OVERVIEW OF PUBLIC ACCOUNTS COMMITTEES Rasheed Draman African Centre for Parliamentary Affairs (ACEPA) Accra, GHANA

Outline Historic Roots Conceptual Approach Mandate and Legal Powers Relationship with the Auditor-General Structure and Internal Organization Activities (practices and procedures Resources

Public Accounts Committees: Historic Roots First “PACs”: Norway (1819), Denmark (1849) First “SAI”: French Courts of Account (1807) Modern (Westminster) Framework: PAC and Auditor General established in the United Kingdom in mid-19th. century

Conceptual Approach: Public Financial Accountability PACs are viewed as the apex for financial scrutiny and accountability Promoted as a crucial mechanism to facilitate transparency in government financial operations In this model, parliament confers responsibility to the Executive and, in return, the Executive is accountable to the legislature Watchdogs – in this instance, legislative auditors, whose mandate derives from parliament – examine the financial performance of the Executive and report to parliament.

Conceptual Approach: Public Financial Accountability Parliament Accountability Relationship Reports Public Auditor General Executive (AUC?) Examines

1. Mandate and Legal Powers Establishment: PACs are established and institutionalized through a country’s constitution, an Act of Parliament, or through parliamentary Standing Orders. Mandate: Regardless of how it is set up, PACs mandate can be expressed by concentrating on financial probity and regularity, or can be expressed more widely in relation to performance or value for money audits. Whatever the disposition may be, it is important that: There is clarity on the committee’s role and responsibilities

Mandate and Legal Powers Rules of establishment must empower the PAC with appropriate powers to carry out its mandate PAC members should have a common understanding and articulation of the PAC’s mandate, roles and powers. PAC members must have a good understanding of how PAC powers should be applied. The Rules and Acts of Parliament should allow for regular review and update of PAC’s mandate

Mandate and Legal Powers Access to information: The committee should have unconditional access to all government agencies and have the power to ‘follow’ government money provided to non-government service providers. Self-initiated inquiries: In addition to issues raised by the AG, the Committee has the power to investigate other matters. Scrutiny of estimates: In smaller jurisdictions, there may be benefit in combining ex post and ex ante budget review within the remit of the PAC

Mandate and Legal Powers Reporting to parliament: PAC issues formal substantive reports to parliament at least annually; and Parliament holds an annual debate on the work of the committee. Follow-up: PAC has established a procedure with the government for following up its its recommendations and is informed about what, if any, action has been taken.

2. Relationship with the Auditor-General The AG’s report is automatically referred to the committee and the AG meets with the committee to go over the highlights of the report. In all its deliberations, the committee uses the AG as an expert adviser. The AG’s department and the PAC are interdependent for their work to have successful outcomes thus it is crucial that a cordial relationship exists between the two entities.

3. Structure and Organization Size: Small committee is ideal; committees seem to work well with 5- 11 members, none of whom should be government ministers. There is evidence to show that the size of the committee is strongly related to PAC output and performance. The following should be considered in determining the size of PAC: PACS mandate and responsibilities The size of Parliament Number of audit reports to be reviewed by the PAC

Structure and Organization Political representation: Deals with the party affiliation of the Chair and the proportion of committee members from opposition parties. Recommended that: Senior opposition figures are members of PAC and probably chair the committee The Chair, regardless of party affiliation is a senior MP, fair-minded and respected by Parliament The Chair should have the ability to articulate the non-partisan objective of the Committee and ensure that members have a shared understanding of this objective

Structure and Organization Committee membership should provide for adequate participation by opposition MPs; their proportion of PAC membership should at least represent their proportion of seats in Parliament Members (appointments/term of office): no commonly accepted process of appointment to the PAC. Members can be selected by a Parliamentary Committee of Selection or similar; or by being nominated by political parties represented in parliament. Regardless of how selection occurs, length of term is what makes PACs effective. PAC is appointed for the full term of the Parliament.

4. Activities (Practices and Procedures) The committee meets frequently and regularly The typical witness is a senior public servant (‘accounting officer’) accompanied by the officials that have detailed understanding of the issues under examination. Planning and conducting meetings: A steering committee plans the committee’s work in advance and prepares an agenda for each meeting to the full committee. Planning is to ensure that the meeting the meeting achieves intended results/outcomes.

Activities (Practices and Procedures) Consensus: The committee strives for some consensus in its reports. This strengthens committee recommendations and increase the probability of government acceptance. Meetings open to the public and media: Hearings are open to the public. Full verbatim transcripts and summary minutes are quickly available for public distribution. Measuring performance: A committee should assess its performance annually.

5. Resources Committee should be involved in determining their own budgets. Such budgets provide financial resources for member allowances, site visits and costs related to public hearings. The committee is adequately supported with an experienced Clerk and a competent researcher(s). Specialised training (including orientation and mentoring) should be provided to new PAC members.

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