INTOSAI Task Force Global Financial Crisis - Challenges for SAIs and the WGPD Roberto José Domínguez Moro Superior Audit Office of Mexico INTOSAI Working Group on Public Debt June 14, 2010

Introduction  The INTOSAI Task Force Global Financial Crisis - Challenges for SAIs was created as an institutional response to the auditing issues stemming from the financial crisis and the governments’ response to it

Creation  58 th Governing Board Meeting (Vienna, November 2008)  Falls within INTOSAI Strategic Goal 3, Knowledge Sharing  Chair: United States of America

Membership  25 members so far:  Austria Canada Chile China Cyprus Denmark Estonia European Court of Auditors Finland Hungary Indonesia Italy Japan Korea (Republic of) Mexico Morocco Netherlands Poland Russian Federation Saudi Arabia Slovakia Sweden United Kingdom United States of America Venezuela

Purpose  To enhance the knowledge base of SAIs on financial and economic matters related to the crisis  To enhance the exchange of knowledge among SAIs  To help governments and the global community respond to the crisis  To become a source of information and experience

Goals (i)  Draft Goal 1: Develop recommendations  Minimizing the impact of future financial crises  Draft Goal 2: Develop resources  SAIs work on global financial crisis, stimulus initiatives, and their impact

Goals (ii)  Draft Goal 3: Develop tools and methodologies   Strengthening SAIs’ monitoring ability  Financial and other regulatory systems  Draft Goal 4: Build strategic relationships with key international organizations   Sharing Information on the financial crisis  Developing key indicators for early warning systems

Goals (iii)  Draft Goal 5: Develop tools and methodologies  Strengthening SAIs ability  Conducting performance and other audits of macroeconomic measures taken in response to the global financial crisis

Objectives (i)  Lessons learned  Lessons SAIs collectively learned from past financial crises  Impact on countries  Common problems that countries have experienced

Objectives (ii)  Genesis and impact of the current crisis  Principal domestic and foreign factors causing and/or influencing the impact of the financial crisis  Impacts upon each country’s financial market and economic framework  Impacts upon economic development globally and regionally

Objectives (iii)  Initial government responses to avert or minimize the crisis  Fiscal stimulus  Financial intervention  Broader economic interventions  Regulatory and other changes made to minimize the risk from financial crisis

Objectives (iv)  Reforms, transparency, and accountability  Reforms to mitigate the impact of another financial crisis and needed global regulatory reforms  Role of central banks and other supervisors  Criteria for using public funds  Transparency, accountability and effectiveness of undertaken measures  Level of international cooperation

Objectives (v)  Challenges that SAIs face  Factors (legal mandates, human resources, etc.) influencing SAIs’ ability  Impact on SAIs’ audit operations, fiscal resources, and legal mandates  Methodologies and tools to strengthen SAIs’ abilities  Audit principles for government auditing

Objectives (vi)  Roles of SAIs in monitoring and overseeing financial markets, banking systems, and financial regulatory systems  Role of SAIs in responding to the current crisis  SAIs information that can affect government exit strategies

Objectives (vii)  International Organizations & Key National Indicators  UN, OECD, World Bank, IMF, International Labor Organization, Bank of International Settlements, international standard setting bodies  Roles of international organizations and integration of government auditing into national measures  Definition of adequate international benchmarks

Terms of Reference (i)  The Task Force will exist for a period not to exceed 3 years  Expected Products:  Archives of SAI work  Compilations of best practices and lessons learned  Electronic WIKI products  Case studies  Training courses

Terms of Reference (ii)  Liaison with other INTOSAI Committees and Working Groups on intersecting issues:  Knowledge Sharing Committee  Working Group on Public Debt  Working Group on Key National Indicators

Terms of Reference (iii)  Publication and Distribution of Documents  Exposure Drafts and Products  Task Force members  comments within 21 calendar days of receiving the draft  May also circulate draft documents to other Task Forces, Working Groups, and the Governing Board prior to exposure to the full membership

Terms of Reference (iv)  Reports to the Governing Board  The Task Force may participate in the annual Governing Board meeting  Changes to the Task Force terms of reference, membership, etc.  Documents presented to the Governing Board will be previously circulated within the Task Force

Terms of Reference (v)  Reports to the INTOSAI Congress  The Task Force chair will present a report to the INCOSAI   Results of its activities to date  Expected outcomes and products

Terms of Reference (vi)  Creation of three subgroups:  1. Financial crisis causes and lessons learnt  2. Actions for minimizing and avoiding crises  2A. Effects of rescue programs on financial markets  2B. Effects of rescue programs on economy  3. Challenges for SAIs

Task Force and the WGPD (i)  Concurrence of issues to analyze  Impact of governmental rescue, bail-out and support programs on public debt  Liabilities, sustainability and long-term effects on public debt  Effective auditing of rescue programs  Definition of indicators and early-warning systems  Development of pertinent information related to auditing for policy-makers

Task Force and the WGPD (ii)  WGPD Strategic Plan:  Maintain an active relationship with the other regional groups, working groups, standing committees, task forces as well as other institutions dealing with public debt issues  Designation of a WGPD member to undertake liaison responsibilities with the Task Force

Task Force and the WGPD (iii)  WGPD investigations  Task Force  important input for current and future investigations  Need of WGPD – Task Force coordination  Avoiding duplication of efforts  Enriching WGPD products’ contents  Exchange of information  Cooperation and collaboration on common issues