External Accountability:INTOSAI and Supreme Audit Institutions

Budget Execution Course

World Bank

January 11, 2005

Don DrachU.S. Government Accountability Office (GAO)International Organization of Supreme Audit Institutions (INTOSAI)202-512-4712Drachd@gao.gov

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

Dear Don,

As regards your BSE enquiry below, a subject on which we have done quite abit of work!

The GAO team may wish to be aware of the following NAO, PAC and House ofCommons reports:

HC 853: Session 1997-98: BSE: The Cost of a Crisis [and the associatedPublic Accounts Committee's report: HC 790 and the Government's response:Cm4471]

The BSE Enquiry also has its own website which may be worth consultingwww.bse.org.uk

We also understand the European Court of Auditors have examined expenditurecontrols for BSE. In Germany Dr Hedda von Wedel, at the express request ofthe State President, too, is carrying out enquiries into BSE there. You maywant to contact them direct.

You asked for an NAO contact: Pamela Smith, Director, Agriculture (VFM) hasreadily agreed to be your point of contact. Pamela is on +44 (0) 20 77987359 or e-mail pamela.thomas@nao.gsi.gov.uk

Hope the above is helpful to your colleagues.

Bruce Bedwell

International RelationsTel: +44 (0) 20 7798 7447Fax: +44 (0) 20 7798 7466e-mail: bruce.bedwell@nao.gsi.gov.uk

Effective capacity building depends on

Communication

Cooperation

Continuity

Trust

Partnerships

INCOSAI

Privatization1992(CP)

7 Regional Working Groups (11)

Governing Board (18)

Audit Standards

1984Cmtee (C)

International Institutions

2001(CP)

Program Evaluation 1992 (CP)

Strategic Planning

2002(TF)

Public Debt 1992(CP)

Journal 1974(LE)

Environment1992(CP)

Accounting & Reporting

1984Cmtee (C)

Internal Controls

1984Cmtee (C)

IDI 1986(LE)

IT1992(CP)

Secretariat (1)

International Money

Laundering 2001 (TF)

INCOSAI

Governing Board(18 voting members)

7 RegionalWorking Groups

7 RegionalWorking Groups

RegionalWorking Groups

Director of Strategic Planning

Goal 4 Liaison:Model International

Organization

Finance & Administration

Committee(5 voting members;

chair is Goal 4coordinator)*

Goal 3 Liaison:Knowledge Sharing

Goal 2 Liaison:Capacity Building

InternationalJournal of

GovernmentAuditing

IDI

Goal 1 Liaison:Professional

Standards

Peer Review Institutional strengthening and staff development Partnerships with international development organizations Advisory/consultant services

Capacity BuildingCommittee

(INCOSAI Theme I)

Audit Standards Internal Control Accounting & reporting

Professional Standards Committee

Public DebtInformation technologyEnvironmentPrivatizationProgram evaluationInt’l Institutions Anti-Money laundering

Working Groups:

Secretary General

Working Groups:

CORE VALUES

Overview Strategic Plan

STRATEGIC GOALS

MISSION

VISION

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 StandardsGoal 2: Institutional Capacity BuildingGoal 3: Knowledge Sharing and Knowledge ServicesGoal 4: Model International Organization

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.

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

Goal 2: InstitutionalCapacity Building

• Build the capabilities and professional capacities of SAIs through training, technical assistance and other development activities.

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

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.

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

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.

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?

Essentials for SAI Success

• Clear Mandates• Independence• Capacity• Accountability and Integrity• Knowledge Sharing• Adherence to International

Standards

GAO Capacity Building Initiatives

• International Auditor Fellowship Program (IAFP)

• Short-term in-country missions

• Support IDI

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

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.

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

External Accountability:INTOSAI and Supreme Audit Institutions

Budget Execution Course

World Bank

January 11, 2005

Don DrachU.S. Government Accountability Office (GAO)International Organization of Supreme Audit Institutions (INTOSAI)202-512-4712Drachd@gao.gov