1 Enforcing SAI and PAC Recommendations Parliamentary Oversight Strengthening the powers and Practices of Public Accounts Committee Kampala Uganda 6 th -8 th May 2013 George Phiri

The Objective of this session is to:  Get an understanding on the importance of the implementation of Recommendations of PAC and AG.  Challenges faced in the Implementation of SAI/PAC Recommendations – Zambia Perspective  Sharing of experiences from other SAIs on the challenges faced in Implementing Recommendations 2

The effectiveness and efficiency of the SAIs work is mainly measured on how it conducts its oversight functions and how they hold the Executive accountable for the use of public funds. The two words oversight and accountability are critical for the work of the SAI. It is also important in that PACs work depend on these two terms. The SAIs functions of accountability serves the following functions:  Enhance the integrity of public governance  Improve performance on service delivery  Enhance the public judgement on the performance of the Government What can we use to measure the efficiency and effectiveness of the SAI ? 3

 The effectiveness and efficiency of SAIs work is measured by the action taken on the recommendations made by the SAI and PAC by the Executive. 4

In Zambia, the SAI prepares its recommendations to Management at Inspection Letter Levels. These are recommendations which requires management to address certain weaknesses or irregularities. Once management has addressed the recommendations at Inspection letter level, the issue or query is resolved at this stage. Any unresolved issues will be reported to Parliament in the annual audit reports. These reports contains issues which were brought to the attention of management but remained unresolved. 5

 Once the report is submitted to PAC, the various controlling Officers are called upon to address the issue and at the end of it recommendations are made by the PAC to the Executive. The SAI is involved in the drafting of the PAC recommendations.  Why should the SAI be involved in drafting the recommendations of PAC? 6

 In order to ensure that the recommendations are acted upon, the PAC has a sub-committee which follows its recommendations. The committee comprises of officers from Parliament, Office of the Auditor General and Ministry of Finance 7

Questions to be addressed:  Why are some recommendations not being followed up?  How the SAI deals with the recommendations endorsed by the executive but not implemented?  How they use CSO or Publicity to make it difficulty for the government not to respond. 8

 Every year, as the SAI conducts its audit, all outstanding issues are carried on board. Every report produced by the Office contains a paragraph on issues which have been outstanding.  This has helped as in keeping track of all outstanding issues 9

Zambia follows the Westminster system. The system recognizes, the spirit of separation of powers. With this system, the SAI cannot impose its recommendations on the executive directly. The model depends entirely on the legislature being willing and able to hold the executive to account. (Where the legislature is weak, the model is ineffective, regardless of the state of the SAI). The lack of commitment by the auditee in implementing the recommendations. Lack of documentation supporting the Controlling Officers Submission to PAC. 10

 PAC play an important role in the relationship between the legislature and the SAI. The PAC is the body that digests audit reports and recommend subsequent action.  In principal, PACs should be well placed to support SAIs in the audit follow-up process. They have the right to call all relevant officials to testify, they normally have the right to obtain information and investigate widely. The mandate allows the PAC to review any current or past government financial activity. 11

 In order to ensure that the Government acts on the report, the SAI issues a comprehensive press statement which highlights the major irregularities in the report.  If the Public and CSOs cannot understand the meaning or significance of audit reports or communicate their concerns to the SAI, audits will have less impact. (in order to enhance this relationship, the office hold sensitisation workshops ) 12

 CSOs obviously do not have the same institutional platform as the legislatures from which to ensure that audit recommendations are implemented. They can however, play a role by publicising these recommendations and any possible inability or unwillingness to implement them.  CSOs use audit findings to pressure government to take corrective action. 13

 One of the central challenges that the SAI must overcome is that their recommendations are ignored or not implemented by the Executive.  In most countries, the audited entities are required to prepare an action taken report based on the recommendations, which is tracked by the SAI. The SAI also comments in subsequent reports on how the audited body has responded to the recommendations. The tracking of recommendation is important so that recommendations issued are not swept under the carpet. 14

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