INTOSAI Journal Autumn 2018

w1 ww.intosaijournal.org autumn 2018 edition

Board of Editors Autumn 2018 Vol. 45, No. 4 Margit Kraker, President, Rechnungshof, Austria Michael Ferguson, Auditor General, Canada The International Journal of Government Auditing is published quarterly in Arabic, English, French, German Nejib Gtari, Premier Président, Cour des Comptes, Tunisia and Spanish on behalf of INTOSAI (InternationalGene L. Dodaro, Comptroller General, United States of America Organization of Supreme Audit Institutions). The Journal,Manuel E. Galindo Ballesteros, Comptroller General, Venezuela which is an official organ of INTOSAI, is dedicated to the advancement of government auditing procedures President and techniques. Opinions and beliefs expressed are those of individual contributors and do not necessarily James-Christian Blockwood (U.S.A.) reflect the views or policies of the organization. Vice President The editors invite submissions of articles, special reports, and news items, which should be sent to the editorial Michael Hix (U.S.A.) offices at: Editor U.S. Government Accountability Office 441 G Street, NW, Room 7814 Heather Santos (U.S.A.) Washington, D.C. 20548 U.S.A. Assistant Editor (Phone: 202-512-4707; Fax: 202-512-4021; E-mail: Kristie Conserve (U.S.A.) [email protected]). Special Contributors Given the Journal’s use as a teaching tool, articles most likely to be accepted are those that deal with pragmatic David Chrisinger (U.S.A.) aspects of public sector auditing. These include case Wilf Henderson (U.K.) studies, ideas on new audit methodologies, or details Chuck Young (U.S.A.) on audit training programs. Articles that deal primarily with theory would not be appropriate. Submission Administration and Operations guidelines are located at http://intosaijournal.org/ our-submissions/. Peter Knopes (U.S.A.) Amanda Valerio (U.S.A.) The Journal is distributed electronically to INTOSAI members and other interested parties at no cost. It is Associate Editors also available electronically at www.intosaijournal.org or www.intosai.org and by contacting the Journal at AFROSAI Secretariat [email protected]. ARABOSAI Secretariat ASOSAI Secretariat CAROSAI Secretariat EUROSAI Secretariat OLACEFS Secretariat PASAI Secretariat INTOSAI General Secretariat Office of the Auditor General, Canada Office of the Auditor General, Tunisia Office of the Auditor General, Venezuela U.S. Government Accountability Office

TH S SSUE4 Editorial6 News in Brief26 Feature Stories Strategic Environmental Assessments to Address Sustainability Improving Environmental Performance Audits, Cultivating Sustainability Are We Prepared? SAI Poland's Experience in Auditing National Preparedness for SDG Implementation33 Inside INTOSAI47 Spotlight on Capacity Building

EDITORIAL \"We should always be mindful that our WE HAVE TO BE A BEACON responsibility is not only to monitorJamaica's Auditor General Reflects on Her SAI's Journey in Contributing to SDG Achievement implementation... but to ensure that, as SAIs, we work toward achieving SDG 16.\"by Pamela Monroe-Ellis, Auditor General of Jamaica, andGeneral Secretary for the Caribbean Organization ofSupreme Audit Institutions (CAROSAI)The development of the Sustainable Development Goals Photo courtesy of ACCA(SDGs), in my view, is a reflection of the proclivity ofthe human spirit to forge towards the betterment of the particularly key for developing countries, which facehuman race. I am an early supporter of the SDGs— immense resource challenges, both human and financial.embracing the targets’ ambitiousness, as well as the My early consideration was that a SAI’s role is not justall-inclusive approach and framework surrounding SDG limited to conducting audits to determine the level ofdevelopment and implementation. Certainly, as Jamaica’s preparedness, pace of implementation (or lack thereof),Auditor General, I had a very clear understanding of my but also to ensure that SAI Jamaica is institutionallycontribution to national SDG achievement. strengthened to deliver quality service to governmentIn fact, in 2010, Jamaica developed and began to further its mandate. Good governance arrangementsimplementing its own National Development Plan (NDP), in SAI Jamaica were seen as a prerequisite to support“Vision 2030.” This plan, along with a medium-term transformation. In that vein, an Executive Committee (EC)framework and sectoral policies, is 91 percent aligned I chaired was established to define and monitor the SAI’swith the SDGs. The Planning Institute of Jamaica introduced strategic direction. The EC invested significant energy tothe NDP to Jamaica’s Supreme Audit Institution (SAI) early capture the principles of Jamaica's \"Vision 2030\" andon in the process. Consequently, our audit program— develop our SAI’s strategic business plan to ensure thatparticularly for performance audit—has been influenced it aptly reflects SAI Jamaica’s vision—a better countryby the goals identified in Jamaica’s NDP. through effective audit scrutiny.Naturally, I, and SAI Jamaica team members, made the We used International Standards of Supreme Auditdecision in 2015 to also consider the SDGs in determining Institutions (ISSAI) 12, “Value and Benefit of SAIs,” asaudit subjects and candidates. It came as no surprise,and we were quite pleased, that the InternationalOrganization of Supreme Audit Institutions (INTOSAI) andthe United Nations (UN) identified SAIs as major partnersin monitoring SDGs globally.I feel a country’s successful implementation of SDGsis predicated on the soundness of its governancearrangements and public financial management system.I make that point to emphasize my approach to SAIJamaica’s contribution to achieving Jamaica’s NDP andSDGs considers all audit types (financial, complianceand other audit products). I believe these audits are4 International Journal of Government Auditing—Autumn 2018

EDITORIALguidance in developing our Strategic Business Plan’s need for (1) horizontal and vertical policy coherence, (2)(SBP) five strategic objectives. SAI Jamaica’s SBP, a living better cohesion among stakeholders and (3) communicatingdocument, has undergone many iterations, and the journey lines of accountability, enabling conditions to capitalize onhas been a good one, as it helped us (1) gain a better synergies among SDGs.understanding of the evolving environment in which we These findings were reinforced by subsequent audits ofoperate and (2) focus our minds on the impact we want to “Jamaica’s Preparedness for Implementation of the SDGs”make and the means to achieve that impact. and “Jamaica’s Framework for Fighting Corruption,”Further, while we worked on identifying objectives and scheduled for completion in 2018. These audits will:associated risks, we took immediate action to address • Motivate an introspection of our own preparedness andgaps. We turned the spotlight on ourselves, recognizingthat to be the bastion of transparency and accountability, contribution towards improvement in public financialour internal processes must meet the highest standard—we management and public body accountability;have to be a beacon. • Encourage an internal policy review to ensure policyIn that regard, we established committees to develop consistency; andrequired policies based on ISSAIs, including a Policy • Engender a review of our internal practices to ensureCommittee, which bears the responsibility to review all draft alignment with SDG 16, “Promoting Peace and Justice,”policies to ensure standards are met. This is reflected in our which requires an integrated approach crucial forSBP 2018-2021, and, of the 5 objectives delineated, three progress across the multiple goals.are internally focused: internal control and procedures; Through our SDG audits, we can identify and raiseethics and core values; and resource management. awareness of the risks to achieving the SDGs—risks thatI believe that SAI Jamaica processes improved during our authorities may be unaware of (resource/capacity/ fundingbusiness plan development—corrective action commenced constraints)—and, thus, do our part in SDG development,while the plan was under construction and SAI Jamaica which seek to leave no one behind.undertook a SAI Performance Management Framework Members of the Caribbean Organization of Supreme Audit(PMF) review mid-stream during our strategic plan Institutions (CAROSAI) encounter similar socioeconomicimplementation. issues. No doubt, there will be common challenges amongThe SAI PMF results, which were made public, were used Caribbean countries to successfully achieve the SDGs. That,to fine tune our 2018-2021 plan, and, for the first time, however, provides the opportunity for CAROSAI membersSAI Jamaica prepared a three-year rolling Strategic Audit to collaborate and leverage the experience of other SAIs.Plan (SAP), which benefited from stakeholder engagement. The value and benefit of SAIs are easily identified by theSAP 2018-2021 identifies crosscutting performance audit acknowledged role to monitor national implementation ofas a key feature in monitoring Jamaica’s NDP and SDG programs aimed at SDG realization, and SAIs must useimplementation and declares our intent to assess the this opportunity to strengthen internal processes to providegovernment's effectiveness in implementing the 17 SDGs value-added service to its citizens.with our audits spanning issues of a social, economic and We should always be mindful that our responsibility is notenvironmental nature. only to monitor implementation, but, just as important, toSAI Jamaica also published its “Thematic Approach to ensure that, as SAIs, we work toward achieving SDG 16.the Development of Audit Plan (TADAP) 2017-2019” in Certainly, SAI Jamaica enthusiastically embraces its roleJanuary 2017. Both the TADAP and the SAP explicitly in helping make Jamaica a better country through morereference Jamaica’s NDP and the SDGs as integral factors effective audit scrutiny.in establishing focal areas.SAI Jamaica also published its first crosscutting audit in2017, “Government of Jamaica Progress Towards Vision2030 NDP/SDG 7–Diversification of Energy Supply andAffordable and Clean Energy.” The audit highlighted the www.intosaijournal.org 5

NEWS IN BRIEFNEWS FROM SAIsAROUND THE WORLDNews from TurkeyTCA TO START AUDITING E-GOVERNMENT appropriate quality andPROJECT EFFICIENCY IN PUBLIC SECTOR information security and comply with national policies,The Turkish Court of Accounts (TCA), which has been organizational strategies andconducting Information Technology (IT) audits for more than relevant legislation.15 years, has recently been given a new assignment—toensure audit efficiency for e-government projects in the Adopting a risk-based auditpublic sector. approach, the model groups controls to be examined andThis new assignment addresses several issues outlined in the evaluated into five main areas:2016-2019 National e-Government Strategy and ActionPlan (Strategy), including a constantly expanding scope of • IT Governance/Management;e-Government that parallels developing technology, socialdemands and trends; steadily rising expectations; continued • Project Management;project growth; and substantially low success rate. • Information Security;The poor success rate, caused by a number of factors,resulted in a national strategy that addresses the need for • Outsourcing; andefficient and generalized audits. • Process and Content.The TCA now bears responsibility for “ensuring the efficientand generalized audit for e-government projects in the Critical e-government projects will be auditedpublic sector.” Four primary steps comprise this action: by TCA IT auditors, while the TCA will address generalized audits by implementing training• Create an audit model for e-government projects; and providing compulsory tool kits.• Prepare an audit guideline concordant with the audit The guideline will also be adapted for model; public sector internal audit units, and internal auditor training for IT audits will• Test and finalize the model and guideline; and be organized.• Generalize audits in all public agencies and institutions. For more information on the e-government project audit model, contact Davut OzkulThrough literature research and best practice examination, at [email protected] or Ihsanthe TCA has created a model and guideline and is currently Culhaci at [email protected] pilot audits.The model incorporates two primary criteria to defineproject success: (1) Was the project completed within definedscope, budget and time targets, and (2) Did the project ensure6 International Journal of Government Auditing—Autumn 2018

NEWS IN BRIEFNews from Bangladesh CHOWDHURY ASSUMES OFFICE AS 12TH CAG OF BANGLADESH Mr. Mohammad Muslim Chowdhury has taken the oath of office as Bangladesh's 12th Comptroller and Auditor General (CAG) in July 2018. Before assuming his office as CAG, Mr. Chowdhury served several roles in the Ministry of Finance, including Finance Secretary, Additional Secretary, Joint Secretary and Deputy Secretary. He also held various positions under the Office of the Comptroller and Auditor General, Controller General of Accounts and Controller General Defense Finance. Having an in-depth and broad-based knowledge and experience in public financial management, administration and governance, Mr. Chowdhury was also a member of Bangladesh’s civil service(audit and accounts cadre). With 33 years of service, Mr. Chowdhury pioneered public sector financial management reformand was awarded the “Public Administration Award-2017” for his contributions in improving the public service deliverysystem. He introduced e-governance in public finance and supervised the Integrated Financial Management InformationSystem development and implementation process. Mr. Chowdhury was actively involved in the initial formulation andimplementation of the national Public-Private Partnerships (PPP) framework and drafted the PPP strategy and policyultimately issued by the Government of Bangladesh.As a Consultant, Mr. Chowdhury worked in the Public Financial Management reform sector with World Bank and Departmentfor International Development funded projects.Mr. Chowdhury holds a master's degree in finance and accounting with distinction from the University of Birmingham,United Kingdom. He graduated with a bachelor degree in Commerce and Master of Commerce in Accounting from theUniversity of Chittagong, Bangladesh. Mr. Chowdhury is married to Mrs. Sabina Haque. They have two daughters.News from Estonia ESTONIAN PARLIAMENT APPOINTS HOLM AS AUDITOR GENERAL The Parliament of Estonia appointed long-serving state official, Mr. Janar Holm, as Auditor General of Estonia earlier this year. He assumed office in April after taking an oath before Parliament. Holm succeeds Dr. Alar Karis, who continues his career as Director of the Estonian National Museum and Professor at the University of Tartu. Holm holds a master’s degree in law from the University of Tartu and was the Managing Director of the Estonian Traders Association prior to joining the public sector in 1999. He served in several posts in the governing area of the Ministry of Education and Research for 18 years, including Secretary General from 2008-2017. In 2017, Holm moved to the Ministry of Social Affairs, where he took up the post as Deputy Secretary General for Employment. Holm intends to keep attention on structural reforms, big investments and public service quality during his five-year term. He will continue chairing the European Organization of Supreme Audit Institutions (EUROSAI) Working Group on Environmental Auditing and considers active participation in international cooperation and initiatives within the framework of the International Organization of Supreme Audit Institutions (INTOSAI) and EUROSAI important. For more information, visit the National Audit Office of Estonia website at https://www.riigikontroll.ee/. www.intosaijournal.org 7

NEWS IN BRIEFNews from Mexico MEXICO WELCOMES finance and fiscal policy, as well as leading seminars on NEW AUDITOR GENERAL public sector topics. He has authored several publications on equity and fiscal efforts, citizen engagement, and economic The Chamber of Deputies of the and social factors of corruption, and has collaborated with United Mexican States appointed diverse local and national print media to provide relevant Mr. David Rogelio Colmenares- opinion columns. Páramo as Auditor General of He has served as President of the Higher National School Mexico for the years 2018-2026. of Economists and is currently a member of the governing Mr. Colmenares-Páramo earned board of that group, as well as the National Institute of his bachelor’s degree in economics Public Administration. He is also a member of the Nationalfrom the National Autonomous University of Mexico and has Conference of Mexico’s Municipalities Technical Committee.held numerous public sector positions to include Head of the Mr. Colmenares-Páramo currently chairs the OrganizationStates Coordination Unit at the Ministry of Finance; Deputy of Latin American and Caribbean Supreme Audit InstitutionsAuditor General of Mexico; Internal Comptroller at the (OLACEFS), the Working Group on the Value and BenefitsFederal Court of Justice for Fiscal and Administrative Matters; of Supreme Audit Institutions (WGVBS) and the Capacityand Head of the Regional Coordination and Institutional Building Committee’s IntoSAINT Project Group. CaribbeanRelations Unit at the Federal Authority for the Development Supreme Audit Institutions (OLACEFS). For more informationof Special Economic Zones. Since 1978, Mr. Colmenares- on the Supreme Audit Institution of of Mexico, visit www.asf.Páramo has had broad experience as a lecturer on state gob.mx.News from Serbia NEW SAI PRESIDENT services that are of quality and comply with International DELIVERS INSPIRING Standards of Supreme Audit Institutions. INAUGURAL SPEECH \"By providing high-quality audit services and protecting the financial interests of citizens, the Institution will strengthen Through parliamentary election, public sector accountability and transparency…precisely Duško Pejović, PhD, began his term what is expected from the Institution,” Dr. Pejović said. of office as President of the State He also stressed the organization's need to maintain Audit Institution (Institution) of the independence, strengthen capacities and partnerships and Republic of Serbia in April 2018. enhance stakeholder engagement by highlighting things During his inauguration, Dr. Pejović that function well, publicizing those that are not, puttingspoke of the Institution’s past, as well as its way forward necessary resources in place and communicating.noting that \"the path that the Institution has taken has not The Institution has several collaborative projects underway,always been an easy one. However, due to our strengths— including the “Improvement of Financial Accountabilityemployee knowledge, skills and expertise—the Institution of Serbian Institutions Through External Audit,” which ishas become well-integrated into audit trends.” financed by the United Kingdom’s Good Governance FundDr. Pejović thanked the Supreme Audit Institutions (SAIs) of and the “Government Accountability Initiative,” a UnitedLatvia, Netherlands, Norway and United Kingdom, who States Agency for International Development (USAID)have continued to support the Institution through numerous project that aims to increase government accountability atprojects. national and local levels.Milestones abound in the coming year, as the Institution is Dr. Pejović graduated from the University of Sarajevo, Bosniaon track to publish its 1000th audit report and will mark and Herzegovina with a master’s and PhD in economics.its 10th anniversary as a member of the International With more than 30 years of experience, he continues toOrganization of Supreme Audit Institutions (INTOSAI). Dr. be an active lecturer on accounting, finances and auditPejović noted the Institution will also focus on providing audit for budget funds beneficiaries. He has authored numerous publications, including the Public Sector Auditing Manual.8 International Journal of Government Auditing—Autumn 2018

NEWS IN BRIEFNews from GuatemalaDelegates from the Supreme Audit Institutions (SAIs) of The Technical Planning Commission proposed threeBelize, Costa Rica, the Dominican Republic, El Salvador, documents: (1) Operating Regulations of the TechnicalGuatemala, Honduras, Nicaragua, Panama and Puerto Planning Commission; (2) Annual Operating Plan (AOP)Rico, along with special guests from the National Audit Progress Report 2018-2019/Strategic Development PlanOffice of the Republic of China (Taiwan), met in Antigua, (SDP) 2017-2022; and (3) AOP 2018-2019, all of whichGuatemala, to attend the XLII Central American and were approved.Caribbean Organization of Supreme Audit Institutions(OCCEFS) General Assembly this summer. In the communication and image fields, regulating and positioning the website to reach target audiences, as wellLed by Carlos Enrique Mencos Morales, Comptroller as facilitating and expanding audit work access, resulted inGeneral of Accounts of Guatemala and OCCEFS President, approval of the website positioning strategy and websitethe assembly resulted in a series of approved documents administration regulations.and initiatives in several areas aimed at strengtheningOCCEFS and improving member-entity work. Several Capacity Building Commission proposals were also endorsed, including operating regulations designedNew organizational statutes were approved to maintain to support OCCEFS in managing organizational and SAIconsistency with International Organization of Supreme Audit sustainable development and capabilities initiatives; (2)Institutions (INTOSAI) and Organization of Latin American expert regulations to govern OCCEFS Expert Databaseand Caribbean Supreme Audit Institutions (OLACEFS) operations; and (3) the Annual Training Plan 2018-2019.regulations. The new statutes respond to OCCEFS’ currentcontext, environment and strategic vision. An Experience Sharing Panel was also established at the assembly to address SAI efforts toward InternationalA cash flow regulation was also endorsed, establishing Standardsof SupremeAuditInstitutions(ISSAI)andmonitoringgeneral rules to achieve efficient, effective and transparent Sustainable Development Goal (SDG) implementation.use of OCCEFS financial resources. www.intosaijournal.org 9

NEWS IN BRIEFNews from KazakhstanSAI KAZAKHSTAN HOSTS ASOSAI facilitated the dialogue in finding ways to address theSEMINAR FOCUSING ON IT AUDITS, challenges and strengthen SAI capacity.APPROACHES, METHODS Natalya Godunova, Chairwoman, SAI Kazakhstan, spokeKazakhstan’s Accounts Committee for Control over to participants and emphasized that, in the digital age, ITExecution of the Republican Budget, the nation’s Supreme audits and directly applying technology to audits is moreAudit Institution (SAI), organized a seminar for the Asian relevant than ever.Organization of Supreme Audit Institutions (ASOSAI) inAstana, Republic of Kazakhstan, earlier this year. “It is necessary to assess the efficiency of informationThe seminar, coordinated with support from Japan’s Board systems and the funds invested in their development,”of Audit, ASOSAI’s Capacity Development Administrator, stressed Godunova.focused on Information Technology (IT) audits, approachesand methods. She added that the role of public audit in state programsTwenty-nine representatives from 27 ASOSAI member that are introducing and developing IT is growing.states shared experiences with IT audits, highlighting typicalproblems encountered, including information security, access Godunova noted, “IT audit is of particular importance toto auditee data, systems support and developing a unified ensure information security, as well as optimize the costplatform. and effectiveness of state organization information systemSeminar trainers, from the SAIs of Indonesia and Turkey, implementation and maintenance.\"Pingky Dezar Zulkarnain and Omer Karamollaoglu, The seminar provided a forum for fruitful SAI discussions on IT-focused audit work, and participants recognized the continued need to hold similar international events in the future.10 International Journal of Government Auditing—Autumn 2018

NEWS IN BRIEFNews from Latvia SAO OF LATVIA CELEBRATES 95 YEARS SAO Latvia's History The SAO of Latvia is partly rooted in Imperial Russia.The State Audit Office (SAO) of the Republic of Latvia Immediately after founding the Latvian State a hundredmarked its 95th anniversary in August 2018. years ago, it was clear that a different form of monitoring state accounts was required. On August 16, 1923, theCelebrations included a conference focusing on overcoming SAO Law came into force, denoting the beginning of anpersonal and professional challenges everyone faces as independent Supreme Audit Institution (SAI).they attempt to reach bigger goals. Since then, the auditors quickly developed a reputation“Over the past 95 years, we have been able to adapt to as rigorous guardians of public funds. The findings andthe changing world and are strong enough to monitor the conclusions were popular news in the media.modern, information technology-based public administrationwe now have,” noted Elita Krumina, Latvia’s Auditor General, In late 1993, Latvia’s new parliament renewed both thein her address to participants. SAO Law and the constitutionally independent SAI initially established 95 years ago.“Naturally, being an ambitious, firm and fearless stateaudit institution, we are not always liked. But, trust is far The core task has remained the same—to ensure state andmore important. We will continue asking tough questions, municipal budget and property operations are regular,as doing so leads to better public administration decisions. compliant and effective, while preventing inaccuracies andThis builds public trust,” she added. negligence to the extent possible, prior to translating into actions or pursuing already committed ones.Ms. Krumina went on to share her appreciation to staff,international and national partners for “working side by For more information visit the SAO of Latvia website atside to reach the goals of the SAO of Latvia.” http://www.lrvk.gov.lv/en/. www.intosaijournal.org 11

NEWS IN BRIEFNews from the United States After speaking about his investigative reporting on climate change and the future impacts of rising sea levels, Jeff Goodell signs a poster promoting the event. SPEL’s Steve Sanford looks over his shoulder.THE WATER WILL COME speaker series, managed by GAO’s Strategic Planning and External Liaison (SPEL) office, aims to increase awareness of GAO Hosts Conversation with Jeff Goodell, emerging issues and trends having transformative effects Prominent Expert on Climate Change on government, business and society. “Rising sea level is an issue that could impact nearly everyby David Chrisinger, Strategic Planning and External Liaison audit team’s work at GAO,” remarked Steve Sanford,Office, U.S. Government Accountability Office GAO’s Strategic Planning and Innovation Manager, who moderated the discussion.\"It's a done deal. We are going to get a significant amount Sanford added, “Not only are there implications for floodof sea level rise.” insurance programs in the United States, but rising sea levelsJeff Goodell does not mince words. will also affect how the U.S. federal government manages“Sea-level rise is one of the central facts of our time, as government real property and housing finance, maintainsreal as gravity. It will reshape our world in ways most of us the nation’s surface transportation system, and managescan only dimly imagine,” he said. the government’s fiscal exposure to climate change risks.\"The author of five books, Goodell is a prominent expert on Goodell’s interest in rising sea levels began soonclimate change, energy policy and humanity’s relationship after Hurricane Sandy flooded the Lower Manhattanwith a changing planet. For the past several years, he has neighborhood of New York City with 9 feet of water intraveled the globe, researching, reporting on and writing the fall of 2012. He began speaking with a Columbiaabout the impending crisis of rising sea levels. University scientist who told him the storm was a dressThe U.S. Government Accountability Office (GAO), the rehearsal of sorts for what most scientists were predictingSupreme Audit Institution (SAI) for the United States, hosted would happen by the end of the century—that the seaGoodell as part of GAO’s Foresight Speaker Series. The around Manhattan would rise about 9 feet (some say sea levels may rise 30 feet or more). Instead of eventually receding, the water from sea level rise will stick around. From there, Goodell traveled to Miami, where he found a city hugely at risk—due to south Florida's flatness and the12 International Journal of Government Auditing—Autumn 2018

NEWS IN BRIEFporous limestone beneath the city’s buildings—of becoming flood barriers that can be raised at high tide to protect thean “American Atlantis.” canal-laden city. The problem, Goodell cited, is that the engineers who developed the barriers did not account forAfter spending the next few years traveling all over the rising sea levels, so eventually the barriers will no longerworld, Goodell found that rising sea levels have serious be enough to keep the water out.implications for coastal regions around the globe. “It’s a great example of really dumb engineering that looks“This is a problem of human infrastructure. We simply built smart…and I think there’s going to be a lot of projects likein areas we should not have built in,” Goodell told event that,” he remarked.participants. Goodell said that, ultimately, some combination of retreatHe explained that \"the ocean acts like a kind of heat sink. from coastal regions, paired with engineering that allows forThe heat has to go somewhere, and it’s going into the ocean flexible construction and adaptation, is what policy makersthe same way as if you leave a glass of water out on a hot should be focusing on in response to rising sea levels.day. That water gets hot.” “We’re going to have to reinvent our relationship to water.Thermal expansion, in part, is the cause of sea level rise in There’s just not enough money to save these places.\"the 20th century. As the ocean heats up, it expands. Goodell also indicated a big, near-term risk. Coastal“But that is going to be an increasingly small part of the properties will devalue as people begin to understand thatproblem of sea level rise in the future,” Goodell noted. flooding will no longer be a once a year or once every“It’s really all about the two big \"We are going to have to reinvent our decade occurrence. Rising seasheets of ice at the poles. What relationship to water. There's just not levels will, in other words, changematters is how fast Greenland melts the economic value of coastal andand what happens in Antarctica. enough money to save these places.\" low-lying properties. He said it’sThose are the two driving factors this point (the economic impact ofthat will shape our future.” rising sea levels) that may be the best way to draw attention to theWhat’s surprising to scientists today, need to take meaningful action.Goodell went on to say, is that until GAO has performance auditsabout 10 years ago, they thought under way to evaluate potential climate change effectsthat Antarctica’s ice was pretty stable; there wasn’t nearly on migration within the United States and the resilience ofas much surface ice melting there as there was in Greenland. water infrastructure, among other engagements. GAO isScientists now believe the biggest factor driving ice melt is also in the process of updating its high-risk area, “Limitingnot surface melt, but rather melting from below by warm the Federal Government’s Fiscal Exposure by Betterocean water. Managing Climate Change Risks.”1When asked whether there are any U.S. states or countries Goodell said what is most needed now is engagement andthat are taking the right steps to address the crisis of rising political dialogue to chart a way forward.sea levels, Goodell mentioned several places that haveplans to do something, though in terms of action, he saysit’s a hard problem to solve. He summed up that before policy makers can effectively address rising sea levels, and before the country learns to change its relationship to coastal areas, there must first be“Sea walls won’t work in places like south Florida,” he noted, recognition that rising sea levels are, in Goodell’s words, “a“because the water will simply seep under the walls.” real threat to our future.”By contrast, when Goodell visited places like Lagos, “wherethey build their homes on posts,” he said, “they say they canraise their homes 4 feet in an afternoon…you cannot dothat as easily in Miami Beach.” 1 For more information on GAO’s High Risk List, which brings attention to agencies and program areas GAO believes are high risk due toHe also detailed an ambitious—and very expensive— their vulnerabilities to fraud, waste, abuse, and mismanagement, or aresolution put forth by the Italian city of Venice. The $6 billion most in need of transformation, see https://www.gao.gov/highrisk/project consists of four retractable gates paired with 57 overview. www.intosaijournal.org 13

NEWS IN BRIEFNews from Kuwait Kuwait’s State Audit Bureau (SAB) participated in several meetings this summer, including the Working Group on Public Procurement Audit (WGPPA) in Serbia; 2018 Peer Review Conference in Slovakia; Working Group on Public Debt (WGPD) in India; and the Working Group on Environmental Auditing (WGEA) in Indonesia. The SAB also contributed to discussions with the International Organization of Supreme Audit Institutions (INTOSAI), the United Nations, and INTOSAI Development Initiative (IDI) as part of the UN High Level Political Forum in New York. The SAB shared knowledge and best practices on implementing Sustainable Development Goals (SDGs) and Supreme Audit Institution (SAI) contributions toward SDG achievement. INTOSAI's Capacity Building Committee (CBC) and INTOSAI- Donor Steering Committee (IDSC) meeting was hosted by the SAB, and nearly 100 delegates from SAIs and partner organizations worldwide participated in the event. Read the full story in this issue’s Inside INTOSAI section. The SAB also signed cooperation agreements with SAI Poland and the United States Government Accountability Office's Center for Audit Excellence and approved a new work plan for 2019-2022.News from Saudi Arabia H.E. Dr. Hussam Alangari, President of the General Auditing Bureau of Saudi Arabia (GAB), officially inaugurated the Saudi Center for Audit Training at GAB's headquarters in Riyadh in July. The center’s establishment aims to improve staff efficiency; better provide effective public resource monitoring and direction; increase national public revenue; and strengthen efficiency and performance of all governmental bodies. The GAB signed a cooperation agreement with the the U.S. Government Accountability Office (GAO) aimed at improving cooperation particularly in the fields of accounting and professional auditing. Dr. Alangari referred to the agreement as an extension of existing cooperation between the two organizations and hopes it will bolster the GAB’s recently established training center. Mr. Gene L. Dodaro, head of GAO, noted the agreement will further develop the auditing field by employing modern technology.14 International Journal of Government Auditing—Autumn 2018

NEWS IN BRIEFNews from Romania RCOA CULTIVATES THE FUTURE providing guidance in audit activities, including assessing THROUGH INTERNSHIP PROGRAM and analyzing economic and legal works, strategies and external public audit reports. Students were assignedThe Romanian Court of Accounts (RCoA), in keeping with to specific teams within the organization and preparedits present and envisaged future development, seeks presentations on respective RCoA teamwork at theactive involvement in developing the next generation of conclusion of the program.professionals in the field of external public audit. RCoA Participants indicated high levels of interest and satisfactionaims to create a favorable context for knowledge transfer for individual and team assignments and guidance theyamong generations and encourage young people to choose received throughout the internship.a career in public audit. In its transparency and openness oriented approach, the RCoA plans to organize additional internship programsThis summer, Mr. Mihai Busuioc, the President of RCoA, jointly with partnerships with top-ranked Romanianled efforts to organize the first RCoA unpaid internship universities. RCoA is committed to complementing academicprogram for students. In partnership with Bucharest knowledge and orienting generations to come to choose aUniversity’s Economic Studies and the Faculty of Law successful career in public audit.within the University of Bucharest, the 3-week programactively involved students in activities with RCoA and Audit For additional information, contact the RCoA via email at:Authority senior management, along with various specialty [email protected] or [email protected] representatives. Visit www.curteadeconturi.ro to learn more about the RCoA, its current activities, and its envisaged future.Several RCoA managers acted as tutors to the 17students who participated in the internship program, www.intosaijournal.org 15

NEWS IN BRIEFNews from the ECAECA HOSTS 5TH GLOBAL AUDIT there are always political risks that require mitigation, be itLEADERSHIP FORUM IN LUXEMBOURG through transparent, fact-based and objective reporting, a careful and sensible timing of publications (e.g. in times ofby the European Court of Auditors, Directorate of the elections) or recognition of socio-economic sensitivities andPresidency circumstances.The European Court of Auditors (ECA) hosted the fifth annual Today’s world, with its volatility, uncertainty, complexity andmeeting of the Global Audit Leadership Forum (GALF) in ambiguity, presents new challenges for public administrations,April 2018 at the ECA premises in Luxembourg. Attended private companies and citizens. While these aspects can beby representatives of 20 Supreme Audit Institutions (SAIs) perceived as setting limits to SAI effectiveness, participantsand the ECA, the two meeting themes were: \"Carrying regarded them as challenges to be appropriately addressed.Out Performance Audits in a Political Context: What Are In this context, SAI leaders had an intensive discussion on howthe Limitations?\" and \"Communicating audit Findings in a to:Digital World: Challenges and Opportunities.\" • Foster an innovation-friendly culture of “intelligent risk-Carrying Out Performance Audits in a Political Context: What taking” within SAIs and administration, focusing moreare the Limitations? on achieving best results and less on criticizing pastSAI leaders discussed a broad range of internal and external shortcomings;limitations that can arise when carrying out performanceaudits. The lead question—whether there are any limitations • Open SAIs to a broad variety of professionals offeringdue to the political context—led to manifold answers, given the best mix of capacities and experiences to flexiblythe represented audit institution and respective mandates, react to, and proactively address, future challenges;environments and political cultures. • Grant SAI staff the freedom to think outside the box andWhile some participants said that SAIs should not enter the develop innovative solutions; andpolitical arena and interfere with politics, others considerednot doing so as failing to accomplish their missions. While • Implement and promote foresight activities aimingthe former group pinpointed the separation of powers and at preparing SAIs, legislators and administrations tocorresponding mandate limitations, the latter highlighted properly react to emerging issues.that audit topic selection could be considered a politicaldecision. However, participants generally agreed that Further discussions touched upon (1) internal limitations resulting from factors, such as appointment procedures and tenures of SAI heads, conditions for heads of SAIs to16 International Journal of Government Auditing—Autumn 2018

NEWS IN BRIEF ©European Union 2018–Source: ECAtake up new positions in the administration upon tenure to be active on a voluntary basis. Some SAIs publish videoconclusion, and senior management resistance to innovation messages from auditors, thus putting a face to the auditand reform within the institution; and (2) external limitations, work; others have involved communication experts from theincluding budget risks, legal framework changes that could onset of the audit task. Additional dialogue addressed:undermine institutional independence, selective or evenpolemic media coverage, and party alignments against • Challenges of hiring adequate human resources tocertain audit topics and reports. ensure effective digital communication (data scientists, social media experts, digital communication specialists);Though SAI experiences and responses to tackle thesechallenges varied, participants self-critically conceded that • Balancing costs and benefits to a regular or permanentsenior management must lead by example and live the presence on social media;principles heads of SAIs would like to see implemented intheir institution. • Limitations imposed by law concerning the secrecy of data collected during audit work; andCommunicating Audit Findings in a Digital World: Challengesand Opportunities • The need to implement specific internal control systemsSAI leaders discussed the apparent conflict between to prevent and mitigate the inherent risks of being activeserious and professional messages and the inherent on social media. Some SAIs reported on (negative)limitations of digital communication. It appeared that some experiences with social media.SAIs are already adapting their communication strategiesto this reality, producing the same message in different The discussion showed that SAIs have diverse practicesinterconnected formats. Other SAIs have deliberately regarding digital environment communications, but SAItaken a more conservative approach to avoid undermining leaders are very much aware that digital communication—the factual message. and social media in particular—is a reality that cannot be ignored. Despite certain risks, digital communication shouldThe importance of raising awareness via all types of media not be seen as a threat, but rather as an opportunity forseemed crucial, as SAIs can gain respect and preserve SAIs to be more effective in stakeholder engagement.reputations only if they manage to stay relevant and have asignificant impact on stakeholders. To achieve this, SAIs are The GALF meeting was the theme of the ECA Journal's Mayincreasingly engaged in digital communication. In addition 2018 edition, which can be accessed online at https://www.to websites and electronic audit reports, most SAIs are eca.europa.eu/Lists/ECADocuments/JOURNAL18_05/present on social media, sometimes even encouraging staff JOURNAL18_05.pdf. www.intosaijournal.org 17

NEWS IN BRIEFNews from Malta NAO MALTA HOSTS CONTACT efforts at anticipating emerging issues. Brincat touched onCOMMITTEE LIAISON OFFICER MEETING the ECA's Foresight Task Force, a team designed to focus on long-term, relevant future developments and determineThe National Audit Office of Malta (NAOM) hosted the how these developments will affect audit procedures,2018 European Union (EU) Supreme Audit Institution methodology and products. He encouraged participants to(SAI) Contact Committee Liaison Officers Meeting earlier undertake a similar approach and exchange experiencesthis year. The event, held to prepare for the EU Contact with the ECA while safeguarding autonomy.Committee meeting, which took place in Croatia in October, NAOM Assistant Auditor General, Brian Vella, chaired andincluded 66 participants from the 28 EU member state SAIs, moderated the meeting that incorporated reports on recentEuropean Court of Auditors (ECA), as well as EU candidate activities and progress of working groups, task forces andand potential candidate country SAIs (who attended as networks within the Contact Committee framework. Nextobservers). steps and a proposed way forward drew the meeting to a close.In his welcome address, Charles Deguara, Malta’s In a separate event, EU candidate and potential candidateAuditor General, highlighted the auditor’s critical role in SAIs met to discuss current and planned audit activities toexercising the fundamental values of accountability and help strengthen audit processes. Twenty-three SAI delegatestransparency—the essence of good governance. participated, along with two EU member state SAIs, the ECA, and representatives from Support for Improvement in“The work of liaison officers is key to ensuring current Governance and Management (SIGMA)—a joint initiativechanges and developments within the EU are highlighted of the EU and the Organisation for Economic Co-operationand brought to the attention to, and acted upon by, SAI and Development (OECD).leaders,” he emphasized.Leo Brincat, the ECA's Maltese member, also spoke toparticipants and discussed the ECA’s future strategy and18 International Journal of Government Auditing—Autumn 2018

NEWS IN BRIEFNews from Slovenia SLOVENIA AND MALTA SUPREME Brincat, who made particular reference to SAI Slovenia’sAUDIT INSTITUTIONS SIGN EMPLOYEE establishment of a legal and technical unit that scrutinizes all reports to ensure publication harmony, also noted the EXCHANGE AGREEMENT SAI’s proactive public engagement through its website, where audit announcements and public commentary The Supreme Audit Institutions greatly enhance transparency and interaction. (SAIs) of Slovenia and Malta share Bevk worked in SAI Malta’s Performance Audit section a common mission and similar during her exchange experience. She learned how the objectives. Because of this, Tomaž team performed issue analysis in a concrete performance Vesel, President, SAI Slovenia, and audit and developed audit questions across all levels, citing Charles Deguara, Auditor General, the audit team’s systematic audit overview implementation SAI Malta, signed an employee as impressive. exchange agreement earlier this “I realized that both countries’ audit teams face similaryear designed to impart experience and best practices concerns and issues. The operational differences are minor,between the two SAIs. relating particularly in audit method choice and mandates,” Bevk remarked.Two auditors, Michelle Borg Brincat, a principal auditor She said the experience confirmed her belief that eachwith SAI Malta, and Simona Bevk, Deputy Supreme State audit represents a complex story, one that poses aAuditor from SAI Slovenia, participated in this exchange great challenge as a one-size-fits-all approach doesn’tprogram, resulting in strengthened SAI relationships and necessarily work.knowledge. “The exchange of auditors between institutions is certainly one of the best ways to share knowledge and experiences“My work placement with SAI Slovenia was a golden to provide high-quality audits,” Bevk concluded.learning opportunity, as I was exposed to a differentworking environment with new methodologies and practiceswhile working alongside employees with various levels ofexperience,” explained Brincat. www.intosaijournal.org 19

NEWS IN BRIEFNews from BulgariaBulgarian NAO Hosts Conference on Enhancing Accountability, (3) administrative capacity modernization of SAIs andTransparency and Integrity in the Public Sector communicating with stakeholders; and (4) increasing the trust of the citizens. The panels provided delegates withUnder the Bulgarian Presidency of the Council of the European a discussion forum on SAIs as model organizations, goodUnion, the BNAO organized a high-level conference on “The practices, achievements and challenges faced.Role of the Supreme Audit Institutions (SAIs) in EnhancingAccountability, Transparency and Integrity in the Public BNAO Analyzes Crucial Organic Foods SectorSector.” In recent years, striving to lead a healthy life and interest in organic foods has constantly increased. In 2017, theThe conference included delegates from 26 European Bulgarian National Audit Office (BNAO) conducted anSAIs, as well as the European Court of Auditors (ECA). audit on the development, supervision and control ofParticipants shared experiences and leading practices in organic food and products.implementing principles of good governance in the publicsector with a focus on improving the lives of citizens and Biological production, a joint system for agriculturaljustifying citizens’ trust. management and food manufacture, has a dual public role: ensuring a specific market exists to meet consumer demandThe conference was divided into four thematic panels: for organic products and contributing to environmental(1) institutional independence as a key factor for SAIeffectiveness; (2) on the road to value-driven audits;20 International Journal of Government Auditing—Autumn 2018

NEWS IN BRIEFprotection, animal welfare and rural area development. Capacity Building Needs Assessment” guides, the BNAOThe audit’s primary goal was to present an independent, identified operational aspects requiring additional effortsobjective assessment to the legislative and executive for compatibility with international auditing standards, asbranches and provide recommendations toward improving well as best governance and organizational practices.this contemporary, crucial sector. Through the year 2022, the BNAO has established 16The audit analyzed organic production for issuing and strategic goals that have been grouped into three prioritywithdrawing biological production control licenses. areas:Specifically, the audit assessed: • Conducting independent, effective and efficient public• Supervisory effectiveness of control-process staff; sector audits;• Regulations governing organic food in trade markets, • Building an effective human resource management system fast-food chains and website retailers; and to secure qualified and well-motivated employees with the highest degree of integrity; and• Communication effectiveness between the Ministry of Agriculture and Food, the Bulgarian Agency for Food • Recognizing the BNAO as an institution that leads by Safety and control staff in cases of identified irregularities example, contributes to public sector good governance and and violations. accountability and meets all stakeholders’ expectations.Using standard and specific methods to collect and analyze The strategic objectives address such issues as updating anddata, such as the secret client method, the BNAO identified introducing adequate procedures and tools in all audits;an organic product currently on the Bulgarian trade market building an internal quality control system; adequatelybearing a code number belonging to an inspector with a publishing audit reports in a clear and comprehensivewithdrawn license. Immediate action has been taken to language consistent with stakeholder needs; increasingfully remove the product. This is just one example that active participation in international audit communityillustrates ineffective consumer protection in the organic initiatives; improving cooperation with the Parliamentfoods production area, a problem due, primarily, from a and other audit report users; maintaining an institutionallack in legislation. culture that is conducive to employee professional capacity development while also encouraging personal contributionsNonexistent legislative measures have also led to the to the organization.transfer of risk management to consumers who purchaseorganic food in fast food chains and online. For more information, contact [email protected] or visit the BNAO website www.bulnao.government.bg.The audit also found that people are not well-acquaintedwith organic food labeling requirements and are generallyunaware of how to recognize these labels.In an effort to energize transparency and stakeholderengagement, the BNAO implemented an informationcampaign to communicate the audit results and educatesociety on national labeling requirements. New Horizons, Challenges—BNAO 2018-2022 StrategyThe BNAO adopted its 2018– 2022 Development Strategy.Based on best international practices along with the INTOSAIDevelopment Initiative’s (IDI) “Strategic Planning” and “SAI www.intosaijournal.org 21

NEWS IN BRIEFNews from the UAE• A delegation from the United Arab Emirates’ State Audit tools for Information Technology procurement products Institution (SAI), chaired by H.E. Dr. Harib Saeed Al and exchange knowledge in key areas of public sector Amimi, SAI President and Chairman of the International financial auditing. Organization of Supreme Audit Institutions (INTOSAI), participated in the annual INTOSAI Policy, Finance and • The SAI organized a workshop on contemporary auditing Administration Committee (PFAC) meeting held in Riyadh, in times of technological advancements. The workshop, Saudi Arabia. which included a number of local UAE audit entities, highlighted e-transformation in the UAE. The meeting included a discussion on the INTOSAI Secretary General's fiscal year 2017 final account report, the chairman’s report on strategic objective achievements, and the SAI UAE’s report on potential risks associated with information.• The SAI signed a Memorandum of Understanding with Hungary's Supreme Audit Institution (pictured above) to promote cooperation in preparing integrity assessment22 International Journal of Government Auditing—Autumn 2018

NEWS IN BRIEFNews from PakistanSAI PAKISTAN REORGANIZES FOR Additionally, the office of the DG Audit (Customs andMORE EFFECTIVE, HARMONIZED, Petroleum) was restructured as a new organization. It isSTREAMLINED AUDIT SUPPORT now the DG Audit (Petroleum and Natural Resources). This effort was undertaken to synergize and improve audit The Supreme Audit Institution (SAI) of work in the oil, gas and natural resources sectors. Pakistan was recently reorganized to provide more effective, harmonized and The jurisdiction of oil and gas entities was also revised streamlined audit coverage. The Audit and now becomes DG Federal Audit, DG Customs and of the Energy sector was divided among Petroleum, DG (CA&E) North and South. several audit sections: Water And PowerDevelopment Authority (WAPDA); Commercial; Customs Audit work relating to customs has been shifted to DGand Petroleum audit. Audit Inland Revenue, which has been re-designated as the Office of DG Audit Inland Revenue and Customs.The WAPDA was further sectioned into two offices: DirectorGeneral (DG) Audit (Water Resources) and DG Audit The table below reflects some of the organizational(Power Sector). changes.Name of Field Audit Office, Location Audit Jurisdiction Geographical Jurisdiction DG (Audit Water Resources), Lahore 107 Formations Entire CountryDG Audit (Power), Lahore 154 Formations Entire CountryDG Audit (Petroleum and Natural All Receipt and Expenditure of Oil and Gas Entire Country Resources), Lahore Sector OrganizationsDG Audit (Federal Government) Receipts of Chief Commissioner Islamabad Islamabad Capital Territory Entire CountryDG Audit (Inland Revenue and Customs), All Revenue & Expenditure Units dealt by the North and South Federal Board of Revenue, including Inland Revenue and Customs www.intosaijournal.org 23

NEWS IN BRIEFNews from Peru INTOSAI COOPERATIVE AUDITS VIRTUAL CATALOG NOW AVAILABLE, SEEKING EXPERIENCES The International Organization of Supreme Audit Institutions (INTOSAI) Capacity Building Committee (CBC) Subcommittee on Cooperative Audits has developed a virtual catalog to work as a worldwide repository of cooperative audits carried out within the INTOSAI community. The catalog, available to all INTOSAI members, is a great reference source for Supreme Audit Institutions (SAIs) interested in conducting cooperative audits. The site presents numerous features for researching cooperative audits (no registration necessary), including: • Advanced search capabilities by Supreme Audit Institution (SAI), regional organization, year, audit type, and language; and • Ability to filter search results using keywords. Currently, the online catalog, available in English and Spanish, has hundreds of cooperative audit reports on a wide variety of topics, such as roadworks, environmental liabilities, social housing, gender equity, and protected areas. SAIs from all regions are encouraged to add to this database by uploading cooperative audit experience and reports (registration is required). It does not take long, and there is a user manual to assist in completing the process. To learn more about the new cooperative audit virtual catalog, contact the CBC Subcommittee on Cooperative Audits at [email protected] International Journal of Government Auditing—Autumn 2018

NEWS IN BRIEFNews from PolandSAI POLAND COMPLETES NATIONAL the audited entities a continuation and intensification ofSDG AUDIT OF PREPAREDNESS undertaken actions to ensure effective and consistent SDG achievement in the longer perspective, such as:Poland has declared its commitment to implement the • Enhancing comprehensive partnerships;United Nations (UN) Agenda 2030 and the agenda'sSustainable Development Goals (SDGs), a task which calls • Promoting the 2030 Agenda and disseminating informationfor cooperation from the entire administration and all on the SDGs in different environments and social groups;relevant stakeholders. • Adjusting national indicators to the list adopted by theA new development model for Poland, outlined in the UN;government's “Strategy for Responsible Development,”meets the Agenda 2030 expectations with the Minister of • Regularly reviewing progress at the national and localEconomic Development (and later the Minister of Enterprise levels; andand Technology) providing coordinating roles and theSupreme Audit Office of Poland (NIK) monitoring the • Raising awareness on preferences offered for decliningprocess by conducting a performance audit. cities.The audit, “Preparedness for Implementation of the 2030 Read the full story about the NIK's journey in auditingAgenda Sustainable Development Goals” was carried out national preparedness for SDG implementation in thisin Poland in the first quarter of 2018. issue's Feature Articles section.Performed within the international framework of a jointaudit based on International Standards of Supreme AuditInstitutions (ISSAIs) and a single model and methodologydeveloped by the International Organization of SupremeAudit Institutions (INTOSAI), the NIK audited Poland’s publicadministration SDG implementation preparedness.The NIK found that effective actions were initiated tointegrate the SDGs into national development policy,including the establishment of an appropriate institutionalstructure and ability to monitor implementation progress.The report provided a conclusion that Poland had madesignificant progress on preparations for the implementationof the 2030 Agenda SDGs. In the audit reports, the NIKformulated several comments, where it recommended to www.intosaijournal.org 25

FEATURE STORIESby Blucer W. Rajagukguk and Rezza Rinova Tohir, Audit from the Environmental Impact Assessment (EIA), the SEABoard of the Republic of Indonesia focuses on producing and utilizing reports on environmental effects in plans and programs, while, at the same time,The Challenge incorporating concerns from members of society.The adoption of the Sustainable Development Goals (SDGs)by the United Nations (UN) in 2015 marks an impressive Some consider the SEA to be a source of interference inmilestone in the modernized world's history. Nearly all UN- Indonesia, since political interests tend to heavily influencemember countries have accepted (and most have ratified) plans, policies and programs in Asia. However, the SEAthe SDGs into national policy frameworks. maintains a high acceptance rate in governments when compared to other tools.The SDG initiative attempts to overcome problems thatarise as consequences from modernization and incorporates Related Policiesinclusiveness by allowing each participating country to UN resolution A/69/228 calls for promoting andestablish a customized set of goals. fostering the efficiency, accountability, effectiveness and transparency of public administration by strengtheningOne SDG imperative—to ensure implementation is properly SAIs and underscores the significance of safeguardingand effectively carried out—calls for policy actors to be SDG implementation.mindful of accuracy, timeliness, data availability and datareliability. SAIs can, and should, play an important role in SDG- related audits, particularly as they add value for decisionMoreover, in 2017, the International Organization of makers and citizens. SAIs are also encouraged to contributeSupreme Audit Institutions (INTOSAI) recognized the need for to tracking progress, monitoring implementation andSupreme Audit Institutions (SAIs) to comprehensively address identifying room for improvement when it comes to nationalSDGs during audits while including all relevant stakeholders. sustainable development efforts.How can this best be accomplished? INTOSAI’s commitment to support SDG implementation was further recognized in the strategic priorities for 2017-2022,The Strategic Environmental Assessment namely crosscutting priority 2, which seeks to contributeSeveral sustainability measurement systems exist, including to SDG follow-up and review within the context of eachthe Strategic Environmental Assessment (SEA)—a tool nation's specific sustainable development efforts and SAIthat instills sustainability concerns in policies. Originating individual mandates.26 International Journal of Government Auditing—Autumn 2018

FEATURE STORIES The SEA focuses on producing and utilizing reports on environmental effects in plans andprograms, while, at the same time, incorporating concerns from members of society.INTOSAI’s International Standards of Supreme Audit • Develop criteria using the SEA (environmental perspective)Institutions (ISSAI) 5130 also addresses sustainability efforts. in auditing government financial statements.ISSAI 5130, \"Sustainable Development: The Role of SupremeAudit Institutions,\" states that SAIs are essential in promoting In Context: Indonesiasustainable development externally (governments) and SEA's implementation in Indonesia officially kicked off byinternally (audit scopes). ISSAI 5130 suggests SAIs focus instruction of Law 32/2009 on Environmental Protectionaudits on strategic levels and detailed target indicators. and Management, obliging organizations to consider SEAUsing an SEA can be a fitting entry point, particularly as the when formulating plans, policies and programs. An SEA canSEA connects with the ISSAI 5130 framework for capacity also be used to change or revise previous versions.building and experiential learning. By virtue of presidential rule, Indonesia’s Middle-TermSEA Applicability to SDG-Related Audits Development Plan 2015-2019 was modified to incorporateEmploying the SEA to implement SDG-related audits can be SDGs and develop an SDG national action plan. The rulingenhanced by following ISSAI 5110, “Guidance on Conducting also applies to regional level governments.Performance Audit with an Environmental Perspective.” These underlying conditions provide a distinct advantageISSAI 5110 suggests SAIs conduct performance audits on for SEA deployment in Indonesia.environmental programs and highlights an environmentalperspective within government programs. Differentiating The Audit Board of the Republic of Indonesia (BPK RI) hasenvironmental and societal impacts from economical included SEA in performance and financial auditing scopeseffectiveness and efficiency is an advantage in using an SEA and has established its financial audit framework with anpoint of scope coupled with relevant legal rules as criteria. environmental perspective.Generally speaking, proposed steps to SEA implementation Stepping Stones for the Futurewould include: Reflecting on the numerous benefits it provides, the SEA— as an entry point to address sustainable development and• Assess SEA availability in performance audits; as a tool to emphasize the importance of participating in policy formulation—provides countless possibilities that can• Evaluate SEA effectiveness and efficiency using relevant lead to greater SDG awareness and, ultimately, positive instruments; global change.• Conduct a specialized SEA audit; and www.intosaijournal.org 27

FEATURE STORIESIMPROVING managerial practices and develop strategic projects whileENVIRONMENTAL stationed in Canada.PERFORMANCEAUDITS, CULTIVATING Dr. Sirin Phankasem, Thailand's Deputy Auditor General,SUSTAINABILITY was selected to participate in the CCAF fellowship program, and during the fellowship, developed a strategic paper onSAI Thailand's Journey Using Joint Approach “Moving to Sustainable Development: Focus on Environmentaland Experiential Learning Auditing.”by Sirin Phankasem, Deputy Auditor General of Thailand, The paper, a plan that outlined strategies to integrateand Sutthi Suntharanurak, Auditor, Senior Professional Level, environmental issues more fully into SAO audit work,International Affairs Office emphasized staff cooperation at all levels and continuous policy support to achieve long-term environmental andSince 2005, the State Audit Office (SAO) of the Kingdom sustainable development.of Thailand, the nation's Supreme Audit Institution (SAI),has been responsible for initiating environmental audits, The strategy was first implemented within the SAO’sand the SAO gives precedence to environmental issues environmental performance audit on noise pollution causedinvolving sustainable development. This article depicts the by the Suvarnabhumi Airport, which, since 2006, seriouslySAO’s three-phase approach in carrying out environmental affected nearby communities.performance audits and cultivating national and globalsustainability. The International Civil Aviation Organization (ICAO), which oversees airport operations, said that solving the airport’sPhase One: Existing Research noise dilemma required specific problem identification andHistorically, the SAO conducted environmental performance cost effective alternative noise reduction measures.audits using the 3E principles—Economy, Efficiencyand Effectiveness. The SAO, charged with monitoring The proposed measures included: (1) procuring quietergovernment compliance with environmental laws, rules, aircraft; (2) land-use planning and management, (3) noiseregulations and council of minister resolutions, has sought abatement, and (4) revising operational procedures andto improve this approach. restrictions. The ICAO developed policies associated with each measure and established a system to collect feesThe journey to improving environmental performance from those causing the noise-related problems to pay foraudits began in 2005 when the Canadian Audit and remedies for community members affected by the noise.Accountability Foundation (CCAF), through fellowships andmanagement internships, supported the SAO in developing The SAO began by evaluating efforts to resolve noise-a robust environmental audit concept. During this endeavor, related issues. Audit objectives included assessing thethe Office of the Auditor General of Canada provided measures to mitigate problems experienced by thosementorship support. living near the airport affected by elevated noise levels; identifying problems and barriers in dealing with noiseThe CCAF fellowship calls for senior auditors to complete impacts; and providing recommendations to solve thea nine-month placement at a Canadian legislative audit problems.office, while internships allow SAI managers to study The SAO uncovered three audit findings. While people affected by airport noise were to be compensated, these payments were significantly delayed. The budget for problem resolution for nearby communities suffering from increased noise levels increased sharply. Measures to resolve airport noise pollution were not implemented.28 International Journal of Government Auditing—Autumn 2018

FEATURE STORIESPhase Two: Strengthen Environmental Performance Audits Phase Three: Establish the Environmental Audit OfficeIn 2010, the World Bank supported a grant for SAO The SAO founded the Environmental Audit Office (EAO) indevelopment. The SAO selected environmental performance 2017 to focus on performance audits and environmentalaudits as an improvement area and requested academic impacts. The EAO, which reviews public contracts, concessionsand technical support from the National Audit Office and projects, studies and provides recommendations(NAO) of Estonia. on government programs having the potential to cause environmental damages. The EAO also has the abilitySubsequently, the SAO hosted an international workshop to apply compliance audits to review audited entities’on environmental audits, where NAO Estonia audit staff conformity to EAO recommended actions and internationalshared experiences and best practices in recognizing and environmental obligations.understanding sustainable development concepts, as wellas executing environmental performance audits. Developing environmental performance audits in an effort to prepare for auditing Sustainable Development GoalsWith funding support from the Die Deutsche Gesellschaft (SDGs) is crucial and at the forefront of the SAO's mission.für Internationale Zusammenarbeit (GIZ) and subject matterassistance from the International Organization of Supreme According to the United Nations Environment Program (UNEP),Audit Institutions (INTOSAI) and the Asian Organization of more than half of the SDGs possess an environmental focusSupreme Audit Institutions (ASOSAI), the SAO coordinated or address natural resource sustainability.a planning event for implementing a regional cooperativeenvironmental audit on water issues, which would focus on With more than 86 targets concerned with environmentalMekong River Basin management. sustainability, and each of the 17 SDGs having at least one of these targets, the OAG continues to research auditingThe 2012 event signified the first step toward developing SDG implementation in an effort to develop future SDG-and implementing an audit approach for participating SAIs related environmental performance audits.(National Audit Authority of the Kingdom of Cambodia,State Audit Organization of Lao PDR, SAO Thailand, and For a full list of references, please contact the State AuditVietnam’s State Audit Office). The Audit Board of the Office of the Kingdom of Thailand.Republic of Indonesia and Jabatan Audit Negara Malaysiaprovided a knowledge base for this cooperative audit.The audit’s aim—to ensure that water and water-relatednatural resources within the Mekong River Basin would bewell-managed and used sustainably and equitably—wasadventurous but successful. Governments of countries alongthe river basin formed joint practices for transboundarywater management.The SAO’s accumulated audit experiences (the collaborativestrategic approach and cooperative audit experientiallearning) were shared among SAIs, and thefeedback was used to further improveand strengthen environmentalperformance audits. www.intosaijournal.org 29

FEATURE STORIES ARE WE PREPARED? SAIPProelpaanrde'dsnEexsspfeorrieSnDceGinIAmupdleimtinengtNataitoinonal by Beata Błasiak-Nowak, Economic Advisor, and Marzena Rajczewska, Technical Advisor, Supreme Audit Office of Poland “Transforming Our World: The 2030 Agenda for Sustainable Development” is a United Nations (UN) program of actions defining a sustainable development model at the global level. Sustainable development, a transformation process, satisfies present generation needs without diminishing future generations’ development opportunities. The Constitution of the Republic of Poland classifies sustainable development among the most important national principles and obliges the concept’s national implementation. Article five of Poland's constitution calls for safeguarding the territory’s independence and integrity and ensuring its citizens' freedoms, rights and security. It also demands national heritage preservation and natural environment protection pursuant to the sustainable development principles. At the same time, Article 74 requires public authorities to pursue policies aimed at ensuring the ecological security of current and future generations. The Need for National Cooperation, Supreme Audit Institution Involvement Poland has declared its commitment to implement the 2030 UN Agenda and the Sustainable Development Goals (SDGs), a task calling for cooperation from the entire administration and all relevant stakeholders. A new development model for Poland, outlined in the country's Strategy for Responsible Development, meets Agenda 2030 expectations and is consistent with a UN vision focused on a poverty-free world where every person has the opportunity to benefit from development. Poland's Minister of Economic Development followed by the Minister of Enterprise and Technology provide coordinating roles in SDG implementation. The 2030 Agenda recognizes each state’s implementation responsibility regionally, nationally and globally (taking into account different realities, capacities, development levels and priorities). Agenda 2030 also includes follow-up and review measures for monitoring SDG implementation progress accountability and adding value and benefits to the lives of citizens. While the SDGs are to be implemented by the government, Supreme Audit Institutions (SAIs), within their powers and priorities, are to focus on monitoring how public authorities fulfill national SDG obligations. The SAI of Poland (NIK) is involved in examining this progress following International Standards of Supreme Audit30 International Journal of Government Auditing—Autumn 2018

FEATURE STORIESFigure 1: The Supreme Audit Office of Poland’s Performance Audit of National Preparedness to Implement the 2030 Agenda SDGs —At a Glance.Institutions (ISSAIs), namely ISSAI 5130: “The Role of According to the NIK's findings, effective national-levelSupreme Audit Institutions” and ISSAI 12: “The Value and actions were initiated to (1) integrate SDGs into the nationalBenefits of Supreme Audit Instructions–Making a Difference development policy, (2) build an appropriate institutionalto the Lives of Citizens.” structure, and (3) prepare for SDG implementation progressThe NIK carried out the “Preparedness for Implementation monitoring.of the 2030 Agenda Sustainable Development Goals\" audit Poland's national strategy includes objectives consistentin Poland early in 2018. Performed using the international with the SDGs. The government built partnerships with keycommon audit framework and based on ISSAI standards stakeholders to co-manage development processes andand a single model and methodology established by the create common implementation methods. Moreover, actionsInternational Organization of Supreme Audit Institutions have been taken to select indicators to measure these(INTOSAI), the NIK audited whether Poland’s development efforts. The national strategy was also integrated with themodel, outlined in the nation’s \"Strategy for Responsible national financial framework. Measures taken were in lineDevelopment,\" meets Agenda 2030 expectations and public with the whole-of-government approach and the Agenda’sadministration’s preparedness in SDG implementation. principle to leave no one behind. www.intosaijournal.org 31

FEATURE STORIESDuring the audit, research identified examples of good SDGs into national development plans and strategies,practices applied in other countries—practices that and involving local authorities;rendered positive results—such as extending an integrated • National capacity to monitor SDG implementation shouldapproach locally through voluntary inclusion of activities be developed.carried out by local government and undertaking measuresto increase SDG public awareness. Formoreinformationon the\"PreparednessforImplementation of the 2030 Agenda Sustainable Development Goals\"In the audit reports, the NIK formulated several comments audit, contact the NIK. The full report is also available onto audited entities where it recommended a continuation the INTOSAI website at http://www.intosai.org/about-us/and intensification of undertaken actions to ensure effective sdgs-sais-and-regions.html.and consistent SDG achievement in the longer perspective,such as: References• Strengthening the socio-institutional partnership for SDG Resolution A/RES/70/1 Transforming our world: the 2030 Agenda for implementation to reach the widest possible range of Sustainable Development was adopted by the United Nations General stakeholders; Assembly during the Sustainable Development Summit held in New York on 25 September 2015.• Promoting (including on ministry and public office Report of the World Commission on Environment and Development websites) Agenda 2030 and the SDGs to different Our Common Future. United Nations, 1987: http://www.exteriores. environments and social groups; gob.es/Portal/es/PoliticaExteriorCooperacion/Desarrollosostenible/ Documents/Informe%20Brundtland%20(En%20ingl%C3%A9s).pdf.• Reinforcing the adjustment of national indicators to Constitution of the Republic of Poland of 2 April 1997 (O.J. of 16 July the list of indicators adopted by the UN to facilitate 1997, no 78, item 483). measuring progress; Resolution no 8 of the Council of Ministers of 14 February 2017 on adoption of the Strategy for Responsible Development for the period• Conducting progress reviews on a continued, regular up to 2030 including the perspective up to 2030 (M.P of 2017 item basis (national and local levels) to add value by 260). The Strategy for Responsible Development is available at: http:// maintaining society's interest in sustainable development prawo.sejm.gov.pl/isap.nsf/download.xsp/WMP20170000260/ and form the basis for recommendations on necessary O/M 20170260.pdf. actions required at various levels; and The Minister of Enterprise and Technology has been coordinating the process of implementing the 2030 Agenda since 9 January 2018.• Bolstering information activities on preferences offered Previously, since 15 March 2016, the institution coordinating the national for medium-sized cities losing socio-economic function to development policy in the process of implementation of the 2030 stimulate interest in planning, and applying, for support. Agenda provisions had been the Ministry of Economic Development. Additional adjustments are needed for these cities (given The standard ISSAI 5130 offers an overview of the concept of available programs and budget funds; in accordance sustainable development and includes practical guidance to SAIs how with reasons causing degradation danger; and offering to integrate sustainable development into their audit work. It was incentives to gradually increase these cities’ chances in published at: http://www.intosai.org/en/issai-executive-summaries/ competing for funds). detail/detail/News/issai-5130-sustainable-development-the-role-of- supreme-audit-institutions.html.Conclusion In accordance with the standard ISSAI 12, the Supreme Audit OfficesPoland declared its commitment to implement the global work in order to add value to society and make a difference in the lives ofgoals and presented its first SDG implementation progress citizens. It was published at: http://www.intosai.org/en/issai-executive-report to the UN in 2018. The NIK comments are in line with summaries/detail/detail/News/issai-12-the-value-and-benefits-of-the important issues raised in the most recent Ministerial supreme-audit-institutions-making-a-difference-to-the-lives-o.html.Declaration, such as: The audit reports addressed to the Minister of Enterprise and Technology and to the Minister of Investment and Development (in• Implementation speed must be accelerated. In this Polish) and the final report on preparedness for implementation context, there is a need for decisive actions to raise of the 2030 Agenda sustainable development goals in Poland (in Agenda 2030 and SDG awareness at all levels; English) were published at the website of the Supreme Audit Office of Poland: https://www.nik.gov.pl/aktualnosci/przeksztalcamy-nasz-• Greater commitment in partnership and cooperation is swiat-dla-zrownowazonego-rozwoju.html and https://bip.nik.gov.pl/ essential; kontrole/P/17/114/KAP/. Implementation of the Sustainable Development Goals in Poland. The• The role of national reviews in SDG implementation is 2018 National Report–the document was adopted by the Council of crucial—integrating top-level leadership, incorporating Ministers on 5 June 2018 and presented at the ministerial session of the United Nations High-Level Political Forum on Sustainable Development in July 2018. The report is available in English at https://www.mpit.gov. pl/media/58470/Poland_VNR_20180615.pdf.32 International Journal of Government Auditing—Autumn 2018

INSIDE INTOSAIPFAC MEMBERS MEET Professional Standards Committee (Brazil), CapacityTO DISCUSS PROGRESS, Building Committee (South Africa) and Knowledge SharingWAY FORWARD Committee (India); General Secretariat (Austria); immediate past Chair of the Governing Board (China); Chair of theThe General Auditing Bureau (GAB) of the Kingdom of INTOSAI Development Initiative (IDI) (Norway); and theSaudi Arabia hosted the International Organization of head of the SAI responsible for the International Journal ofSupreme Audit Institutions' (INTOSAI) 15th Policy, Finance Government Auditing (IJGA) (U.S. GAO)—all of whom Dr.and Administration Committee (PFAC) meeting in Riyadh, Alangari commended for steadfast, continued contributions.where members came together for the committee's annualmeeting. \"INTOSAI's PFAC and General Secretariat continue toThe PFAC leads efforts under Goal 4 of INTOSAI's strategic monitor the implementation of INTOSAI's strategic planplan and aims to organize and govern INTOSAI in ways and crosscutting priority initiatives,\" noted Dr. Alangari, whothat promote economical, efficient and effective working invited meeting participants to contribute to the constructiveand governance practices and timely decision-making while dialogue on issues facing INTOSAI and its members.maintaining due regard for regional autonomy, balance andvarying models and approaches of member Supreme Audit In her report, Dr. Margit Kraker, INTOSAI GS, touchedInstitutions (SAIs). on three main issues: draft INTOSAI Financial RegulationsDr. Hussam Alangari, GAB President, welcomed participants and Rules; draft INTOSAI Statutes; and INTOSAI financialto the September 2018 meeting, which includes the matters, including 2016-2017 financial statements, actualGoverning Board's Chair (United Arab Emirates) and First 2018 budget performance, and the proposed budget forVice-Chair (Russian Federation); INTOSAI Goal Chairs: 2020–2022. Mr. Victor Hart, representing the Professional Standards Committee (PSC), presented PSC progress in 2018 and elaborated on various strategic objectives and actions taken. www.intosaijournal.org 33

INSIDE INTOSAIMr. Hart emphasized the need to promote standards Dr. Al Amimi updated participants on the Supervisoryimplementation and adoption and feed any problems Committee on Emerging Issues (SCEI), where he underscoredor issues back into the standard setting process. He the committee's goal to canvas INTOSAI membershippointed out that INTOSAI, in its entirety, is responsible for (through the KSC portal) to further identify emerging issuesstandards adoption and that the PFAC (and its members) and provide progress feedback prior to the committee'scan contribute to fulfilling this responsibility. submission to the INTOSAI GB.Dr. Alangari asked that the PSC work with IDI to develop \"All emerging issues listed in the SCEI report are veryan operational plan to accomplish that goal. important, and they must be stressed among INTOSAI.Chairman of INTOSAI's Capacity Building Committee (CBC) Moreover, these issues need to be addressed at the Unitedand Auditor General of South Africa, Mr. Kimi Makwetu, Nations/INTOSAI Symposium and other events as theyhighlighted the enhanced cooperation among all INTOSAI also relate to Sustainable Development Goal (SDG) 16,\"goal chairs. remarked Dr. Kraker. Dr. Kraker added, \"Progress has to be made on emergingMr. Makwetu stressed a continued focus on crosscutting issues and actions taken in the future to strengthen SAIpriorities, including advocating for and supporting SAI independence, as well as the fight against internationalindependence; sharing capacity development insights; corruption, including illicit financial flows and moneyenhancing professionalization through laundering.\"INTOSAI task forces and tools; andmaintaining and cultivating the use The PFAC meeting included committee Mr. Dodaro expressed appreciationof the SAI Performance Measurement approval of the first ever INTOSAI to Dr. Al Amimi and the SCEI for theirFramework. Performance and Accountability Report efforts, particularly the attentionMr. Andrew Langstich, representing that highlights key issues for INTOSAI paid to technology's impact onthe Knowledge Sharing Committee audit professionals. He suggested INTOSAI could work closely with existing working groups to address(KSC), provided a summary report Governing Board consideration. emerging issues within their purviewon the KSC's latest meeting held inKampala, Uganda, in August. He and also suggested creating a newnoted that all reporting dashboards have been updated INTOSAI working group to focus on emerging issues relatedbased on progress submitted by KSC working groups. to Science and Technology and potential implications for audit professionals.GAB's Dr. Mohammed Alhabib provided an overview ofrecent PFAC activities and presented the first ever INTOSAI Updates on IDI and the INTOSAI Journal of GovernmentPerformance and Accountability Report (PAR)—seeking the Auditing closed out the PFAC meeting.committee's recommendation to submit the PAR to the GB in IDI's Mr. Martin Aldcroft discussed the organization's strategicNovember. Key issues for GB consideration include: priorities, including strategic shifts to increase impact and• Continued emphasis on fostering SAI independence; sustainability.• Continued efforts on implementing and monitoring the As the IJGA President, Mr. James-Christian Blockwood, Sustainable Development Goals and United Nations' Managing Director of GAO's Strategic Planning and Agenda 2030; External Liaison Office, briefed PFAC members on the Journal's latest modernization plans and initiatives, including• INTOSAI Framework of Professional Pronouncements the launch of the redesigned website, which provides a more (IFPP) and Forum for INTOSAI Professional Pronouncements responsive and engaging user experience. The committee (FIPP) support; and acknowledged the editorial team for publishing valuable• Recognition of the accomplishments, importance, and information related to auditing throughout the world. needs of regional INTOSAI bodies, especially regarding communication, resources, and technology. In his closing remarks, Dr. Alangari, thanked all attendees forThe committee unanimously approved submitting the INTOSAI participating in the PFAC meeting in Riyadh, and he openedPAR for GB approval. the door for future communications by inviting members to provide feedback on any issue.34 International Journal of Government Auditing—Autumn 2018

INSIDE INTOSAIINTOSAI COLLABORATES, SHARES WITH KEYPARTNERS AT HIGH LEVEL POLITICAL FORUMThe International Organization of Supreme Audit Institutions the backdrop of the IDI and INTOSAI Knowledge Sharing(INTOSAI) General Secretariat teamed up with the United Committee program, \"Auditing SDGs,\" that supports moreNations (UN) and permanent representatives of Austria and than 70 SAIs around the world in carrying out SDG-relatedCanada to the UN to coordinate a round table discussion as performance audits. Participating SAIs presented experiencespart of the High-Level Political Forum (HLPF) on sustainable and elaborated on diverse approaches while accountingdevelopment. for policy coherence and inclusion,Dr. Margit Kraker, INTOSAI’s Secretary General, along capacity building opportunities andwith high-ranking delegates of Supreme Audit Institutions various stakeholder expectations.(SAIs), the UN, ambassadors, as well as civil society and Shaped by an exchange on furthernational parliament representatives, participated in an deepening the already existingengaging discussion that focused on achievements in national strong relations between the UNgovernment preparedness to implement the Sustainable and INTOSAI, Dr. Kraker and theDevelopment Goals (SDGs). The event provided vital insights UN Under Secretary General forinto various SAI approaches in auditing SDG implementation. Economic and Social Affairs, Mr.Dr. Kraker opened the SAI Leadership and Stakeholder Liu Zhenmin, discussed next year'smeeting, which was jointly organized by the INTOSAI HLPF. With the next HLPF focusing on SDG 16, target 16.6Development Initiative (IDI) and the UN. The meeting fostered is of particular importance to SAIs to \"develop effective,an exchange of SAI knowledge and best practices against accountable and transparent institutions at all levels.\" www.intosaijournal.org 35

INSIDE INTOSAIINTOSAI CAPACITY BUILDING COMMITTEE,DONOR-COOPERATION EVENT SEEKS TO \"WIDEN THE CIRCLE\"“We’re in the knowledge business, and we are only as very question to the roughly 100 participants—representinggood as our people. We are a reflection of the people that SAIs and partner organizations—who gathered in Kuwaitwe hire.” —Mr. Gene Dodaro, United States Comptroller in September to discuss capacity building and mechanismsGeneral. for support and development.A primary focus of this year’s International Organization of The dialogue and responses were as diverse as the INTOSAISupreme Audit Institutions (INTOSAI) joint Capacity Building community—a diversity that provides opportunities toCommittee (CBC) and INTOSAI-Donor Steering Committee share with, and learn from, one another.(IDSC) meeting was people, and the themes of \"Inspiringand Encouraging One Another,\" \"Putting Our People First,\" Unlocking the findings inside the latest Global SAIand \"Forward Together,\" clearly conveyed this notion. Stocktaking Report, analyzing human resource management dimensions, brainstorming staff training methods, peer-to-After all, capacity building is not just about the organization. peer cooperation, and seeking different perspectives onInvesting in staff is essential to growing—individually, as capacity development were at the heart of presentationswell as a team. But, are we really reaching everybody? and dynamic group discussions addressing capacity during the four-day event.Mr. Jan van Schalkwyk, Corporate Executive with theSupreme Audit Institution (SAI) of South Africa, asked this36 International Journal of Government Auditing—Autumn 2018

INSIDE INTOSAIKeynote speaker, Mr. Jens Wandel, Special Advisor to the is a crucial element in developing staff and cultivatingUnited Nations Secretary General, laid out several aspects capacity, and it must be considered a long-term journey.to strengthening human capital, including increasing staff The journey requires active involvement.engagement and building trust.He also emphasized that building in-house change capacity Mr. Wandel presented a need to shift into becoming moreis crucial to navigating external threats and opportunities opportunistic when it comes to tackling new challenges inand stressed that effective employee on-boarding improving capacity.positively impacts productivity. “The identification of a need aloneMs. Yusador Gaye, SAI Liberia's does not make a change. It’s onlyAuditor General, spoke to the when a need meets an opportunityaudience about her organization’s “We’re in the knowledge business, and we that the change occurs,\" he said.efforts to increase productivity are only as good as our people. We are athrough simple measures, such as reflection of the people that we hire.” The enriching discussions, thought-instilling a sense of pride in the provoking and insightful questionwork auditors perform. —Mr. Gene Dodaro and answer sessions indicate United States Comptroller General that whether individually, as an“We emphasize that audit work is organization or as a community,not just a job, it's a career,” she positive change can come. But, itsaid. all starts with people.Strengthening employee capacity is also impacted by “We must remind ourselves that without our people thereleadership noted SAI Kenya's Controller and Auditor would be no SAIs, no INTOSAI to speak of.”—Mr. KimiGeneral, Mr. Edward Ouko, who remarked that leadership Makwetu, Auditor General, SAI South Africa. www.intosaijournal.org 37

INSIDE INTOSAIPASAI CONGRESS of society, including every SAI—and built the CongressEMBRACES DIGITAL around the theme “Embracing the Digital Future.”DEMANDS & CHANGE Numerous leaders from various sectors provided bothby Chuck Young, Managing Director, Office of Public Affairs, practical advice and longer-term strategies on how best toU.S. Government Accountability Office rise to the challenge of adapting to a digital future.The digital age is upon us. It has been called the greatest The more than 60 participants representing 19 memberinformation revolution since the advent of the printing SAIs and partner organizations, heard that no singlepress. But, how can Supreme Audit Institutions (SAI) adapt? country, and no single government in the Pacific, can meet the challenges of the digital age alone, but must all workStanley McChrystal, United States Army General (retired) together by sharing both challenges and solutions.once stated bluntly, “There is no avoiding the realities of theinformation age. Its effects manifest differently in different “It requires us to be innovative and imaginative but alsosectors, but the drivers of speed and interdependence practical,” added Andrew Byrne, Australian Departmentwill impact us all. Organizations that continue to use 20th- of Foreign Affairs and Trade First Assistant Secretary, Softcentury tools in today's complex environment do so at their Power, Communications and Scholarship Division.own peril.” There was particular emphasis on the practicality aspect, especially the practicality of using digital tools to gather and analyze data, and it was not just the large Pacific island nations that discussed tackling these issues.Organizers of the 21st Pacific Association of Supreme Audit Terence Su’a, SAI Samoa, described how his office hasInstitutions (PASAI) Congress held in August in Queensland, spent eight years increasing the capacity and tools neededAustralia, recognized this challenge—for every sector for Information Technology (IT) audits.38 International Journal of Government Auditing—Autumn 2018

Keynote speaker, Senator Dean Smith Data, Dr. Nunan argued, is useless if it’s INSIDE INTOSAIfrom Western Australia, Chair of the not presented in a way that is accessibleJoint Committee on Public Accounts and for decision makers. Embracing a digital future requiresAudit, told the group, “Technology is innovation, imagination, practicality—changing how we communicate, as well “Poor data visualization means you mayas how we collect data.” not as well have the data at all, but Andrew Byrne, DFAT digital tools can give people the abilityThe formal communique echoed those to collect data and use it in meaningful SAI Samoa has spent eight yearsthoughts, stating, “SAI Heads commended ways,” he said. increasing IT audit capacity, tools—the proposals for steps to establishdigital parliamentary communications, Ultimately, as indicated in the PASAI Terence Su’aespecially the possibility for the digital communique, all SAI Heads recognizedtabling of annual reports. SAI Heads and agreed on many challenges facing Technology is changing how werecognized how this would assist in the them (in the Pacific context) to achieve communicate and collect data—timely production of annual reports digital advancement and optimal use Australian Senator Dean Smithand, in time, in-year reports, and that of technology. For many in the region,further digital analysis tools could the common issues faced with digital Tupaia app crowd sources data to mapassist auditors in risk assessment and progression were knowledge and the Pacific Islands region health systemscomparisons between agencies.” capacity to keep up with technological advancement; lack of resources, suchThe rapid pace of digital change was as personnel and technical ability; andexplored by Dr. Lucy Cameron from the balancing budget priorities to placeCommonwealth Scientific and Industrial emphasis on data analysis.Research Organization. She identified“megatrends” that could possibly impact While challenges were recognized,auditing, such as artificial intelligence, the delegates also looked forward tomachine learning, chatbots, service finding shared approaches to meetingrobots, and other forms of automation those challenges.and robotic processes. The Congress resolved to undertake“There are going to be massive changes an assessment of IT audit and datain the next 20 years,” she emphasized, analysis capabilities across the regionadding there will be many unknowns for consideration by PASAI’s governingthat we don’t yet have any data for. board in February 2019 with the goal of better informing SAIs’ strategicBeyond Essential's Dr. Michael Nunan, plans and PASAI support programsdemonstrated practicality in dealing and learning how to best adapt to thewith digital change through a new digital age.data visualization tool, Tupaia, thatcrowd sources health data and makes itavailable in an app. Aggregated andanalyzed data from multiple sourcesis pulled together to effectively maphealth systems in the Pacific Islandsregion.For example, the data can be usedfor medical mapping to show medicineavailability and health services locations. www.intosaijournal.org 39

INSIDE INTOSAI Click bottom right of photo to see additional photos ASOSAI ASSEMBLY FOCUSES ONENVIRONMENTAL AUDITING, SUSTAINABILITYA memorable cultural performance officially opened the participants to deliberate with one another, learn from2018 Asian Organization of Supreme Audit Institutions each other and reinforce the value of SAIs. She emphasized(ASOSAI) Assembly in Hanoi, Vietnam, hosted by the State the tremendous contributions that ASOSAI has made andAudit Office of Vietnam (SAV), the nation’s Supreme Audit stressed that new priorities need to be established toInstitution (SAI). adapt to an ever-changing audit landscape.Dr. Ho Duc Phoc, SAV Auditor General (AG) and incoming Dr. Harib Saeed Al Amimi, Chairman of the InternationalASOSAI chair, welcomed delegates and expressed honor Organization of Supreme Audit Institutions (INTOSAI) andat being able to provide a forum for sharing experiences President, SAI United Arab Emirates, noted ASOSAI isand strengthening solidarity and capacity to better develop more relevant today than ever through its networking andpublic auditing in the country, the region and the world. capacity development initiatives, and added, \"I look to my ASOSAI colleagues for inspiration.\"\"Energy and tenacity can build great things,\" affirmed Dr.Madinah Binti Mohamad, Malaysia’s AG and outgoing Inspiring truly characterized the assembly, which includedASOSAI chair. Dr. Mohamad added that the event allowed nearly 250 delegates from 46 nations and international40 International Journal of Government Auditing—Autumn 2018

INSIDE INTOSAIorganizations who participated in this event that occurs the National Audit Office of the People’s Republic of Chinaonce every three years—an event that, according to (CNAO), explained how these new concepts—relationshipVietnam’s National Assembly Chairwoman, Ms. Nguyen Thi between ecology and public etiquette; interaction ofKim Ngan, helps strengthen national cooperation. economic development with environmental protection; and determining the ecosystem’s value—are beneficial toThe agenda included numerous updates from the ASOSAI environmental auditing and SDG realization.General Secretariat (GS) and various ASOSAI and INTOSAIgroups along with dedicated discussions highlighting At the onset of the final day's activities, assembly“Environmental Auditing for Sustainable Development,” participants gathered for a moment of silence forthe theme behind the assembly’s symposium. Vietnam's President, Mr. Tran Dai Quang, who passed away September 21, 2018. SeveralMr. Jaehyeong Choe, AG, SAI Korea, and delegates had the distinct honor of meetingoutgoing GS, commended the region’s spirit the Vietnamese President as part of theof commitment and called the symposium ASOSAI event's agenda.a valuable opportunity—one bearinggreat significance in discussing the role of Elections were also held to fill the region'sSAIs in national Sustainable Development 2018 Governing Board (GB) and AuditGoal (SDG) implementation follow-up and Committee (AC) slots. The following SAIsreview. were voted in as 2018-2021 ASOSAI GB members: Bangladesh, Indonesia, Kuwait, NepalMs. Archana Shirsat, Deputy Director General, and Russia, and, after several rounds of voting, theINTOSAI Development Initiative (IDI), gave a thought- SAIs of Kazakhstan and Turkey were confirmed to fill theprovoking presentation on the SDGs—why they matter 2018-2021 ASOSAI AC vacancies.and how SAIs can contribute. Dr. Doan Xuan Tien, DAG SAI Vietnam, summarized theHer presentation, which highlighted the importance of the symposium, \"Political, economic and social conditions, aswhole-of-government approach and inclusiveness, led the well as approaches to environmental auditing, vary, andassembly into a special reporting session, where numerous environmental conditions threaten global development. SAIsSAIs shared ideas, lessons learned and best practices are now more aware of organizational roles and missionsrelated to environmental auditing and demonstrated how when it comes to national sustainable development.\"SAIs can contribute to national SDG efforts. As the event came to a close, key decisions were announced,“Strategic SAI roles are important to contributing to and including SAI Palestine's inclusion into ASOSAI. The Assemblyachieving the SDGs,” noted Mr. Ramu Prasad Dotel, Deputy also approved the SAIs of China, India and Malaysia asAuditor General (DAG), SAI Nepal. ASOSAI training centers and unanimously adopted the Hanoi Declaration.Mr. Dotel said SAI Nepal has recently selected auditsubjects it believes will contribute to national sustainable The declaration, online at http://asosai.org, is an importantdevelopment, and, through implemented recommendations, official document that conveys the preeminent ASOSAIimproved economy, efficiency, effectiveness and Assembly messages and shared interests, particularly thosesustainability can be realized. of environmental auditing and SDG achievement.Mr. Nguyen Quang Thanh, SAI Vietnam, emphasized The 2021 ASOSAI Assembly, the region's 25th, will bethe importance to “think globally and act locally” and hosted by SAI Thailand.proposed strengthening cooperation, cultivating capacityand increasing knowledge sharing as essential mechanisms. Visit https://www.youtube.com/watch?v=ilMOa0iYISc to view the 2018 ASOSAI Assembly recap video.Certainly, developing a more robust knowledge base hasled to new idea generation in the sustainable developmentarena. Mr. Li Feng, representing incoming ASOSAI chair, www.intosaijournal.org 41

INSIDE INTOSAI Extractive Industries Value Chain USING INTEGRITY, FRAUD MANAGEMENT PUBLICATIONS TO INCREASE TRANSPARENCYNew resources are now available that Supreme Audit Institutions (SAIs) may findhelpful when conducting audits using the extractive industries value chain, whichdescribes the development process from discovery through extraction to lastingvalue creation for society.An important step in the value chain process is awarding contracts and licenses,and the World Bank’s “License to Drill: A Manual on Integrity Due Diligence forLicensing in Extractive Sectors” (Manual) is a toolkit that specifically addressesthis step. The Manual outlines recognized concepts, good practices and efficientoptions for policymakers and practitioners seeking to implement or improveintegrity screening systems in extractive sectors. The Manual’s introduction underscores existing widespread agreement that regulatory governance systems lack transparency and possess weak oversight and enforcement institutions, which facilitate an environment where rent-seeking and corruption thrive. Ms. Cari Votava, World Bank Senior Financial Sector Specialist, who co-authored the Manual, describes it as a resource to improve quality and transparency in integrity due-diligence components of the extractive sector regulatory governance.“Although there are many points in the extractive industries value chain wherecorruption vulnerabilities can emerge, licensing decisions are perhaps the mostcritical,” she explained.Ms. Votava also noted that few countries can benefit when unsavory persons aregranted licenses to operate in extractive sectors.An overarching goal of the Manual is to identify good-practice options forreducing corruption risks in extractive industries by outlining methods to improvethe licensing process—to maximize the quality of entrants and to improvetransparency at an early stage in the value chain.42 International Journal of Government Auditing—Autumn 2018

INSIDE INTOSAIBefore extractive licenses are granted or renewed, it is The Fraud Risk Frameworkimportant to know the potential recipient, including the was issued in July 2015 andbeneficial owner or natural person who ultimately owns (or identifies leading practicescontrols) a legal entity or benefits from the entity’s assets. in an effort to help program managers combat financialAn effective and transparent licensing process can (1) filter and nonfinancial fraud. Itout many parties who might not act responsibly, and (2) also provides criteria forhave a positive impact on economic returns. SAIs in conducting program audits.Specifically, the Manual offers options for implementingeffective and low-cost integrity-screening systems, such as: Emphasizing the need to plan regular fraud risk• Criminal-background checks; assessments and assess risks to determine a fraud risk• Beneficial-ownership checks; and profile, the Fraud Risk Framework also stresses that entities• Conflict-of-interest checks. should design and implement a strategy with specific control activities to mitigate assessed fraud risks and collaborateInternational frameworks provide potential criteria for to assist in effective implementation.SAIs to use when reviewing issues related to the extractivesector value chain. The Fraud Risk Framework directs managers to evaluate outcomes using a risk-based approach and adapt activitiesFor example, the Manual uses the “fit and proper” concept to improve fraud risk management.from “Licensing of the Basel Core Principles for EffectiveBanking Supervision” Principle #5 as criteria for ways to For a full list of references or to learn more about theseimprove the quality of entities entering the extractive sector. publications and how they can help SAIs in conductingThe fit and proper principle requires systemic and thorough audits, contact Johana Ayers at [email protected]. Forintegrity background checks on banking-license applicants, additional information on the extractive industries valueincluding documenting beneficial owners’ identities seeking chain contact AFROSAI-E and the INTOSAI Working Groupbank charters. on Audit of Extractive Industries.The Manual also uses Extractive Industries TransparenciesInitiative (EITI) requirement #2 as a standard. Thisrequirement obligates countries to publicly discloseinformation, including the identity of beneficial owners.According to the Manual, beneficial ownership disclosurerequires identification and identification verification—bothbest done prior to granting licenses.An additional framework potentially useful to SAIswhen considering corruption-related fraud risks duringcontract and license award phases is the U.S. GovernmentAccountability Office’s (GAO) “A Framework for ManagingFraud in Federal Programs,” also known as the Fraud RiskFramework. www.intosaijournal.org 43

INSIDE INTOSAIWGPD MEETS IN INDIA within government, especially in developing countries. A serious problem with budget management inefficienciesThe Comptroller and Auditor General of India, through its exists, he said, that gives rise to a strong need for independentlocal office in Hyderabad, Telangana, hosted the 2018 fiscal councils to assist in calibrating fiscal policies, which, inInternational Organization of Supreme Audit Institution turn, will promote a sustainable level of debt.(INTOSAI) Working Group on Public Debt (WGPD) meeting Ms. Shefali Andaleeb Srivastava, representing the Forumwith the theme \"Engaging SAIs Toward Robust Public Debt for INTOSAI Professional Pronouncements (FIPP), providedAuditing\" in July. Ms. Anjali Anand Srivastav, India’s Deputy attendees with a presentation on the revised StrategicComptroller and Auditor General, welcomed the 52 Development Plan (SDP) for INTOSAI’s Framework ofdelegates from 23 Supreme Audit Institutions (SAI). Professional Pronouncements (IFPP). She noted that as aIn his opening remarks, Mr. Michael G. Aguinaldo, Republic permanent INTOSAI body, the FIPP considers and proposesof the Philippines Commission on Audit Chairperson and how to develop the ISSAI framework, and the FIPP’s mainWGPD Chair, noted, ultimately, the group's goal is to devise role is to ensure the quality of all IFPP pronouncements.guidance toward publishing internationally accepted Mr. Manish Kumar, SAI India, provided an update on thepublic debt standards and best practices. development of WGPD’s Community of Practice (CoP).Mr. Aguinaldo reported key working group accomplishments Mr. Kumar, who manages the CoP, cited the community’sover the past year, including progress made to the WGPD primary purpose is to develop a global cyber society forTerms of Reference, Handbook of Meetings and Project the working group.2.9, “Consolidating and Aligning the Audit of Public Debt Highlights of this year’s meeting also included presentationswith International Standards of Supreme Audit Institutions by various SAIs on national current debt management(ISSAI) 100.” Subtask leads provided Project 2.9 status situations and public debt auditing practices, centered onupdates, including team composition, scope of work, the adopted theme of the meeting. These presentationsrespective activities, draft guidance contents, issues and paved the way to a meaningful exchange of experienceschallenges moving forward. Other WGPD projects were among participating members.reported using the reporting dashboard submitted to the The WGPD welcomed seven new member-SAIs at thisINTOSAI Knowledge Sharing Committee in June. year’s meeting, bringing the total to 34. At the event’sKeynote Speaker, Dr. Govinda Rao, Economist, Emeritus conclusion, SAI Azerbaijan confirmed hosting the 2019Professor of the National Institute of Public Finance and WGPD meeting, and SAI Bhutan expressed interest inPolicy, India, highlighted the importance of a fiscal council hosting the group in 2020.44 International Journal of Government Auditing—Autumn 2018

INSIDE INTOSAIINTOSAINT ESSENTIAL Integrity in public organizations points to several keyTO COMPREHENSIVE elements—absence of fraud and corruption, non-disclosureINTEGRITY STRATEGY of confidential information, and prevention of conflicts of interest and discrimination. Taking ownership of integrity, therefore, positively positions public organizations.The International Organization of Supreme Audit Institutions The IntoSAINT tool should be considered an essential part(INTOSAI) Self-Assessment Integrity (IntoSAINT) project of a SAI’s comprehensive integrity program, and integritygroup, a Capacity Building Committee (CBC) workstream mechanisms, such as IntoSAINT, can ease implementing SAIchaired by Mexico’s Supreme Audit Institution (SAI), held its founding principles and prerequisites associated with theannual meeting in Mexico City in July. International Standards of Supreme Audit Institutions.The meeting allowed IntoSAINT workstream members to For more information on IntoSAINT, a tool available to alldiscuss progress achieved thus far and strategies to move INTOSAI members SAIs, visit the CBC IntoSAINT website orforward toward increased, successful regional and global contact the project group at [email protected] Integrity Model implementation.During the meeting, workstream members concluded thereis a general perception that integrity issues have longbeen considered a distant topic with marginal impact onthe daily work SAIs—a perception that has limited thepotential scope of integrity issues on the INTOSAI agenda. www.intosaijournal.org 45

INSIDE INTOSAIWGBD MEETS TO • Dr. Timothy Kropp from the U.S. Department of HealthDISCUSS BIG DATA and Human Services discussed how they successfullyIMPORTANCE, LIMITS, deploy analytics for oversight by focusing on peopleINTEGRATION, QC rather than technology. In his presentation, “Using Big Data to Identify Fraud in Medicare,” he emphasizedThe International Organization of Supreme Audit Institutions’ the need to build skills, encourage creativity, provide(INTOSAI) Working Group on Big Data (WGBD) met in April support and standards, and allow exploration among2018 at the U.S. Government Accountability Office (GAO) SAI staff. He also noted the importance of defining andheadquarters in Washington, D.C., for its second meeting. demonstrating the value created by analytics in an ageMore than 40 members from 20 countries attended the of budget constraints.meeting to help advance the WGBD objectives—identifythe challenges and opportunities faced by SAIs in the era • SAI Norway’s Ove Haugland Jakobsen and Knut Olavof big data; summarize the knowledge and experience in Solheim spoke to participants about “Enabling Auditorsthe field of big data audit; and strengthen relevant bilateral to Make Sense of Data,” highlighting SAI Norway’sand multilateral technical cooperation. initiatives to enhance data capabilities and increasingFollowing welcoming remarks by Gene Dodaro, United auditor awareness on using big data in audits. TheyStates Comptroller General, numerous presenters covered a stressed the importance of cleaning data that otherswide range of topics related to big data, and several themes have produced and raising awareness of statisticalwere woven throughout the presentations: the importance of modeling and its value in auditing.data analytics for SAIs; limitations and risks when workingwith big data; ways to integrate big data into SAI work; and • Neelesh Kumar Sah, SAI India, discussed the “Guidelinethe need for quality control. on Data Analytics,” referencing the guide as one of the first attempts by a SAI to develop guidance specificallyPresenters shared experiences working with big data, on data and its use in the auditing realm.provided case studies as illustrations, and described varioustools and techniques developed. • Presentations on “The Role of the SAIs in the Achievement• “Big Data Auditing Practice and Sustainable Development” of National Priorities and Goals” and “Relevance of the Application of the Automated System of the Remote by Zhihao Tang. Ms. Tang, representing SAI China, focused State Audit and Its Influence on SAIs” were given by on big data auditing aspects, where she identified several Daria Tsyplakova and Marina Mazykina, representing limitations and risks, including potential issues of causation SAI Russia. They noted SAIs must advance the use of and correlation, as well as the need for both timely data and evidence in government decision-making and accurate data. She also provided two pilot cases and emphasized great opportunities exist to use data spearheaded by China’s SAI to use big data in promoting analytics to make informed policy decisions, measure sustainable development. policy outcomes, and promote trust in government.• The World Bank’s Alexandra Habershon and Marcelo Ongoing education in analytics for performance auditors Donolo briefed attendees on “Data Analytics and Integrity was also stressed, particularly in today’s fast-paced Risk Management in International Development,” where technological environment. they outlined World Bank efforts to find paths toward integrating data analytics into current and future work, • Oliver Richard, U.S. GAO, gave the meeting’s especially when it comes to anti-corruption endeavors. final presentation on the “Optimal Combination of• “Agile Data Science” by Rachel Kirkam of SAI United Quantitative and Qualitative Methods,” where he Kingdom provided an overview of staged in building shared GAO’s experience integrating quantitative agile software that is outcome-focused, iterative, flexible and qualitative data analysis approaches in its work and fits the client’s criteria. to enhance accuracy and consistency in the Social Security Administration’s disability hearings decisions. “These methods are complementary and all quantitative analyses must be combined with a qualitative assessment of the evidence,” he said. The next WGBD meeting will be hosted by SAI Denmark.46 International Journal of Government Auditing—Autumn 2018

SPOTLIGHT ON CAPACITY BUILDINGBUILDING CAPACITY is a clear commitment to reform and should ensure thatBY ENHANCING SAI Terms of Reference are prepared by SAI experiencedTECHNICAL SUPPORT professionals. • SAI funding should come directly from developmentby Wilf Henderson, International Technical Cooperation Project partners. Routing funding through the executive branchManager (Retired), United Kingdom National Audit Office compromises SAI independence. • Funding should be based on actual development needsCultivating Supreme Audit Institutions' (SAI) technical via Strategic and Operational Plans or arising fromcapacity, particularly in developing countries, is crucial. Terms of Reference requirements.Increased technical capacity helps strengthen organizational • Assessing circumstantial changes and associated impact,structure and operations, while incorporating improved require evaluation to ensure success, and developmentservice delivery approaches, which adds value and benefits partners should assess the impact of these changes onto the lives of citizens. Improved technical capabilities also the project’s success.enhance a SAI’s ability to adapt to rapid changes andemerging issues. Technical Support Best Practices • Successful contractors should be encouraged to workIn spending several years providing technical support todeveloping SAIs in Sub Saharan Africa, I encountered closely with International Organization of Supreme Auditnumerous challenges covering a wide range of topics and Institutions (INTOSAI) regional bodies and use tools,stakeholders. guidance and templates produced by those regional bodies.But, these challenges can be overcome. Through my • Contractors should be selected based on experience inexperience, I have developed a list of best practices (based delivering successful previous technical support projectson lessons learned) that may prove beneficial to others and experts should, as the main consideration, havewhen planning and implementing SAI technical support. proven SAI experience demonstrated by achievements. • Sensitivities to ongoing SAI work commitments is a must,Key Stakeholder Requirements particularly if the SAI is operating under old (and• SAI technical support projects should be part of an outdated) legislation, but technical support cannot assist the SAI in applying old methodologies. overall public management reform program. • From the onset, it must be clear that technical support• National executive and legislative branches must be will cover current International Organization of Supreme Audit Institutions (INTOSAI) requirements, and, fully committed to an independent and competent SAI. in this regard, SAIs should understand their roles in the• Key stakeholders must be consulted. Support, including governmental governance structure. • Technical support providers need to engage with SAI that from audit clients, is essential for project success. senior management and staff at all levels to secure• Public Accounts Committees (PACs) should be fully buy-in in to project aims and objectives. Without full SAI commitment and engagement, projects will not succeed. involved with SAI technical assistance projects, and • It is imperative that contractors providing technical the importance of the SAI/PAC relationship must be support keep development partners informed of emphasized. problems and issues at the earliest opportunity.• Steering committees need to take a proactive role in • Technical assistance projects should follow the simple monitoring and overseeing projects and should actively concept of “doing with” rather than “doing for.” If there intervene if problems arise. are problems, contractors tend to revert to concentrating on output delivery rather than outcomes.Development Partner Requirements • Success can only be achieved if there is skills transference• Development partners should actively support SAI from the contractor to key counterparts who can take the project forward to ensure sustainability. operational and financial independence and should challenge any interference in SAI operations.• Development partners should include technical support to SAIs as part of their country strategies where there www.intosaijournal.org 47

SPOTLIGHT ON CAPACITY BUILDINGENHANCING SAI TECHNICAL SUPPORT: BEST PRACTICES!THE IMPORTANCE BEST SUPPORT PRACTICES Cultivating Supreme Audit Institutions' (SAI) technical capacity, particularly in developing Work closely with INTOSAI regional bodies countries is crucial. Increased technical capacity and ensure technical support covers INTOSAI helps strengthen organizational structure and requirements operations, while incorporating improved service delivery approaches, which adds value and Use tools, guidance and templates produced benefits to the lives of citizens. Improved technical by INTOSAI regional bodies capabilities also enhance a SAI’s ability to adapt to rapid changes and emerging issues.THE REQUIREMENTS Select technical support contractors based on proven experience in successful service KEY STAKEHOLDERS delivery Incorporation into public management reform program Ongoing SAI work sensitivity and adaptability National commitment to SAI independence to SAI working conditions required Consultation and support Develop, strengthen, emphasize relationships SAI roles, responsibilities should be clarified Proactively monitor, oversee projects Engagement with SAI senior management, staff DEVELOPMENT PARTNERS Secure full SAI commitment to project Keep development partners informedActively support SAI operational, financial independence \"Do With\" rather than \"Do For\" Include technical support as part of country strategy Transfer skills to key counterparts Ensure ToR formed by experienced SAI professionals Directly fund SAI vs. funding through executive branch Funding based on actual SAI development needs Assess circumstances and impact48 International Journal of Government Auditing—Autumn 2018