By Meresimani Vosawale-Katuba, Director (South Pacific), PASAI

SAI PMF and INTOSAI-P 10, the Lima Declaration

The SAI Performance Measurement Framework (PMF) assessments holistically evaluate SAIs on areas such as human resources, financial management, and audit methodologies and processes. Importantly, the framework also assesses a SAI’s operational and financial autonomy, and legislative independence.

In evaluating a SAI’s legislative independence, the SAI PMF takes cues from INTOSAI-P 10, The Lima Declaration, which states:

The establishment of Supreme Audit Institutions and the necessary degree of their independence shall be laid down in the Constitution; details may be set out in legislation. In particular, adequate legal protection by a supreme court against any interference with a Supreme Audit Institution’s independence and audit mandate shall be guaranteed.

This dimension of SAI PMF assessments seeks to reveal the extent to which laws protect or enshrine a SAI’s independence, freeing it and its officers from outside influence or control. After all, SAIs cannot effectively function without adequate independence.

Attempts to modernise legislation

After a SAI PMF assessment revealed scope to strengthen its legislative independence, SAI Tonga took action. Amendments to the supreme law of the Kingdom of Tonga—its Constitution—have formally recognised the independence of the position of Auditor General, providing protection from outside influence.

On this major independence milestone, Auditor General, Sefita Tangi, said, “It enriches the accomplishment of our tasks objectively and effectively knowing the Constitution fully protects us against outside influence” [1]. These amendments were gazetted in August 2021 [2].

Other SAIs in the region have proposed amendments to their legislation.

Commencing even before a SAI PMF assessment, SAI Fiji has done work to update and modernise its audit legislation, the Audit Act 1969. A legal consultant funded by PASAI carried out the review. Three key issues for improvement identified in the SAI PMF assessment matched those of the review. SAI Fiji continues to pursue recommended legal reforms through the relevant channels.

Additionally, SAI Solomon Islands has indicated it will push for legislative changes with the Solicitor General’s Office; however, they have indicated there will be some challenges.

SAI Samoa is also willing to propose legislative changes to improve its financial independence following its SAI PMF assessment. The SAI is hopeful to pursue this with assistance from PASAI and twinning partner, SAI New Zealand.

Common issues

We educate governments in the Pacific about the importance of modernising legislation for public sector auditing. Of particular importance is providing operational and financial independence for SAIs. This ensures they have the right for direct appeal to Parliament if resources are insufficient, and to protect the SAI head and staff from outside influence.

A key indicator for independence under the SAI PMF is the term of appointment and processes for removal of the SAI Head and staff. Provisions in the Constitution and relevant audit legislation should allow for SAI heads to have sufficiently long and fixed terms. This will enable them to carry out their mandates without fear of retaliation.

Some SAIs have been successful in modernising their legislation to achieve this such as SAIs Samoa and Tonga.

Supporting legislation should explicitly provide immunity to the SAI Head and staff in the normal discharge of their duties. Legislation should also ensure SAIs have sufficient rights of access to the information they seek to perform audits.

We advocate for and provide support to the SAIs taking steps to review their legislation to achieve independence.

Improving SAI PMF scores for greater impact

Improving a SAI’s PMF score is all about building a more capable public audit office. We will continue to focus on the areas of potential improvement that the assessments reveal to ensure governments in the Pacific are using public funds accountably and effectively. And one of the most important things to get right is a SAI’s independence.

References

[1] PASAI Newsletter December 2021 – page 1
https://static1.squarespace.com/static/57019a6db6aa607cbb909ab2/t/61b141bf9658283d39eb680a/1639008813553/PASAI+newsletter+Dec+2021+-+final.pdf  

[2] Tonga Government Gazette Extraordinary No. 228
https://ago.gov.to/cms/images/legislation/gazettes/2021/2021-0034/gazetteextraordinaryno.2282021.pdf

The Pacific Association of Supreme Audit Institutions (PASAI) is the official association of supreme audit institutions (SAIs) in the Pacific region, promoting transparent, accountable, effective and efficient use of public sector resources in the Pacific. It contributes to that goal by helping its member SAIs improve the quality of public sector auditing in the Pacific to recognised high standards. Our blog includes topics that may help auditors think about some implications to service delivery because of the global coronavirus pandemic (COVID-19).