1 The INTOSAI Working Group on Key National Indicators Draft Principles for SAIs application of KNI The 3 rd Meeting April 7-8, 2010, Astana

Introduction to the principles Each country is confronted with various socio-economic problems at different times in their development. INTOSAI recognize that each country’s development goal requires individual designed KNI. A development strategy implicates also risks which have to be reflected in selection and development of KNI. These principles are generic which means that they are applicable on different conceptions and models of progress, well-being, sustainability etc. The character of being nonspecific and general is important because each individual country has different socio- economic problems to solve depending on the political stipulated preferences by the legislative power. 2

Principles Prerequisite 1. SAI use of KNI has to be within the mandate and respecting the independence of SAI. 1.1 Participation in the construction of KNI is not in accordance with the SAI prerequisite of independence 2. A precondition for SAI to use KNI in the audit is that the SAI’s staff has professional knowledge and experience within the field of both the policy area and the methodological questions concerning KNI 3

Principles Context 3. The SAI has to emphasise the aspect of accountability when evaluating and using KNI in the audit 3.1 SAI has to call attention to the value of disclosure and transparency of all aspects in connection with KNI 4

Principles Function 4. KNI is an instrument for SAI to analyse the implication of public policies 5. SAI has to evaluate the validity and reliability of the KNI used by government 5

Principles Requirements 6. SAI has to evaluate the disclosure of methods and calculations of KNI in order to secure transparency of the KNI in use 7. When working with KNI the SAI institutions has to use general accepted scientific method within discipline such as economy, statistics and social science 6

Principles Methods 8. When SAI is using KNI to analyse the implication of public policies the selected KNI has to be material in relation to the issue 8.1 SAI has to evaluate the set of KNI set up for illustrating the progress of the approved policy 8.2 SAI has to evaluate the capability of the stipulated KNI – system to make international comparisons 9. When evaluating exiting KNI in use by government the SAI has to evaluate to which extent there is a risk for not measuring the right issue in question 7

Principles Communication 10. SAI should evaluate that government the communication of KNI is carried out in compliance with the general principles for public statistical information’s 10.1 When an audit of KNI reveals weaknesses the SAI institution has to present its findings in such a way that it creates opportunities for the responsible to improve the KNI system 8

Principles Explicatory notes to the principles including best practice Ad prerequisite Ad communication Cases which illustrates the principles Case 1 Case n 9

10 Thank you!