1. MEASURING PERFORMANCE OF SUPREME AUDIT INSTITUTION
M. Mozammal Hoque
Sr. Financial Management Specialist
(OPCFM)

2. National Integrity System
Pillars of National Integrity System
Sustainable
Development
National Integrity System
Political Will
Parliament
Admin. Reforms
The Judiciary
Civil Society
The Media
Watch Dog Agencies*
The Private Sector
Economic Reforms
*Anticorruption agencies, Supreme Audit Institution, and Ombudsman's Office

3. Public Financial Accountability
People
Reports
Accountability Relationship
PAC
PEC
PUC
SCM
C&AG Audit GOB
Parliament
Donors
Media
Public Financial Accountability

4. Building Trust: Capturing the Promises of Accountability
Mechanisms
Parliament
Performance reports
Audits
Redress Mechanisms
Media
Long-term
Goals
Improved Services
Confidence
Trust
Intermediate
Objective
Transparency
Disclosure
Redress

5. Budget Implementation
Strengthening Financial Management
Budget Implementation
Budget Preparation
Budget Evaluation
Budget Oversight
Macroeconomic Framework
Development & Recurrent Budget
Sector Strategies
MTEF
Annual Reports
Value-for-money Audits
Report on Budget Implementation
Revenue Administration
Pensions & Payroll
Procurement
Internal Control
C&AG’s Office
Parliamentary Committees

6. Financial Accountability Cycle: 3 Questions
What information can Oversight Agencies obtain about the Government’s activities; how relevant, accurate, timely and comprehensive is the information?
How well are the Oversight Agencies able to analyze the information, and develop action-oriented conclusions?
What kind of response are Oversight Agencies able to generate from the executive?

7. Role of SAI
Determining the SAIs role upfront may dictate how we conduct their assessment
Role may be one or more of the following:
A line function: ex-ante control
To enforce legal compliance
To carry out ex-post financial audits
To enhance bureaucratic performance

8. Questions for Discussion
Can the SAIs possibly escape the larger political environment?
Does the Bank have a bias towards Ministries of Finance which works against the pursuit of SAI independence?

9. KEY ISSUES IN SAI PERFORMANCE -1
Independence
Appointment and tenure of the head(s) of the audit institution
Arrangements for funding of the audit institution; not beholden to the Executive
Adequacy of funding
Autonomy from other government controls (e.g. perhaps civil service rules)
Freedom to select topics for review

10. KEY ISSUES IN SAI PERFORMANCE - 2
Scope and authority
Extent of coverage of the whole public sector (off- budget and secret accounts, government business enterprises, sub-national government)
Right of access to all necessary information
Powers to report publicly
Is there an executive role ( e.g. power of surcharge against wrong doers)
Is there a judicial (prosecutorial) role ?

11. KEY ISSUES IN SAI PERFORMANCE - 3
Quality of auditing processes
Extent of follow-up on audit recommendations
Impact: Budget savings, reduction in corruption, policy changes, organizational changes, legislative changes, etc. (role of PACs)
Demand for financial accountability and extent of public interest
Who does this work? Extent of professionalism
Integrity of SAIs staff

12. KEY ISSUES IN SAI PERFORMANCE - 4
Procedures for audit reports
Timeliness and availability of external audit reports
Clarity of the audit opinion and relevance/significance of the issues discussed
Capacity of the legislature to follow up audit reports and the extent to which follow up occurs
Capacity of the media in follow up and the extent to which such follow up occurs
Quality and relevance of management letters provided to auditees
Adequacies of processes for pursuing legal actions which may arise from the audit

13. KEY ISSUES IN SAI PERFORMANCE - 5
Performance and accountability of the SAI
To whom is an SAI accountable ?
Independent audit and review of the audit institution
Adherence to international auditing standards (which ones ?)
Extent of self assessment of performance – existence of some measures of audit costs and impact, apart from merely formal institutional arrangements
How “pro-active” or “hands on” should an SAI be in recommending changes to improve financial reporting, legal compliance or performance (value-for- money)
If the SAI makes detailed recommendations for changes, will this compromise its “independence”, as it then must review its own recommendations (?)

14. KEY ISSUES IN SAI PERFORMANCE - 6
Appropriate relationship with other audit/review organizations and anti corruption bodies
Clarity and appropriateness of relationship to internal audit institutions
Clarity and appropriateness of relationship with anti-corruption bodies and related prosecutorial bodies
Relationship with procurement reviews and procurement audits, procurement complaints authorities etc.

15. Integrated Financial Management and Control Approach
Public Accounts Committee
Public Undertakings Committee
Parliament:
Oversight Functions
Committee on Estimates or Finance
Ministerial Standing Committee
Submit annual performance report to Parliament Identify change agents from Minister/Secretaries
Introduce Strategic Planning in Ministries
Form Budget and Audit Committees
Give a Corporate look to Ministries/Department
Focus on outputs as well as inputs/measurement concept
Address human infrastructure of Ministries
Move from red taped file to a technology based system
Link with broader administrative reforms
Ministries
Chief Executive Officer
Principal Accounts Officer
Chief Accounts Officer
Go for Pilots and Roll out