A secondment three years in the making begins in SAI Solomon Islands

Press Release 4 September 2019

Office of the Auditor-General, Solomon Islands:

In an innovative peer-to-peer arrangement to support the growth of the Solomon Islands Supreme Audit Institution (SAI), Auditor General Peter Lokay, together with Pacific Association of Supreme Audit Institutions (PASAI) and the New Zealand and Australian Governments have worked closely together to coordinate a one year secondment for direct support in the Office.  

PASAI advertised an Expression of Interest in December 2018 and received an overwhelming response.  An assessment of all applications were made and finally Rachel McKechnie - an Associate Director, Specialist Audit and Assurance Services from SAI New Zealand - was selected.

 After nearly a year of behind-the-scenes organisation and comprehensive recruitment activities, Rachel started her secondment at the Office of the Auditor-General in the Solomon Islands (SI-OAG) on 2 September 2019. She will be working with the team as the Deputy Auditor-General (DAG) for the coming year to provide assistance to strengthen the capacity and sustainability of the Office.  

 During the course of the year she will work alongside the Office’s Audit Managers to mentor and coach them so that one of them will take over the DAG position. Other responsibilities will include developing an effective quality control system for the Solomon Islands OAG and liaising with other strategic partners as they collectively seek to embed strengthening audit practices.

 Auditor-General Mr Peter Lokay, who has needed to fill this vacant role since 2016, created this approach and coordinated with PASAI with a vision to help build the capacity of his office to deliver his mandate. New Zealand’s Ministry of Foreign Affairs & Trade (MFAT) is funding Rachel’s deployment while DFAT Australia supports other logistical arrangements.

Says Peter Lokay, ‘We are privileged and thrilled to have Rachel working with us in such a practical guidance role for the next year. I know she will provide much-needed emphasis on quality audits while helping us build capacity for the future. We trust that Rachel will enjoy her time with us as much as we appreciate having her here.’

 For the two development partners, MFAT and DFAT, and PASAI and SAI New Zealand, it is a novel arrangement that has taken considerable time and collaboration to organise. New Zealand High Commissioner Don Higgins noted, “The Office of the Auditor-General plays a vital role in providing independent assurance to Parliament and to the people of Solomon Islands that public sector agencies have used public funds for the purposes for which they have been appropriated and in accordance with legislations, financial management rules and regulations. We are delighted to provide this secondment to assist the Auditor-General to carry out these functions.”

PASAI’s Chief Executive, Tiofilusi Tiueti, agrees. ‘We are very pleased with the outcome of this important peer support process. As with our very successful twinning and FASTS programmes, this enables a developing SAI to learn directly from a developed SAI and someone who is highly qualified for this role in all senses. We hope that in future we may be able to extend similar peer-to-peer cooperation and arrangements to other SAIs to provide the right support, at the right time, in the right way.’

 The Auditor-General acknowledges all partners in making this arrangement possible which will greatly move the office forward with its mandated programs.

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

 Download the press release

PASAI's 22nd Congress in Fiji looks towards 2030

PRESS RELEASE

19 August 2019

PASAI’s 22nd congress focusses on Pacific SAIs’ roles in their government’s implementation of the 2030 agenda and applying strong governance to improve the lives of citizens

Natadola, Fiji, 13- 16 August 2019: PASAI’s 22nd Congress took place at Intercontinental Fiji Golf Resort and Spa, Natadola, Fiji.

Attending the Congress were over 60 participants representing 19 member SAIs, development partner organisations and international bodies supporting the work of PASAI in meeting its strategic plan, subject matter experts on climate change, gender equality and other global initiatives, and PASAI’s Secretariat along with other observers.  The Governing Board of PASAI held their 21st meeting on 12 August 2019 before Congress began, with chairmanship handing over from Mr. Grant Hehir, Auditor-General of Australia, to Fiji’s Auditor-General, Mr. Ajay Nand.

The central theme of the Congress, ‘SAIs’ Contribution to Sustainable Development Goals’ (SDGs), was introduced by the Speaker of the Fijian Parliament, Hon. Ratu Epeli Nailatikau. In an impressive and inspiring summary, the Speaker emphasised how the implantation of the 2030 Agenda relies on good governance along with the qualities underlined by SDG 16 – openness, transparency and inclusivity. He also stressed that the success of SDG implementation relies on “the whole community having the resources and unwavering will to implement change,” adding, “It is no longer business as usual.”

Attendees heard from organisations, innovators and SAIs from around the region on the many initiatives being undertaken to implement far-reaching SDG strategies, particularly those relating to the region’s biggest challenges – Gender Equality (SDG 5) and Climate Change (SDG 13). On gender issues, UNWomen reported that domestic violence rates in the Pacific are among the highest in the world, while UNDP stated that ‘The Pacific is in a constant state of recovery’ after series of natural disasters. All speakers and PASAI development partners spoke of the role that SAIs can play in questioning governments about their plans to implement the SDGs and monitoring progress against those plans.

PASAI’s member SAIs were encouraged to align their strategies for auditing implementation of the SDGs with their learning from the cooperative audit on preparedness for SDG implementation. It was acknowledged that while Pacific Leaders have committed annually over recent years to implementing the SDGs in Pacific nations, the seventeen SDGs represent cross-flowing issues that may require innovative audit approaches. A single SDG can impact across many different ministries, plans, policies and budgets (horizontal), and across different governance levels (vertical), so a comprehensive approach is required. SAI Heads recognised the many challenges facing them in auditing the implementation of SDGs in the Pacific context, including fitting it in with current SAI priorities and difficulties in accessing and obtaining data that is held in multiple forms and locations.

The Congress then focussed on practical ways that SAIs might approach the audit of SDG implementation, through integration or adaptation of existing frameworks, for example, and by growing capacity and capability via PASAI’s delivery approach for the second half of its 2014- 2024 Strategic Plan which offers ‘the right support, at the right time, in the right way.’ SAI Heads enjoyed a lively ‘Survivor Fiji’ debate delivered by the PASAI Secretariat to analyse and present their SAI-specific capacity-building needs, both in general for the purposes of good governance and accountability, and in readiness for audits of SDG implementation.

Hosted by Fiji’s Office of the Auditor-General and the AG himself, Mr. Ajay Nand, Congress and Governing Board participants enjoyed a wonderful Fijian ‘Welcome home’ from all involved, including a traditional dinner with the citizens of Sanasana village and a motivational speech from Fiji 7s coach, Gareth Baber, who shared many insights into how to lead a world-class team while honouring all their local and personal cultural influences.

PASAI looks forwards to next year’s 23rd PASAI Congress to be hosted by SAI Palau.  

Meanwhile, the full Communiqué from Congress 2019 can be downloaded here, and you can see photos from the event here.

For more information, please contact Jill Marshall, PASAI Communications Advisor, jill.marshall@pasai.org

PASAI Newsletter, No. 18 - the 'Partnership' issue

In this 18th issue of PASAI’s newsletter, we focus on the partnerships that enable us to achieve our many ambitious goals - doing the right things, in the right way, with the right people.

We look at the inter-regional partnership with the introduction of the IntoSAINT tool in two Pacific SAIs, where PASAI members were trained by SAI Mexico to test integrity risks and recommend improvement in audit offices and ministries alike.

We feature the outreach activities of SAIs Nauru, Pohnpei and Kosrae, connecting with citizens to raise public awareness of the role of the SAI, and of fraud and corruption.

We highlight the network of relationships with IDI and all our SAIs to establish full measurement of SAI performance, through our comprehensive SPMR programme combined with the targeted assessment provided by the SAI PMF process.

We hear from the PACs who strive for fine-tuned understanding of Public Financial Management; the youth groups and other citizen communities who join with us to shape their own futures; the working groups bringing attention to specific audits and matters of global interest.

And of course we honour our strategic alliances with the SAIs, INTOSAI regions and development partners who work alongside us to enable us to deliver our strategic plan. PASAI has long enjoyed a strong connection with IDI, MFAT and DFAT in delivering our core support to SAIs. A significant development in 2019 has been the new donor partnership established between PASAI and the EU-UNDP through the ‘Strengthening of public Finance Management and Governance in the Pacific Project’.

You can read more about this in the newsletter, and we also give you a heads-up about the biggest ‘partnership’ event in the PASAI calendar - PASAI’s 22nd Congress, taking place in Natadola, Fiji from 13 - 16 August 2019. SAIs, Development Partners, the Governing Board, PASAI’s Secretariat and interested parties and observers will gather to share news and experiences and find out about PASAI’s approach to the UN’s Sustainable Development Goals.

Enjoy this latest issue - Download the newsletter here.

SAI Fiji gathers performance feedback through SAI PMF assessment

PRESS RELEASE

SAI Fiji gathers performance feedback through the SAI PMF assessment

Nadi, Fiji –  (19 July 2019)  A performance assessment of the Republic of Fiji’s Supreme Audit Institution (SAI) has been purposefully conducted to provide objective baseline information on the SAI’s performance, which is built around six core organisational areas.

This was the second SAI PMF assessment in the Pacific Association of Supreme Audit Institution (PASAI) region following the successful SAI Performance Measurement Framework (PMF) planning workshop that was also held in Fiji.

The workshop had prepared expert teams of assessors made up of a cohort of staff from the PASAI Secretariat, which includes consultants and auditors from SAIs around the region. SAI PMF is a multi-purpose, universal framework, and can be applied in all types of SAIs regardless of governance structure, mandate, national context and development level.

Fiji’s assessment was made possible through the Strengthening of Public Finance Management and Governance in the Pacific Project, funded by the European Union (EU) and implemented by the United Nations Development Programme (UNDP). PASAI is a responsible party to the project and delivers the SAI component and contributes to the strengthening of the budget oversight capacities of PAC from the perspectives of SAIs).

The assessment team updated Fiji’s Auditor-General, Ajay Nand, with the progress of the assessment mid-way through the process and will present a summary of preliminary key findings to the AG as the assessment ends. The Office of the Auditor General emphasised how helpful this exercise has been in setting benchmarks for their work. 

“This assessment will be very useful for Fiji SAI to understand where we can improve and also highlight where the office is performing well,” said Nand.

“In particular, this will help me implement the audit mandate more effectively and make a difference to the lives of Fiji citizens and residents. We have also committed to submit the final report on the findings of assessment to Parliament for transparency.”

The review team, comprised of the PASAI Performance Audit Consultant Claire Kelly, PASAI Director of Practice Development, Sinaroseta Palamo-Iosefo and SAI Tonga Assistant Auditor General, Kelepi Makakaufaki, established the Terms of Reference with Fiji’s OAG to guide the assessment.

The assessment, which was carried out in July, included interviews with members of the Executive Management, a questionnaire on SAI management practices to all non-management staff members and a series of evidence-based enquiries and documentary reviews that span the two-week assessment process. 

As the manager of the SAI PMF initiative across the PASAI region, Sina Palamo-Iosefo said, “The SAI PMF assessments provide excellent baseline information for PASAI to determine appropriate interventions for our members.” She added, “It also enables us to monitor the progress of SAI performance over time and continue to identify and provide appropriate support to SAIs where needed. SAI Fiji’s commitment to the process and openness in sharing information with the assessment team in order to do this has been exemplary.”

PASAI extends its gratitude to the EU and UNDP for their support through the ‘Strengthening PFM’ project, and to development partners MFAT and DFAT for their ongoing support and contributions to PASAI’s core funding.

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More information:

Strengthening of Public Finance Management and Governance in the Pacific 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. The Strengthening of Public Finance Management and Governance in the Pacific Project is funded by the European Union (EU) and implemented by the United Nations Development Programme (UNDP) in partnership with the Pacific Association of Supreme Audit Institutions (PASAI).

Contact information:

1. Jill Marshall, Communications Advisor, PASAI (Auckland, NZ) E: jill.marshall@pasai.org, P:+64 9 304 1893

2. Jone Tuiipelehaki Raqauqau, Effective Governance – Communications Associate, UNDP Pacific Office in Fiji. E: jone.raqauqau@undp.org, P: 3227 552

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SAI Vanuatu strengthens performance through SAI PMF assessment

PRESS RELEASE

SAI Vanuatu strengthens performance through SAI PMF assessment

Port Vila, Vanuatu (26 June 2019)

An assessment of the public financial management (PFM) system of Vanuatu’s Supreme Audit Institution (SAI) was conducted in early June to provide a true and clear baseline of performance built around six core organisational areas in which a SAI should operate.

The assessment in Vanuatu follows the successful SAI Performance Measurement Framework (PMF) planning workshop that was held in Fiji recently.

According to the INTOSAI Development Initiative, the SAI PMF provides SAIs with a framework for voluntary assessments of their performance against the International Standards for Supreme Audit Institutions (ISSAIs) and other established international good practices for external public auditing. SAI PMF is a multi-purpose, universal framework, and can be applied in all types of SAIs regardless of governance structure, mandate, national context and development level.

Vanuatu’s assessment was made possible through the Strengthening of Public Finance Management and Governance in the Pacific Project, which 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. The Project is funded by the European Union (EU) and implemented by the United Nations Development Programme (UNDP) in partnership with the Pacific Association of Supreme Audit Institutions (PASAI).

Under the umbrella of the Project and with additional core funding from PASAI development partners DFAT and MFAT, the Review team (comprised of the PASAI Director of Technical Support, A’eau Agnes Aruwafu, the SAI Fiji-QA Team Leader, Meresimani Katuba, the Senior Auditor for SAI Kiribati, Tokanikai Tiira, and SAI Kiribati Senior Auditor, Mr Ioteke Teweti) developed terms of reference with the Vanuatu OAG as the SAI PMF implementation began.

Following the two-week assessment, the Vanuatu Auditor General, Caleb Sandy, and the Office of the Auditor General underlined how helpful this exercise was in setting benchmarks for their work. 

“This assessment will be very useful for Vanuatu SAI to understand where we can improve and also highlight where the office is performing well,” said Sandy. “In particular, this will help me implement the audit mandate more effectively and make a difference to the lives of Vanuatu citizens and residents.”

PASAI Chief Executive Mr Tiofilusi Tiueti added, “The SAI PMF assessments are not only going to help strengthen our SAIs in the Region, but will also provide excellent baseline information for PASAI to determine appropriate interventions for our members.”

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Download the press release

Contact information:

1. Jill Marshall, Communications Advisor, PASAI (Auckland, NZ) E: jill.marshall@pasai.org, P:+64 9 304 1893

2. Jone Tuiipelehaki Raqauqau, Effective Governance – Communications Associate, UNDP Pacific Office in Fiji. E: jone.raqauqau@undp.org, P: 3227 552

SAI PMF Assessment Team with the SAI Vanuatu Auditor General and his staff

Fiji PAC Workshop Enhanced Accountability and Transparency

PRESS RELEASE

Fiji PAC Workshop to Enhance Accountability and Transparency

Suva, Fiji (13 June 2019) – Members of the Fiji Public Accounts Committee (PAC) participated in a second series of workshops to build their capacity in better understanding their financial oversight role within the legislative process.

The role of the PAC is important in that it ensures public funds are spent effectively, efficiently and economically for the benefit of citizens.

The training was facilitated by the Pacific Association of Supreme Audit Institutions (PASAI) in collaboration with the Office of the Auditor General (OAG) in Fiji, the United Nations Development Programme (UNDP) and the Pacific Technical Assistance Centre (PFTAC) on 4 - 5 of June 2019.

The workshop was implemented as part of the activities of the Strengthening Public Finance Management and Governance in the Pacific Project funded by the European Union (EU) by UNDP. PASAI is a responsible party to the project and delivers the Supreme Audit Institution (SAI) component and contributes to the strengthening of the budget oversight capacities of PAC from the perspectives of SAIs.

The two-day workshop covered the Parliament’s accountability and reporting framework and the implications Parliament has on the PAC oversight role on public expenditure, compared to PAC roles in countries and regions around the world.

Members of the PAC were introduced to the Fiji budget process and budget documents, the regional Public Financial Management (PFM) and Public Expenditure and Financial Accountability (PEFA) review as well as the accounting and reporting framework.

Honorable Speaker of Parliament, Ratu Epeli Nailatikau, who opened the workshop

In delivering his opening address for the training, the Speaker for the Parliament of the Republic of Fiji, Honourable Ratu Epeli Nailatikau, highlighted the importance of capacity building for the PAC Members.

“I cannot emphasise enough the importance of capacity building for you honourable members of the public accounts committee, (and other committees of parliament for that matter), to equip yourselves with technical skills and the knowledge to enhance your oversight roles and perform them effectively and efficiently,” said Hon. Ratu Nailatikau.

He added, ‘The programme complements other capacity-building programmes that have been undertaken by the committee over their term in office.’

The EU Programme Officer, Mr Miroslav Skriecka, in his closing remarks highlighted the EU support in this area.

''The EU is committed to support PFM reforms in the Region. EUR 11 million has been allocated to this end through the EDF11th regional project Strengthening Public Finance Management and Governance in the Pacific which has also facilitated this important workshop,” said Mr Skriecka.

“An essential component of the PFM EU regional project supports UNDP's and PASAI's contribution to improving the budgetary scrutiny, PFM oversight and accountability capacities of parliaments, supreme audit institutions, to align them with international standards and foster citizen engagement and oversight.

He added, “In order to achieve a holistic approach, the project also provides some funding to PFTAC and contributes to USP's capacity building work in PFM area.”

The objectives of the workshop are:

 to build the capacity of the members of the Fiji PAC to better understand their financial oversight role within the processes of Parliament;

 to facilitate efficient and effective scrutiny of the operations of the government organisations;

 to make the members of the PAC aware of both the Fiji SAI and PASAI and the work they perform in the country and the Pacific region.

The workshop for PAC Members was followed by a similar workshop for senior officials and management, including members of boards of government companies, commercial statutory authorities and other government agencies, on Thursday 6 June 2019.

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Background:

Strengthening of Public Finance Management and Governance in the Pacific 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. The Strengthening of Public Finance Management and Governance in the Pacific Project is funded by the European Union (EU) and implemented by the United Nations Development Programme (UNDP) in partnership with the Pacific Association of Supreme Audit Institutions (PASAI).

Download the Press Release

For more information contact:

1. Jill Marshall, Communications Advisor, PASAI (Auckland, NZ) E: jill.marshall@pasai.org, P: +64 9 304 1893

2. Jone Tuiipelehaki Raqauqau, Effective Governance – Communications Associate, UNDP Pacific Office in Fiji. E: jone.raqauqau@undp.org, P: (679) 3227 552

Attendees of the PAC workshop 4-5 June 2019

PASAI’s PFM Consultant, Eroni Vatuloka

Fiji Auditor-General, Ajay Nand, with the Chairman of the PAC Alvick Majaraj and EU Programme Officer

From crop technician to Integrity Ambassador: INTOSaint Assessment at Cook Islands Ministry of Agriculture

After intensive training of Cook Island and NZ OAG staff and a roll-out of early assessments in SAIs in New Zealand and Australia, last week saw a self-assessment of integrity (SAINT) completed at the Cook Islands Ministry of Agriculture.

Allen Parker assisting the participants to develop recommendation

The SAINT assessment was part of the current IntoSAINT/SAINT tool pilot programme being carried out in the PASAI region. It was led by Allen Parker, Cook Islands Director of Audit and Anne McMahon Office Manager at Cook Islands Audit Office and supported by Jonathan Keate and Sarah Markley from SAI of New Zealand.

The Ministry of Agriculture is a critical part of the Cook Islands public sector due to the importance of agricultural activities to this small island nation’s economy, so it was very encouraging to be able to provide useful recommendations to strengthen integrity systems and also to encourage the 11 staff involved in the assessment to be integrity ambassadors within the Ministry and in their interactions with the community.

How Personnel Problems Impacted Premiums - FSM's audit of the Professional Premiums Program

The FSM National OPA's latest follow-up Performance Audit on the FSM Professional Premiums Program covering FY 2016-2018 entitled, Limited Capacities at the Division of Personnel Affects the Administration of the Professional and Market Place Premium Program, was submitted to the Congress and President on May 14, 2019.

You can access the full report by visiting the FSM website at www.fsmopa.fm

or download the report

SAI Guam offers full transparency by sharing its SAI PMF performance assessment report

In March 2019, when PASAI released their SAI Performance Measurement Framework (PMF) assessment of the Guam Office of Public Accountability (OPA), the SAI decided to share the results with all their stakeholders by publishing it on their website.

OPA was one of six Public Auditor’s offices taking part in a regional project – “Supporting SAI Performance Measurement” in the North Pacific region, and one of eleven SAIs involved across the whole PASAI region. The assessment was conducted by the Atmita Jonathan, Deputy Auditor General of the Republic of the Marshall Islands (RMI); Ayako Yamaguchi-Eliou, Performance Audit Manager of RMI, and the PASAI Director of Practice Development, Sinaroseta Palamo-Iosefo.

“The purpose of the assessment was to assist the OPA in identifying the strengths and weaknesses of its audit processes and capabilities against International Standards for Supreme Audit Institutions (ISSAIs) and other internationally established good practice…” the report’s Executive Summary stated.

The SAI PMF looked specifically into OPA’s independence and legal framework, internal governance and ethics, audit quality and reporting, financial management, assets, and support services, human resources and training, and communication with stakeholder management. With each topic, OPA was assessed and given a rating on whether the minimum international standards were met or not.

“Our office is grateful to PASAI and the regional team for conducting a thorough review of OPA’s operations and performance. We did notice a dip in our ratings between the draft submitted to OPA last year and the final report we just received, which was attributed to the quality assurance review conducted by the INTOSAI Development Initiative representative. Nevertheless, our office remains committed to addressing the areas in need of improvement, and, in fact, have already taken steps through the issuance of our Strategic Plan 2019-2023 that identifies how we planned to correct these deficiencies,” said Public Auditor Benjamin Cruz (pictured right).

PASAI Director of Practice Development, Sina Palamo-Iosefo, who is leading the SAI PMF assessment roll-out both in the region and beyond into the INTOSAI community, was thrilled by SAI Guam’s decision to publish the report on their website. She comments, ‘While we encourage SAIs to publish their reports and lead by example on being transparent and accountable, according to SAI PMF methodology, it’s up to the discretion of the Head of SAI whether to publish or not and how the report will be used and distributed. Guam OPA is leading the way with this resolute action and commitment to improvement.’

Read the report online

Download the report

For more information, please contact Vincent Duenas at 475-0390 ext. 210 or visit the website at www.opaguam.org.

Lessons to learn: SAI Chuuk's performance audit of Educational Development project

OFFICE OF THE CHUUK STATE PUBLIC AUDITOR

PRESS RELEASE NO. 2018-01

The Office of the Chuuk State Public Auditor (OCPA) announces the release of Audit Report No. 2018-01, a performance audit entitled Faichuk Educational Development and Research Project (FEDRP): With Issues on Expenditures and on Performance Outcomes and Deliverables, which covered the fiscal year 2016 to 2017. The audit report is available for public viewing online at http://www.fmocpa.com. Likewise, printed copies are available at the OCPA in Nepokos, Weno, Chuuk.

Public Auditor,
Manuel Jr San Jose

The Public Auditor’s authority is based on the Chuuk State Constitution Article VIII Section 9 and Truk State Law 6-21 which states in part: “The Auditor shall conduct audits of all financial transactions of all branches, departments, offices, agencies, and instrumentalities of the government, and of all accounts kept by or for them.”

We conducted the performance audit in accordance with US General Audit Standards.

The objectives of this audit included determining if (a) the spending of the project funds complied with relevant FSM/Chuuk laws and regulations, agreement, and with the terms and conditions of the contract; and, (b) the agreed output and outcomes for the project were effectively accomplished.

Based on our audit, we conclude that certain practices and expenditures of Rauchholz International Consulting (RIC) were not in accordance with laws, regulations and the terms and conditions of the agreement. One of the most important requirements of an entity receiving grant money is to establish and maintain financial management and internal control system. We found that the RIC had inadequate financial management and internal control system. The weakness in internal control over the project expenditures is an indicative of higher risk. The contract with the RIC, which was documented using a Memorandum of Understanding (MOU), requires that the RIC should comply with all applicable laws, rules, and regulations. In addition, the grant terms and conditions of the notice of grant award also require compliance with all laws and regulations governing the use of federal grant funds. Specifically, our audit has disclosed the following weaknesses:

1. Inadequate Financial Management System;

2. No Proper Segregation of Function in the Approval of Transactions

3. Inadequate Handling of Cash and Cash in Bank;

4. Expending of Funds for Certain Salaries and Wages Did Not Follow Laws and Regulations;

5. Expending of Funds for Certain Travels Did Not Follow Regulations and the Restriction on the use of the Funds for Foreign Travel;

6. Certain Expenditures Charged to Consumable were Not Allowable;

7. Certain Expenditures Charged to Contractual Account was not Properly Supported and/or Unallowable;

8. No Written Policies on Recording and Maintenance of Fixed Assets;

In addition, we found that there were inadequate delivery of project output and accomplishment of outcomes. Some activities need to be defined with measures that would demonstrate impact and benefits to the student.

We offered numerous recommendations to improve the issues and weaknesses noted in our audit.

We received ‘Management Response’ to the findings, which were mostly in disagreement. We included such response in the final report.

Read the report online

Download the report.

Printed copies are available from the OCPA in Nepokos, Weno, Chuuk.

Office of the Chuuk State Public Auditor P.O Box B Weno, Chuuk FM 96942

Tel: 691.330.8832/8835; Fax 691.330.8840

Assessment teams equipped to roll out the SAI PMF measurement tool across the PASAI region

PRESS RELEASE

Friday 10 May 2019

The SAI PMF Tool will strengthen governance in the Pacific

Nadi, Fiji: The Pacific Association of Supreme Audit Institutions (PASAI) in collaboration with the INTOSAI Development Initiative (IDI) facilitated a planning workshop on measuring the performance of public audit offices.

Fourteen participants from six government audit offices namely State Chuuk of the Federated States of Micronesia, Fiji, Kiribati, Pohnpei, Tonga and Vanuatu, including the facilitators and PASAI Secretariat, attended the workshop in Nadi, Fiji on 6-10 May 2019 at Novotel Nadi Hotel. The objective of the workshop is to build capabilities of public auditors in using a measurement tool, the International Organisation of Supreme Audit Institutions (INTOSAI) SAI Performance Measurement Framework (SAI PMF) to enable them to peer review each other’s performance.

Use of the SAI PMF tool was piloted in the Pacific region and implemented in other INTOSAI regions. Measuring the performance of SAIs ensures that government audit offices have the capacity and resources to conduct quality audits that contribute to good governance and make a difference in the lives of citizens.

The SAI PMF assessment will provide a true and clear baseline of performance built around six core organisational areas. Without this baseline, SAIs find it difficult to measure improvement against key performance indicators. Several PASAI SAIs already have this baseline information as a result of Phase 1 of the SAI PMF roll-out, and the SAIs participating in this workshop will now experience its practical application, as an assessment of their Offices will be conducted during the year. Future SAI PMF assessments will then map performance change over a period of time to feed into the SAI’s strategic planning activities.

Facilitated by Sinaroseta Palamo-Iosefo, PASAI’s Director Practice Development and Irina Sprenglewski, IDI’s SAI PMF Advisor, the workshop provided more than an overview of the importance of measuring and reporting on performance. Delegates were able to run through a number of realistic scenarios to strengthen their learning which will be useful when they conduct these assessments over the next few months.

Says Meresimani from the Fiji Auditor General’s Office, ‘It has been very illuminating to see how SAI PMF can be used to highlight areas of weakness and potential within each SAI. As it is an evidence-based tool, we learned first-hand how to use the tool by asking the right questions, obtaining proper evidence and finally by recording our responses in an effective and meaningful manner.’

The workshop has been the first activity funded under the new donor partnership established between PASAI and the EU under the Strengthening of public Finance Management and Governance in the Pacific Project. The Strengthening of Public Financial Management and Governance in the

Pacific 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. Strengthening of Public Financial Management and Governance in the Pacific Project is funded by the European Union (EU) and implemented by the United Nations Development Programme (UNDP).

PASAI and IDI were honoured to welcome UNDP representatives, Marine Destrez and Manjeet Singh, to the first day of the workshop. In her opening remarks, Ms Destrez explained that this workshop is part of a whole spectrum of activities included in a new pool of funding created by the European Union (EU) that is dedicated to strengthening public financial management (PFM). Funding programs such as these are essential to strong governance, she went on. Public financial management covers frameworks, institutions and tools and brings together diverse stakeholders at the different stages of the Public Finance cycle. Audit Institutions play an important role in the oversight of PFM plans, processes and results and are an essential part of the transparency and accountability landscape of PFM. Both PASAI and EU/UNDP anticipate great collaborations on these important issues.

PASAI also acknowledges the continuous support of the Australia Department of Foreign Affairs and Trade (DFAT) and New Zealand Ministry of Foreign Affairs and Trade (MFAT).

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For more information contact:

Mr. Tiofilusi Tiueti

Chief Executive PASAI Secretariat

Email: tiofilusi.tiueti@pasai.org

Telephone: +64 9 304 1275

Website: www.pasai.org

Download the press release

Read the press release online

PASAI's SAI PMF Planning Workshop in Fiji (May 2019) will ultimately strengthen governance

MEDIA RELEASE

For issue 3 May 2019

STRONG GOVERNANCE NEEDS QUALITY AUDITS

The Pacific Association of Supreme Audit Institutions (PASAI) together with the INTOSAI Development Initiative (IDI) will be holding a planning workshop on measuring performance of public audit offices in Nadi, Fiji on 6-10 May 2019 at Novotel Nadi Hotel.

Governance is strengthened through quality audits performed by competent and capable auditors. Measuring auditors’ performance ensures that government audit offices are capable and well-resourced to conduct quality audits that contribute to good governance and make a difference in the lives of citizens.

The planning workshop will prepare government auditors from State Chuuk of the Federated States of Micronesia, Fiji, Kiribati and Vanuatu to assess the performance of government audit offices using the International Organisation of Supreme Audit Institutions (INTOSAI) SAI Performance Measurement Framework (SAI PMF), a measurement tool adopted by the INTOSAI community.

Use of the SAI PMF tool was piloted in the Pacific region and implemented in other INTOSAI regions. It has proven to be very successful in identifying SAI strengths, weaknesses and development needs in a comprehensive range of organisational areas. As part of the ongoing roll-out and practical application of this program, an assessment of each participating Office will be conducted during the year.

Sinaroseta Palamo-Iosefo, PASAI’s Director - Practice Development, will lead the workshop along with IDI’s SAI PMF Advisor, Irina Sprenglewski. The director, who is also heavily involved in the refinement and application of the SAI PMF tool on a global SAI basis, states: ‘We are very fortunate in PASAI to have both the knowledge and experience of the SAI PMF process, and the funding provided by the European Union (EU) to bring this workshop directly to the region. The results so far have been very encouraging, and we now have a chance to embed and expand its usage to strengthen governance across the Pacific.’

EU representative Marga Peeters and UNDP representative Jean-Raphael Guiliani at PASAI’s Governing Board Meeting in Auckland, NZ, 28 Feb – 1 March 2019

The workshop is the first activity funded under the new donor partnership established between PASAI and the EU. It is supported by the United Nations Development Partner (UNDP), the Australia Department of Foreign Affairs and Trade (DFAT) and New Zealand Ministry of Foreign Affairs and Trade (MFAT).

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 For more information contact:

Mr. Tiofilusi Tiueti

Chief Executive PASAI Secretariat

Email: tiofilusi.tiueti@pasai.org

Telephone: +64 9 304 1275

The SAI PMF Assessment team for the Nauru SAI PMF assessment in 2018, with Sinaroseta Palamo-Iosefo far left and Irina Sprenglewski third from right.

Download the media alert here

Read the media release online

IDI’s Irina Sprenglewski interviews Naura SAI Head, Mr Manoharan Nair, during Nauru’s SAI PMF assessment (2018)

Pacific SAIs Establish Monitoring and Reporting Mechanisms

 Media Release

Tuesday 16 April 2019 

Pacific Audit Institutions Establish Monitoring and Reporting Mechanisms   

The Pacific Association of Supreme Audit Institutions (PASAI) and INTOSAI Development Initiative (IDI) joined forces once again to deliver a Monitoring and Reporting workshop in Nadi, Fiji on 8-12 April 2019.

PASAI is one of the two INTOSAI regions piloting this global programme, whose objective is to ensure audit institutions are strategically managed leading to better performance. This is the third workshop for the Strategy, Performance Measurement and Reporting (SPMR) programme, continuing on from the foundation already established in the audit institutions’ strategic and operational workshops held in Tonga and Cook Islands last year.

Twenty-one participants from Cook Islands, the Federated States of Micronesia – National Office and the state audit offices of Kosrae and Yap, Papua New Guinea, Republic of the Marshall Islands, Samoa, Solomon Islands, Tonga, and Tuvalu attended the workshop, which was facilitated by Freddy Yves Ndjemba, Dafina Dimitrova, and Nils Voesgen from the INTOSAI Development Initiative (IDI), assisted by Tiofilusi Tiueti and Sinaroseta Palamo-Iosefo from the PASAI Secretariat.

The main objective of the workshop was to develop performance measurement systems to enable the supreme audit institutions (SAIs) to monitor the implementation of their strategic and operational plans and to capture the relevant information required for reporting on their operations.

Participants learned the rationale for using performance information in strategic decision-making, and discussed why they need to develop a measurement system to monitor SAI performance and provide assurance that the SAIs have achieved their goals.

After identifying the key elements of a good monitoring system such as indicators, baselines, milestones and targets, the group enjoyed ample opportunity to practice developing them for their own strategic and operational plans. There was also an in-depth discussion into the challenges for SAIs in preparing different types of reports, both internal and external, for various audiences. Furthermore, performance reporting – the case for SAIs reporting on their performance and the key characteristics of a good performance report - was covered at length.

Participants appreciated the important lessons learnt about monitoring and reporting on their operations. They highlighted particularly the significance of SAIs feeding back on their own performance, demonstrating their support for the improved public service accountability and transparency for which they should be role models.

Following the successful SPMR pilots, the programme will roll out globally to empower SAIs to implement their plans and monitor performance against the outputs and outcomes defined in their organisational plans. The SPMR programme is generously supported by the Swiss State Secretariat for Economic Affairs (SECO).

PASAI acknowledges the financial support of IDI, Australia Department of Foreign Affairs and Trade, and the New Zealand Ministry of Foreign Affairs to conduct this programme for SAIs in the Pacific region. 

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   For more information contact:

Mr. Tiofilusi Tiueti

Chief Executive PASAI Secretariat

Email: tiofilusi.tiueti@pasai.org

Telephone: +64 9 304 1275

Website: www.pasai.org

 Mr. Freddy Yves Ndjemba

Manager Capacity Development

Email contact: Freddy.ndjemba@idi.no  

Phone: +47 9024 7285

Website: www.idi.no  

PASAI's latest newsletter, honouring Christchurch, is out now

The latest issue(17) of the PASAI newsletter is now out, featuring articles and information from many SAIs including Tuvalu, Pohnpei, Fiji, Tonga, Yap, Nauru, Samoa, Cook Islands and Kiribati.

This newsletter also comes with a special foreword from PASAI Chief Executive, Tiofilusi Tiueti, in the aftermath of the tragic events in Christchurch NZ on 15th March 2019:

Read the newsletter online.

Download the newsletter.

FSM ONPA confronts MiCare Plan's risk-taking in their performance audit report

PRESS RELEASE NO. 2019-01 from FSM Office of the National Public Auditor

The Office of the National Public Auditor (ONPA) announces the release of Audit Report No. 2019-01, a performance audit entitled MiCare Plan: Challenged by Oversight and Management Issues; New Team Optimistic About Future Prospects, which covered the fiscal years 2013 to 2017.

The audit report is available for public viewing here, or online at http://www.fsmopa.fm. Likewise, printed copies are available at ONPA in Palikir, Pohnpei.

The Public Auditor’s authority as codified at Chapter 5, Title 55 of the FSM Code gave us the power to conduct this audit which focused on MiCare Plan’s administration, including oversight and monitoring arrangements for the health insurance plan.

The objectives of this audit included determining if (a) management and oversight systems provided adequate assurance that operational goals and objectives were achieved, and (b) MiCare Plan had implemented proper system for monitoring, reviewing and reporting including assessing priorities consistent with the aims and objectives of the health insurance plan.

Based on our audit, we concluded that the Board and Management exposed the MiCare Plan and took risks that had no corresponding internal controls to mitigate them. The risks in various processes were not mitigated by systems in place (internal controls) that should have been expected to adequately identify, measure, monitor, and most importantly, control the risks to an acceptable level. As a result, Board and Management did not adequately fulfill their responsibilities to ensure that the Plan operated in a safe and sound manner; the Plan’s overall financial condition improved rather than declining and incurring substantial financial losses; and depletion of the Plan’s capital leading to a need for a considerable capital infusion to survive. Specifically, our audit has disclosed the following weaknesses:

1. Inadequate corporate governance;

2. Inadequate annual budget linked to any strategic goals and objectives;

3. Lack of risk management policy and framework;

4. Lack of performance evaluation for the Administrator and Senior Management;

5. Lack of effective information and communication technology (ICT) controls;

6. Lack of performance results and measures to implement monitoring and reporting controls;

7. Lack of adequate internal policies to direct and guide the day-to-day operations;

8. Lack of code of ethics; and,

9. Lack of oversight and guidance to manage accounts receivable.

We offered numerous recommendations to remedy the issues and weaknesses in areas such as corporate governance, annual operational plan and budget, risk management, performance evaluation, information technology, performance monitoring and reporting, internal policies and procedures, code of ethics, and accounts receivable.

Management response to the findings and recommendations, which were mostly in agreement, is included in the final report for your perusal.

For more information please contact:

Office of the National Public Auditor

P.O Box PS-05

Palikir, Pohnpei FM 96941

Tel: 691.320.2862/2863; Fax 691.320.5842

Hotline:691.320.6768; Website: http://www.fsmopa.fm

Download the full report

PASAI's Newsletter - November/Christmas 2018

It’s been an eventful year for PASAI. Member SAIs, the Secretariat and many strategic development partners and consultants have worked tirelessly towards PASAI’s key priorities in strengthening SAI independence; governance, transparency and accountability; the timely completion of high quality audits, and capacity and capability of Pacific SAIs and all their staff.

While we can’t list all the activities that have gone on in 2018, we’re very pleased to be able to bring you ‘A Year in the Life of SAI Pohnpei’, showing first-hand the challenges and the highlights of serving citizens in a smaller, developing SAI.

In this issue, we also bring you an overview of:

• Recent training in Vanuatu (QA) , Cook Islands (SPMR) and SAI CNMI (CPE credits)

• Shared experiences in the twinning arrangement between the SAIs of NZ and Samoa

• Reflections from three PASAI participants on IDI’s SAI Young Leaders program

• News of the asset valuation and management initiatives of SAI Vanuatu and SAI Fiji

• Feedback from the IDI Stakeholder Engagement Review meeting in South Africa, attended by six PASAI members from the SAIs of FSM, Solomon Islands and Tonga.

You can read the newsletter online or download it here.

Until the next newsletter in January 2019, best wishes for a wonderful Christmas season and an exciting new year, and enjoy our photo collection from this bumper edition of the newsletter.

Secondment opportunity to be acting Deputy AG, SAI Solomon Islands

An amazing opportunity has arisen for one of PASAI’s auditors to take the next step up on their career ladder.

As part of their career development, PASAI auditors at a senior level are invited to apply for a one-year secondment as Acting Deputy Auditor-General (DAG) to the Solomon Islands. Working alongside AG Peter Lokay, the secondee will provide vital DAG services to the SAI, while also mentoring and upskilling a SAI SI team member to take on the role after the secondment.

In an initiative jointly funded and organised by PASAI, the Australian Government and Solomon Islands’ OAG, the secondee will have all expenses paid for including flights, accommodation and a per diem allowance (and salary supplement if applicable ie if on leave without pay) while advancing on their career path. Applicants will currently be qualified auditors at a senior audit manager or DAG level, with a commitment to sharing knowledge, expertise and capacity-building in the PASAI region.

Interested parties should apply with a full CV (including two referees of whom one must be their existing SAI head), along with a statement of suitability for the role by no later than 21 December.

Click below to read about the opportunity and how to apply.

SAI Solomon Islands Secondment

SPMR Workshop in Rarotonga aligns operations to strategic plans

Media Release Friday 30 November 2018 

SPMR Workshop in Rarotonga, Cook Islands, helps SAIs align operational and strategic plans.  

Pacific Audit Institutions Align Operations to Strategic Plans 

Rarotonga, Cook Islands: The Pacific Association of Supreme Audit Institutions (PASAI) and INTOSAI Development Initiative (IDI) continued their collaboration by delivering an Operational Planning workshop in Rarotonga, Cook Islands on 26-30 November 2018. The second workshop for the Strategy, Performance Measurement and Reporting (SPMR) programme, this training builds from the foundation already established in the audit institutions’ strategic plans developed during the workshop held in Tonga earlier this year.

Twenty-eight participants from the SAIs of the Cook Islands, the Federated States of Micronesia – National Office and the state audit offices of Kosrae, Pohnpei, and Yap, Guam, Papua New Guinea, Republic of the Marshall Islands, Samoa, Solomon Islands, Tonga, and Tuvalu attended the workshop to develop operational plans in alignment with their strategies. Representatives from SAI Australia (Australian National Audit Office (ANAO)) and SAI New Zealand joined them to share the experience and to provide support to their respective twinning partners, as determined under a separate arrangement between the PASAI and the Australian Council of Auditors General (ACAG).

 In his opening remarks, the Honourable Deputy Prime Minister and Minister of Finance and Audit, Hon. Mark Brown highlighted the critical role that government auditors play in strengthening accountability and transparency in the public sector. PASAI is one of the two INTOSAI regions piloting this global programme with the objective of ensuring that audit institutions are strategically managed leading to better performance. 

In a workshop facilitated by Freddy Yves Ndjemba, Dafina Dimitrova, and Irina Sprenglewski from the INTOSAI Development Initiative (IDI), assisted by Tiofilusi Tiueti and Sinaroseta Palamo-Iosefo from the PASAI Secretariat, Sarah Markley of SAI New Zealand and Rona Mellor and Penelope Edwards from SAI Australia, participants were taken from the fundamental characteristics of an operational plan through the full operational planning process.

Participants worked rigorously on aligning their operational and strategic plans, developing these key organizational roadmaps holistically to ensure the audit institutions deliver the outputs and achieve outcomes accordingly. Attendees particularly appreciated the importance of this holistic approach to managing their operations and ensuring alignment with their strategic priorities in their mission to lead by example and add value to society.  

The next phase for the SPMR programme will involve support and the provision of tools to develop a monitoring and reporting framework for these audit institutions, thus enabling impactful reporting on performance from the audit institutions to their stakeholders.

PASAI acknowledges the financial support by the IDI, Australia Department of Foreign Affairs and Trade, the New Zealand Ministry of Foreign Affairs and Trade and Asian Development Bank to conduct this programme for SAIs in the Pacific region. 

Download the media release here 

See more photos from the event in PASAI’s 2018 Photo Album

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

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PASAI's October Newsletter IS out now

Networking, engaging, reaching out to our member SAIs, development/strategic partners and governing bodies - in our October newsletter, we focus on PASAI’s activities in each of these areas.

In this issue, read about:

• PASAI’s collaborative meeting with ACAG at the offices of the Victorian Auditor General’s Office (VAGO);

• How PASAI is working with the Tongan Parliament to strengthen the oversight role of the PAC;

• Record uptake in PASAI of the Massive Open Online Course (MOOC) on environmental auditing;

• The planning process in communicating about our programs to maximise impact and information.

Download the newsletter or read it online.

VAGO hosts the ACAG meeting attended by PASAI's Director - Technical Support

Tongan Parliament works with PASAI's Secretariat

SAI Samoa's achievements in the MOOC

A highly engaging Facebook post from our comms plan

IDI reports on PASAI's experiences with SAI PMF

The world needs strong, high-performing SAIs. The SAI Performance Measurement Framework (PMF) gives credible and accurate information to be used in strategic planning and capacity development to ensure that SAIs can grow into the fully capable institutions envisioned in ISSAI 12.

The INTOSAI Development Initiative (IDI) has issued reports on the experiences of four sets of SAI experiences with SAI PMF - Bhutan, Palestine, Brazil and a number of SAIs in PASAI.

Read IDI’s report on PASAI’s discoveries in using this invaluable tool which demonstrates SAI accountability.

You can read the other illuminating reports on the IDI website.