The PAC-AG Relationship

Parliamentary Financial Oversight TrainingLilongwe Malawi

George Phiri

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Objective

The Objective of this session is to: get an understanding on the relationship between the PAC and the SAI.

the supporting function of the SAI as regard to PAC work

Share experience on the different roles the SAI plays in the work of the PAC

Overview of two types of Support Reputational Support PAC Support

Discussion on the different support issues in regards to PAC Support and Reputational Support is key in this session

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Contents

Introduction

The PAC-SAI Relationship (Accountability Triangle)

Support Function

Types of Support

Conclusion

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Introduction

The Public Accounts Committee (PAC) is a Parliament Committee that is charged with responsibility of holding government accountable for its spending of public funds and its stewardship over public resources ( it provides the oversight role of parliament on the utilisation of public resources).

The Auditor General (SAI) provides assurance through the Annual Audit Reports on the Accounts of the Republic tabled in Parliament .

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The PAC- AG Relationship

Parliament

Auditor General Executive

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The Accountability Process

Parliament allocates resources to the Executive for various programmes

Executive submits reports to Parliament on the use of resources

Parliament assigns AG to auditExecutive provides information to AG for auditAG audits Executive on the use of resourcesAG submits report to Parliament

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Support Function

Questions to be addressed:

Why is effective support relationship between SAI & PAC critical?

What can a SAI employ to ensure that this function is accomplished?

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Support Function Cont--

Mutual Dependence- SAI/ PAC:

The impact of the SAIs function is dependent on the effectiveness of the PAC in ensuring that government (the executive) acts upon the audit findings and PAC recommendations.

AND

The effectiveness of the Public Accounts Committee in advancing audit findings is dependent on the SAI’s professional, objective, clear and simple audit reporting and advise.

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Types of Support

Reputational Support Initiated by SAI with the aim of informing the PAC on

what the SAI does, how it does its work and what impact of its function is.

PAC support Strengthening SAI’s support to PAC in reviewing

audit reports and undertaking related functions.

Effective working relationship between the SAI and the PAC is paramount to promoting accountable public sector institutions

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Reputational Support

What means and ways can a SAI use to advance Reputational support?

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Reputational Support-Ways

Presentations to PAC members on the function of the SAI and its relationship with the PAC (at the beginning of each Parliamentary term)

Disseminate information on the function of the SAI and its desired impact

Communicate the SAI’s strategic planAttend conferences organised by PACsRegularly update the PAC on relevant SAI

developments, news, events, etc.

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PAC Support

What ways and means can a SAI use to advance PAC Support function?

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PAC Support-Ways

PAC work process Support activities by the SAI

PLANNING

Strategic planning Attend & provide expert strategic advice & audit- relevant info that can help the PAC plan better

Prioritisation of audit reports/report sections

Compile list of critical reports, audit findings or sections of a consolidated audit report to help PAC prioritise

Setting work programme

Provide written expert commentary if necessary

Preliminary questions

Draft preliminary questions

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PAC Support- Ways

PAC work process Support activities by SAI

INFORMATIONGATHERING &

INVESTIGATIONS

Preliminary questions

Draft preliminary questions

Briefings Give the PAC a comprehensive briefing on audit outcomes

Compiling background information

Advise PAC on the minimum background information to be compiled

Public hearings Attend public hearings as expert witness

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PAC Support

PAC work process Support activities by the SAI

REPORTING Development of PAC resolutions (report)

Review the PAC draft resolutions and provide input and advise on how the PAC resolutions should be structured

FOLLOW-UP Review of government responses

Evaluate government responses and advise the PAC on its adequacy in addressing audit queries

Follow-up on recommendations

Assist the PAC with developing a formal procedure for monitoring government’s action on audit recommendations

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Conclusion

The SAI/PAC relationship is very critical if the Accountability and Transparency in the utilisation of public resources is to be achieved. As highlighted above SAIs should guides the PAC on critical audit areas so that the PAC could prioritise their work. SAI involvement in the Planning of PAC work is also very critical as the work of the PAC depends on the output of the SAI.

Success is dependent on mutual commitment & cooperation between SAI and PAC Partnership rather than a prescriptive approach

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ANY QUESTIONS

THE END17