Edit Nemeth, Leader of WG Progress of ICWG Edit Nemeth, Leader of WG

1st meeting of ICWG – Prague, 2016 March Objectives & achievements: Introduce the new Internal Control Working Group (ICWG) Share key principles and understanding of the Public Internal Control (PIC) from the EU among members – European Commission, Georgia, The Netherlands, Russia Clear understanding of definitions and important players in PIC area Agreement on the next steps in the ICWG Agreement to make a glossary for important definitions

2nd meeting of ICWG – Moscow, 2016 October Objectives & achievements: Share member countries’ good practices in internal control (IC), and learn how countries have addressed implementation challenges – Belarus, South Africa Enhanced understanding of internal control terminology and the COSO Framework’s 17 principles applied in the public sector Knowledge of the IC good practices and potential challenges in implementation Clarity on the next steps in the ICWG

3rd meeting of ICWG – Budapest, 2017 March Objectives & achievements: Learn the key recent developments on Public Internal Control (PIC) reforms in the ECA region and beyond – European Commission, Brazil, South Africa Understand the internal and external factors for establishment of sound accountability through the three lines of defence Contrast the accountability concept applied in centralized vs decentralized public administration systems, sharing member countries’ good practices in addressing implementation challenges Enhanced understanding of accountability concept and its implementation in practice Solid understanding of the role of CHU and internal auditor in establishment of sound accountability First draft of the glossary

Next steps - topics Develop PEMPAL Principles of IC reflecting broader country experience, culture, maturity and organizational cultures. Start from generic principles and specify at the extent possible and applicable to different country set up. Mapping key business processes with outline of KPI. Illustrate how to map processes and risks, risk register outline, accountability lines with process mapping, reporting Divide topic into two Raising awareness among managers: How to create awareness on mng level? How to link PIC reforms with other reforms (e.g broader PFM, or PBB)? What are the good quick wins to strengthen accountability and how to stimulate the accountability? The benefit of the IC system. VFM for ultimate customers - citizens How to implement the FMC on an organizational level: risk management, performance management, VFM for citizens. Delegation of authority: pros and cons. PIC models in different countries: pros and cons, without naming the countries. How to improve transparency in practice?

Next steps – knowledge product(s) Develop a practical model not academic - there is a lot developed, try not to replicate. Glossary to be developed with all potential use of a single term. PEMPAL principles of IC (may differ among countries, with the starting point using the existing models). Toolkit to assess the current IC in a country A set of specific actions to support each of the PEMPAL principles to be established and/or a Decision tree on how to proceed with actions. Handbook to explain 3Es and illustrate the process and risk mapping, and accountability lines Develop Case study to elaborate practical application: from planning to risk management to the assessment process. Establish a repository of IC models and provide recommendations on the best practice among existing modules. Comparative analysis of the IC models of different countries, with advantages and disadvantages. Countries will need to fill in the pro=forma questionnaires for easy collating and comparability.

Thanks for your attention