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2. The Role of Civil Society Organizations in Auditing and Public Finance Management www.internationalbudget.org Vivek Ramkumar and Warren Krafchik The International Budget Project (ramkumar@cbpp.org/krafchik@cbpp.org)

3. Introduction The budget is central to consolidating democracy. Traditionally a closed process, but emerging intl. consensus favors transparent & inclusive budgeting. Enforcement depends on strong independent oversight institutions. Dramatic growth in CSO budget capacity, but requires oversight partnership between CSO, Parliament, SAI, Judiciary& media.

4. The growth of CSO applied budget groups Definition: Applied Budget Groups Types of work and impact –Advance budget literacy –Budget process and system studies –Analyzing budget policies and allocations –Tracking expenditures & revenues and measuring impact What can a conversation between CSOs and SAIs look like?

5. Examples of civil society initiatives in Auditing The Mazdoor Kisan Shakti Sangathan (MKSS) in India. The Public Service Accountability Monitor (PSAM) in South Africa. The Concerned Citizens of Abra for Good Governance (CCAGG) in the Philippines. Procurement Watch, Inc. in the Philippines. www.internationalbudget.org

6. Tracking Expenditures with village communities: MKSS Initiatives –Right to information campaign –Public hearings/social audits Success –Enabled legislation on Right to Information –Exposed corruption through social audits www.internationalbudget.org

7. Monitoring Follow-up to the Auditor General’s Report: PSAM Initiatives –Database on corruption & (non) compliance with public finance regulations. –Accountability monitor. Success –Audit disclaimers –Joint Anti-Corruption Task Team –Provincial judicial commission of enquiry www.internationalbudget.org

8. Participatory Audits: CCAGG Initiatives –Monitoring community employment and development projects. –Participatory audits. Success –Action against corrupt officials & contractors. –Established feasibility of participatory audits. www.internationalbudget.org

9. Advocating for Transparency in Public Procurement: PWI Initiatives –Advocacy for new procurement law. –Offer expertise to public agencies. –Training citizens on procurement issues. Success –Passage of new procurement law. –Increased citizen participation in bids and awards committees. –Establish expertise in technical area. www.internationalbudget.org

10. Recommendation I What can CSOs offer? –Can build citizen literacy on public financial management. What SAIs need to do? –Should develop accessible and understandable reports that are widely available & distributed to the public in a timely manner. www.internationalbudget.org

11. Recommendation II What can CSOs offer? –Have networks and expertise to detect potential cases of corruption and to report these to SAIs. What SAIs need to do? –Should create communication channels and legislation to support whistle-blowers. www.internationalbudget.org

12. Recommendation III What can CSOs offer? –Can augment SAI capacity to undertake or pilot performance and procurement audits. What SAIs need to do? –Create spaces for CSO participation. www.internationalbudget.org

13. Recommendation IV What can CSOs offer? –Can monitor and build pressure for government action on audit recommendations. What SAIs need to do? –Should provide timely, accessible, credible information with clear recommendations. www.internationalbudget.org

14. Recommendation V What CSOs offer –Innovative audit methodologies to monitor public projects/programs. What SAIs need to do –Adapt these methodologies to augment their own audit procedures. www.internationalbudget.org