External Accountability: INTOSAI and Supreme Audit Institutions

1. External Accountability:INTOSAI and Supreme Audit Institutions Budget Execution Course World Bank January 11, 2005 Don Drach U.S. Government Accountability Office (GAO) International Organization of Supreme Audit Institutions (INTOSAI) 202-512-4712 Drachd@gao.gov

3. Dear Colleagues, I am writing to inquire if your SAI has done work related to a subject very much in the news these days: BSE/'mad cow disease?" The U.S. General Accounting Office is beginning a study on the animal feed ban in the U.S., and how it differs from what is practiced in other countries. The study will also look at issues regarding non-foods with respect to use of materials from possibly infected animals. If your office has done work in this area, could you kindly send me the name and contact information for the person in your office responsible for that work? Thank you very much, and regards to all. Don

4. Dear Don, As regards your BSE enquiry below, a subject on which we have done quite a bit of work! The GAO team may wish to be aware of the following NAO, PAC and House of Commons reports: HC 853: Session 1997-98: BSE: The Cost of a Crisis [and the associated Public Accounts Committee's report: HC 790 and the Government's response:Cm 4471] The BSE Enquiry also has its own website which may be worth consulting www.bse.org.uk We also understand the European Court of Auditors have examined expenditure controls for BSE. In Germany Dr Hedda von Wedel, at the express request of the State President, too, is carrying out enquiries into BSE there. You may want to contact them direct. You asked for an NAO contact: Pamela Smith, Director, Agriculture (VFM) has readily agreed to be your point of contact. Pamela is on +44 (0) 20 7798 7359 or e-mail pamela.thomas@nao.gsi.gov.uk Hope the above is helpful to your colleagues. Bruce Bedwell International Relations Tel: +44 (0) 20 7798 7447 Fax: +44 (0) 20 7798 7466 e-mail: bruce.bedwell@nao.gsi.gov.uk

6. Effective capacity building depends on Communication Cooperation Continuity Trust Partnerships

7. INCOSAI Governing Board (18) Secretariat (1) 7 Regional Working Groups (11) International Money Laundering 2001 (TF) Journal 1974 (LE) IDI 1986 (LE) IT 1992 (CP) Privatization 1992 (CP) Strategic Planning 2002 (TF) Accounting & Reporting 1984 Cmtee (C) Audit Standards 1984 Cmtee (C) Internal Controls 1984 Cmtee (C) Public Debt 1992 (CP) Environment 1992 (CP) Program Evaluation 1992 (CP) International Institutions 2001 (CP)

8. 7 Regional Working Groups 7 Regional Working Groups Regional Working Groups INCOSAI Governing Board (18 voting members) Secretary General Director of Strategic Planning Goal 3 Liaison: Knowledge Sharing Goal 1 Liaison: Professional Standards Goal 2 Liaison: Capacity Building Goal 4 Liaison: Model International Organization Working Groups: Capacity Building Committee (INCOSAI Theme I) IDI Finance & Administration Committee (5 voting members; chair is Goal 4 coordinator)* Professional Standards Committee International Journal of Government Auditing Working Groups: Public Debt Information technology Environment Privatization Program evaluation Int’l Institutions Anti-Money laundering Audit Standards Internal Control Accounting & reporting Peer Review Institutional strengthening and staff development Partnerships with international development organizations Advisory/consultant services

9. Overview Strategic Plan MISSION INTOSAI is an autonomous, independent, professional, and non-political organisation established to provide mutual support, foster the exchange of ideas, knowledge, and experiences, act as a recognised voice of SAIs within the international community, and promote continuous improvement amongst a diverse range of member supreme audit institutions (SAIs). Promote good government by enabling SAIs to help their respective governments improve performance, enhance transparency, ensure accountability, maintain credibility, fight corruption, promote public trust, and foster the efficient and effective receipt and use of public resources for the benefit of their citizens. Independence - Integrity - Professionalism Credibility - Inclusiveness - Cooperation - Innovation Goal 1: Accountability and Professional Standards Goal 2: Institutional Capacity Building Goal 3: Knowledge Sharing and Knowledge Services Goal 4: Model International Organization VISION CORE VALUES STRATEGIC GOALS

10. Goal 1:Accountability and Professional Standards • Promote strong, independent and multidisciplinary SAIs by: • Encouraging SAIs to lead by example, and • Contributing to the development and adoption of appropriate and effective professional standards.

11. Goal 1:Accountability and Professional Standards • Promote the adoption of recognized professional standards • Review and restructure the current standards committees’ arrangements • Develop partnerships with other standards setters

12. Goal 2:InstitutionalCapacity Building • Build the capabilities and professional capacities of SAIs through training, technical assistance and other development activities.

13. Goal 2:InstitutionalCapacity Building • Promote increased capacity building activities • Advisory/Consultant services • Peer reviews • Develop partnerships with international development organizations, consistent with INTOSAI’s independence requirements

14. Goal 3:Knowledge Sharing and Knowledge Services • Encourage SAI cooperation, collaboration, and continuous improvement through knowledge sharing, including providing benchmarks, conducting best practice studies, and performing research on issues of mutual interest and concern.

15. Goal 3:Knowledge Sharing and Knowledge Services • Establish and maintain communities of practice • Facilitate benchmarking and best practices studies, consistent with diversity and sovereignty considerations • Develop global communications policy and strategy • Promote partnerships with academic/research institutions, consistent with INTOSAI’s independence requirements

16. Goal 4:Model International Organization • Organize and govern INTOSAI in ways that promote economical, efficient, and effective working practices, timely decision-making, and effective governance practices, while maintaining due regard for regional autonomy, balance, and the different models and approaches of member SAIs.

17. Goal 4: Key Questionsto Effectively Implement Plan’s Strategic Goals • Focus and Alignment: Does the current organization and structure provide an appropriate focus and alignment with the proposed strategic goals? • Capacity: Does INTOSAI have sufficient capacity and resources to deliver the proposed goals and activities? • Efficiency and Timeliness: Is INTOSAI able to make decisions and respond to issues in an efficient and timely manner?

18. Essentials for SAI Success • Clear Mandates • Independence • Capacity • Accountability and Integrity • Knowledge Sharing • Adherence to International Standards

19. GAO Capacity Building Initiatives • International Auditor Fellowship Program (IAFP) • Short-term in-country missions • Support IDI

20. G A OShort-term In-country Missions • Ukraine Chamber of Accounts: - agriculture audit program • Indonesia Supreme Audit Board: - banking regulation audits • Guyana Office of the Auditor General: - new audit legislation

21. GAO International Auditor Fellowship Program (IAFP) • Mission • To strengthen SAIs’ ability to fulfill their missions and to enhance accountability and governance worldwide  • Program Objectives • Enhance institutional capacity and individual skills. • Foster continuous learning and knowledge sharing. • Strengthen institutional relationships and professional networks.

22. Opportunities & Challenges • Strategic partnerships with donors • Long term technical assistance to sustain capacity • Translation of course materials & manuals • Knowledge sharing • Web-based communication tool • Distance learning options • Coalition building • Within the SAI • Intergovernmental - within country • Donor and SAI coordination

23. External Accountability:INTOSAI and Supreme Audit Institutions Budget Execution Course World Bank January 11, 2005 Don Drach U.S. Government Accountability Office (GAO) International Organization of Supreme Audit Institutions (INTOSAI) 202-512-4712 Drachd@gao.gov