Presentation by the Accounting Chamber of Ukraine – Parallel Audit Coordinator Progress Report on the Initiative: Concept Framework of Coordinated Parallel Audit of Public Debt Management Information Systems Annual Meeting of the INTOSAI Working Group on Public Debt October 2014, Seoul, Korea

 Debt management – the process of managing government’s debt to meet financing needs  Public Debt Management Information System (PDMIS): - combination of software, hardware, people and communication to support debt portfolio - integrated tool for recording, monitoring, analyzing and reporting public debt - source for periodic statistical and financial reports about state of public debt 2 Preface October 2014, Seoul, Korea

 In 2012 SAI of Ukraine initiated to carry out a parallel audit of PDMIS  Focus on INTOSAI WGPD Strategic Goal 1 – Enhancement of SAIs expertise through investigation and knowledge sharing of Public Debt Auditing  Concept Framework of Parallel Audit was endorsed at WGPD meeting in September 2012 in Helsinki, Finland  12 interested SAIs (including Mexico and Ukraine) 3 Preface (contd) October 2014, Seoul, Korea

 Audit objectives are to assess whether: - management and control processes of PDM Information System are in place - information system has adequate general and application controls  Assessment of efficiency of PDM Information System - performance audit  Parallel audit means that SAIs adopt the same audit goals and jointly set out audit criteria 4 Audit Objective October 2014, Seoul, Korea

5 Kick-off Meeting April 2013, Kyiv, Ukraine October 2014, Seoul, Korea Welcomed by Chairman of Ukrainian SAI Over 30 participants 9 SAIs presented

 discussed organizational and methodological aspects of the parallel audit  familiarized with practices of public debt management and audit in different countries  shared experience on approaches applied in evaluation of information systems  adopted the Common Parallel Audit Programme, joined into force as of May Kick-off Meeting (contd) October 2014, Seoul, Korea

 related work plan of parallel audit was supported by WGPD in Santiago, Chile in May 2013  entered into cooperation with the EUROSAI IT Working Group in July 2013  presentation of parallel audit was submitted for consideration of EUROSAI ITWG at IT Symposium held in March 2014 in Potsdam, Germany  State Audit Office of Georgia joined the parallel audit project 7 Additional Overtures October 2014, Seoul, Korea

8 Mid-Term Meeting April 2014, Chisinau, Moldova October 2014, Seoul, Korea President of SAI Moldova Host 10 delegations 8 participating SAIs UNCTAD invited experts SAI Ethiopia special guest

 UNCTAD presented the debt management and financial analysis (DMFAS) programme  Participating SAIs reported on preliminary study results at national level  SAI Ethiopia shared PDMIS Audit Report pursuant to INTOSAI standards  SAI Brazil introduced updated draft Guidance on Auditing of Public Debt Information System (ISSAI 5450) 9 Mid-term Meeting (contd) October 2014, Seoul, Korea

 Information system is integral part of organization  Auditors should be aware of PDMIS type installed and its functionality  In some countries debt information is managed by multiple debt management units using different software  Most participating countries experienced DMFAS, other deploy CS-DRMS or home-grown IS  Principal shortcomings directly relate to lack of clear evidence-based concepts of PDMIS building 10 Lessons Learned October 2014, Seoul, Korea

 Carrying out principal audit testing phase at national level – from April to September 2014  Summarization of all major audit observations and findings – October 2014  Completing national audit reports and summaries – by 31 October 2014  Due care of confidentiality, avoid unauthorized disclosure of data 11 Work Forward October 2014, Seoul, Korea

 Summaries of national reports complement Joint Parallel Audit Report to be prepared by the SAI of Ukraine by the end of 2014  Collecting comments and amendments to the draft Joint Parallel Audit Report – 1-st Quarter 2015  Wrap-up meeting is planned to be held on March 17-18, 2015, in Tbilisi, the Republic of Georgia 12 Work Forward (contd) October 2014, Seoul, Korea

Participating SAIs will be requested to pass a ceremony of approval the final Joint Report on Coordinated Parallel Audit of Public Debt Management Information Systems The Accounting Chamber of Ukraine will pursue to inform the INTOSAI Working Group on Public Debt about final results of the parallel audit Thank you !