI GS, INTOSAI Regions, UN, CBC, MFA France Programme Implementation Strategy In order to reach this objective, The IDI has envisaged the following implementation framework which will be delivered at global and SAI level. Advocate SAI Guidance on SAI SAI level support for 3 selected SAIs Mechanisms for support - High level advisory panel for SAI (current or former Heads of SAIs, SAI top management members, UN representative, representatives from other stakeholders ) - Global, regional and local meetings with stakeholders - Support SAIs in developing strategy for greater - Support SAIs in drafting legislation - Support SAIs in lobbying for greater at local level 5

6 Advocate SAI IDI will contribute to ongoing advocacy efforts by advocating the value and benefits of SAIs at all the fora to which IDI is invited. IDI will also facilitate global, regional and local meetings with stakeholders to advocate SAI Independence. At the INCOSAI 2016, IDI will also raise awareness about this programme through breakaway sessions and in the activities and information provided at booths. IDI will provide capacity development support through guidance and training for SAI teams and INTOSAI regions to enhance their advocacy and lobbying skills. This will be done as a part of the SAI level support provided under this programme. The guidance could include a diagnostic study on the status of Independence across SAIs and regions. The study could be undertaken with data from different sources such as: SAI PMF, icats, IDI or regional global survey, peer review, PEFA, global integrity etc... Such study could be used as an advocacy mechanism for SAI. IDI will also use its own community portal and KSC-IDI Community Portal to publish guidance and use its community portal to also support SAIs and regions in developing their capacity to lobby and advocate their cause. Members of the High Level Advisory Panel for SAI would be called upon to advocate for SAI at global and regional level. They could also be invited to join country level advocacy missions in the SAIs supported through this programme. Advocacy at the SAI level will be done through mechanisms such as one to one conversations with local donors, engagement with key stakeholders (executive, parliament, judiciary, ambassadors etc..), encouraging the SAI to participate in national accountability fora or platforms. 6

7 Guidance on SAI As a part of this programme the IDI plans to build on and bring together the work done by many stakeholders to provide practical guidance on moving towards greater SAI. The guidance will be developed by a global team of resource persons between June 2016 and March It is expected to cover the following areas: Establish a global baseline on SAI Under this component we would look to pull together data from different sources regions, Commonwealth, IDI Global survey data, SAI PMF, peer reviews, PEFA, Global Integrity data etc. Guidance on developing a strategy to obtain SAI This would involve providing guidance on obtaining an understanding of the SAI context, understanding the provisions of ISSAI 10 in light of the context, assessing current status and formulating a strategy that would be effective in the local context. This strategy would be aligned to the overall strategy of the SAI and would take into account available resources. Interpretation guidance on ISSAI 10 ( Mexico + ) and model draft legislations This portion of the guidance would help SAIs in interpret the ISSAI 10 provisions in the context of their SAI model e.g. audit office model, court system etc. Specific guidance would be provided in addressing difficult or wicked issues while drafting the legislation. Model clauses could also be included in the guidance document. Success stories and lessons learned The guidance will also contain stories of the journeys of different SAIs and speak about what worked and what did not work. Guidance on stakeholder engagement Both internal and external stakeholders are key in moving towards greater. IDI has launched another programme on SAI engagement with stakeholders. The guidance developed as a part of that programme will dwell on the issue of how to engage with different stakeholders in a SAI process. That guidance will be linked into this programme. Baseline on SAI Developing a strategy to obtain SAI Interpretation guidance on ISSAI 10 ( Mexico +) Model of legislation Model clauses (for different models) Success stories and lessons learned Guidance on stakeholders engagement in moving toward 7

8 SAI level support SAI level support IDI plans to provide SAI level support on a pilot basis to three SAIs who seek to strengthen their. The SAIs to be supported will be selected on the basis of the following five specific criteria. The selection process is expected to take three months from October to December Selection Criteria 1. SAI leadership and commitment Under this criteria the following sub-criteria will be considered Tenure of the SAI Head The SAI Head has sufficient tenure left to meaningfully lead the SAI initiative Awareness of potential challenges The SAI Head understands and openly shares the context and the challenges that she/he may face. Personal ability to influence and follow through The SAI Head has the ability to lobby for and engage with both internal and external stakeholders and resilience to stay in the process. Commitment The SAI Head is committed to the cause of and is willing to commit to his or her institution. 2. Need and opportunity for change - Under this criterion the following sub-criteria will be taken into consideration: Is the country context, environment conducive? Existence of key success factors in the country, including: the country governance and political environment, rule of law, stability Would external support make a difference and actually help? Can the need be addressed by support provided under this programme? Does the SAI have capacity to absorb the support? 3. Potential for lessons learned As this is a pilot programme, the opportunity to learn from the experience and the willingness and ability of the SAI to share the experience for the benefit of others would also be considered. 4. The level of influence The influence of the SAI amongst its peers e.g. region would also be considered. If the SAI has influence it would be able to set an example that other peers may emulate, leading to a multiplier effect from the pilot. 5. Distribution In selecting three pilot SAIs, regional representation, SAIs with different audit models and SAIs at different levels of would be considered. 8

9 Selection process: September December Communication with INTOSAI regions on selection process and criteria - September INTOSAI regions call for applications and recommend 2 SAIs per region - October Vetting applications and preparing a shortlist - November Interviews with candidate SAIs - November Selection of pilot SAIs - December 2016 Possible SAI level support mechanism IDI has currently defined this pilot within a 2018 timeframe. However, IDI fully recognizes that helping a SAI gain greater is a long term engagement. The timeframe will be reviewed at a later date depending on the status in Each selected SAI will sign a statement of commitment together with IDI and the region. In their journey to SAI, the selected SAIs will be supported to develop and implement a strategy to achieve greater, taking into account the SAI s needs and the country environment. Further support will be provided based on the strategy of the SAI, its own capacity and level of. To the extent possible the SAI leadership will be encouraged to work on its own, with the IDI playing a facilitatory role. The following facilitation mechanisms could be used Help the SAI in gaining an understanding of its context and environment Help the SAI develop a strategy for, aligned to its strategic plan Support the SAI in drafting legislation, interpreting the provisions of ISSAI 10 in the context of the SAI s environment, reviewing draft legislations. Facilitate peer interactions at a regional and global level. Facilitate engagement and /or lobby key internal and external stakeholders, including one to one conversations - ambassadors, executive, judiciary, parliament, bureaucracy etc. Assist the SAI in identifying and engaging with wider set of stakeholders e.g. national accountability fora, universities, civil society organisations, other professional organisations etc. Help the SAI in its readiness for and support change management initiatives within the SAI Monitor and follow up on developments at the SAI level The supported SAIs will be invited to share lessons learned with other SAIs across the INTOSAI community. 9 9