1. PUBLIC FINANCIAL ACCOUNTABILITY – MULTI STAKEHOLDER APPROACHES
PRESENTED BY ISMAILA B CEESAY
LEAD FINANCIAL MANAGEMENT SPECIALIST AND PUBLIC FINANCIAL AMANGEMENT PROGRAM LEADER – AFRRICA REGION – THE WORLD BANK

2. INTRODUCTION
Public Financial Accountability encompasses the entire accountability cycle from budgetary planning, budget execution (including accounting, reporting, procurement, internal control and reporting) to independent assurances (external audit) and external oversight (legislature and the non-state actors). The sustained effectiveness in the delivery of one or the other in the cycle impacts the effectiveness and efficiency in which the other is executed.

3. OBJECTIVE OF PUBLIC FINANCIAL ACCOUNTABILITY
maintaining fiscal discipline - preventing over spending and over borrowing  
promoting strategic priorities - ensuring there are sufficient resources to achieve the government's priority objectives and
delivering value for money - making sure resources are used efficiently and effectiveness and with economy

4. KEY FOCUS AREA -DELIVERY VALUE FOR MONEY
Dependencies:
Legal framework
Public Investment Planning & Programming
Budget Credibility
Performance Benchmarks
Reporting framework
Feedback
Oversight: Action or Inaction - Impunity
In Africa, changes in practice lag behind changes in laws

5. WHAT HAS BEEN AFRICA’S PERFORMANCE VIS-AVIS THE REST OF THE WORLD?
2.00
2.28
2.20
2.78
2.66
2.63
2.43
0.00
0.50
1.00
1.50
2.50
3.00
AFR
2008
AFR 2011
EAP
ECA
LAC
MENA
SAR
PEFA Scores (Average)
Over 72 PEFA assessments carried out in sub-saharan Africa, including repeat assessments.

6. PERFORMANCE OF PFA ELEMENTS
0.00
0.50
1.00
1.50
2.00
2.50
3.00
PEFA Ratings 2011
AFR 2011
AFR 2008
The weakest link, on average, across jurisdictions in Africa are the external audit and legislative oversight.

7. NEED FOR GREATER STAKEHOLDER DIALOGUE AND COLLABORATION
Role of the executive
Role of the SAI
Role of Parliamentary Scrutiny
Role of NSAs
Role of Citizens
Donor Partners
Capacity of different actors, the accountability framework, and the strength of dynamism of each, are key to viable outcomes.
Prepare, present budgets and manage budget execution and reporting; provide assurances (different audit approaches), review and bring executive to account; facilitate transparency in report dissemination; debate whether service delivery was performed to their benefit consistent with resource use.

8. KEY OVERSIGHT CHALLENGES
Gap between approved budgets and the realization of policy intents
Technical Capacity and ability to influence political outcomes
Implementation and follow up on audit and PAC recommendations [Westminster model].
Difficulties in monitoring overall economy, efficiency, and effectiveness of expenditure [Judicial/Napoleonic model]
Relatively weak communication and non- involvement of other stakeholders [Courts model]
Opening PAC hearings to the public
Governments and donors mobilize funds and allocate them to social services in amounts that are sufficient to make a difference in the lives of the intended beneficiaries. But through a combination of poor financial management practices, poorly skilled service providers, and corruption, these goals are not achieved to any significant degree. Need to improve budget management literacy.
Surveys have found that in less than half of countries studied, PAC hearings were not open to the media and general public.

9. DIFERING ROLES OF STAKEHOLDERS
Legislature to give political support to audit recommendations – dependent on accountability framework
Donors too have a role to play (DA>$1B) and over $15m commitments in Africa for oversight by WB in – Development Policy Operations
Non State Actors can leverage the process – effectiveness conditioned on governance
Stronger partnership (SAIs, PACs, NSAs) a must
Regional coalitions can facilitate change
For audits to be relevant and have impact, findings must be followed up and actions taken.
Donors are interested in accountability; nevertheless donor funded projects tend only to be audited but not subjected to PAC hearings – WB believes in UCS. The role of CSOs was considered critical to coherent follow-up.

10. AUDIT FINDINGS & RECOMMENDATIONS
Financial audits
Compliance audits
Performance /valued for money audits
Specialized audits
If the SAI submits reports to the legislature and these are not read, understood, and acted upon, the system breaks down.
Partnership therefore calls for comprehensibility of audit findings
Stale audit reports
Accurate book-keeping, reconciliations, presentation of FSs, true and fair nature of the statements
Compliance with rules, procedures, statutes
Efficiency and economy
Environment, special-purpose audits etc.

11. HOW PACs CAN SUPPORT SAIs’ WORK
Regularly follow up on implementation progress: it is not necessary to wait for subsequent audit reports before calling a department back to report on the implementation of audit findings
Making such follow-up meetings open to the media and the public: this will publicize progress on the audit recommendations and create further pressure for implementation
Limiting the time that the executive has to implement audit findings: when an audit finding is particularly negative, the PAC could insist that corrective action be taken in a specific timeframe.
Rules of procedure: Amend rules to cater to the above.
Maintain a functioning liaison office – Audit/PAC

12. WB SUPPORT TO PARLIAMENTARY OVERSIGHT
Parliaments have three main responsibilities:
Oversight
Representation
Legislation
Over $ 60 million has been provided for capacity building of Parliaments in Africa. These operations had substantial equipment and infrastructural components.
Average duration was for 2.5 years, and several projects were for 5 years.

13. Supporting parliamentary Oversight
Infrastructure-building/development
Strengthen the material and basic infrastructure of a parliament (e.g. premises, equipment, technical services etc.)
Institutional development and enhancing oversight of the executive branch
Improve the functioning of the institution of parliament (e.g. preparation of standing orders and rules, creation or modernisation of parliamentary services and processes, budgetary oversight, committees etc.)
Increasing representation of citizens
Public hearings, civil society groups promoting reform etc.
Capacity building and professional development
Training of MPs and/or staff
Legislative content development
Exchange of experience and recipient-driven advisory services on new or important legislation