1. RTI, MUMBAI / DAY 1 / Slide 1.1.2 Audit of Sustainable Development (Cond)  What is Sustainable Development?

2. RTI, MUMBAI / DAY 1 / Slide 1.1.2 Audit of Sustainable Development (Cond)  “It is development that meets the needs of the present without compromising the ability of future generations to meet their own needs” – Brundtland’s Commission 1987.  Earth Summit – The United Nations Conference on Environment and Development (UNCED) – 1992 – Inspired by Brundtland’s Commission.  This concept brought in 2002 in Johannesburg, South Africa Summit.

3. RTI, MUMBAI / DAY 1 / Slide 1.1.2 Audit of Sustainable Development (Cond)  Sustainable development recognises the need for a balance or trade off between economics, social progress and the environment  Government’s concern for Sustainable Development  Policy tools at their disposal to influence sustainable Development  SAI to audit the policy tools with care as interference in policy poses risk

4. RTI, MUMBAI / DAY 1 / Slide 1.1.2 Audit of Sustainable Development (Cond)  Tax policies of Government to be in alignment for sustainable development  Mismatch between allocation of Environmental programs and other programs in budget to be focussed- commented  Effects of Environmental impact to be assessed by Government and measures introduced to mitigate or abate them  SAI to audit the measures with policy objectives and achievement.

5. RTI, MUMBAI / DAY 1 / Slide 1.1.2 Audit of Sustainable Development (Cond)  Scope of Audit of Sustainable Development  will depend upon the mandate of the SAI  Some have mandate while others have limited mandates such as financial, compliance etc.  Some have pre audit Mandate or budget audit  Audit of Sustainable development based on SAI’s Auditing Standards-To be used at national level audit, regional level audit and program level audit

6. RTI, MUMBAI / DAY 1 / Slide 1.1.2 Audit of Sustainable Development (Cond)  Agenda 21 provides for formulation of Environmental strategy  Strategy comprises-frame work, co- ordination, monitoring and reporting progress  Pollution prevention or control, integration of development and environment protection  SAI to audit the strategy for result orientation

7. RTI, MUMBAI / DAY 1 / Slide 1.1.2 Audit of Sustainable Development (Cond)  Scope-Audit of Environmental strategies  At National level-split up at local level for local level implementation  should spell out objectives, policies  Strategy to be split into targets/time tables  Should have a good information system for public awareness

8. RTI, MUMBAI / DAY 1 / Slide 1.1.2 Audit of Sustainable Development (Cond)  Sustainable Development-targets/indicators  Strategy to have targets  Indicators are means to measure the targets towards sustainable development  Should be based on proper understanding and what needs to be done in a particular area  Both targets/indicators to be real/reliable

9. RTI, MUMBAI / DAY 1 / Slide 1.1.2 Audit of Sustainable Development (Cond)  Audit of Targets  Should cover key areas, in alignment with International comitments  Should be based on clear, scientific understanding of the underlying problems  Should be related to measurable achievement  Measurement to be realistic, authentic and reliable

10. RTI, MUMBAI / DAY 1 / Slide 1.1.2 Audit of Sustainable Development (Cond)  Audit of indicators  Should have relevance to policy  Should be easy to interpret  Should be measurable  If not measurable in clear terms-not useful

11. RTI, MUMBAI / DAY 1 / Slide 1.1.2 Audit of Sustainable Development (Cond)  SAI to verify the target with achievement  SAI to inquire whether the target has deadline  If so whether it is met or likely to be met  In case of shortfall reasons to be provided/highlighted  To highlight the consequences of not achieving the target

12. RTI, MUMBAI / DAY 1 / Slide 1.1.2 Audit of Sustainable Development (Cond)  Environmental Management System (EMS)  EMS integrates Environmental issues to the Management  International Standards -ISO 14001  Provides for Environmental policy  Assessment of Environmental aspects/impacts  Processing/planning  Checking/Corrective/preventive actions

13. RTI, MUMBAI / DAY 1 / Slide 1.1.2 Audit of Sustainable Development (Cond)  Review of the Management system by the organizations’ top management to ensure to continuity

14. RTI, MUMBAI / DAY 1 / Slide 1.1.2 Audit of Sustainable Development (Cond)  EMS Audit  Focuses on  the extent of the use of EMS  the accredition to the International Institutes which certify  the extent of application of systems  the extent to which the environmental issues are related to departmental planning

15. RTI, MUMBAI / DAY 1 / Slide 1.1.2 Audit of Sustainable Development (Cond)  Reporting:  SAIs to verify whether the sustainable Development Reporting is effective and qualitative  Reporting to have timeliness, accuracy and relevance  Accountability to be identified for reporting  Report to include review of targets/achievement

16. RTI, MUMBAI / DAY 1 / Slide 1.1.2 Audit of Sustainable Development (Cond)  Reporting (Cond.)  Report to include implementation of the program based on lessons learned.

17. RTI, MUMBAI / DAY 1 / Slide 1.1.2 Audit of Sustainable Development (Cond)  Audit of sustainable Development at program level  Sustainable Development Strategy need to be co- related at program level down below  Audit of program level implementation of sustainable development is also performance Audit  Due to the complex nature of the implementation of a program various issues will be involved in the program level implementation.

18. RTI, MUMBAI / DAY 1 / Slide 1.1.2 Audit of Sustainable Development (Cond)  Due to involvement of multiple issues in a program such as water issue, air issue, biodiversity issue at a stretched scenario SAI to scope the audit accordingly.  SAIs need to seek the help of other statutory auditors for this.  SAIs to induct SMEs (Subject Matter Experts) for effectively conducting the audit.

19. RTI, MUMBAI / DAY 1 / Slide 1.1.2 Audit of Sustainable Development (Cond)  SAI will have to keep in mind the concept of sustainable development  SAIs to strike a trade off between economic, environmental and social objectives of the program.  SAIs to establish whether the links between economic, environmental and social issue are amenable to analysis.

20. RTI, MUMBAI / DAY 1 / Slide 1.1.2 Audit of Sustainable Development (Cond)  Whether it has got expertise to address this as otherwise the audit will be construed as questioning the policy.

21. RTI, MUMBAI / DAY 1 / Slide 1.1.2 Audit of Sustainable Development (Cond)  Trade offs between economic and environmental and social issues are struck through :  EIA (Environmental impact Assessment) - a way to assess what the results of a policy, plan or action will have on the environment.  Social cost benefit analysis - a formalised way of comparison of cost and benefits

22. RTI, MUMBAI / DAY 1 / Slide 1.1.2 Audit of Sustainable Development (Cond)  Multiple Accounts Analysis-a method of incorporating social and environmental considerations into planning

23. RTI, MUMBAI / DAY 1 / Slide 1.1.2 Audit of Sustainable Development (Cond)  Sustainable Reference values-Scientifically determined and generally accepted values which set absolute assets to environmental, economic and social outcomes  Best available techniques not Entailing Excessive Cost (BATNEEC) -A physical process or technique which does most to limit emissions of pollutants to one medium without entailing excessive cost

24. RTI, MUMBAI / DAY 1 / Slide 1.1.2 Audit of Sustainable Development (Cond)  Best practicable Environmental option-A process where the least damaging or most beneficial environmental option is identified.

25. RTI, MUMBAI / DAY 1 / Slide 1.1.2 Audit of Sustainable Development (Cond)  Building Capacity within SAI  The six steps-  Clarify Mandate  Develop strategy  Build capacity and expertise  Conduct Audits  Learn from experience  Have an impact

26. RTI, MUMBAI / DAY 1 / Slide 1.1.2 Audit of Sustainable Development (Cond)  SAI to verify the existing audit Mandate and ensure that for sustainable development audit also Mandate is there  Method of Audit is performance audit  SAI to structure its audit depending on the nature of program  some program on one organisation  some program on range of organisations

27. RTI, MUMBAI / DAY 1 / Slide 1.1.2 Audit of Sustainable Development (Cond)  Conducting audit  Audit to look for  Responsibility centre  Availability of documents for planning including milestones, performance measures,goals/results  Expertise to discharge the charged responsibility  Harmony among the various organizations carrying out Sustainable Development work  Accountability Centres, reporting style,results

28. RTI, MUMBAI / DAY 1 / Slide 1.1.2 Audit of Sustainable Development (Cond)  Targets-results  Decision making

29. RTI, MUMBAI / DAY 1 / Slide 1.1.2 Audit of Sustainable Development (Cond)  SAIs to share experience across the border  Regional groups to be set up  Common training program for audit personnel  creation of data base for Sustainable Development audit  Report to be published timely

30. RTI, MUMBAI / DAY 1 / Slide 1.1.2 Strategy for Future Environmental Audit  Build Environmental Awareness  Prepare Environmental Guidelines  Introduce Environmental Issues in Some Auditing  Conduct Environment Auditing Audit Mandate Identify key players Held talks and lectures External factors/ compaign Conduct courses On EA

31. RTI, MUMBAI / DAY 1 / Slide 1.1.2 Proposal of a specific Environmental Auditing Evaluate Major Environmental Issues Propose Environment Audit Title Understanding the business Justification for selection –Impact –Audit Coverage –Visibility –Materiality –Significant –Risk –Auditability Set the Audit Objective Establish Lines of Audit Inquiries Identify Audit Criteria Identify Opportunities and challenges