1. The PAC-AG Relationship Parliamentary Financial Oversight Training Lilongwe Malawi George Phiri 1

2. Objective The Objective of this session is to:  get an understanding on the relationship between the PAC and the SAI.  the supporting function of the SAI as regard to PAC work  Share experience on the different roles the SAI plays in the work of the PAC Overview of two types of Support  Reputational Support  PAC Support Discussion on the different support issues in regards to PAC Support and Reputational Support is key in this session 2

3. Contents Introduction The PAC-SAI Relationship (Accountability Triangle) Support Function Types of Support Conclusion 3

4. Introduction The Public Accounts Committee (PAC) is a Parliament Committee that is charged with responsibility of holding government accountable for its spending of public funds and its stewardship over public resources ( it provides the oversight role of parliament on the utilisation of public resources). The Auditor General (SAI) provides assurance through the Annual Audit Reports on the Accounts of the Republic tabled in Parliament. 4

5. The PAC- AG Relationship Parliament Auditor General Executive 5

6. The Accountability Process  Parliament allocates resources to the Executive for various programmes  Executive submits reports to Parliament on the use of resources  Parliament assigns AG to audit  Executive provides information to AG for audit  AG audits Executive on the use of resources  AG submits report to Parliament 6

7. Support Function Questions to be addressed: Why is effective support relationship between SAI & PAC critical? What can a SAI employ to ensure that this function is accomplished? 7

8. Support Function Cont-- Mutual Dependence- SAI/ PAC: The impact of the SAIs function is dependent on the effectiveness of the PAC in ensuring that government (the executive) acts upon the audit findings and PAC recommendations. AND The effectiveness of the Public Accounts Committee in advancing audit findings is dependent on the SAI’s professional, objective, clear and simple audit reporting and advise. 8

9. Types of Support Reputational Support  Initiated by SAI with the aim of informing the PAC on what the SAI does, how it does its work and what impact of its function is. PAC support  Strengthening SAI’s support to PAC in reviewing audit reports and undertaking related functions.  Effective working relationship between the SAI and the PAC is paramount to promoting accountable public sector institutions 9

10. Reputational Support What means and ways can a SAI use to advance Reputational support? 10

11. Reputational Support-Ways Presentations to PAC members on the function of the SAI and its relationship with the PAC (at the beginning of each Parliamentary term) Disseminate information on the function of the SAI and its desired impact Communicate the SAI’s strategic plan Attend conferences organised by PACs Regularly update the PAC on relevant SAI developments, news, events, etc. 11

12. PAC Support What ways and means can a SAI use to advance PAC Support function? 12

13. PAC Support-Ways PAC work processSupport activities by the SAI PLANNING Strategic planningAttend & provide expert strategic advice & audit-relevant info that can help the PAC plan better Prioritisation of audit reports/report sections Compile list of critical reports, audit findings or sections of a consolidated audit reportto help PAC prioritise Setting work programme Provide written expert commentary if necessary Preliminary questions Draft preliminary questions 13

14. PAC Support- Ways PAC work processSupport activities by SAI INFORMATION GATHERING & INVESTIGATIONS Preliminary questions Draft preliminary questions BriefingsGive the PAC a comprehensive briefing on audit outcomes Compiling background information Advise PAC on the minimum background information to be compiled Public hearingsAttend public hearings as expertwitness 14

15. PAC Support PAC work processSupport activities by the SAI REPORTING Development of PAC resolutions (report) Review the PAC draft resolutions and provide input and advise on how the PAC resolutions should be structured FOLLOW-UP Review of government responses Evaluate government responses and advise the PAC on its adequacy in addressing audit queries Follow-up on recommendations Assist the PAC with developing a formal procedure for monitoring government’s action on audit recommendations 15

16. Conclusion The SAI/PAC relationship is very critical if the Accountability and Transparency in the utilisation of public resources is to be achieved. As highlighted above SAIs should guides the PAC on critical audit areas so that the PAC could prioritise their work. SAI involvement in the Planning of PAC work is also very critical as the work of the PAC depends on the output of the SAI. Success is dependent on mutual commitment & cooperation between SAI and PAC  Partnership rather than a prescriptive approach 16

17. ANY QUESTIONS THE END 17