Assessment of the Solomon Islands Office of the Auditor-General

Effective operation and capacity development of Pacific Supreme Audit Institutions (SAIs) took a step forward last week for the Office of the Auditor-General of the Solomon Islands on 19-23 June 2016, with the completion of the first pilot assessment using the INTOSAI SAI Performance Measurement Framework (SAI PMF) as a new model for SAI performance management. 

This is the first of many assessments that will be conducted as part of a regional project called “SAI PMF Lite”.  This regional project is coordinated by the Pacific Association of Supreme Audit Institutions (PASAI) in collaboration with the INTOSAI Donor Secretariat (IDS) and the INTOSAI Development Initiative (IDI).

The SAI PMF is a global framework that enables SAIs to perform voluntary assessments of their performance against International Standards of Supreme Audit Institutions (ISSAIs) and other established international good practices for external public auditing. It is a universal tool which can be applied to all types of SAI regardless of governance structure, mandate, national context and development level.  The development of the “lite” version of the SAI PMF and its use by smaller Pacific SAIs is in line with PASAI’s regional strategic priorities of helping Pacific SAIs to strengthen their independence, complete high quality audits on a timely basis and enhance their institutional capacity and capability.

The Solomon Islands’ SAI PMF assessment was conducted by an internal assessment team from the Solomon Islands Office of the Auditor-General (SIOAG) and peer reviewed by the Cook Islands Audit Office (CIAO) with support from PASAI. The SIOAG team was led by Mrs Mary Oldom while the peer review team included Mr. Robert Buchanan (PASAI consultant), Mr. Desmond Wildin (CIAO) and Ms Mere Waqanicagica (CIAO). The Auditor-General Mr. Peter Lokay and the Deputy Auditor General Mr. Robert Cohen and staff of the SAI provided great support to the assessment team during the week.

A copy of the full media release can be downloaded here site/pasai/MEDIA RELEASE SAI PMF ASSESSMENT SIAO -FINAL v3.pdf

The Assessment team with the Auditor General and staffs of SIOAG

Enhancing capability through understanding International Public Sector Accounting Standards

The Pacific Association of Supreme Audit Institution (PASAI) in collaboration with the University of the South Pacific (USP) are conducting a workshop in Nadi, Fiji this week on International Public Sector Accounting Standards (IPSAS). Twenty eight auditors from thirteen supreme audit institutions in the Pacific are participating at the workshop. 

Professional competency is an essential requirement for an auditor. Such competency should be relevant and up to date given any changes in accounting standards adopted by governments as a basis for preparing financial statements. The increasing global trend towards adopting IPSAS as the basis for preparing government financial statements requires auditors to be prepared and be conversant with such developments and proposed changes to governments’ financial reporting framework by having the appropriate skills and capability. 

One of PASAI’s strategic priorities is to enhance the capability of supreme audit institutions through improving auditors’ knowledge and skills on appropriate accounting standards adopted by government entities across the Pacific as the basis for preparing their financial statements. 

PASAI’s Director Practice Development, Ms Sinaroseta Palamo-Iosefo is coordinating the workshop with Professor Mr Arvind Patel and Dr Mr Nacanieli Rika of the USP instructing the practical technicalities of IPSAS. 

The workshop included an overview of the public financial management system, a brief overview of the cash basis IPSAS and discussions of selected IPSAS. Participants engaged in practical exercises and case studies to apply the accounting concepts taught in each IPSAS. 

During the opening ceremony, Mr Ihlen Joseph, Public Auditor of the State of Pohnpei of the Federated States of Micronesia in his opening remarks emphasised to the participants the importance of taking advantage of this opportunity to improve their knowledge and skills through understanding IPSAS so that they can continue to conduct high quality audits and contribute to strengthening the public financial management systems of their countries. 

The positive feedback from participants has reassured the importance of having an overall understanding and awareness of the financial reporting framework of their countries as it defines the parameters of their audit universe. 

This workshop is supported by the Australia Department of Foreign Affairs and Trade and New Zealand Ministry of Foreign Affairs and Trade. 

Image of the workshop participants and coordinators

Public debt management in the Pacific region – an auditor’s perspective

Managing public debt is a regional and global issue and Supreme Audit Institutions (SAIs) play a critical role by encouraging governments to adopt robust debt management strategies, sound risk management practices and proper reporting to disclose levels of public debt. This will assist governments in addressing financial stability, and this is extremely relevant for the developing nations of the Pacific Islands where public debt levels are at unsustainable levels. 

The regional report on Public debt management in the Pacific region – an auditor’s perspective provides a useful snapshot of how public debt management is being dealt with at a national and regional level. It provides key messages to SAIs and Pacific governments and stakeholders to strengthen governance, legal, financial and administrative systems to enhance public debt management. The impact from these audits is already making a difference in encouraging governments to adopt robust debt management strategies, develop sound risk management practices and disclose properly the levels of public debt. The Public Auditor of the Federated States of Micronesia (FSM) National Office Mr Haser Hainrick said “The effort in addressing our recommendations has also resulted in the government leadership taking action to build and to strengthen public debt in FSM.“ 

Eight Pacific SAIs participated in this capacity building program which is the fifth in the series of PASAI’s cooperative performance audits but it is the first to focus on a financial related topic. 

A range of development partners particularly INTOSAI Development Initiative (IDI) supported this regional cooperative audit. The Pacific Islands Forum Secretariat and the Pacific Financial Technical Assistance Centre provided specialist technical advice during the planning and reporting phases over the course of the audit. The Asian Development Bank provided technical support to the development of the initial audit concept and support over the course of the audit. 

The official launch of this regional report was held in Auckland New Zealand at Rydges Hotel today during a regional IDI/PASAI Meeting with SAI Management and Stakeholders, which is attended by Heads of SAIs, development partners and Pacific regional organisations. 

PASAI promotes transparent, accountable, effective, and efficient use of public sector resources in the Pacific. It contributes to helping its member SAIs improve the quality of public sector auditing in the Pacific to uniformly high standard and assist government to develop effective, accountable and transparent institutions at all levels which aligns with Goal 16 of the Sustainable Development Goals (SDGs). 

Launching of Regional Report – PASAI Advocate Mr Eroni Vatuloka handing over the regional report officially on behalf of PASAI to Mr John Path Chairperson of PASAI Governing Board

Launching of Regional Report – PASAI Advocate Mr Eroni Vatuloka handing over the regional report officially to IDI Ms Archana Shirsat Deputy Director General and Head of Capacity Development

Pacific auditors achieving high quality with TeamMate

The Pacific Association of Supreme Audit Institutions (PASAI) is hosting auditors from across the Pacific in Auckland this week to share information about TeamMate®, a new auditing software used by audit offices across the Pacific, including the New Zealand Audit Office. 

TeamMate® is an online auditing program that allows audit offices to spend less time documenting and reviewing information, giving auditors more time to add value in others ways to their audit services and improve the quality of their audits. 

PASAI’s Chief Executive, Mr Tiofilusi Tiueti, said the audit offices using TeamMate® will learn from each other and discuss any challenges they have faced in using TeamMate, “Implementing any new system can be difficult; implementing a new system in isolation can be almost impossible. Our job is to make sure that none of our members feel they are alone in implementing this new system. Audit NZ will be on hand to share their knowledge as a longstanding user of TeamMate®, and a longstanding member and supporter of PASAI”, he said. “TeamMate® will also be on hand with advice.” 

Twenty-three participants from audit offices in Cook Islands, Fiji, Guam, Papua New Guinea, Samoa, Solomon Islands, Tonga and Vanuatu are attending, including two Heads of Supreme Audit Institutions from Samoa and the Solomon Islands. 

PASAI’s Director Technical Support, Ms Agnes Tuiai-Aruwafu said, “TeamMate® is a tool that will help our Pacific SAIs enhance the quality of their audits to ensure their mandate is carried out according to International Standards of Supreme Audit Institutions (ISSAIs). Eight of our members have chosen to use this tool. PASAI is taking this opportunity to collaborate, coordinate and synergize efforts across the Pacific region to achieve high quality audits. “ 

PASAI’s Teammate forum will allow opportunities for peer reviews and other capacity building between the offices that use this audit tool. 

As well as sharing knowledge and ideas, the PASAI TeamMate® forum will develop a Terms of Reference, including how to achieve some key outputs such as developing a public good and arranging secondments through peer reviews between these Pacific audit offices. 

The workshop was possible through funding from Australia DFAT and New Zealand MFAT. 

Photo 1: PASAI TeamMate® forum participants in Auckland 

Photo 2 (L to R): Project team – Agnes Aruwafu PASAI Director Technical Support, Alison McDougall Audit NZ Manager Methodology, Ann Kilpatrick Audit NZ Information Manager, Vance Hetariki TeamMate Australasia Business Development Manager, Aolele Sua-Aloese PASAI Director Advocacy, Engagement and Financing, Tiofilusi Tiueti PASAI Chief Executive.