1. SAIs and Stakeholder Engagement for Enhanced Accountability
Jennifer Thomson
Chief Financial Management Officer
The World Bank

2. Boost Shared Prosperity
World Bank Group Goals
People living with less than $1.25 a day to fall to less than 3% globally by 2030
End Extreme Poverty
Foster income growth of the bottom 40% of the population in every country
Boost Shared Prosperity
Title of Presentation

3. From Billions to Trillions: Transforming Development Finance
To meet the investment needs of the Sustainable Development Goals, the global community needs to move the discussion from “Billions” in ODA to “Trillions” in investments of all kinds: public and private, national and global, in both capital and capacity. Globally, achieving the proposed SDGs will require the best possible use of each grant dollar, beginning with some US$135 billion in ODA. Yet flows for development include philanthropy, remittances, South-South flows and other official assistance, and foreign direct investment—together these sources amount to nearly US$ 1 trillion that needs to be used just as effectively. The most substantial development spending happens at the national level in the form of public resources, while the largest potential is from private sector business, finance and investment. This is the trajectory from billions to trillions, which each country and the global community must support together to finance and achieve the transformative vision of the SDGs. “Billions to trillions” is shorthand for the realization that achieving the SDGs will require more than money. It needs a global change of mindsets, approaches and accountabilities to reflect and transform the new reality of a developing world with highly varied country contexts.
From Billions to Trillions: Transforming Development Finance Post-2015 Financing for Development: Multilateral Development Finance Development Committee Discussion Note 2015

4. Global Financial Flows for Development
Financial Flows to Developing
Countries
Composition of Financial Flows to
Developing Countries – in 2012
ODA levels reached US$ 135 billion in 2013, but their pattern has been uneven.
For example, ODA flows to Africa
Beyond the financial flows depicted in Figure 1, domestic resource mobilization (DRM) has increasingly become a key source for funding national development plans.
The global development landscape has changed since the MDGs were adopted in The six largest MICs now account for roughly the same share of global GDP as the six largest high-income countries. At the same time, inequality within many countries is on the rise and there is a growing gap between the richest and poorest countries, with some of the poorest countries caught in a “poverty
trap”.
ODA=Official Development Assistance; OOF=Other Official Flows; LMICs=Lower Middle Income Countries; UMICs
=Upper Middle Income Countries; LDCs= Least Developed Countries. Source: OECD

5. Sustainable Public Finances Demand for Good Governance
What is Needed ….
Ending Extreme Poverty & Boosting Shared Prosperity NEEDS …
Sustainable Public Finances
Demand for Good Governance
Governance
Good
Twin Goals Need Sustainable Public Finances
Governments need to embrace robust financial management, based on strong financial leadership. This is a necessary step toward sustainable public finances.
Robust financial management presupposes proper accounting and reporting.
Growing private sector is key to achieving the twin goals.
The accountancy profession has an important role to play in this process.

6. Sustainable Public Finances
Budgeting
Treasury Management
Debt Management
Audit
Parliamentary Oversight
Good Governance

7. Role of SAIs – “The Bridge”
Government
Audit
Demand for Good Governance
Impacting the Lives of Citizens
1/14/2019

8. Essentials for Effective Engagement
Independence
Model of Accountability
Creditability - Standards
Relevance
Transparency
Follow up
Title of Presentation

9. Good Governance – Who are the Stakeholders
SAI
Government
Citizens/
CSOs
Private Sector
Media
Donors/ IFIs such as WBG
Parliament

10. Citizens/CSOs
ISSAI 12: The Value and Benefits of Supreme Audit Institutions – making a difference to the lives of citizens
“Acting in the public interest places a further responsibility on SAIs to demonstrate their ongoing relevance to citizens, Parliament and other stakeholders.
SAIs can show their relevance by appropriately responding to the challenges of citizens, the expectations of different stakeholders, and the emerging risks and changing environments in which audits are conducted.
Furthermore, it is important that SAIs have a meaningful and effective dialogue with stakeholders about how their work facilitates improvement in the public sector.”

11. Citizens/CSOs
DESA - The Department of Economic and Social Affairs of the United Nations Secretariat

12. Engagement with Citizens/CSOs
Reality
Although citizens are the most important stakeholders of SAIs, very often they are least informed about the work of SAIs.

13. Benefits of Engagement with Citizens/CSOs
Efficient Public Financial Management: positive impact on more efficient, equitable, and inclusive budget processes, pro-poor fiscal policies
Service Delivery: Closing the gap between planned and actual service delivery; feedback from users and beneficiaries to the government
Fighting Corruption: Potential whistle-blowers in observing and reporting fraud & corruption; deterrent to fraudulent and corrupt acts
Strengthening External Oversight: Demand for transparency; for concrete response from the Government and Parliament to act on audit observations and recommendations

14. Media - Benefits Enhances visibility of audit results
Communicates findings, draws attention to key audit findings that may go unnoticed
Increases public legitimacy of the SAI & independence of the SAI .

15. Donors – Expectations & Challenges
Leadership
SAIs develop comprehensive, realistic, prioritized Strategic Plans & t Action Plans
Commitment
SAIs implement their Strategic Plans and Development Action Plans
Collaborate
Stronger SAIs support weaker SAIs in building capacity
Independent
SAI’s perform their duties independently without fear or favor
Standards
SAIs implement international standards, such as ISSAIs, in conducting their work

16. Challenges and Risks of Engagement
Political Economy – environment for engagement, mandate, government and legislature relationships, support from private sector, citizens & others (donors)
Institutional Challenges – willingness and continuity in commitment to engagement, mandate, capacity to engage beyond one way communication
Understanding and capacity of stakeholders to engage - “Unprepared” citizens/CSOs, capture of CSOs and media, uninformed media and parliamentarians; distortions of audit findings
Managing Expectations!!

17. Essentials for Effective Engagement
Independence
Model of Accountability
Creditability - Standards
Timeliness
Relevance
Transparency
Follow up
Title of Presentation

18. Thank You