1 Interaction between SAIs and PACs. Presentation to SADCOPAC

Who is AFROSAI-E? English-speaking subgroup of AFROSAI 23 members, including 2 Portuguese speaking Funded by members and donors Governance structure –Statutes and Regulations –Governing Board and committees –Executive secretariat –Annual reports 2

Strategic Imperatives Independence IT infrastructure, IT auditing and electronic working papers Human resource management Quality assurance Performance auditing Communication and relationships 3

Internal communication –Manual –Workshops –Management development program External communication –Key stakeholders Auditees Public accounts committee Executive 4

AG’s interaction with PACs Interdependent - Need support from each other Have to strengthen interaction to increase the impact of audit reports Same objective – to enhance accountability, transparency, honesty and optimize the utilizations of public resources 5

How can we improve interaction between AGs and PACs? AFROSAI-E engaged GIZ as a key partner Workshop in Tanzania –Representatives from GIZ, SAI, PAC and AFROSAI-E 6

Outcomes of the Tanzania workshop Partnership with GIZ (nWEnt) Projects Communication strategy for the relation between PAC and SAIs Improved audit reports More performance audit reports PACs to demand auditable performance information from governments Communication strategy for media relations (PACs and SAIs) 7

Subsequent events Project approved by GIZ (InWEnt) To be executed during the next 3 years Consultant appointed to compile –SAI/PAC communication strategy –Reporting Guidelines Regularity Audit Performance Audit 8

SAI/PAC Communication Strategy

Goal and Objectives Goal: to increase the impact of the function of the SAI Objectives –To provide the PAC with adequate support necessary to improve its effectiveness and efficiency in fulfilling its mandate –To communicate and facilitate the PAC’s improved understanding of the function of the SAI and its impact on society

Expected Benefits Effective working relationship SAI & PAC’s increased effectiveness Improved understanding of each others’ needs Improved understanding of the function of the SAI and its impact

Focus Areas PAC support communication –strengthening SAI/PAC communication & SAI’s support to PAC in reviewing audit reports and undertaking related functions Reputational communication –Communication initiated by SAI with the aim of providing PAC with information about its function and its impact. Important for SAI’s reputation and PAC’s perceptions of the SAI

PAC support communication PAC work processCommunication activities by SAI Strategic planningaudit-relevant info - expert strategic advice Prioritisation of audit reports/report sections Compile list of critical reports, audit findings or sections Setting work programmeProvide comments if necessary Preliminary questionsDraft preliminary questions

PAC support communication PAC work processCommunication activities by SAI Preliminary questionsDraft preliminary questions Public hearingsAttend public hearings as expert witness

PAC support communication PAC work processCommunication activities by SAI Development of PAC resolutions (report) Provide input and advise Review of government responses Evaluate government responses Follow-up on recommendations Assist the PAC with developing a formal procedure Review of the PAC’s performance Share experiences

Reputational Communication Communicate & update PAC on: –the function of the SAI and its desired impact –the SAI’s strategic plan –SAI’s performance information –relevant SAI developments, news, events, etc Conduct joint media briefings/press conferences Organise information sharing and networking sessions

REPORTING GUIDELINES

REGULARITY AUDIT PERFORMANCE AUDIT

REPORTING GUIDELINES There is a gap between the expectations of the users and the compilers of audit reports. Audit reports have been criticised for being: Not so useful or informative too technical too detailed Lacking adequate analysis

Objective of Reporting Guideline To provide guidance for SAIs to address the ‘expectation gap’ and enable them to better align audit reports to the requirements of the PAC and other stakeholders. To ensure that SAIs’ audit reports achieve the impact which is expected of them.

Characteristics of Effective Reports Relevant, including the right messages for the readers Produced and tabled in a timely manner; Placing emphasis on key risk areas; Conveying a clear and concise message in an easy to read fashion; Actionable, pointing out the causes for the errors and non-compliance identified; Providing meaningful analysis of information, for example ratio analysis and Presenting information in a user-friendly manner, using graphs and tables where applicable and possible.

CONTENTS OF GUIDELINE (RA) Reporting process of a SAI Role of Audit Standards The Expectation Gap Contents of audit reports Analysis and interpretation in reports Visual presentation in an audit report

WAY FORWARD Adoption of documents at AFROSAI-E Governing Board. Toolkit containing three documents –SAI/PAC Communication Strategy –Reporting Guidelines - RA & PA Training of Regional Champions Workshops at Country Level for AG & PAC – (CCAF involvement)

Conclusion The SAI and the PAC are enablers of each others’ function. Both should take pro-active roles in ensuring the successful implementation of these guidelines. Interaction should not compromise the independence of the SAI and the PAC; The SAI and PAC should interact with integrity, professionalism and credibility

THANK YOU TATENDA