Progress Report Performance Audit Subcommittee - PAS INTOSAI Governing Board meeting Mexico City, November 2 and 3, 2006

Tribunal de Contas da União - TCU (Brazilian Court of Audit) Minister Ausgusto Nardes, Representative of TCU and of the Chairman of the Performance Audit Sub- committee - PAS Omir Lavinas, International Relations Officer

Background Creation - Steering Committee Meeting, September 2005 Establishment - Intosai Governing Board, November st Meeting - Brasília, BRAZIL, August 8 and 9, 2006

Activities (Sept 2005 / Oct 2006)- I 1. Nomination of the members: Request to presidents of the Intosai Regional Groups to nominate one SAI from each region Invitation to other SAIs with special interest and expertise 2. Preparation of the Terms of Reference and Work Plan Drafts, submission to the members and consolidation of their suggestions in new versions of the documents

Activities (Sept 2005 / Oct 2006) - II 3. First PAS Meeting (Brasília, August 8 and ): Discussion about PAS’s role and future actions Exchange of information on progress / challenges in the area of Performance Audit within each participant’s SAI Approval of PAS Terms of Reference and Work Plan

Terms of Reference - I 1. Background In light of the proposed strategies of Goal 1 of the INTOSAI Strategic Plan review and restructure the current standards committee’s arrangements - it was agreed to create a new Sub-committee on Performance Audit under the INTOSAI’s Professional Standards Committee - PSC. The decision was taken during the first PSC Steering Committee Meeting, on September 7 and 8, 2005, when the SAI of Brazil was nominated Chair of the Subcommittee. The INTOSAI Governing Board approved the draft terms for the PSC, which included the new Performance Audit Sub- Committee, during its 54th Meeting, on November 10 and 11, 2005.

Terms of Reference - II 2. Objective The objective of the Performance Audit Subcommittee is to promote the INTOSAI Implementation Guidelines for Performance Audit and develop and disseminate other guidance that may be needed by the INTOSAI community.

Terms of Reference - III 3. Membership The members of this Sub-Committee are appointed by the INTOSAI regional working groups (one SAI from each region) and supplemented by other SAIs with special interest and expertise in performance audit. At present the Performance Audit Sub-Committee has eleven (*) members: Brazil (Chair-OLACEFS), Saudi Arabia (ARABOSAI), Guyana (CAROSAI), Australia (ASOSAI), Canada, Kiribati (SPASAI), United Kingdom, France, Norway, Sweden, and the European Court of Auditors (EUROSAI). (*) 12th - Tunisia

Terms of Reference - IV 4. Operations Mandate The mandate of the Performance Audit Sub-Committee is to:  Promote the use of INTOSAI’s Implementation Guidelines for Performance Audit among the INTOSAI community.  Identify key needs among SAIs for additional guidance.  Work towards meeting the needs identified, based on evaluation of resources needed against the potential benefits.

Terms of Reference - V Rules and Procedures Sub-Committee members are entitled to one vote each, when voting on issues. Communication Communication is through a limited number of physical meetings as deemed necessary and mainly by correspondence (post, facsimile, and conference call) and the Internet web-site established by the PSC Chair for distribution of documents and other information.

Terms of Reference - VI Funding Members pay their own travel and accommodation expenses for meetings. The direct meeting expenses alone are met by the SAI that hosts the meeting. Language The working language of the Sub-Committee is English.

Terms of Reference - VII 5. Sub-Committee Chair The Performance Audit Sub-Committee Chair is responsible for the Sub-Committee and its work. Once the development of new guidance is decided by the Sub-Committee, the Sub-Committee Chair will run the project through from development to publication of final outputs. After being approved by the PAS, the Chair will circulate documents within PSC and among INTOSAI members for comments and will bring them before the Governing Board and INCOSAI for approval.

Terms of Reference - VIII 6. Reporting The Performance Audit Sub-Committee will report on its activities to the PSC Chair twice a year.

Work Plan I The INTOSAI Performance Audit Sub-Committee (PAS) has planned initial actions in order to fulfil its mandates, especially the dissemination of the “INTOSAI Implementation Guidelines for Performance Audit” and the development of guidance on the basis of this INTOSAI document.

Work Plan II Mandate 1: Promote the use of INTOSAI Implementation Guidelines for Performance Audit among the INTOSAI community. 1.1 PAS Chair will consult IDI about their current approach on performance audit training and particularly on how INTOSAI guidelines fit into that training, and will consider what further guidance and training are required and how best to deliver them. 1.2 Each PAS member should consult the Chair of their INTOSAI regional organisation about the ways they promote the INTOSAI guidelines on performance audit and will report back to the Chair of the Sub-Committee.

Work Plan III Mandate 2: Identify key needs among SAIs for additional guidance. 2.1 Analyse results of the INTOSAI Professional Standards Committee (PSC) survey on the use of INTOSAI and other standards from a performance audit perspective and identify key needs for additional guidance. 2.2 Following receipt of suggestions from the PSC, the Sub-Committee will consider existing, widely recognised global, regional, national standards, and advise the PSC on whether it believes they could be acceptable to INTOSAI or could be consolidated into suitable guidelines.

Work Plan IV Mandate 3: Work towards meeting the needs identified, based on evaluation of resources needed against the potential benefits. 3.1 Develop a more detailed work program following analysis of PSC survey results. Areas that might be considered include topic selection, design, resourcing, audit scope, reporting, adequacy of audit evidence, and need for guidelines for smaller scale performance audits.

Work Plan V 3.2 Consult with the PSC about how to communicate with international co-operation agencies about PAS’ existence and its availability to provide advice on the importance of performance audit. 3.3 Monitor the development of relevant theories, methods and evaluation, assess the consequences for performance audit and disseminate the results.

Next actions Analyse PSC survey results, identifying needs and priorities concerning the development of guidelines. Prepare a more detailed work plan aiming at fulfilling the identified needs.