Livestreaming: Rt Hon Helen Clark making keynote address at PASAI Congress in the Cook Islands

A livestream of the opening and keynote address of our Congress is scheduled to start in 20 minutes on our Facebook page. It is scheduled in Cook Islands time (UTC -10) as follows:

8.30 am
Official welcome by the Cook Islands Ministry of Culture

9.15 am
Message from Mark Brown, Prime Minister of the Cook Islands

9.20 am
Opening remarks

9.30 am
Keynote address, “Influencing SAI Independence” by the Right Honourable Helen Clark, INTOSAI IDC Goodwill Ambassador for SAI Independence.

10.10 am to 12.00 pm
Panel discussion with the Right Honourable Helen Clark

We hope you are able to watch some of it. Media release to follow the livestream.

New HR Guide now available

A new guide is now available to help Pacific Island SAIs navigate human resource management (HRM), providing the tools to deal with the challenges of attracting, developing, rewarding and retaining staff, based on global knowhow and regional experience.

The Human Resources Guide is on our Manuals and guidelines page and was made possible through a lengthy collaboration with senior advisors from the Swedish National Audit Office (SNAO).

SNAO has helped us improve the HRM capabilities of staff from Pacific Island SAIs for some years now and is currently co-facilitating our HR Champions Programme for eight of our member offices. Programme participants have already “road-tested” the guide and provided valuable insights to help customise it to our members’ needs, recognising many Pacific Island SAIs have very limited HR resources.

Chapters focus on topics that include HR policies, managing competencies, recruitment, staff well-being, professional development and diversity. We have also compiled supportive material (such as templates, SAI example documents and good practice guidelines) for most chapters in the guide. Users are free to adapt these to suit their specific needs.

Now that almost all member SAIs have recently revised HR strategies and operational plans, the guide will help SAIs formalise processes and policies on recruitment, induction and staff competency to suit their local circumstances but aligned with international good practices.

The guide encourages SAIs to provide equal employment, training and progression opportunities in a human-centric approach. A SAI can perform at its best with professional and engaged staff supported in an inclusive work environment.

Report on the third quarter of activities now available

We have just published our third quarterly report for the 2023–24 financial year.

Current and past reports are available on our Quarterly Reports page.

Performance auditors work together to strengthen their capability across the Pacific

Nadi, Fiji: The Pacific Association of Supreme Audit Institutions (PASAI) trained staff from 12 government audit offices for five days on the finer points of performance auditing earlier this month.

Nineteen performance auditors (9 female, 10 male) from American Samoa, Fiji, Guam, the Marshall Islands, the Micronesian states of Kosrae, Pohnpei and Yap, Palau, Solomon Islands, Tonga, Tuvalu and Vanuatu participated in the intensive workshop from 29 April to 3 May 2024.

PASAI Performance Audit Director, Mike Scott, and consultant, Craig Neil, facilitated the in-person training on performance auditing. PASAI eLearning Specialist, Danial Sadeqi, also attended to record the training for future use on PASAI’s online Learning Platform.

Mr Scott praised the participants for their commitment, enthusiasm and contributions during the week.

“Your work as performance auditors is a vital part of the role of SAIs in strengthening how well public money is used to make a difference in the lives of Pacific people,” he said.

Controller and Auditor-General of New Zealand, John Ryan, remotely opened the workshop in his capacity as PASAI Secretary-General.

The workshop covered the foundations of high-quality performance audits, which are meant to hold government agencies accountable for their service delivery and help agencies to achieve better results and outcomes.

The training included techniques and good practice for planning, doing and reporting on performance audits, and participants spent time selecting and developing potential topics for a PASAI-sponsored cooperative performance audit.

In a pre-recorded video, Secretary General of the INTOSAI Working Group on Environmental Auditing and head of the National Audit Office of Finland, Dr Vivi Niemenmaa, gave examples illustrating the power of SAIs working with each other on cooperative audits.

Following the workshop participants will examine an issue of common significance to the wellbeing of people across the Pacific and complete a performance audit together.

Acting Auditor-General of Fiji, Sairusi Dukuno, closed the workshop in person and reflected that maintaining connections with each other will strengthen the collective performance audit capability across the Pacific.

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

Participants and facilitators of the performance audit workshop in Nadi, Fiji

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Contact information:

Mike Scott, Director Performance Audit PASAI
E: mike.scott@pasai.org P: +64 9 304 1275

PDF version of this media release

PASAI director gets personal with performance auditors in Fiji

Suva, Fiji: Performance Audit Director for the Pacific Association of Supreme Audit Institutions (PASAI), Mike Scott, visited the Office of the Auditor-General (OAG) for the Republic of Fiji from 7 to 12 April to provide staff with in-person technical support on performance auditing.

Adding to guidance he provided staff earlier on the team’s yet-to-be-published ‘Climate Change Adaptation Actions’, ‘Affordable Housing’ and ‘Agriculture Assistance Program’ audits, Mr Scott reviewed progress and advised on best practice approaches to audit completion.

Mr Scott reviewed two of the OAG’s follow up reports on the government’s response to its audits of the ‘Management of Rural Electrification Program’ and the ‘Management of Land Reform Program’.

“Overall, my view is that OAG Fiji has a good and strong approach,” he said.

Mr Scott reviewed another two of the office’s completed performance audits, noting a logical overall structure and effective presentation of findings within each audit’s report, and suggesting ways to enhance the impact of the reporting.

Training of staff throughout the week included auditee relationship management, auditing government action on meeting the United Nations’ Sustainable Development Goals outlined in its 2030 Agenda, annual work programme planning and the practical application of the OAG’s performance audit manual. The group included staff who are relatively new to performance auditing.

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

PASAI Performance Audit Director, Mike Scott (third from left, front row) with performance audit staff from the Office of the Auditor-General of the Republic of Fiji

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Contact information:

Mike Scott, Director Performance Audit PASAI
E: mike.scott@pasai.org P: +64 9 304 1275

PDF version of this media release

Pacific Island auditors general upgrading in-house systems to meet new audit management standards

Nadi, Fiji: The Pacific Association of Supreme Audit Institutions (PASAI), in cooperation with the INTOSAI Development Initiative (IDI), are supporting the staff of Pacific Island auditors general to set up a formal System of Audit Quality Management (SoAQM).

Seventeen staff (11 female and six male) from the six government audit offices of the Cook Islands, Fiji, the Marshall Islands, Samoa, Tuvalu and Vanuatu have gathered in Fiji this week to participate in the five, full-day SoAQM programme workshop.

Senior staff from Norway-based IDI, Karma Tenzin and Mark Anthony Flores, and Fiji-based PASAI Director (South Pacific), Meresimani Vosawale-Katuba, are facilitating the training. IDI developed the SoAQM establishment ‘playbook’.

The in-person workshop from 8 to 12 April is the first part of the programme, which includes integrated professional education and an implementation phase for participating offices that continues to October 2025.

Ms Vosawale-Katuba explained, “The international standards of audit quality management these particular SAIs follow have recently been revised, taking effect from 1 January 2025.

“The new standards require a dynamic, scalable and risk-based approach to quality management. I’m confident that member offices participating in this programme will end up with fit-for-purpose systems embedded with self-correcting mechanisms.”

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

SoAQM workshop participants and facilitators in Nadi, Fiji

IDI Senior Manager, Karma Tenzin

IDI Manager, Mark Anthony Flores

PASAI Director (South Pacific), Meresimani Vosawale-Katuba

SoAQM workshop participants during training

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Contact information:

Meresimani Vosawale-Katuba, Director (South Pacific) PASAI
E: Meresimani.VosawaleKatuba@pasai.org P: +64 9 304 1275

PDF version of this media release

Office of the Chuuk State Public Auditor releases new strategic plan

Chuuk State, FSM: The Office of the Chuuk State Public Auditor (OCPA) released its Strategic Plan (FY 2024-2028). The comprehensive plan was completed with the assistance of the Pacific Association of Supreme Audit Institutions (PASAI), and will serve as a roadmap to strengthen and improve the office performance of the OCPA for the next five years.

The vision statement of the office is to become ‘an effective audit agency that promotes a high performing government.’ Guided by this vision; including its mission, and core values; the OCPA is aspiring to deliver performance that would impact the timeliness of government services and programs, identify areas of improvement within government agencies, integrate information technology in auditing, effectively communicate the results of the audits to the public and therefore, enhance government transparency and accountability.

The key focus areas of the strategic plan with key performance indicators include:

1. Toughen Independence: Safeguarding organizational autonomy and advocating for a clearer mandate.

2. Strengthen Internal Governance: Updating and implementing strategic and annual operation plans, fortifying internal control systems, and establishing robust management systems for support services.

3. Delivering Quality and Timely Audit and Investigation: Ensuring adequate staffing to execute a sufficient number of audits, nurturing staff competencies, refining operational standards and tools, optimizing work planning and controls, and implementing an effective quality control system.

4. Foster Engagement with External Stakeholders: Developing and updating strategies, policies, and procedures for stakeholder engagement, and nurturing professional relationships.

The OCPA also developed an operational plan that delineates the milestones for each fiscal year, as well as established the mechanism for monitoring and evaluating its performance. Furthermore, the OCPA conducted a risk assessment and identified the threats to the accomplishment of its strategic objectives.

These threats include potential challenges such as enactment of the proposed legislative amendments, insufficient budgetary support for manpower and operational needs, shortages of qualified personnel at Chuuk State, staff retention concerns, and limitations in the funds for IT resources. The OCPA would endeavor to address these potential challenges with the support from the political leadership and cooperation from departments within the government.

Strategic Plan 2024-2028; Monitoring and Evaluation Framework; Operational Plan 2024

PDF of OCPA press release 2024-01

New self-paced communications courses open to all member SAI staff

Two new self-paced communications courses are now available on our online Learning Platform.

The courses, Fundamentals of report writing and Interpersonal communications, extensively build on material previously delivered to dozens of SAI staff through remote webinars during the height of pandemic travel restrictions. In their new formats, staff can self-enrol and interact with the courses at their own pace, at times suited to their schedules.

The ‘Fundamentals of report writing’ course takes about two hours to complete and covers the following principles:

• Thinking and planning

• Writing

• Presentation

• Editing and proofreading

The ‘Interpersonal communications’ course takes about two hours to complete and includes modules on:

• Verbal communication

• Non-verbal communication

• Listening

• Written communication

• Inclusive language

• Building rapport

• What to avoid as a new auditor in a professional environment

Because the courses teach skills essential to all auditors, investigators and even support staff, we have re-designed them to be self-paced. That way, we do not have to wait for enough new recruits to run the courses.

With the rise of digital platforms and remote work, effective communication skills have become more crucial than ever. Some of the course content covers advanced communications skills tailored to the modern workplace where communicating via email and in videoconferences has become the norm, so even senior staff are likely to benefit from taking the courses as well.

Participants will have to demonstrate their comprehension of course content to progress through the modules and pass quizzes before being able to download certificates of completion.

We offer the courses to all staff in our member network as an integral component of our Competency Framework, part of our broader efforts to enhance the capabilities of government auditors in the Pacific region.

The courses provide a comprehensive understanding of the fundamentals of report writing and interpersonal communications, enabling auditors to effectively communicate their findings and recommendations to stakeholders.

Effective communication is a vital aspect of the audit process, and these courses will help auditors in the Pacific to perform better audit fieldwork, interact more professionally in the office and deliver high-quality reports.

Staff who already have a Learning Platform account can simply log in and access the courses from the Home page. Others will just have to follow the simple steps to create a new account after clicking on the padlock icon.

We encourage all audit office staff in the Pacific to take advantage of these courses and enhance their communication skills for the benefit of their respective jurisdictions.

PASAI’s 37th Governing Board meeting

Auckland, New Zealand: The Pacific Association of Supreme Audit Institutions (PASAI) held its 37th Governing Board meeting online on 1 March 2024, chaired by Satrunino Tewid, Public Auditor of Palau.

John Ryan, Secretary-General PASAI and Auditor-General of New Zealand, attended along with all other board members, PASAI Secretariat staff and representatives from the New Zealand Ministry of Foreign Affairs and Trade (MFAT) and the Australian Department of Foreign Affairs and Trade (DFAT).

The board members from Melanesia, Micronesia and Polynesia provided updates from fellow member SAIs based in their respective sub-regions. This included positive feedback about two multi-day events held in February and well attended by member SAI representatives: a PASAI-led Women Symposium in Samoa and a Trilateral Dialogue on the Teieniwa Vision in Vanuatu.

The Governing Board received a presentation of the intended timeline to finalise the development and adoption of PASAI’s next 10-year Strategic Plan which will take effect from 1 July 2024. It also heard about assistance available from the Office of the Auditor-General of Zealand to enable SAIs to fully participate in global environmental auditing initiatives.

Esther Lameko-Poutoa, Chief Executive PASAI, provided members with a report and presentation on the PASAI Secretariat’s progress implementing its operational plan from November 2023 to January 2024. The Governing Board approved a revised budget for the remainder of the financial year ending 30 June 2024.

Members will next meet in person in the Cook Islands on 19 May 2024, immediately before the annual PASAI Congress.

The Secretariat expresses its gratitude to the Governing Board members for their ongoing assistance and acknowledges the support of its development partners, MFAT and DFAT.

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Contact information:

Esther Lameko-Poutoa, Chief Executive PASAI, Auckland, New Zealand
E: secretariat@pasai.org P: +64 9 304 1275

PDF version of this media release

Pacific Island auditors trained on best performance auditing practices

Auckland, New Zealand: The Pacific Association of Supreme Audit Institutions (PASAI) is delivering a series of 12 webinars covering key performance audit concepts for its members from today.

Fifty staff from the government audit offices of American Samoa, the Federated States of Micronesia (FSM) National office, FSM Kosrae, FSM Pohnpei, Fiji, Guam, the Marshall Islands, New Caledonia, Samoa and Tonga have registered to participate in the remotely accessible capacity building training.

The first webinar will cover “What is performance audit, and economy, efficiency, effectiveness and equity?”

The remaining webinars will cover concepts from performance audit standards that underpin good practice from planning to reporting and follow up.

PASAI will typically release webinars in the series twice a month into late August 2024. A video, together with a practice sheet on the relevant concept covered, will be made available to participants on PASAI’s online Learning Platform. There will also be a quiz to complete on the key points covered in each webinar.

Additionally, in late April 2024, PASAI will facilitate an in-person workshop in Fiji to strengthen performance audit practice across member audit offices.

PASAI Director Performance Audit, Mike Scott, was delighted by the response of member audit staff who want to ensure they apply best practice to their performance auditing of government expenditure and service provision.

“Through the webinars and the workshop, our members will share and build understanding together of good performance audit practice, and how they can use performance audits to promote transparency, accountability and value for Pacific people,” he said.

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

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Contact information:

Mike Scott, Director Performance Audit PASAI
E: mike.scott@pasai.org P: +64 9 304 1275

PDF version of this media release

PASAI director visits Kosrae State and the Marshall Islands

Auckland, New Zealand: Performance Audit Director for the Pacific Association of Supreme Audit Institutions (PASAI), Mike Scott, visited the Marshall Islands last week to provide in-person technical support on performance auditing. This immediately followed a weeklong visit to the Office of the Kosrae Public Auditor in the Federated States of Micronesia.

The Kosrae State Legislature had recently specified three audit topics for the Public Auditor, Palikkun Kilafwasru, to carry out performance audits on.

Mr Scott explained, “A performance audit is an objective examination of whether citizens are well served by the spending of public money. Performance Audits examine how economically, efficiently, effectively, and equitably public money is spent.

“To take one example, the Kosrae Public Auditor will audit the government’s construction of the Utwe Gym. By planning the objective and scope of the audit, and considering how to engage with the auditee, we set the Kosrae team up to make insightful findings and provide valuable recommendations to action.”

Mr Scott also worked with the Kosrae audit staff to plan the other two audits and provided guidance on how to document audits according to international standards, which will help them in making enhancements to their methodology following a recent peer review.

In the Marshall Islands, Auditor-General, Junior Patrick, and his staff at the Office of the Auditor-General hosted Mr Scott during his mission.

Mr Scott undertook a quality assurance review of one of the office’s audits, noting a well-documented audit file and a high-quality draft report, and offering advice on areas to support them in continuing to advance the quality of their work.

He also spent two full days on staff capacity building, enhancing the auditors’ skills on topics ranging from report writing to risk management and compliance with auditing standards.

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

PASAI Performance Audit Director, Mike Scott; and Kosrae State Public Auditor, Palikkun Kilafwasru (second and third from left); with staff from the Office of the Kosrae Public Auditor

Mike Scott planning audits with staff from the Office of the Kosrae Public Auditor

Performance audit capacity building training for the staff of the Office of the Auditor-General, Republic of Marshall Islands

Mike Scott and Auditor General, Junior Patrick (back row, centre); with staff from the Office of the Auditor-General

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Contact information:

Mike Scott, Director Performance Audit PASAI
E: mike.scott@pasai.org P: +64 9 304 1275

PDF version of this media release

PASAI holds women symposium in Samoa

Apia, Samoa: The Pacific Association of Supreme Audit Institutions (PASAI) commenced a three-day Governance and Leadership Women Symposium for current and emerging female leaders across the Pacific Island region from today.

The first day is dedicated to developing the capabilities of 34 female staff who have travelled from government audit offices across Melanesia, Micronesia, Polynesia, Australia and New Zealand. They will hear from PASAI staff on topics like sustainable audit practices, quality management and gender policies.

On the second and third days, current and emerging female leaders from Pacific Island audit offices will be joined by more than 60 others from the Samoan public sector, businesses, civil society organisations, the media, regional stakeholders and development partners. Top accounting students from selected secondary schools will also attend.

Minister of Finance, Honourable Lautimuia Afoa Uelese Vaai, will officially open the symposium. The full list of local and international speakers who will share their experiences and insights is at pasai.org/symposium.

PASAI Chief Executive, Esther Lameko-Poutoa, in explaining the reason for organising the symposium, said that while slightly more than half of staff who work at government audit offices in the Pacific are women, their representation among those who hold managerial and leadership positions rapidly dwindles with increasing levels of seniority.

“We are committed to promoting gender equality and women's empowerment in the Pacific region through our programme of work and by establishing strategic partnerships to achieve positive outcomes in this area.

“We also advance productive relationships and encourage closer collaboration between audit institutions, relevant anti-corruption authorities and legislatures to build an accountability ecosystem across integrity agencies.

“It is only by unlocking the full potential of our workforces that we can more quickly achieve our goal of good governance and accountability within the public sector,” she said.

Samoa-based PASAI Programme Director and event coordinator, Susana Laulu, was especially pleased Samoa was chosen to host such an event, being held at the Taumeasina Island Resort.

“Not only was Samoa the first Pacific Island nation to elect a woman as its top leader, but it boasts having many women who have excelled in leadership positions across business, government, academia and CSOs. So it provides an ideal setting to inspire increasing standards of gender equality and inclusiveness,” she said.

PASAI aims for the symposium to allow for peer-to-peer learning from the experience and good practices of other countries and for discussions on how to enhance effective cooperation in the region to promote good governance and integrity in the public sector. 

PASAI acknowledges the support of the New Zealand Ministry of Foreign Affairs and Trade (MFAT) and the Australian Department of Foreign Affairs and Trade (DFAT). The arrangements for the symposium were also made possible by a collaboration with the Bank South Pacific (BSP) Samoa and TAUTAI Governance for Economic Growth.

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Contact information:

Susana Laulu, Programme Director PASAI
E: Susana.Laulu@pasai.org P: +64 9 304 1275

PDF version of  this media release

Excitement builds for inaugural women symposium

Everything is nearly ready for next week’s Governance and Leadership Women Symposium, to be held over three days in Apia, Samoa.

Around 100 delegates and speakers from across the Pacific Islands will gather for what is a first-of-its-kind event for PASAI. This meeting will engage an illustrious panel of local and international speakers who will share their experiences and insights to enhance the capacity and capability of current and emerging female leaders.

While slightly more than half of staff who work at government audit offices in the Pacific are women, their representation among those who hold managerial and leadership positions rapidly dwindles with increasing levels of seniority.

Samoa, rich in examples of women who have excelled in leadership positions across business and government, provides an ideal setting to inspire increasing standards of gender equality and inclusiveness.

The programme is designed to enable inclusive engagement and will provide a great opportunity to network with delegates, speakers and Samoan women in leadership.

By unlocking the full potential of our workforces, we can more quickly achieve our goal of good governance and accountability within the public sector.

PASAI is privileged to host this symposium in collaboration with the Bank South Pacific (BSP) Samoa and TAUTAI Governance for Economic Growth.

Passing of Eroni Vatuloka, first Executive Director of PASAI

It is with sorrow we recently learnt of the passing of Eroni Vatuloka, the first Executive Director of the PASAI Secretariat. He played a pivotal role in shaping PASAI into the respected association it is today. His work contributed to the increased effectiveness of supreme audit institutions across the Pacific region.

He later acted as a PASAI Advocate and Public Financial Management (PFM) Consultant. He helped facilitate workshops for the public accounts committees and public expenditure committees of several Pacific Island parliaments, improving their understanding of their own role within national PFM systems.

Mr Vatuloka's dedicated service and invaluable contributions have left an indelible mark on the audit community and the pursuit of excellence in public financial management in the Pacific region.

We extend our deepest condolences to Mr Vatuloka's family, friends and former colleagues in the audit community during this difficult time.

Satrunino Tewid
PASAI Chairman
Public Auditor, Palau

John Ryan
PASAI Secretary-General
Controller and Auditor General, New Zealand

PDF of announcement

Register for webinar on SAI Somalia’s journey towards a modern and independent audit law

Navigating the audit bill process in a challenging context.

In an upcoming CBC/ACCC webinar, senior staff from SAI Somalia will share their experiences of achieving the significant milestone of getting their audit bill signed into law last September.

Ms Mariam Abdirazak Awale (Special Assistant to the Auditor General) and Mr Said Birmad Egal (Legal Advisor of the OAG) will tell participants how they overcame challenges (including political complexities) and successfully steered the bill to approval.

The webinar will provide the story behind the importance of this achievement, share valuable lessons learnt during this process and serve as a source of inspiration for other SAIs striving to establish their legal frameworks.

Participants must register for the webinar taking place on Tuesday 20 February 2024 from 11.00 am to 12.30 pm CET (11.00 pm to 12.30 am NZDT). Registrants will receive a confirmation email explaining how to join the webinar, and may be able to view the recording later.

Report on the second quarter of activities now available

We have just published our second quarterly report for the 2023–24 financial year.

Current and past reports are available on our Quarterly Reports page.

Free, online environmental audit training offered by iCED in February and March

The International Centre for Environment Audit and Sustainable Development (iCED)* in Jaipur, India seeks nominations from SAI heads for participants to attend free, online environmental audit training programmes.

International Workshop on “Renewable Energy Development Strategies and Mechanisms with special reference to Solar Energy” – course schedule
Dates: 5–9 February 2024
Complete the workshop nomination form by 29 January 2024.

11th International Training Programme (ITP) on “Introduction to Environmental Auditing” – course schedule (postponed from December 2023)
Dates: Choice of 11–15 or 18–22 March 2024
Complete the ITP nomination form by 4 March 2024

There is comprehensive information about the facilities and programmes available at iCED. Staff at iCED will be in touch with participants, if accepted, with the final schedule and other relevant information.

*iCED is a Global Training Facility of the INTOSAI WGEA

Website: http://iced.cag.gov.in/
Email: iced@cag.gov.in
Phone: 0141-2772009/ 2772012/ 2772000
Fax: 0141-2772011/ 2772030

SAI Chuuk releases its audit on the Chuuk Housing Authority

18 December 2023

The Office of the Chuuk State Public Auditor (OCPA) completed its Audit Report No. 2023-02 entitled Chuuk State Housing Authority: Not Aware of the Extent of Families in Housing Needs. The coverage of the audit was for the period beginning fiscal year 2020 to fiscal year 2022. The audit was conducted in accordance with the U.S. Generally Accepted Government Auditing Standards for performance audit. The objectives of this performance audit were to determine whether the Chuuk Housing Authority (CHA) spent its funds in accordance with the Chuuk State Financial Management Regulations and to determine the extent to which the Chuuk Housing Authority has been strategically managing its operations and effectively performing its function as mandated by the law.

The Authority used to provide loans for construction of housing units but, due to limited funding, was currently administering only an in-house CHA Loan Fund for house repair and renovation. The Authority operates on two budgets. The first budget was non-appropriated fund, which was being approved by the board for the operation of the CHA loan fund. The second budget was the appropriated fund passed by the Legislature and signed by the Governor. During three year period covered by the audit (FY2020-FY2022), the non-appropriated fund (loan fund) had average yearly collection of $145,051.65 while the average yearly appropriated budget was $67,182.50. The yearly average collections can be provided to only about 29 new loans.

The results of the audit disclosed that the CHA did not spend its funds in accordance with the Chuuk State Financial Management Regulations and other applicable laws for the spending of funds and managing its operations. The OCPA noted non-compliances with regard to loan processing documentations and internal control requirements for the operation of the CHA loan fund. Of the 25 samples of loan folders examined, there were 13 samples (52%) with non-compliance issues involving improper documentations of loans. Furthermore, the OCPA noted that CHA did not strictly follow the budget control procedures. The deficit spending was recurring problem in appropriated budget at an average of $7,000 per year or 10% over the budget while the cash operating losses were sustained in the operation of the loan fund at an average of $40,000 per year during the fiscal years covered by the audit. The OCPA also noted that the loan fund was used for expenditures not allowed by law, e.g., COVID 19 allowance, bonuses, and others. The Board approved these expenditures. The audit found that a total of $23,720 was spent for unallowable expenditures. Lastly, the OCPA noted at least nine conflicts of interest loans amounting $45,000. In the absence of related policy, these loans may have been prioritized and unnecessarily competed and crowded out the funds that were otherwise available to low-income households.

The OCPA also noted that the CHA has not been strategically managing its operation and effectively performing its functions that were mandated by the law. There was no strategic plan in place that will provide direction on how it could fulfill its functions mandated by the law. The CHA was not aware of the extent of families in housing needs. On current lending activities, the OCPA noted that the CHA and the Department of Administrative Services (DAS) could improve their operating efficiencies by refraining from being involved in the procurement of the construction materials on behalf of the borrower. Unnecessary administrative time was being consumed waiting for quotation, creating and issuing Purchase Order (PO) based on summary of quotations, and processing the disbursements for POed items. These activities must be transferred to the responsibility of the borrowers. Furthermore, the OCPA also noted that the CHA has not been efficiently managing its accounts receivables (AR) and accounts payables (AP). The CHA was not efficient in collecting loans. In FY 2021, the CHA had written-off $1.5 million bad debts or uncollectible accounts on loans for the construction of housing units. Of the new loans granted during the period covered by the audit, the accounts receivable as of September 30, 2022 amounting to $44,658.48 from 10 debtors either had no collection or missed the periodic installment. There was also absence of reconciled subsidiary ledgers for both Accounts Receivable and Accounts Payable which could result in potential misstatements of the financial statements, particularly the receivable and the payable balances.

On other matters, the CHA Executive Director, based on a Memorandum of Understanding (MOU), was asserting that CHA has uncollected receivable account since 2007 from the Chuuk Public Utility Corporation (CPUC) amounting to $219,838.82. It helped CPUC then in resolving power outages and in purchasing its fuel needs. The DAS Director confirmed that the money was indeed provided to the CPUC through several cash releases as decreed by the Governor. He also said that intention was to get back the money; hence, an MOU was signed. He further said that they kept requesting for reimbursement. Since the CHA needs the fund for their loan activities, the OCPA recommend that the CHA should continue requesting for the reimbursement of the amount.

The OCPA had several recommendations to improve the operation of the CHA. It should update loan policies and procedures that should include policy on conflict of interest. Furthermore, it should strictly follow the budgetary control. Also, it should implement long term strategic plan and should refrain from being involved in the procurement of the construction materials on behalf of the borrower. Furthermore, it should implement strategies that would ensure that receivables are collected on time and the subsidiary ledgers are reconciled. Lastly, there should be regular management information reports that should be provided to the Board on cash in bank, accounts receivable, uncollected accounts, net resources (net position), net income/losses, cash forecast, revenue and expense report, and fund status report to serve as the basis of their informed decision related to the operation of the CHA and to keep intact and sustain the value of the loan fund.

The OCPA requested a formal response from both the management of the CHA and the DAS. It received the management response from the CHA but not from the DAS. The CHA management generally agreed on some recommendations but explained that the deficit spending that has been recurring in the appropriated budget was the salary increase that was approved by the Board to be funded by the loan fund.

Press Release 2023-02

PASAI director visits Kiribati

Bairiki, Kiribati: Programme Director for the Pacific Association of Supreme Audit Institutions (PASAI), Susana Laulu, visited Kiribati last week to provide in-person technical support.

Auditor-General, Eriati Manaima, and his staff at the Kiribati Audit Office (KAO) hosted Ms Laulu during her mission.

The primary purpose of Ms Laulu’s trip was to assist and guide the staff responsible for the 2022 Financial Statements of Government (FSG) with the audit planning and process. PASAI’s central strategic priority is that its member audit offices complete high-quality audits of government accounts on a timely basis.

Ms Laulu explained, “It’s very important that auditors have a broad understanding of government operations, the nature of key components of the FSG, and linkages to the work of each ministry to ensure the government budget is appropriately expensed and accounted for.

“Auditing is much more than double-checking numbers. Effective auditors must build relationships, communicate well and know what the right questions are to obtain the relevant information.”

Ms Laulu discussed with KAO staff the challenges impacting workflow and timelines to the FSG audit, and how to manage those challenges with existing resources. 

On her final day in Kiribati, Ms Laulu paid a courtesy visit to senior staff at the Ministry of Finance and Economic Development. Accompanied by Audit Supervisor, Tematang Raimon, Ms Laulu met Accountant General, Toromon Metutera, and Deputy Accountant General, James Ruatu.

Before leaving Ms Laulu assured the Auditor-General that PASAI will continue its support of KAO online and in person where needed near the closing of the FY2022 FSG audit.

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

PASAI Programme Director, Susana Laulu (seated in centre) and Auditor General, Eriati Manaima (seated on far right) with staff from the Kiribati Audit Office

Left to right: Deputy Accountant General, James Ruatu; Audit Supervisor, Tematang Raimon; PASAI Programme Director, Susana Laulu; and Accountant General, Toromon Metutera

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Contact information:

Susana Laulu, Programme Director PASAI
E: Susana.Laulu@pasai.org P: +64 9 304 1275

PDF version of this media release

SAI Chuuk releases audit report on the Department of Health Services

4 December 2023

The Office of the Chuuk State Public Auditor (OCPA) completed its Audit Report No. 2023-01 entitled Chuuk State Department of Health Services: Issues Found on Documentation, Inventory System, and Warehousing. This audit covered the period beginning fiscal year 2020 to fiscal year 2022. It was conducted in accordance with the Generally Accepted Government Auditing Standards issued by the U.S. Comptroller General.

The objective of this audit was to determine whether the Chuuk State Department of Health Services (DHS) is effectively ensuring that financial transactions are compliant with applicable laws and regulations of Chuuk State, focusing on the proper filing and complete documentation of obligation and appropriate payment of government housing allowance. In addition, the second objective was to determine the efficiency and effectiveness of internal controls on pharmaceutical products, medical supplies. and donated items; focusing on inventory system and warehousing management.

The OCPA concluded the DHS did not comply with the Chuuk State Financial Regulation regarding the proper documentation and filing. Important documents were misplaced and untraceable. The OCPA found the documentation of $354,210.73 worth of payments was missing on file: $648,132 worth of payments was lacking supporting documents and, this cannot be substantiated. However, $356,480.27 of this amount represents document for formulation of pharmaceuticals which was explained as filed with the Division of Planning and Statistics. In addition, a total of $118,200 was overspent in housing allowance for three years caused by variance in rate and conflict of interest.

The OCPA also concluded that the DHS poorly managed its inventory and warehousing. The DHS was incurring a substantial amount estimated at $1.5million yearly for procurement of pharmaceutical products and medical supplies. And an estimated of about $1 million is left in the inventory. However, the pharmaceutical products were manually tracked using Microsoft Excel which is not updated timely, and there was no system for medical supplies and donated items. As a result, an estimated purchased of medical supplies worth of $432,514.32 was not properly accounted for. In addition, the OCPA noted that the inventory was stored in four different, fully packed warehouses.

The OCPA recommended proper filing of documentation and an updated policy on housing allowance. Regarding the inventory, the OCPA recommended for investment on new inventory system and bigger warehouse.

Press Release 2023-01