Practical Advice for Auditors of Foreign Aid Projects in the Pacific

PASAI completed its first pilot of conducting a co-operative financial audit for the region and selected the topic of foreign aid projects. Six SAIs from Cook Islands, Fiji, Kiribati, Tonga, Tuvalu and Samoa participated with the support of INTOSAI Development Initiative (IDI). This pilot programme resulted in multiple observations and lessons learned which forms the basis of this regional report. The report also includes practical advice to assist SAIs in the conduct of financial audits of foreign aid projects in the future. It is expected that both SAIs and development partners in the Pacific region may learn valuable lessons from individual SAI reports as well as from this regional report to improve and enhance the quality of the audits of funds provided by foreign aid.

The current PASAI Chairperson, Public Auditor of the Federated States of Micronesia (FSM) State of Pohnpei office Mr Iso Ihlen Joseph summed up the importance of this topic in his foreword to this report “With a worldwide focus on the UN Sustainable Development Goals (SDGs) there is an ever-increasing quantity of aid flowing into developing countries relating to SDGs. This requires governments to be even more responsible for the transparent and accountable use of funds provided by foreign aid, whether it is for SDG implementation or government projects. In the Pacific this can be even more challenging and highlights the need for a strong country financial system to manage these aid funds honestly and fairly, to ensure they are meeting the needs of the targeted government projects.”

The official launch of this regional report was held in Auckland, New Zealand at the Grand Millennium Hotel on 23 February, 2017, during PASAI’s 16th Governing Board meeting which was attended by the Governing board members, PASAI’s INTOSAI representative and development partners from Australia Department of Foreign Affairs and Trade (DFAT), New Zealand Ministry of Foreign Affairs and Trade (MFAT), the World Bank and Pacific Islands Forum Secretariat. All delegates were presented with a copy of this report and it will also be published on PASAI’s website (www.pasai.org) from Tuesday 28 February, 2017.

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 standards and assists governments to develop effective, accountable and transparent institutions at all levels which aligns with Goal 16 of the Sustainable Development Goals (SDGs).

PASAI acknowledges the financial support of the Australian Government Department of Foreign Affairs and Trade (DFAT) and the New Zealand Ministry of Foreign Affairs and Trade (MFAT) and the collaborative ongoing joint regional partnership with IDI.

Photo: PASAI Advocate, Mr Eroni Vatuloka handing a copy of the regional report to the PASAI Chairperson, Mr Iso Ihlen Joseph at the launch. 

Exciting New Web Interface for IDI

The IDI has a new and exciting web interface for all its stakeholders beginning 2017. It is available at the same address as the previous website: www.idi.no

Back at number one and it’s personal

“Putting people first in maintaining integrity” was a theme in Lyn Provost’s last speech as Auditor-General at the fifth Transparency International Leaders Integrity Forum last week.

This point was echoed by the Brian Picot Chair in Ethical Leadership at Victoria University, Professor Karin Lasthuizen.

New Zealand has worked hard to have a public sector with high integrity, which has been reflected in our ranking on Transparency International’s Corruption Perceptions Index for a long time. We are usually ranked either first or first equal in the world, but we slipped to second and fourth in 2014 and 2015.

It’s certainly good to be back at number one (at least, first-equal with Denmark) on the 2016 index. But we are not complacent.

In 2012, our Office’s work on fraud helped lead to an increase in awareness and action. Now all of us in the public sector have an opportunity to raise awareness and understanding of bribery and corruption.

Lyn told the Integrity Forum that the second word in “Corruption Perceptions Index” matters as much as the first. She has seen an increase in accusations of corruption during her term as Auditor-General, even though the Office’s inquiries have not upheld those accusations.

The increasing perception of corruption should be of concern to us all, Lyn said.

“Without transparency, allegations of corruption will flourish. Without transparency, people wonder what their politicians and officials are trying to hide. We can hardly blame them.”

As public sector auditors, we meet thousands of public servants committed to improving the lives of New Zealanders. They’re doing a great job, but our reputation is a fragile thing. There is plenty that can go wrong. Public entities can get too focused on avoiding risk, ticking boxes, following processes, and managing throughputs. Of course we need systems, but what comes first in maintaining integrity is concern about people.

Karin’s presentation on research in ethical leadership reinforced Lyn’s emphasis on concern for people. She told the forum that ethical leadership and explicit communication about ethics is particularly important for combatting unethical behaviour. Communication about ethical values and norms, and open discussion about ethical dilemmas, helps reduce perceptions of favouritism inside an organisation, and discrimination outside of it.

The Kiwis Count Survey run by the State Services Commission shows that New Zealanders' trust in public services by experience is consistently much higher than their perception of trust. By both measures, trust has increased markedly since 2007. It shows that their trust is closely linked to their personal contact with the public sector.

In her last address as Auditor-General to the public sector, those at the Forum might have expected a discussion of accounting and financial management challenges and of the systems that could be improved. But Lyn showed the forum the trait that has made her distinctive as an Auditor-General – her willingness to talk about the issues that matter for people.

She challenged the public sector to focus on, and find ways to improve, five issues that trouble us all and blight so many of our lives: and that undermine our integrity:

1. Suicide – the third leading cause of premature death in New Zealand. Every suicide is a tragedy. Our Office has tried to contribute to this complex problem by looking at how information is collected and used to prevent future suicides.

2. Mental health – in our Office, as in communities throughout New Zealand, no one’s life is untouched by the pain of suicide and mental health related issues. In the next few months, the new Auditor-General, Martin Matthews, will present a report on acute care of mental health patients.

3. Māori education – too many Māori children leave school without the education they deserve. The achievement gap between Māori and non-Māori is closing too slowly. As an Office, we are proud of our reports on Māori education, and we hope the sector will have the courage to do what is needed to help Māori students achieve their full potential.

4. Jobs for youth – we are an organisation that recruits graduates who are beginning careers to become our future public sector leaders and finance managers. Too often we hear the phrase “we want experienced people”! How does a young person get experience with that attitude?

5. Family violence and its impact on children – in her eight years in Police, Lyn says she saw the impact of family violence again and again. Family violence is not acceptable.

Staying at number one on the Corruption Perceptions Index means making it personal – having the uncomfortable conversations to find ways to tackle the issues that matter for people.

FULL ARTICLE AT: https://oag.parliament.nz/blog/2017/back-at-number-one

““Without transparency, allegations of corruption will flourish. Without transparency, people wonder what their politicians and officials are trying to hide. We can hardly blame them.””

— Lyn Provost

Supporting performance measurement of public auditors in the Pacific

The Pacific Association of Supreme Audit Institutions (PASAI) and INTOSAI Development Initiative (IDI) continued with phase II of the SAI Performance Measurement Framework (SAI PMF) project for supreme audit institutions (SAIs) in the North Pacific by facilitating a week long workshop in Guam on 30 January to 3 February 2017. Twenty one staff from nine SAIs including a representative from the United States Department of the Interior Office of Inspector General (US DOIOIG) attended the workshop.

The Speaker of the 34th Guam Legislature, the Honourable Mr Benjamin J.F.Cruz officially openedthe workshop. In his opening remarks, he acknowledged that the work of SAIs is vital and necessary in keeping all government officials including politicians, in line with utilizing public funds and public resources.

SAIs from Guam, Marshall Islands, Federated States of Micronesia (FSM) Office of the National Public Auditor, FSM States of Pohnpei, Kosrae and Yap will conduct peer reviews of each otherusing the SAI PMF framework. Staff from SAIs Cook Islands, Samoa and Tonga who took part in Phase I of this project participated as resource persons to assist with the peer review of the six SAIs in the North Pacific.

The main objectives of the workshop were:

• To train staff of SAIs who will participate in conducting a SAI PMF assessment;
• To develop the terms of reference (TORs) for the SAI PMF assessments; and
• To assess the SAI’s institutional capacity by measuring its independence and legal framework.

The planned activities for Phase II which will be executed in the next few months are peer reviews of the six SAIs and a final workshop to discuss and analyse the results of the assessments. The intended output of this phase is completed SAI Performance reports for all six SAIs participating in the programme.

Camilla Fredriksen, SAI PMF advisor from IDI, hopes that the implementation of Phase II will strengthen the knowledge on SAI Performance in the Pacific and that the results will enable regional bodies and SAIs to identify good practices as well as opportunities for capacity development throughout the region. She added that rolling out the Phase II provides an opportunity for applying the lessons learnt from Phase I, and to strengthen the regional expertise of SAI PMF assessors.

The assessment results will assist the SAIs in taking appropriate measures to ensure they have the capabilities and resources to carry out its responsibilities effectively with professionalism. The results will also assist the SAIs to know if they have the ability to respond to stakeholders’ expectations as well as emerging issues that impact the lives of citizens at large.

This program is aligned with one of PASAI’s strategic goals requiring SAIs to develop performance measurement framework to assist with improving the delivery of SAI’s audit responsibilities.

The workshop was facilitated by a team of facilitators consisting of Ms Camilla Fredriksen, SAI PMF Advisor from IDI, Mr Robert Buchanan, PASAI Consultant, Mrs Sinaroseta Palamo-Iosefo, PASAI Director of Practice Development, Mr Allen Parker and Mr Desmond Wildin of Cook Islands, Mr Marshall Maua of Samoa and Mr Kelepi Makakaufaki from Tonga.

This project is supported by Australian Department of Foreign Affairs, INTOSAI Development Initiatives (IDI) and New Zealand Ministry of Foreign Affairs and Trade.

Image of the workshop participants and coordinators 

Spotlight on Success: Regional Collaboration to Close the Accountability Gap-the PASAI Approach

THE CHALLENGE

Several smaller island nations in the Pacific have limited auditing capabilities. For example, back in 2009, theTuvalu Office of the Auditor-General (TOAG) and the Kiribati National Audit Office (KNAO) were not completing audits in a timely manner. They had backlogs of audits and struggled to keep up with changes to international financial reporting and auditing standards.

One of their main challenges was in the area of human resources, a typical problem faced by small island nationsin the Pacific. The untimely audit of the government’s accounts entailed reduced accountability for the use of public funds in Tuvalu and in Kiribati, as the Parliaments and the citizens did not receive assurance that funds were spent as intended.

THE RESPONSE

The Pacific Association of Supreme Audit Institutions (PASAI) designed a Sub-regional Audit Support Programme (SAS) to support some of the smaller and most vulnerable SAIs that were facing similar challenges with staff capabilities, audit methodologies and systems. The programme was linked to PASAI’s strategic plan and its work program, the Pacific Regional Audit Initiative (PRAI). 

The SAS programme was operational from 2009 to 2016. It supported TOAG and KNAO capacity building by helping them complete financial audits, train SAI personnel and improve information sharing. This effort was made possible by a team of secondees from each participating country and supported by consultants to assist in the audit of public accounts using updated auditing standards.

The Asian Development Bank financed the SAS programme, through the Japan Fund for Poverty Reduction.  The Australian Department of Foreign Affairs and Trade and the New Zealand Ministry of Foreign Affairs and Trade have been the primary funders of the PASAI Secretariat, whichhas helped implement the programme.

THE RESULTS

• The KNAO is now up-to-date with the whole of government audits
• The TOAG has audited all financial statements submitted, including the whole of government financial statement for 2015
• The competency, confidence and experience of the staff involved in the SAS programme have significantly increased.
• The timely completion of the whole of government audits has positively contributed to the availability of up to date and reliable financial information for the respective governments in preparing budgets and in formulating relevant policies, which will benefit citizens

The results in PASAI have been made possible with the support of donors who have aligned behind PRAI and PASAI´s strategic plan, leading to well-coordinated support to the SAIs in the region.

PASAI’s regional approach to capacity development has enabled scarce resources to be utilized in an effective way, as synergies have been realized and peer SAIs have worked together to improve performance at the country level. The approach has included staff training and development, sharing resources regionally and aligning policies to strengthen national capacities. This isa good illustration of the key principles for SAI capacity development in the INTOSAI-Donor Memorandum of Understanding.

On the basis of the same regional approach, the INTOSAI- Donor and PASAI secretariats have designed a programme for measuring performance that is in line with PASAI’s regional priorities. Financed by the Australian Department of Foreign Affairs and Trade, this newly developed initiative facilitates SAI Performance Measurement Framework (SAI PMF) assessments for numerous smaller SAIs throughout the Pacific region. Using a combination of self- assessment and peer reviews, the goal is to effectively address the challenges associated with staff and skill limitations.

The TOAG takes part in the SAI PMF programme. The TOAG assessment was conducted in 2016 using a combination of internal assessment and peer review by the Samoa Audit Office with support from PASAI. Following the completion of the draft assessment, the peer review team presented preliminary findings to TOAG management and staff, who acknowledged and accepted the constructive feedback for improvement.

FOR FULL ARTICLE CLICK HERE

SAS committee May 2013

SAS Committee May 2014 - signing new MOU

Martin Matthews - Controller and Auditor-General

On 1 February 2017, Martin Matthews began his seven-year term as New Zealand’s Controller and Auditor-General.

Martin has worked in the public service for more than 36 years.

He joined the (then) Audit Office in 1979 and spent the first 18 years of his career in the office. He was an Assistant Auditor-General from 1990 to 1998, holding various portfolios during this period.

Martin then spent 10 years as Chief Executive of the Ministry of Culture and Heritage. He later served as Secretary for Transport and Chief Executive of the Ministry of Transport, from 2008 to June 2016.

Martin was the select committee’s advisor on the Public Finance Act 1989 and led much of the policy design work for the Public Audit Act 2001.

As Controller and Auditor-General, Martin's principal functions and duties are set out in the Public Audit Act 2001. In summary, they are to:

• ensure that the office carries out its obligation to conduct audits of public sector bodies, and report to Parliament on the results of the audits; and
• ensure the efficient, effective, and economical management of the Office of the Auditor-General. 

Martin is a Fellow of Chartered Accountants Australia and New Zealand, New Zealand Institute of Management, New Zealand Institute of Chartered Logistics and Transport, and Companion of the New Zealand Institute of Professional Engineers. 

STORY COURTESY OF: http://oag.govt.nz/our-people/martin-matthews

Samoa Legislative Committees strengthens its financial oversight and external scrutiny role

The Pacific Association of Supreme Audit Institutions (PASAI) in partnership with the Office of the Controller and Auditor-General of Samoa, delivered a two-day workshop on the “Financial oversight and external scrutiny roles of Samoa’s Legislative Committees” on 19-20 January 2017 at the Samoa Parliament Conference facility.  Twenty of the 24 members of five Parliamentary Committees of Samoa attended the workshop opened by the Honourable Speaker of Parliament, Hon Leaupepe Taimaaiono Toleafoa Faafisi.  In his opening remarks, Hon Leaupepe Taimaaiono Toleafoa Faafisi stressed the importance of this workshop for members of the five Parliamentary Committees, and was delighted at the opportunity for PASAI to deliver this workshop for the Samoa Legislative Assembly. 

This workshop is the sixth one that PASAI has delivered in the region with the aim to build the capacity of the Members of Parliament who are also Members of Parliamentary Committees.  The objective was to help them better understand their role in providing financial oversight of public expenditure, as well as better understand the specific role of legislative committees within the processes of Parliament. 

Fuimaono Papalii C.G. Afele, Controller and Auditor-General of Samoa hosted the workshop, and was supported by  the PASAI Advocacy Team, Mr Eroni Vatuloka, PASAI Advocate, and Ms Aolele Su’a Aloese, Director of Advocacy, Engagement and Financing in delivering this workshop. A committee member during the sessions commented that “there is a need for building the capacity of Committee members as many are non-accountants and are not familiar with accounting and financial terminologies contained in the audit reports or in the financial statements of the audit entities. A training of this type targeted at non-accountant Parliamentarians will be most helpful in performing their financial oversight and external scrutiny role”. 

The outcomes of the workshop include proposals for: enhancing the efficiency and effectiveness of the parliamentary committees; increasing efforts in the evaluation of performance of government entities; strengthening the Office of the Controller and Auditor- General; and engaging PASAI to assist in capacity building of the parliamentarians.

This programme comes under Strategic Priority 2: Advocacy for governance, accountability and transparency, of PASAI’s long-term strategic plan.  PASAI is very grateful for the excellent support by the Hon. Speaker of Parliament and his staff, and also the Controller and Auditor-General of Samoa and his team in organising this workshop. PASAI also acknowledges the valued support from the Australian Department of Foreign Affairs and Trade and the New Zealand Ministry of Foreign Affairs and Trade.

Workshop Participants from Parliamentary Committee members of Samoa, the Controller and Auditor-General of Samoa and the PASAI Advocacy team. 

Workshop Participants from Parliamentary Committee members of Samoa

PASAI Independence Resource Kit

Excerpt from the CBC website at : http://www.intosaicbc.org/pasai-independence-resource-kit/

PASAI has prepared this independence resource kit under as one of its strategic priority to strengthen SAI independence, and for the benefit of its members. The resource kit is now available on PASAI’s website, for use by SAI’s in the Pacific but also more widely. PASAI will update the kit to reflect development in SAI independence both in the Pacific and globally. Please read more on the PASAI page in the main menu on CBCs website or go to PASAIs website to find out more: http://www.pasai.org/introduction

Retaining Staff - We train them and then they leave!

Excerpt from the CBC website at : http://www.intosaicbc.org/retaining-staff/

As we implement the ISSAIs, especially the financial audit ISSAIs, we need professional staff but how do we train and re-train them? In one way or other this was a constant refrain in the formal and informal discussions at the recent Congress in Abu Dhabi. Once we have trained people, and especially once they have professional accounting qualifications, how do we pay enough to keep staff. This is not an easy one to solve and is something Auditors-General and Senior Managers wrestle with across the SAI community. But there are some solutions which I have seen work.

At base, it is important to understand the market in which a SAI operates. What is the going rate in the private sector or in other parts of the public sector for qualified accountants or auditors? It is useful to engage a consultancy body with experience of carrying out such comparator exercises? In one country where we did this the comparators were some of the private sector firms but also the Revenue Authority. Knowing the going rate is a useful starting point. A SAI may not need to match the private sector completely because working in the public sector brings many other benefits which are not available to the private sector – usually better pensions, access to wider training opportunities, longer holidays and shorter days, better job protection, a wider variety of work, and the public sector ethos of contributing to wider social benefits. However, having hard data of this kind makes it easier to make a defensible case for salary uplifts (if warranted) with Parliaments and Ministries of Finance.

In situations where a SAI needs to follow public sector wide salary bands, then it can be difficult to make a special case for improvements to the salaries of SAI staff. Again data on turnover or problems with recruiting qualified staff should be collected to help substantiate claims. But equally a SAI can forge links with other key public sector bodies needing to employ qualified financial experts for example the Ministry of Finance, Revenue Authority and Internal Audit Services and make a joint proposal to the Public Service Board or equivalent putting the case for a more market responsive salary scale for financial staff. Such cases can be made stronger if the SAI shows how recruiting qualified financial staff can generate efficiencies and not just lead to an increased staffing bill.

Where the SAI is a training organisation, then it risks losing a proportion of these staff once they gain their professional qualification. The UK NAO provides for this risk by training more than it wishes to eventually retain – recognising that even during training such staff are productive and play a major role in carrying out the routine aspects of the annual audits. At the same time, it is important that these trainees are well supported and motivated during training so that they can see a satisfying career in the NAO when they become qualified. Early in their career we seek to expose these newly qualified staff to a wide range of interesting assignments, to continue to invest in their professional development and to make sure they feel valued members of the organisation. In Rwanda a number of years ago, a colleague asked one of the shining middle-manager stars what it would take from the SAI to keep people like him in the office, as she had identified him as just the type of person the office would need in order to keep progressing. His reply was that a recognition such as that would go a long way. If he only knew that top management saw him as an important part of the office’s development and that they were willing to invest in him that would make a difference. He said nothing about the salary.

It is also sometimes practical to make sure that the accountancy or audit qualification offered by the SAI is one which is oriented to the public sector (so making private sector poaching less likely). In other situations, a SAI may choose to offer staff accounting or auditing certificates or diplomas which are at sub-professional level with only a few being taken through the full courses needed to become full members of the professional associations.

But staff will leave – and it is important that their leaving is managed well. They can be important ambassadors for the SAI when they move elsewhere, they can make useful contributions to improving public financial management elsewhere and in some cases they may want to come back with new skills and experiences into more senior roles in the SAI. It can be a win-win!

David Goldsworthy

Former Head of Technical Cooperation and International Relations , National Audit Office - ‎United Kingdom

2016 - Year in Review

The PASAI Chairman, Secretary-General and Secretariat would like to wish everyone a Merry Christmas and another fruitful year ahead.

Please view a glimpse of our programs during the calendar year in the video below.

Building capacity of auditors on Public Procurement

The Controller and Auditor-General of Samoa Fuimaono Camillo Afele is hosting the Pacific regional program on compliance audit of public procurement which is part of an international capacity building program developed and delivered jointly by the INTOSAI Development Initiative (IDI) and the Pacific Association of Supreme Audit Institutions (PASAI). 

Twenty-two auditors from Cook Islands, Fiji, Federated States of Micronesia, State of Pohnpei FSM, Papua New Guinea, Republic of Marshall Islands, Samoa, Solomon Islands, Tonga and Tuvalu are participating in this week-long review meeting, which commenced Thursday 15 December and will end on Tuesday 20 December 2016. 

The keynote speaker Honorable Salā Fata Pinati (Minister for Audit Office) formally opened this regional meeting by highlighting the important role that Supreme Audit Institutions (SAIs) play in ensuring accountable and transparent government procurement practices. The Controller and Auditor-General of Samoa also commented that “This regional program is the first being delivered in the global INTOSAI region and I am pleased to host it, because the subject matter of public procurement is a significant matter which affects all areas of public service delivery which my office is mandated to do.” 

The programme follows the co-operative audit approach with the main objective to support SAIs in moving towards International Standards of Supreme Audit Institutions (ISSAIs) compliance in the conduct of compliance audits. At this review meeting the participating teams obtained feedback from the facilitators/resource persons in relation to their draft audit reports and throughout the week teams were given the opportunity to enhance and improve their draft reports. The facilitators and resource persons for this review meeting is Mr Md Shofiqul Islam IDI program manager for PASAI, Ms Ingvild Gulbrandsen SAI Norway, Mr Ibrahim Aiman SAI Maldives, Ms Violet Roebeck-Fasavalu SAI Samoa and PASAI Director Technical Support, A’eau Agnes Tuiai-Aruwafu. The programme, which is part of the global ISSAI implementation initiative or 3i programme, spans a period of two years and provides blended support solutions by supporting participants in sustainably enhancing their professional and organisational capacity to audit more effectively public procurement. 

PASAI is the overarching regional working group of Supreme Audit Institutions in the Pacific region. We have 28 members that we work with to promote transparent and efficient use of public sector resources with the aim to make a difference to the lives of our citizens. The IDI acts as the capacity development secretariat of the INTOSAI (International Organization of Supreme Audit Institutions) which comprises of 192 SAIs. PASAI is a regional organisation of INTOSAI, which operates as an umbrella organisation for the external government audit community and has a worldwide global affiliation with SAIs around the world. 

PASAI acknowledged the financial support and collaborative ongoing joint partnership with IDI and the financial support of the Australian Government Department of Foreign Affairs and Trade (DFAT) and the New Zealand Ministry of Foreign Affairs and Trade (MFAT) including the Samoa Audit Office. 

L-R: Keynote Speaker Honorable Minister of Audit Office – Hon. Salā Fata Pinati, Controller & Auditor-General –Fuimaono Afele, INTOSAI Development Initiative (IDI) Program Manager PASAI region, Mr Md Shofiqul Islam 

Review Meeting participants 

Regional Workshop on Strengthening Oversight Functions of Public Financial Management through Internal and External Audit, held in Honiara, Solomon Islands

The Auditor-General’s Office of Solomon Islands (OAG) together with the Pacific Association of Supreme Audit Institutions (PASAI) and the Pacific Financial Technical Centre (PFTAC) hosted a Pacific regional workshop in Honiara, Solomon Islands from 5 to 9 December 2016 at the Heritage Hotel. The theme of this joint PASAI/PFTAC workshop ‘Strengthening Oversight Functions of Public Financial Management through Internal and External Audit’, is the first in the Pacific region where the objective was to impart knowledge about the critical roles played by External Audit (Audit Offices or also known as Supreme Audit Institutions (SAIs) and Internal Audit to improve and contribute to strengthening Public Financial Management to enhance the ability of governments to deliver key services to its citizens.

Twenty-seven auditors from respective SAIs (external audit) and Government Internal Audit divisions/agencies participated in this week-long workshop representing seven Pacific countries

– Cook Islands, Fiji, Papua New Guinea, Samoa, Solomon Islands, Tonga and Vanuatu. Participants were encouraged to consider co-operation and co-ordination with each other to maximize the benefits gained from working together. Towards the end of the workshop participants from internal and external audit offices of each country spent time to discuss possible collaboration and presented joint country strategies on avenues where they can work together. PASAI/PFTAC will continue to encourage this collaboration through follow up and continuing dialogue with these auditors.

In his opening remarks, the Solomon Islands Auditor-General Mr Peter Lokay stated “This first regional collaboration between Internal Auditors and External auditor is significant because it will promote good governance through contributions to accountability and transparency in the use of public resources, as well as to promote efficient, effective and economic public administration, to make a difference to the lives of our people in the Pacific.”

The regional workshop was developed and delivered by a highly experienced team including PASAI’s Director of Technical Support, Agnes Aruwafu (External Audit expert), Sue Morrison (Internal Audit expert), Chita Marzan, PFTAC’s PFM Expert together with invaluable input from Mr Paul Apps, Past President/Board of Directors of the Institute of Internal Audit [IIA

Australia]. A session was also delivered by Mr Mark Thompson and Vance Hetariki from Teammate Wolters Kluwer.

PASAI commended the Solomon Islands Office of the Auditor-General for their excellent support and for making this workshop a great success. This included arranging for delegates to be a part of the national “Walk Against Corruption” with them on International Anti-Corruption Day, 9th December and witnessing the launch of the National Anti-Corruption Strategy by the onourable Prime Minister Mr Manasseh Sogavare.

PASAI acknowledged the financial support of the Australian Government Department of Foreign Affairs and Trade (DFAT) and the New Zealand Ministry of Foreign Affairs and Trade (MFAT) and the collaborative ongoing joint regional partnership with PFTAC.

Workshop participants

Pacific Auditors participated in the “Walk Against Corruption” to celebrate International Anti-Corruption Day 9th December 2016 with OAG Solomon Islands. Photo taken with Solomon Islands Honourable Prime Minister and Auditor General of Solomon Islands 

International Anti-Corruption Day

Pacific Association of Supreme Audit Institutions (PASAI) Members Join the Global Fight against Corruption on International Anti-Corruption Day, 9 December 2016

During the PASAI 19th Congress in August 2016 in Pohnpei, Federated State of Micronesia, Pacific Auditors-General and Public Auditors as Heads of Supreme Audit Institutions (SAIs)  unanimously agreed for SAIs to participate incelebrating the “International Anti-Corruption Day”, 9th December 2016, as part of the global fight against corruption.  This was in line with the PASAI Congress Theme, “Fishing Together for a Pacific Free of Corruption and Poverty”. 

Today, all around the Pacific, PASAI members will be taking part to show their support and commitment to this important day, contributing towards achieving SDG 16 of the 2030 Agenda.  Activities that SAIs are planning to undertake will include school essay writing competitions, float competitions, market days, press conferences, media releases, publication of audit reports and many more as SAIs join many other organisations around the Pacific on International Anti-Corruption Day.

The United Nations stated, “Every year $1 trillion is paid in bribes while an estimated $2.6 trillion are stolen annually through corruption – a sum equivalent to more than 5 percent of the global GDP.  In developing countries, according to the United Nations Development Programme, funds lost to corruption are estimated at 10 times the amount of the official development assistance”. 

Supreme Audit Institutions (SAIs) play an important role in the fight against corruption not only in the Pacific but globally as watchdogs of the public purse.  Pacific SAIs can also contribute by advocating for legislative changes to strengthen national systems and institutions to fight corruption, working more closely with other government agencies, increasing public awareness of the issues through its audit reports and engaging with stakeholders in the fight against corruption and poverty.

PASAI Chairman and Public Auditor of Pohnpei State, Federated States of Micronesia, Mr Ihlen Joseph, commented that “the fight against corruption starts with our youth, if we can educate them early, they can contribute to building a culture and a society free of corruption and poverty”.  Mr Joseph leads the way in this initiative with the Pohnpei State Office of the Public Auditor (OPA) hosting an essay contest for high schools, and a float/parade contest for youth groups on the 9th December 2016.  Pohnpei OPA received financial assistance from the United Nations Development Programme Funding specifically for “International Anti-Corruption Day”. 

PASAI Secretary-General, and Controller and Auditor-General of New Zealand, Ms Lyn Provost emphasised that, “the fight against corruption requires collaboration and co-operation between SAIs, national institutions, anti-corruption agencies, civil societies, media organisations and the public at large.  Corruption is a serious crime that can undermine social and economic development in all societies. No country, region or community is immune.  We therefore have to be vigilant and to work together as a region and as organisations to do our part to address this epidemic that stifles economic development, prosperity and democracy”.

‘Communicating and Promoting Value and Benefits of SAI Workshop’ Suva, Fiji

The Pacific Association of Supreme Audit Institutions (PASAI) together with the Fiji Office of the Auditor-General (OAG) conducted the ‘Communicating and Promoting Value and Benefits of Supreme Audit Institutions (SAIs)’ workshop in Suva, Fiji on 5 – 9 December 2016. This was the third communications workshop delivered by PASAI this year, as part of its programme on communicating the value and benefits of SAIs. The OAG’s Directors and senior management attended the workshop with 30 participants.

Mr. Sairusi Dukuno, OAG Director of Corporate Services opened the workshop, welcoming the special guest speaker, Permanent Secretary of the Ministry of Economy, Ms Makereta Konrote, PASAI facilitators and workshop participants. Referring to the strategic priorities of the OAG, Mr Dukuno stated, “One of its strategic objectives is to motivate personnel to achieve their potential and nurture a conducive environment for professional and personal development through facilitating continuous learning and development programs for all levels. This five day workshop is a part of the continuous learning.”

Special guest speaker, Ms Konrote gave an encouraging speech, emphasising the important role that the OAG plays in keeping public officers responsible and accountable in how public funds are used. She referred to the principles in the International Standards of Supreme Audit Institutions (ISSAI) 12: The Value and Benefits of SAIs – making a difference to the lives of citizens, in her keynote speech. “Dissemination of information to citizens including Parliament and other stakeholders is crucial, so a comprehensive, clear and well-defined Communication Strategy will go a long way to achieving this objective. As auditors, you will also learn the core elements that need to be included while writing reports and the ability to convey information in an accurate, concise and a clear manner. We welcome strengthening of these skills and look forward to seeing the improvements in future reports from the Auditor General,” she said.

The workshop participants were enthusiastically engaged in sessions that included topics such as ‘Identifying SAI Stakeholders’, ‘Stakeholder Engagement’, ‘Communication Strategy Implementation’, ‘Report writing processes’, ‘Writing concisely’, and ‘Dealing with the Media’. The sessions were facilitated by PASAI Director of Practice Development, Sinaroseta Palamo- Iosefo and Communications Adviser, Tina Vaka.

PASAI acknowledges the support from the Fiji OAG in organising the workshop, and the valued support from the Australian Department of Foreign Affairs and Trade and the NZ Ministry of Foreign Affairs and Trade.

Photo: Fiji Office of the Auditor-General Directors and Senior management staff with the Permanent Secretary of Ministry of Economy, Ms Makereta Konrote (front row, second from the right) and PASAI workshop facilitators.

INTOSAI Leading by Example in Performance Measurement

In a historic day for public external auditing, the International Congress of Supreme Audit Institutions today unanimously adopted the SAI Performance Measurement Framework (PMF) as an official INTOSAI document. The SAI PMF is a holistic and evidence-based tool supporting the professionalization of SAIs. It enables SAIs to live up to public expectations of being credible institutions, and to measure and report on their performance.

The need for a framework to support SAIs to better measure their performance was identified at the 2010 INTOSAI Congress in South Africa. The INTOSAI Working Group on the Value and Benefits of SAIs was given the role, and a task team of volunteer SAIs and Donors established. SAI PMF development, consultation and piloting was coordinated by the INTOSAI-Donor Secretariat in the INTOSAI Development Initiative (IDI). INTOSAI published a Pilot Version of the SAI PMF in 2013, which was piloted in more than 20 volunteer SAIs from Brazil to Nepal (being the first to publish its assessment), and from Burkina Faso to the Slovak Republic during 2013-15. Experience from the pilot assessments, and global consultation, led to extensive lessons learnt and ultimately development and approval of the SAI PMF.

INTOSAI also gave its support to the SAI PMF Implementation Strategy for 2017-19, including the INTOSAI Capacity Building Committee taking on the role of INTOSAI strategic governance lead and a new SAI PMF unit within IDI taking the role of the operational lead for SAI PMF support. This will ensure SAI PMF is firmly anchored within INTOSAI, and provide support to SAI PMF as a tool that all heads of SAIs are encouraged to utilise, on a voluntary basis.

Meanwhile, SAIs around the world continue to utilise SAI PMF to support needs assessments, strategic planning and performance management. In 2016, Sierra Leone became the first country to conduct a repeat assessment, through peer review, providing objective evidence of performance improvement since its first assessment in 2012. In November, New Zealand completed its self-assessment, tabling a summary of the report in Parliament and publishing the assessment in full. Auditor General Lyn Provost noted that "the results were largely as expected, which is pleasing. However, the assessment has also identified a few areas which require more focus within our SAI, which should lead to further improvements in our performance".

Throughout 2016, SAIs across the Pacific have worked together, with support from IDI, to undertake peer-assessments through a coordinated, regional approach.

The development and piloting of SAI PMF represented a successful partnership effort between INTOSAI and the donor community. The INTOSAI-Donor Cooperation, involving INTOSAI and 23 international development partners, provided significant funding and strategic advice, built on experience from similar tools such as the Public expenditure and Financial Accountability (PEFA) framework. Individual assessments in different countries have been resourced by combinations of SAI's own resources, in-kind support from peer SAIs, and donor funding, especially from the Inter-American Development Bank in Latin America and the Caribbean. The Donor Community will remain involved in SAI PMF implementation, through voluntary membership of a SAI PMF Independent Advisory Committee, as well as by supporting implementation efforts at the regional and country level.

Contact Details

SAI PMF Secretariat in IDI: saipmf@idi.no

http://www.idi.no/artikkel.aspx?MId1=102&AId=704

Building Capacity to Effectively Audit the Management of Public Assets

The Auditor-General’s Office of Papua New Guinea (PNG) together with the Pacific Association of Supreme Audit Institutions (PASAI) hosted a workshop in Port Moresby from 21 to 25 November 2016 at the Lamana Hotel. The theme of the workshop, ‘Building Capacity to Effectively Audit the Management of Public Assets’, emphasised that the risks to Pacific Island Countries and Territories governments of poorly managed public assets / resources are significant and material. Supreme Audit Institutions (SAIs) play an important role to improve the management of public assets resources, which is critical for the ability of governments to deliver key services to its citizens. The PNG Auditor-General Mr Philip Nauga commented that “this workshop is relevant and important for our office because it aligns with the PNG Vision 2050 National Government plan to reduce corruption including the mismanagement and misuse of public assets and resources”. Such comments echo similar concepts from SAIs in the Pacific region.

The workshop covered a range of technical topics from the asset life cycle, the four main stages of asset management decisions, determining the feasibility of a performance audit on this topic, to linking audits to SDGs and National Development plans and strategic audit planning of asset management audits

The knowledge gained by participants from this workshop will help them to plan and carry out an audit on assets management, with value added recommendations to their respective government.

Twenty two representatives from 15 SAIs attended this week-long workshop - Papua New Guinea, American Samoa, Cook Islands, Fiji, the Federated States of Micronesia’s States of Chuuk, Pohnpei, Kosrae, and Yap, Kiribati, Marshall Islands, Palau, Samoa, Solomon Islands, Tonga and Tuvalu. For the first time in PASAI programs, a representative from the African Organisation of English-speaking Supreme Audit Institutions (AFROSAI-E) attended and this was possible through PASAI’s Memorandum of Understanding with AFROSAI-E to share resources and knowledge. The regional workshop was developed and delivered by a team of highly experienced PASAI consultants from Kerry McGovern and Associates (Ms Kerry McGovern, Dr Penny Burns and Ms Michelle Maschmedt) all with extensive experience in public sector asset management and working in the Pacific Islands. The workshop was delivered using a blended learning approach which consisted of class room lectures, exercises and two study tours to major infrastructure public assets such as PNG National Airport Corporation and the PNG National Football Stadium. Both these study tours provided a practical implementation of the content taught during each of these days, to enhance their understanding. The feedback from participants was positive and they enjoyed the variety of teaching approaches.

The workshop ended with the presentation of certificates to participants by the PNG Auditor- General together with Mr Dylan Roux, First Secretary, Australian High Commission, Papua New Guinea.

PASAI commended the PNG Office of the Auditor-General for their excellent support and for making this workshop a great success including their world-class hospitality.

PASAI acknowledge the financial support of the Australian Government Department of Foreign Affairs and Trade (DFAT), and the New Zealand Ministry of Foreign Affairs and Trade (MFAT).

Workshop participants

First Study Tour – National Airport Corporation, Day 2 of the workshop

Promoting better governance, accountability and transparency for Pohnpei State

The Pohnpei State Office of the Public Auditor (OPA) in partnership with the Pacific Association of Supreme Audit Institutions (PASAI) hosted a five day workshop in Pohnpei from 21 – 25 November 2016 for Members of the Legislature, Audit Entities, Public Auditors of Federated State of Micronesia, Chief Executives of Local Government, and other stakeholders including media and civil society organizations, in Pohnpei. The workshop is in line with one of PASAI’s strategic priorities, “to advocate on behalf of its members to strengthen governance, transparency and accountability.”

Legislative committees play an important role in the scrutiny of audit reports and providing oversight over the use and management of public resources. The workshop was opened by the Vice Speaker of the Pohnpei State, the Honorable Nixom Soram, “who extended a warm welcome to members of the legislature, the Pohnpei State Public Auditor, Iso Ihlen Joseph, his staff, and the PASAI delegation for holding such a valuable workshop for its members”. Vice Speaker, Hon Nixom Soram in his opening address commented, “as legislators our role is to ensure monies are expended correctly, once they are expended, we must ensure they are accurately accounted for, if not, we turn to the auditors. That is why we need the help of auditors”. Members of Legislative Committees who attended the first two days also commented, “the workshop was informative and extremely useful for their roles as oversight committees, and as members of the legislature”.

The first two days of the workshop was the programme for members of the Legislature and was attended by 17 members. The topics covered included an overview about the role of PASAI, the status of accountability and transparency in the Pacific, the value and benefits of Supreme Audit Institutions or Offices of Public Auditors, public accountability framework of the Pohnpei State, its budget process, fraud awareness and the audit findings of OPA.

The final three days were for the second group comprising of Cabinet Members, staff of audit entities including finance and administration staff, the Public Auditor of Kosrae State and his staff, which started their session on Wednesday and attended by 27 participants. The Governor of Pohnpei State, the Honorable Marcelo K Peterson, welcomed the second group, and in his opening remarks, extended his gratitude to the Chair of PASAI, also the Public Auditor of Pohnpei, for selecting Pohnpei to host this workshop. He ended his opening remarks with a wise old saying, “in order to establish trust, it is first important that you be trustworthy.  This means you should be forthright with all your dealings”.

This workshop is the fourth Public Accounts Committee workshop PASAI has held in the Pacific, and it is the first time it has extended to a five day programme to include audit entities, government officers, local government and other stakeholders.

The workshop was facilitated from PASAI by Mr Eroni Vatuloka, PASAI Advocate, and Ms Aolele Su’a Aloese, Director of Advocacy, Engagement and Financing, and from the Pohnpei Office of the Public

Auditor, by Mrs Sophia H Pretrick, Investigative Advisor, Mrs Analin Co Estur, Audit Manager and Ms Christina Elnei, Budget Officer, Pohnpei State Governor’s Office.

PASAI would like to acknowledge the support of the Pohnpei State Office of the Public Auditor, for making this workshop a great success. We would also like to acknowledge the financial support of the Australian Government Department of Foreign Affairs and Trade (DFAT), and the New Zealand Ministry of Foreign Affairs and Trade (MFAT).

Enclosure one: Image of Group 1, Members of the Legislature of Pohnpei State and staff of the Office of Public Auditor of Pohnpei State

Enclosure two: Image of Group 2, Cabinet Members, Chief Executives of Local Government, Directors of Government Departments, Finance and Administration staff, Public Auditors of FSM and staff.

Lara Taylor-Pearce Auditor-General of the Republic of Sierra Leone on transparency and accountability in public financial management

The Auditor General of Sierra Leone is an IDI Board member who was interviewed by Jamie Hitchen, a policy researcher at Africa Research Institute. The result is a thought provoking article on transparency and accountability in Public Financial Management. One of the best articles on the work of SAIs that I have read in many years, and worth 5 minutes of everyone’s time.

Available via the IDI website at http://www.idi.no/Artikkel.aspx?AId=1475&back=1&MId1=44 and directly at the Africa Research Institute: http://www.africaresearchinstitute.org/newsite/publications/lara-taylor-pearce-transparency-accountability-public-financial-management/

Auditor General of the Republic of Sierra Leone, Lara Taylor-Pearce

Supporting performance measurement of public auditors in the Pacific

The Pacific Association of Supreme Audit Institutions (PASAI) and INTOSAI Development Initiative (IDI) facilitated a regional workshop on implementing SAI Performance Measurement Framework (SAI PMF) in the Pacific SAIs, which commenced since February 2016. The workshop completes the first phase of this regional initiative. Thirteen auditors including three heads of SAIs, from seven SAIs namely Cook Islands, New Zealand, Papua New Guinea (PNG), Samoa, Solomon Islands, Tonga and Tuvalu participated in this one week workshop that was held from 7 – 11 November, 2016 at the Tanoa International Dateline Hotel, Nuku’alofa, Tonga.

Since February 2016, these SAIs were engaged in assessing their performance using the SAI PMF, a global framework that enables SAIs to assess their performance against International Standards of Supreme Audit Institutions (ISSAIs) and other established international good practices for external public auditing. While New Zealand and PNG conducted self-assessments, the other five SAIs were reviewed by their peers. The workshop focused on analysing the results of these assessments with specific guidance on compiling the SAI performance report.

The assessment results have identified areas where the SAIs require further improvements, the resources that would be needed to conduct audits effectively and fulfil their mandated responsibilities and highlighted the enabling factors for and constraints to effective performance. These results should assist auditors in maintaining high standard of audit deliverables and the SAIs as being a credible institutions that government and the public can rely on for independent assurance and advice on the effective utilisation of public resources.

Measuring performance is crucial to ensuring that an organisation such as the Supreme Audit Institution, who plays a vital role in strengthening good governance and accountability in the public sector, is carrying out its responsibilities effectively with professionalism and has the ability to respond to stakeholders’ expectations as well as emerging issues that impact the lives of citizens at large.

In delivering his keynote address, His Excellency Mr Andrew Ford, Australian High Commissioner to Tonga, expressed his hope for the workshop participants that “.. you are motivated to tackle any challenges identified and continue to innovate ways to ensure you remain relevant to the ever changing expectations of your stakeholders but also keep up with the rapid changes in technology which can impact the way you conduct audits”.

Camilla Fredriksen from the IDI confirms that the experiences from this first programme will be key input into further implementation of support to the use of SAI PMF and the results from SAI PMF assessments. The SAI PMF framework offers a holistic approach to measuring SAI Performance. To ensure the relevance of the tool, it was important to gain experience on its applicability across regions. The implementation of the PASAI programme shows that a regional coordinated approach to SAI PMF has helped create a network of assessors that can support each other through the implementation. This has allowed for a deeper understanding of own and others operation for the participants, and in turn this has led to identification of strengths and challenges across the SAIs in the region,

SAI PMF is aligned with one of PASAI’s strategic goals, to develop SAI’s performance measurement framework to assist with improving the delivery of SAI’s audit responsibilities. The second phase of this project will commence in January 2017 with performance assessment of five more SAIs in the northern Pacific. The workshop was facilitated by Mr Horacio Vieira, SAI PMF Advisor, Ms Camilla Fredriksen, Advisor from IDI, Ms Claire Kelly, PASAI Consultant, Mrs Sinaroseta Palamo-Iosefo, PASAI Director Practice Development and supported by Ms Chrissie Murray from Audit NZ.

This project is supported by Australian Department of Foreign Affairs, INTOSAI Donor Secretariat (IDS) in IDI and New Zealand Ministry of Foreign Affairs and Trade.

The workshop facilitators, advisors and participants