Transregional Programme for the Public Debt Management Audit 2008 – 2011 Annual Meeting of the INTOSAI Working Group on Public Debt Lithuania, 9-10 June 2011

Presentation Plan Overview of the IDI – WGPD Cooperation The IDI – WGPD Capacity Building Programme on Public Debt Management Audit (PDMA) 2008 - 2011 Programme Design and Status of Activities Achievements and Lessons Learned Upcoming Events Draft Public Debt Audit Guide The INTOSAI – Donor Cooperation Secretariat Memorandum of Understanding Global Stock taking 2011 – Public Debt Audit? Action Plan 2010 - 2011

The IDI – WGPD Cooperation Champions Programme, OLACEFS, 2002 - 2004 Public Debt Audit (PDA) Programmes in the Regions Workshop on the PDA (English), ASOSAI, 2004 Workshop on the PDA (Russian), EUROSAI, 2006 Symposium on the Public Debt Audit (Spanish), OLACEF, 2006 Transregional Programme on the Public Debt Management Audit (English and French), 2008 – 2011 ASOSAI’s Workshop on PDA, November 2011

The IDI – WGPD Cooperation Materials in four languages: Spanish, Russian, English and French A pool of public debt auditors in 6 INTOSAI regions More global joint-efforts by different key players: INTOSAI Working Group on Public Debt and Subject Matter Experts from its members Debt Management and Financial Analysis (DMFAS) Programme of the United Nations on Trade and Development (UNTACD) The United Nations Institute for Training and Research (UNITAR) The Commonwealth Secretariat (COMSEC) The World Bank

Programme Design Transregional Programme on Public Debt Management Audit Objective : To enhance both professional staff development and organisational capacity of target SAIs in public debt management audit 2008 1. Planning Meeting 2. E-survey 2009 3. Curriculum & Design Meeting 4. PDMA e-Course 2010 6. On-line audit plan 7. Audit Planning Meeting 8. Pilot Audit 2011 9. Review Meetings 10. System Training 11. Wrap up meeting 12. Exit Meeting Outcome Output Web based course on PDMA in 2 languages 31 SAI Audit teams trained Completed PDM Audit PDMA guidance Institutionalisation of PDMA Acceptance of audit recommendations Enhancement of the PDM Regional bodies run similar programmes Other SAIs request and use the materials

Pilot Audit (1) Objectives: Outputs: Execution of audit plan (audit design matrix and calendar) developed in the audit planning meeting Pilot use of the draft audit guide Outputs: All 29 audit teams completed their pilot audits Submitted Final Audit Reports or Draft Audit Reports or Summary Inputs for the improvement of the Draft Audit Guide Activities (April 2010 – February 2011) Audit activities: data collection, analysis and draft audit report ready for the audit review meeting Support activities: On-line support and On-site support

Pilot Audit (2) Topics SAIs Public Debt Legal Framework Pakistan Debts Strategy & Organisational Framework Senegal, Djibouti Public Debt Reporting Albania , Bangladesh, Fiji , Liberia, Mongolia, Moldova , Philippines, Rwanda, Ukraine, Zambia, Yemen, Algeria Loan Guarantees Kenya Debt Servicing Malawi, Gabon Borrowing Activities Macedonia, Romania, Indonesia, Lithuania, Vietnam, Madagaskar, Burundi Debt Management Operation Zimbabwe, Togo Public Debt Information System Ethiopia, Uganda

Audit Review Meeting (1) 28 SAIs French-speaking Group: 6 CREFIAF, April in Morocco Two English speaking Groups 10 SAIs (AFROSAI E & EUROSAI), March in Zambia 12 SAIs (ARABOSAI, ASOSAI, EUROSAI, PASAI), March in Philippines Objectives Provide peer and experts’ review on draft audit reports Discuss draft audit guide and Individual SAI’s action plan Outputs Revised draft audit reports subject to the SAI’s approval List of feedback on draft audit guide An individual SAI’s Action Plan – Output and Outcomes

Audit Review Meeting (2) Activities Agree on review criteria ISSAIs and national standards Structure, elements and contents/subjects (Audit design matrix - audit findings Group Presentation, Peer-review, face-to-face consultation Evaluation – Reaction and Learning To what extent the meeting met the objectives? To what extent your level of knowledge and skill increased BEFORE and AFTER the meeting? What obstacles do you anticipate to apply what you have learned? Was the meeting expert/instructor-centered or Learner-centered? How did you find the performance of the expert team?

Public Debt System Training (1) New activity of the Programme - 8 AFROSAI-E & 6 CREFIAF Objectives To train on the basic functionalities and controls built in the public debt systems Outputs 39 auditors trained (8 SAI of AFROSAI-E and 6 SAIs of CREFIAF) Training materials - two system (DMFAS6 & CS DRMS) Activities: 5 day practicum on the following topics: Overall functionalities of the system Capturing information on the life cycle of a debt instrument Validation aspects Statistic and Reporting

Public Debt System Training (2) Evaluation – Reaction and Evaluation To what extent the system training met the objective? To what extent your level of knowledge and skills increased BEFORE and AFTER the training? How did you find the performance of the instructor team? How can we improve the basic debt system training for auditors? Put it in the context of audit process and procedures How the training would make a difference in your future public debt audits? From around the computer (black box) to with and through the computer

Programme Achievements Programme Outputs Web-based course in 2 language? Done 31 SAIs audit team trained? 29 audit team Completed PDM audit (planning, execution and tabled report)? Public Debt Audit Guide adopted? Not yet Programme Outcomes SAI Action Plan: Institutionalisation of the PDMA? Acceptance of the audit recommendations? Enhancement of the PDM in the countries? Similar programme taken up by Regional Bodies? ASOSAI (November 2011), AFROSAI-E (the pipeline), OLACEF ? Other SAIs request and use the materials developed in the programme? Programme Evaluation – 2012/2013

Lessons Learned Transregional: Diversed knowledge and experience Audit standards and practices Type of audits Report writing Learning community and process Commitment from participating SAIs Confidentiality issues Online and on-site support Cooperation with programmes partners, SMEs & host SAIs Commitment: SAI mundur Peserta mundur

Upcoming Activities Wrap-up Meeting (#11) Exit Meeting (#12) Finalise the audit guide IDI, SMEs and Representatives of Participants Portugal, 21-29 September 2011 Exit Meeting (#12) Lessons learned and the way forward IDI and Partners Swiss, November 2011

Supports Required Finalisation of Programme Outputs Final audit reports – participating SAIs Audit Guide – WGPD, SAIs, resource persons Achievement of Programme Outcomes Implementation of Action Plan – participating SAIs

Public Debt Audit Guide (1) Objectives: Practical audit guide and pilot audit experience Status 1st Draft and feedback from SMEs (Dec 2010) Feedback from participants (March/April 2011) Revised draft to circulated to the stakeholders (June – August 2011) Finalisation in September 2011 (Wrap-up Meeting) Feedback: Type of audits Audit phase: planning, execution and reporting Audit Design Matrix Tools, templates, case studies, summary of audit reports

Public Debt Audit Guide (2) Revised Draft Introduction Planning Public Debt Audits – Audit Design Matrix Auditing Public Debt Topics Writing Public Debt Audit Report Glossary Appendixes Final Draft? Request comments and feedback from members of the INTOSAI WGPD, participating SAIs, programme partners Final comments by 31 August 2011

Resource Persons Commonwealth Secretariat: INTOSAI WGPD and respective SAIs Mrs. Teresa Nunes – SAI Portugal Mrs. Regina Chilupula – SAI Zambia Host SAIs: Zambia, Philippines, Morocco Mr. Jose R. Oyola, former US GAO DMFAS-UNCTAD Mrs. Roula Katergi, Mr. Gabor Piski, Mr. Gilberto Zabadl Commonwealth Secretariat: Mr. Mac Banda and Mr. Joseph Maro

INTOSAI-Donor Cooperation Objectives of Memorandum of Understanding Consistent with the principles on aid effectiveness found in the Paris Declaration and Accra Agenda for Action and shall ensure a more strategic, coordinated, and harmonized approach to building SAI capacity in developing countries. A common approach for increased strategic focus and coordination for donors and the SAI community in strengthening SAI capacity in developing countries. A variety of mechanisms for facilitating donor funding and support in line with donor mandates, priorities, and requirements.

Steering Committee Highest forum, supported by a Secretariat. Comprises all donor signatories and nine SAIs appointed by INTOSAI. Will meet semi-annually and is open to observers Joint chairs and vice chairs from the donor and INTOSAI communities. Chairs are the World Bank and the SAI of Saudi Arabia. Vice chairs are the United Kingdom’s Department for International Development (DFID) and the SAI of U.S.A.

Global Stocktaking Report 2010 Population and Response Rate Take stock of SAI Mandate and Performance SAI-owned strategic and development action plans Receipt & Provision of capacity development support Needs Assessment & Indicative Funding Gaps Strengthening Provision of Support Good practices

Population and Response Rate Stocktaking Population: All members of INTOSAI and/or INTOSAI Regional organizations 204 SAIs 8 INTOSAI Regional and Sub-regional Secretariats Response Rate: 183 SAIs in total (response rate: 90,2%) 172 INTOSAI members (response rate: 92,1%) 100% for Regional and Sub-Regional Secretariats 22

Strategic and Development Action Plans 130 SAIs (71%) have a Strategic Plan 81 SAIs have both a Strategic and a Development Action Plan Most SAIs that do not have a Strategic Plan are located in CREFIAF and CAROSAI 63 SAIs with need to develop/update Strategic Plan and/or Development Action Plan All Regional Secretariats have or are in a process of developing a Strategic Plan

Receipt & Provision of Capacity Development Support Receipt of Support 98 SAIs currently receive support 91 SAIs have received completed support Is support targeting the most needy? 80 % of SAIs from LI Countries receive support 50 % of Regional and Sub Regional Secretariats have received completed support All but 2 currently receive support Provision of Support 48 SAIs (26 %) provide support currently. Highest numbers of providers among EUROSAI and OLACEFS members 7 Regional Secretariats are service providers

Needs Assessment and Indicative Funding Gaps SAI Prioritization of support in 8 categories: Organizational Capacity (highest ranking) Financial Audit Capacity Compliance Audit Capacity Performance Audit Capacity IT Audit Capacity Other Specialized Audit Capacity (1 SAI: Public Debt Audit) Administrative Services Capacity (lowest ranking) External Stakeholders Relations Capacity Total indicative funding gap: US $ 269 million US $ 228 million from SAIs in LI and LMI countries Average funding gap of US $ 2.1 million per SAI with a high or medium need for capacity development support 1386 support activities identified - 1061 activities are unfunded Majority requested for 2010 – 2013

Strengthening Provision of Support Preferred provider of capacity development support: SAIs, Regions and IDI the preferred choice Variations across categories and regions Preferred form of support - Stand alone or part of broader PFM reform? 85 of 122 respondents prefer stand-alone project Variations across INTOSAI Regions Plans to address supply side constraints: 44 of 124 non provider SAIs plan to become provider 27 providers consider increasing the volume of support in the next 3 years

Good Practices Key factors for success: Needs based support Clearly defined objectives and incremental changes Leadership and management commitment Predictable and long term support Holistic approach Peer to peer cooperation and Use of IDI and Regions Modes and quality of facilitators Donor coordination

Action Plan 2010 - 2011 Short Term - Action Plan Framework for Medium to Long Term Support to SAIs Criteria for support Funding Modalities Management and Oversight Joint Work Programme

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