1. Visit of India Government Delegation August 2008

2. Brazil – An Overview  Population - 187.5 million  Area – 8.5 million sq. km  26 states and the Federal District  5,700 municipalities  Economy  Gross Domestic Product (GDP) – USD 1.35 trillion* (29 % industry, 6% agriculture, 66% services) * exchange rate in 13/08/2008: R$/USD 1.617 * indicadores de volumes e valores correntes/current values

3. Brazil – An Overview  Political structure  Type of State and Form of Government: Multi-party Federative Republic - Union, States, Municipalities and the Federal District  Chief of State and Head of Government: President  Branches of power  Executive: Presidency of the Republic and Ministries  Legislative: The National Congress (Chamber of Deputies and the Senate)  Judiciary: Superior Courts, Courts and Judges.

4. Legislative CGU ExecutiveJudiciary Internal Control System External Control TCU Brazilian Court of Audit National Congress Brazil - Public Administration Control SFC

5. External Control  The National Congress, with aid of the Brazilian Court of Audit (Federal Constitution, article 71)  All administrative activities developed by the public power that involve gain or profit or create expenses and the creation or extinction of rights or obligations

6. Internal Control System  Main agency: CGU  Internal Control System  Corrective and disciplinary system (Sistema de correição)  Ombudsman of the Executive Branch  Prevention of corruption  Internal Control System: Federal Control Secretariat (SFC)  Evaluates the execution of the goals of the pluriannual plan and the execution of government programs and budget  Proves the legality and evaluate results of the administration of the agencies and entities and the investment of public resources by private entities  Supports external control in the execution of its work

7. Brazilian Court of Audit  Head office in Brasilia  26 field offices (one in each state)  9 Ministers and 3 Substitute Ministers (Collegiate Institution)  1 appointed freely by the President of the Republic  6 are chosen by the National Congress  2 are chosen from the Court´s Staff – one from the team of Substitute Ministers and one from the Court’s Public Prosecutor´s Office  All confirmed by the Senate  2,484 employees hired through public exam (including 626 in field offices) Ver no SAD

8. Full Court 1 st Chamber2 nd Chamber Public Prosecution Office Presidency Vice- Presidency Internal Affairs Internal Rules Committee Jurisprudence Committee Associate Justices (3) Offices Justices (9) Offices Brazilian Court of Audit - Structure

9. PRESIDENCY Segepres SEGEDAM SECOI SEGECEX ADVISORY STAFF Brazilian Court of Audit - Secretariat

10. SEGECEX Adfis Semag Sefip Secob SECEX Main Office (7) Serur SECEX States (26) General Secretariat of External Control Adcon Sefti SeprogSefid

11. TCU and expenditure in social programs  Effectiveness  Are social programs able to reduce poverty and social inequality?  How much? How?  Efficacy  Are the goals of the government programs and interventions being reached?  Efficiency  Are the best intervention strategies and management procedures being used?  Is there appropriate institutional coordination?  Are the control mechanisms operational and adequate?  Economy  Are the resources obtained at market prices?

12. Performance Auditing according to INTOSAI Performance auditing is an independent examination of the efficiency and effectiveness of government undertakings, programs or organizations, with due regard to economy, and the aim of leading to improvements. INTOSAI’s Implementation Guidelines for Performance Auditing (ISSAI 3000)

13. What is Performance Auditing according to INTOSAI? Performance auditing is concerned with the audit of economy, efficiency and effectiveness and embraces: (a) audit of the economy of administrative activities in accordance with sound administrative principles and practices, and management policies; (b) audit of the efficiency of utilisation of human, financial and other resources, including examination of information systems, performance measures and monitoring arrangements, and procedures followed by audited entities for remedying identified deficiencies; and (c) audit of the effectiveness of performance in relation to achievement of the objectiveness of the audited entity, and audit of the actual impact of activities compared with the intended impact. INTOSAI’s Auditing Standards (AS 1.0.38 and 1.0.40)

14. Cooperation Agreements  Technical Cooperation Project TCU - DFID  Agreement signed by the governments of Brazil and the United Kingdom  Carried out by the Brazilian Court of Audit (TCU) and the Department for International Development – DFID:  Phase I : 1998 to 2001  Phase II : 2002 to 2006  World Bank Project  Developing methodologies of impact evaluation of public policies  Focus on effectiveness

15. Technical Cooperation Project TCU-DFID Phase I : 1998 to 2001 (KPMG technical support)  Development and dissemination of methodologies, techniques and standards of performance auditing  Pilot audits  Areas of interest: health, education, and environment  Study tours - United Kingdom  Provision of training courses and development of teaching materials  Technical support to other units

16. Technical Cooperation Project TCU-DFID Phase II : 2002 to 2006 Improving external control with focus on reducing social inequalities (CERDS)  Evaluation of government programs (national or regional coverage) and regulatory models for public services through Performance Auditing by TCU and 2 State Courts  Focus on  equity  poverty reduction  strengthening of social control  engagement of civil society in overseeing government performance

17. Pitágoras Project Impact Evaluation Group  Partially funded by a disbursement of the World Bank.  Start: March/2008.  Target : Implement impact evaluation methodologies of public policies, as well as quantitative analysis, to be used in the auditing activities of TCU.  Main activities: training (statistics, econometrics and sampling), participation in auditing works, pilot audit using impact evaluation methodologies.

18. New audit strategy  A new model for elaborating an audit plan  Audit plans by AREAS – government ROLES  Evaluate comparable government interventions  Pluriannual agenda  From a complete diagnosis  Not only of the program characteristics  Take into account the diagnosed demands  Conclusions from the “state-of-the-art” literature  and previous TCU experience  TOP-DOWN approach  Facilitate knowledge development  Systemic vision of the areas to be audited

19. Audit plans by AREAS - ROLES  Definition of the areas to be analyzed  Education and social benefits  Research and diagnosis in 2007  Audits starting in 2008  Health  Research and diagnosis in 2008  Audits starting in 2009  Definition of methodological strategy  Database analysis  Social-economic researches (IBGE)  Administrative database of the programs  Management analysis  Mapping of processes and risk analysis  Evaluation of control mechanisms

20. Approach proposed in the research results  Studies to propose strategy of evaluation, audit and control  Mapping of government interventions  Policies, programs, actions  Diagnosis of the social problems  Connection between problems and interventions  Budgetary, institutional and legal analysis  10-year budget historical series  Institutional stakeholders analysis and legal criteria  Division in sub themes  Criteria for sub themes selection  materiality  relevance  risk

21. Mapping of government intervention

22. A New Model of Selection

23. Thank You