1. Synergy session on supporting SAIs in fragile situations
CBC-IDSC Meeting
Supreme Audit Office Afghanistan
Dr. Mohammad Sharif Sharifi Auditor General , Afghanistan ,September 2017

2. Presentation Outline Background Information about Afghanistan and SAO
How the SAO can help in State Building ?
SAO expectation (Own SAO, INTOSAI, DONORs)
SAO challenges
SAO’s Commitment in Afghanistan

3. Background Information about Afghanistan and SAO
Functioning in Afghanistan as such is against greatest odds
Afghanistan is in the shadow of war.
Kabul, where I live and work is already fighting for peace and better infrastructure for education, sanitation and clean energy.
The State of Afghanistan works in these conditions and tries to support the war victims, rebuild institutions, systems, procedures of governance while defending the country against the terrorists.

4. Background Information about Afghanistan and SAO
SAO has been in existence for over 96 years.
SAO holds a prominent position in the financial management and accountability framework in the GoIRA and promotes good governance and legislative oversight
Prior to 2001, audits were being conducted very basically to a few entities. Since then, we have improved and have progressed to conducting compliance and performance audits. Financial audits are still our major audits.
Presently SAO has been doing the work which will assist rebuilding of Afghanistan in terms of awareness and bringing financial discipline

5. How the SAO can help in state Building ?
SAO provides an impartial score card on the financial management and use of the donors’ funds. That assures that the state is capable of spending the funds judiciously.
The assessment gives basis for the donors for continued assistance and support that is so necessary for a fragile state.
In Afghanistan, SAO is auditing the government expenditure and revenues and submitting its reports timely to the Parliament and the State President.
SAO is also auditing the donor funded projects and submitting the report to the World Bank systematically. The Bank now has a very reliable basis to assess the state’s ability to spend the funds.

6. Cont….
SAO’s assessment of the financial management and performance audits provide the input to assess the financial and operational viability of the public institutions that form the core of the state.
SAO’s reports lead to improvement in the laws, rules and procedures for expenditure and revenues and help the state to function more efficiently.
Additionally, SAO’s findings are considered by the Parliamentary committees and they hold the government accountable. But its in very nascent stage.

7. Cont….
Suspicion of widespread corruption and financial mismanagement erode the confidence of the citizens, SAO plays an important role is restoring the Citizens’ confidence in the governance in the state which is essential for the state building in fragile situation
The system of public audit and accountability build trust in the mind of the citizens who may otherwise not be inclined to pay taxes and the dues of the government
In Afghanistan collection of internal revenues steadily increased in the last three years.
SAO contributed by its audit of revenues and recommending how to plug the loopholes in revenue collection

8. SAO Own Expectation The needs of fragile state is unique; they need
Rebuilding governance institutions that have decayed and got destroyed due to prolonged war and civil unrest;
Rebuilding the confidence of the donors in the state’s ability to run the country and use the precious dollars efficiently;
Earning the confidence of its citizens in the face of challenges of security, corruption and financial mismanagement
SAO help in state building by raising the governance standards and assuring the stake holders about the effectiveness of the state to face the challenges

9. SAO Own Expectation
More independence in decision making in ensuring efficient and transparent use of resources, independence not guaranteed - public Service Commission controlling recruitment and remuneration.
SAO should contribute in state building in a systematic phased manner and therefore want to improve the quality of the audit products.
Within a 4 year period SAO should be able to stand on its own feet and modernize itself to the international levels.

10. SAO expectation from -INTOSAI
SAO expects more and more international affiliations to help fragile states
Facilitate collaboration among SAIs at the regional and international levels
SAO has already MOUs and training arrangement with SAI India, Malaysia, Turkey and Thailand and is about to Sign with SAI Sweden. Similarly more such MOUs will help SAO to increase its reach in international scenario
Contribute in improving public accountability through standardized of accounting standards and therefore SAO want to imbibe best standards from INTOSAI.

11. SAO expectation - DONORs
SAO appeals to all the international donors to assess the condition of the fragile state and make liberal contribution to up lift the SAO office to address the state building efforts.
Continue financing capacity building efforts in the medium to long term
Monitoring accountability, efficiency and transparency at all levels and stages in the use of funds and different sources financing for development is expected. Maximum support is required for the state building efforts undertaken by SAO.

12. SAO challenges Professionally qualified staff is lacking
Inadequate familiarity with work- in financial audit, compliance audit and performance audit.
Inadequate IT knowledge in audit related application and quality assurance framework.
Audit out reach with stakeholders and absence of adequate parliamentary control
Audit supervisors' and quality of supervisory staff
SAO therefore is in urgent need of professional training as well as support for technical man power.

13. SAO’s Commitment in Afghanistan
SAO is committed to promote integrity, accountability and transparency in building of Afghanistan, therefore, SAO look forward to receive technical/financial support from INTOSAI and other donor community present here.
SAO will welcome support of donors towards all fragile states on a short term as well as long term basis.

14. THANK YOU!
Question ?