Achieving Audit Independence in the Pacific (Part 1)

By Esther Lameko-Poutoa, Chief Executive, PASAI

This blog is the first in a series of two blogs to provide public auditors with an introduction to the concept of audit independence. It also contains information about how to measure audit independence – including the four dimensions of ‘Audit Independence’ within the INTOSAI Supreme Audit Institution ‘Performance Measurement Framework (SAI PMF)’ and the Public Expenditure and Financial Accountability (PEFA) tool used to examine the external audit function of a public financial management system of a country.

PASAI Secretariat’s work on audit independence is funded by the ‘Strengthening of Public Finance Management and Governance in the Pacific Project’ (PFM). This project aims to strengthen oversight over public financial management in the Pacific region, through improving the budgetary scrutiny, public financial oversight and accountability capacities of parliaments, supreme audit institutions and civil society within the region, aligning with international public financial oversight and accountability standards, and fostering citizen engagement and oversight. PFM is funded by the European Union (EU) and implemented by the United Nations Development Programme (UNDP) in partnership with PASAI.

Introduction

Audit independence is crucial to ensure the SAIs (also known as Offices of the Auditor-General or Public Auditors) and their work is trusted. As countries and economies move towards improved and increasingly sophisticated systems of Public Financial Management (PFM), driven by the latest technologies, the crucial role of the Auditor-General in providing independent audits, and peer reviews to substantiate audit quality, must receive equal focus.

Without proper audit independence, questions remain about whether the Auditor-General accomplished their tasks objectively and effectively? Does their office and its work add value? Does the public have trust in their work? Audit independence is fundamentally important to government efforts to promote accountability and transparency in the management of public resources. Therefore it is vital that governments of the Pacific move towards amending and passing legislation to make the SAIs and offices of Auditors-General and Public Auditors truly independent.

Defining Independence

Independence is defined as “free from outside control; not subject to another's authority and is not depending on another for livelihood or subsistence”. An auditor must maintain independence from the audit client to uphold the objectivity and integrity of the audit process. Auditor independence is the cornerstone of the auditing profession and it is the foundation of the public's trust in the accounting and auditing profession.

At the country level, the independence of the Auditor-General is fundamentally important in its role as an agent auditing the government. It is the basis of the public’s trust in its work to ensure accountability and transparency. The work of the Auditor-General should give Parliament and the public ‘independent assurance’ that public entities are operating and giving an account of their operations and performances.

United Nation Resolution A/66/209 of 2011 states "Promoting and fostering the efficiency, accountability, effectiveness and transparency of public administration by strengthening supreme audit institutions". This resolution highlights the importance of SAI independence. This resolution states explicitly that SAIs "can accomplish their tasks objectively and effectively only if they are independent of the audited entity and are protected against outside influence".

How is Audit Independence measured?

This section outlines the two tools to measure audit independence.

1. The SAI Performance Measurement Framework (PMF) tool has been developed by INTOSAI to define and assess SAI independence against the following criteria or dimension in the SAI PMF (Performance Measurement Framework) tool[1]:

Dimension 1: Appropriate & Effective Constitution Framework: The establishment of the SAI and its independence should be laid down in the country’s Constitution, including provisions guaranteeing the SAI a high degree of initiative and autonomy. The appointment of the SAI Head position, the term of office and independence of decision making should be guaranteed in the Constitution along with adequate legal protection against interference with SAI independence.

Dimension 2: Financial Independence/Autonomy: SAIs should have available, necessary and reasonable resources, and should be allowed to manage their own budgets without interference or control from the Executive. Financial independence should encompass the whole budget process, meaning that the Executive should not unduly interfere with the SAI’s budget proposal, and after the budget has been adopted by the Legislature, it should not control the funding allocated, for example by hindering the disbursement of resources. This indicates that the Auditor General should have the authority to submit its budget directly to Parliament without any interference from the government of the day.

Dimension 3: Organisational Independence: In order for the SAI Head and officials to fulfil their mandate effectively should enjoy autonomy in the organization and management of their offices. This means they should be able to manage their organizations and organize and plan their activities without interference from executive bodies. Importantly this must include the full authority to manage all aspects their own human resources.

Dimension 4: Independence of the Head of SAI & its Officials: The conditions for appointment of the Head of the SAI should be specified in legislation. The term “Head of SAI” refers to those who are responsible for the SAI’s decision-making and are answerable for these decisions to third parties. Their independence can only be ensured if they are given appointments with sufficiently long and fixed terms and if appointments and cessation of functions happens through a process that ensures their independence. This allows them to carry out their mandate without fear of retaliation. Any re-appointment where this is applicable and in accordance with the law, should take place in the same independent and transparent manner.

Independence of the Head of SAI and its officials means their appointment should not be subject to the government in power. Regardless of any sophisticated provisions in the legislation to state that the work of the SAI is independent, if the SAI Head and officials are appointed like all the other public servants (that is through Cabinet or any public entity under the control of the Prime Minister and Cabinet) the SAI is not fully independent.

2. The Public Expenditure and Financial Accountability (PEFA) program provides a framework based on Standards and good practices, for assessing and reporting on the strengths and weaknesses of PFM. Pillar 7 of the PEFA tool examines the external audit function of a public financial management system of a country. It examines and assesses the areas of audit coverage & standards, submission of audit reports to Parliament, external audit follow-up and SAI independence. With a SAI independence indicator, they allocate an overall score based on the following dimensions:

Minimum Requirement to Score ‘A’ - The SAI operates independently from the Executive with respect to procedures for appointment and removal of the Head of the SAI, the planning of audit engagements, arrangements for publicizing reports, and the approval and execution of the SAI’s budget. This independence is assured by law. The SAI has unrestricted and timely access to records, documentation and information.

Minimum Requirement to Score ‘A’ - The SAI operates independently from the Executive with respect to procedures for appointment and removal of the Head of the SAI, the planning of audit engagements, and the approval and execution of the SAI’s budget. The SAI has unrestricted and timely access to records, documentation and information for most audited entities.

Minimum Requirement to Score ‘A’ - The SAI operates independently from the Executive with respect to the procedures for appointment and removal of the Head of the SAI as well as the execution of the SAI’s budget. The SAI has unrestricted and timely access to the majority of the requested records, documentation and information.

Minimum Requirement to Score ‘D’ - Performance is less than required for a C score.

Overall, audit independence under the PEFA tool focuses on the independence of the appointment and removal of the SAI head and officials, having the independence to plan and complete audits, have independent access to financial resources to deliver its mandate as well as having unrestricted access to information. The ability to publishing audit reports without fear or influence from the Executive government is also considered crucial.

What’s next?

Our next blog looks at SAI PMF results for audit independence in the Pacific region and shows a clear picture of the current state of audit independence in the Pacific. Strategies to strengthen and achieve SAI independence are discussed. The PASAI Secretariat’s initiatives to support SAIs in the region to achieve audit independence are also outlined.

We welcome your feedback and look forward to hearing about other priority topic areas of interest to you. Please email secretariat@pasai.org.

[1] SAI PMF tool is an INTOSAI framework developed to support SAIs to evaluate their performance. The framework is based on the objectives set out in the International Auditing Standard - ISSAI 12 which sets out how SAIs strengthen the accountability, transparency and integrity of government and public sector entities, showing relevance to citizens, Parliament and stakeholders.

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The Pacific Association of Supreme Audit Institutions (PASAI) is the official association of supreme audit institutions (SAIs) in the Pacific region, and a regional organisation of INTOSAI and promotes 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.  Due to the global coronavirus pandemic (COVID19), this has restricted PASAI’s delivery of our programs to our Pacific members and in lieu of this PASAI will be providing a series of blogs on various topics that may help auditors think about some implications to service delivery as a result of COVID19. 

For more information about PASAI refer www.pasai.org

Public Procurement as a Key Focus for SAIs

By Tiofilusi Tiueti, Chief Executive, PASAI; A’eau Agnes Taimane Tuiai-Aruwafu, Director – Technical Support, PASAI; and Sarah Markley, Deputy Secretary-General

In 2019 PASAI released a Regional Report on Public Procurement in the Pacific (Refer to PASAI's Regional report here). The report provides useful information about the procurement lifecycle and the opportunities for auditors involvement. As we now face the challenge of COVID-19 and see our Governments initiate new spending programmes the review of this publication is timely.

The report includes reflections from Auditors-Generals that participated in the programme, where these  SAIs conducted an audit on public procurement practices of selected government agencies.   The key issues highlighted in this report provide a good reminder for us of recurring and all too common challenges in the Pacific region. These challenges are likely to be heightened as COVID-19 puts additional pressure on procurement processes.

The recurring issue identified in the report are: 

·       Lack of procedures and guidance for some aspects of the procurement life-cycle

·       Non-compliance with policy, procedures, and/or legislation 

·       Lack of training in the procurement system and procedures

·       Poor procurement planning and poor record-keeping throughout the procurement life cycle

·       Poor administrative and internal controls surrounding procurement practices

During this time of stress and crisis, public procurement becomes more complex, as the government will require more rapid and efficient procurement during the Coronavirus.  SAIs play an important role to ensure procurement processes are open, compliant, and transparent.   However, there will be rapid changes and emergency procedures being carried out by the government during this time, and SAIs need to be prepared.

Practical ways for SAIs assess emerging issues and risks   

Every SAI, whether large or small, will need to make choices about where to focus their efforts. This means that completing careful and well-structured assessment of the imminent risks posed by this pandemic will position SAIs well to deliver high quality and relevant work. Some practical approaches for SAIs to ensure they are well informed of emerging issues and risks related to pandemic procurement are:

i.   Keep abreast of government directives and specific activities that may relate to changes in procurement processes or the procurement lifecycle. Consider the possible risks of the loss of public funding or misuse of public resources where the changes that are proposed might signal that risks have increased.  Good sources of this information are official government announcements through a press conference, official website, or social media platforms.

ii.   Initiate proactive, meaningful, and ongoing dialogue with key stakeholders, such as the Ministry of Finance or related agencies responsible for implementing procurement regulations/instructions. These discussions can help to remind those responsible for risks, and guidance materials available as well as providing support and alerting you to specific areas of concern.

iii.   Keep well-informed of relevant matters being debated in domestic and regional forums relating to public procurement changes or significant activities. What our citizens and frontline workers are concerned about could likely signal risks SAIs should be interested in too. Good sources of this information are local TV and newspapers, relevant local social media, and in our region radio talkback will likely be a good way to assess citizen concerns.  

iv.   Gathering information directly from the public. In particular those SAIs with “Fraud Hotlines” already in place, these might require extra resource if notifications increase significantly. Alternatively setting up resources to receive citizen feedback on concerns can be considered. The U.S. Government Accountability Office (GAO) has set up a hotline to help combat Fraud under COVID-19 assistance to urge the public to report allegations of fraud, waste, abuse, and mismanagement.US GAO Fraudnet_coronavirus .

Practical ways for SAIs to provide support  

SAI can focus on promoting mechanisms to address the importance of enhancing procurement processes. For example, New Zealand has issued brief guidance on Procurement during a national emergency (AuditNZ National-emergency-procurement). 

The following are some other useful resources which may help you and PASAI may be able to provide further assistance to your clients and/ or stakeholders:

§  https://oag.parliament.nz/2008/procurement-guide/docs/procurement-guide.pdf

§  https://www.oecd.org/gov/ethics/48994520.pdf

§  https://www.allenandclarke.co.nz/wp-content/uploads/2016/03/AC_Quick_Guide_Procurement.pdf

§  https://www.open-contracting.org/what-is-open-contracting/covid19/

As mentioned above our regional report highlighted issues identified during public procurement audits completed including audit recommendations cross-cutting themes.  SAIs should reflect on these issues identified and use this opportunity during the COVID19 to make the greatest impact through improving pandemic procurement.

By responding in a timely manner to risks of potential fraud, loss, and mismanagement of government funds and resources as a result of poor public procurement practices, especially during the COVID19 period, SAIs are demonstrating their ongoing relevance to not only citizens but also parliament and other key stakeholders. 

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The Pacific Association of Supreme Audit Institutions (PASAI) is the official association of supreme audit institutions (SAIs) in the Pacific region, and a regional organisation of INTOSAI and promotes 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.  Due to the global coronavirus pandemic (COVID19), this has restricted PASAI’s delivery of our programs to our Pacific members and in lieu of this PASAI will be providing a series of blogs on various topics that may help auditors think about some implications to service delivery as a result of COVID19.  

For more information about PASAI refer www.pasai.org

SAIs demonstrating ongoing relevance

By Sinaroseta Palamo-Iosefo, Director – Practice Development, PASAI

The global coronavirus pandemic (COVID-19) is requiring Pacific governments to quickly react to the circumstances they find themselves in. These reactions include establishing new protective health strategies, review of priorities,  activating emergency legislation including declaring a state of emergencies. The impact of these reactions is in many cases a regional or nationwide lockdown.  At the same time, governments need to maintain essential government services.

This situation is complex for all countries but in a  developing environment such as the Pacific, the challenge is even greater. With limited resources, sub-standard infrastructure and lack of capacity there is much for the government to consider including the inevitable adverse socio-economic impacts.

In a time of stress and crisis service delivery becomes more complex and there is a significantly increased risk of fraud. In the public sector at this time the risk of fraud or loss of funds and/or public resources falls particularly into areas such as procuring of needed health equipment, distribution of economic stimulus package, allocation of targeted donor grants,  and integrity or completeness of reporting related to policy implementation.

As of 2 April, of the 18 COVID-free countries, 10 are from the Pacific[1]. We are thankful that some countries in our region have been able to avoid this virus up until now and we hope that this continues to be the case. However, even for those without cases, we are aware that the prevention measures being taken still place those countries, along with those actively fighting the virus, at risk of fraud or financial and non-financial reporting stresses.

SAIs being responsive to changing environments

One of the key objectives of INTOSAI-P-12 “The Value and Benefits of Supreme Audit Institutions-making a difference to the lives of citizens” is for SAIs to demonstrate their ongoing relevance to citizens, parliament and other stakeholders. This objective is extremely relevant at this time of crisis. We encourage each SAI to apply the key underlying principle of this standard and during this pandemic to be responsive to the changing environment. It is important for the SAI to focus on the emerging risks and to consider how you can contribute by supporting your citizens, Parliament, and stakeholders using your unique position in the public financial management system.

SAIs to refocus and revise Annual Audit Plans

During a time such as this COVID-19 crisis, it is critical that SAIs are a credible voice. This may be an opportunity to achieve beneficial change and to improve public sector delivery. It is important for SAIs to focus on being well informed. Having a good understanding of the situation, and awareness of developments at global, regional, and national levels will assist the SAI to identify issues and risks and opportunities to contribute.

COVID-19 is not business as usual for our citizens, Parliament or stakeholders and neither can it be for us as SAIs – whether here in the Pacific or elsewhere around the world.  As SAIs we should respond to this unprecedented global challenge by revisiting our audit programs. There will be things we had planned to do that are no longer appropriate at this time and new issues and risks that we need to respond to. We suggest SAIs should identify areas of high potential risks particularly associated with essential public services, and also look at issues and risks in new initiatives, and programs and spending responding to COVID-19. Prioritise audits to be performed, develop an innovative audit approach, and consider ways to provide effective audit reports at this time.

Taking this approach will assist your SAI to demonstrate relevance and responsiveness to public interests and Parliament and stakeholder risks as they seek to combat COVID19.  

One area of particular risk and public interest in government procurement during this time of emergency.  With unprecedented levels of procurement occurring that were not expected or planned for using usual systems and processes this is an area of high risk.

We encourage you to consider how your SAI can adapt to be relevant during this current crisis. We plan to continue to share tips and hints to assist you as this crisis continues. Next week we will be sharing guidance from a report we published last year about procurement to assist your work in this area.

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The Pacific Association of Supreme Audit Institutions (PASAI) is the official association of supreme audit institutions (SAIs) in the Pacific region, and a regional organisation of INTOSAI, that promotes 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.  Due to the global coronavirus pandemic (COVID19), this has restricted PASAI’s delivery of our programs to our Pacific members and in lieu of this PASAI will be providing a series of blogs on various topics that may help auditors think about some implications to service delivery as a result of COVID19.  

For more information refer www.pasai.org

[1] https://www.rnz.co.nz/news/world/413417/covid-19-the-countries-without-the-deadly-virus

Water lessons from PASAI's Secretary-General's Office

Water lessons from PASAI's Secretary-General's Office
by Sarah Markley, PASAI’s Deputy Secretary-General

It was great to see everyone at our Annual Congress last month. The role of auditors – and Auditors-General – can be a lonely one, so it is excellent to connect with peers, to discuss our challenges and hear about the innovative ways PASAI members are dealing with them.   

Sharing lessons and models is a sustainable and effective way to improve the impacts of our initiatives, which we can localise to suit the needs of our own countries. Our audits are just one of the tools we have – what we are seeking to do is build the trust and confidence of our people that our public sectors are accountable, and that our work is improving their efficiency and effectiveness.

We have learned a lot from the audit of preparedness to implement the UN 2030 Sustainable Development Goals undertaken by our Pacific neighbours. Hearing about the world-leading initiatives that SAIs across our region are doing in this area will inform our own activities in the future.

In this spirit, we would like to share with you some examples of reports our office has tabled recently, as we complete a suite of performance audits considering issues related to water management in New Zealand. We are constantly studying the initiatives of others, and testing and refining our own – and we are more than happy to share our knowledge.

Auditing water management: a theme-based approach

One of the challenges we are facing more and more is how to audit complex and interconnected systems beyond the financial aspects of individual entities, into the performance, outcomes, governance, and effectiveness of whole sectors. This was a factor we considered in doing a major, multi-year programme looking at water management.

We are still learning how to do this most effectively. However, our initial attempts have shown not just how well our planning pieced the puzzle together, but also the pieces we’re missing.

Some of the work we have done to explore this theme so far includes:

Managing stormwater systems in New Zealand

Flooding is New Zealand's most frequent natural hazard. Climate change and increasing urbanisation are expected to increase the risk of flooding in the future. In this audit, we looked at how three councils managed their stormwater systems to protect people and their property.

We found all councils had an incomplete understanding of their flood risk, gaps in their understanding of their networks’ current state, and were potentially underinvesting in renewing their assets.

You can see our report here https://oag.govt.nz/2018/stormwater.

Marine planning for the Hauraki Gulf:

The Hauraki Gulf/Tīkapa Moana is one of the busiest marine areas in New Zealand. Each year, the Gulf generates more than $2.7 billion in economic activity. Used for boating and recreational, commercial, and customary fishing, it’s important both for people living there, and the region's tourism industry.

Community stakeholders and government agencies worked together to create New Zealand's first marine spatial plan, for a healthy, productive, and sustainable future for the Gulf. Finalised in December 2016, the project was a successful example of a stakeholder-led collaborative approach, with general support from those who prepared it. However, the plan is not easy for the central and local government agencies to implement, and those involved in the project are frustrated at the lack of progress.

You can see our report here https://oag.govt.nz/2018/hauraki

Protecting marine environments

We looked at how two groups used two different processes that generated advice to Ministers for establishing marine protection, including marine reserves. We examined how inclusive, transparent, and well informed the processes were to identify lessons that could be applied to support the establishment of other marine protection measures.

Through this, we found that aspects of the implementation guidelines are too restrictive, and called for Government to consider reforming marine biodiversity protection legislation, policy, or planning to support greater collaboration, to better protect New Zealand’s unique marine biodiversity.

You can see our report here https://oag.govt.nz/2019/marine-environment

How water is used for irrigation

In 2010, the New Zealand Government regulated how big water users track their water use. We audited how these had been implemented by the six councils responsible for 90% of freshwater irrigation used in NZ.

Through this audit, we found not only that councils had mostly implemented these effectively, as required by law, but that some had gone beyond the basic requirements, using smart metering to collect information to improve how they maintained their network, scheduled water use promotions, and charged service users.

You can see our report here https://oag.govt.nz/2018/irrigation

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These audits represent some of our work programme to improve trust and promote value within New Zealand’s public entities, for the good of our communities. I hope these examples are useful to you – and we are happy to discuss, support, and exchange ideas to build a prosperous and stable Pacific, with effective and fair public systems, and good governance for our organisations.

Why Kiribati's SAI PMF assessment couldn't have come at a better time ...

SAI PMF paves the way for a stronger SAI in Kiribati

By Kiribati’s Auditor-General, Eriati Tauma Manaima

 

The SAI-PMF Assessment

Over two weeks in late August and earlu September 2019, the Kiribati Audit Office had the pleasure of hosting the PASAI Supreme Audit Institution Performance Measurement Framework (SAI PMF) assessment  team, comprising of team leader Ms Sinaroseta Palamo-Iosefo from PASAI’s Secretariat, Ms Elsie Willy and Ms Elsie Daniel both Audit Managers from the SAI-Vanuatu, and Mr Samuela Tupou an Audit Manager from SAI-Fiji.

What does the SAI-PMF mean for the Kiribati Audit Office?

The timing of this assessment could not have been better!

This SAI-PMF assessment is very important to SAI Kiribati. Not only is this the first ever comprehensive assessment for SAI-Kiribati, but as the new head of the Kiribati Audit Office, it will provide me with a much-needed stock-take and baseline as we go forward. It’s important for me to know where we stand in terms of the institution’s strengths, weaknesses and opportunities, and threats.

In addition to this, SAI-Kiribati is now in the final year of her four year (2016-2019) strategic plan, so having the SAI-PMF assessment in the midst of reviewing our 2016-2019 strategic plan and preparing our next (2020-2023) strategic plan is brilliant. Among other things, what we will learn from this assessment will help inform SAI-Kiribati on what/which key strategic goals or areas to focus on the next four years as we continue building and strengthening our office.   

Another reason that this assessment is very important to SAI Kiribati is that when we request development assistance from our stakeholders, especially the Government and our development partners, the findings of the SAI-PMF assessment will provide evidence to support and make the case for our request for those needed assistances.    

What does the SAI-PMF mean for the Government of Kiribati and her people?

 Strengthening SAI Kiribati aligns well the Government of Kiribati’s vision, in particular the Pillar 4: Governance of the Kiribati Vision 20 (KV20) which advocates for the creation of a corruption-free public service through strengthening of institutions, like the SAI-Kiribati, within the public and private sector that foster good governance practices.

A strong and effective SAI-Kiribati plays an important role in the Government’s combat against corruption and its negative impact on the economy and the people of Kiribati. In this context, the SAI-PMF plays an essential role in building and strengthening the Kiribati Audit Office and - more importantly - the audit impact it will bring to the lives of the people of Kiribati.

How was the SAI PMF process for Kiribati?

 The whole SAI PMF assessment was a fascinating experience. Even though this is our stock-in-trade as auditors, we were all excited to learn about the value of strong interviewing techniques and the importance of finding supporting evidence to back up any comments, whether negative, positive or neutral.

As the SAI PMF assessment tool is a new concept for Kiribati’s Audit Office, the assessors spent time with the SAI’s entire team explaining its format and uses, before getting into the assessment itself. 

So what comes next?

We’re waiting on the edge of our seats for the results! But in the meantime, I have already been able to factor some of the information into our strategic plan, and it has been a privilege to be part of such a comprehensive process. I strongly recommend it for all SAIs!

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For more information please contact PASAI’s Communications Advisor on jill.marshall@pasai.org

PASAI's Director of Practice Development talks SPMR with RNZ's Tim Glasgow

SInaroseta Palamo-Iosefo, PASAI’s Director of Practice Development, took time out from co-facilitating the SPMR workshop in Rarotonga, Cook Islands, 26 - 30 November 2018, to talk to Tim Glasgow of Radio New Zealand.

She discussed the objectives of the workshop in improving auditing processes in the Pacific, highlighting the importance of working with the SAIs to align their operational plans with their strategic plans.

Download Sina’s interview here

Read Tim’s article (with interview) here

How many hats can a Secretary-General wear? PASAI's new SG, John Ryan, explains.

Wearing many hats,

by John Ryan, PASAI’s Secretary-General

E ngā mana, e ngā reo, e ngā karangarangatanga maha o te motu, tēnā koutou.

Thank you for the warm welcome you have given me as your Secretary-General. It’s a privilege for me to hold this position – to don this particular hat - and I look forward to serving all the members of PASAI in this role.

Unfortunately, I was unable to get to PASAI’s Congress this year. This was a great disappointment for me but there are times when the many hats we wear include life outside work, and on occasions our family commitments must come first.

In fact, in our work we must remain focused on what we, our families, our friends and communities should reasonably expect, especially in terms of understanding how well the public sector is delivering for us.

I’m rapidly finding that wearing several hats simultaneously is an essential part of what we do. As well as any titles we may hold, we’re both auditors and citizens. We’re outside and inside the systems we work for. We hold institutions to account, and tell them how they can improve. As auditors, we naturally focus on the institutions’ last financial year, but influencing how the public financial management system works is also absolutely critical.

As members of PASAI, we have the unique perspective and independent voice to influence positive changes needed for the public sectors of our countries. We are able to contribute to the effective operation of organisations and to their accountability to our people – today and for the future.

The SAIs of our Pacific nations face relative isolation and constant constraints on our capability and capacity, yet we can always do more. Our countries are made up of many small communities with diverse economic, cultural, social and environmental needs. How well we monitor the organisations that deliver the essential services we rely on has enormous impact on the trust and confidence our people will have in how we are governed.

Given our unique role, we need to be recognised as champions for public sector performance and accountability for the 21st century. We need to keep our organisations relevant, strongly connected and active, and lead with integrity and independence. We have many challenges ahead in re-imagining our public accountability system for the significantly different world that’s emerging.

John Ryan signing Tokelau agreements

Wearing my hat as the Auditor-General of Tokelau (and of Niue), for example, I recently met with Government of Tokelau and key officials. Tokelau’s development strategy sets good governance as its first strategic priority. I was impressed by the commitment of Tokelau’s leaders to take the necessary steps to ensure accountability systems are strengthened as a foundation for future development.

For each of us in all of the corners of the Pacific our challenges present themselves in different ways - but our goals are the same. PASAI has a well-defined and outcomes-focused strategy to assist each of us to reach those goals. I look forward to working closely with you all to deliver on the key focus areas of the PASAI Strategic Plan.

John with Deputy Secretary-General, Sarah Markley, and PASAI Chief Exec, Tiofilusi Tiueti

Launching NZ OAG’s Procurement Programme