1. Working Group on Public Debt Annual Report to KSC
Mr. Juan M. Portal, CPA
Auditor General of Mexico
WGPD Chairman
8th Meeting of the Steering Committee of the
INTOSAI Committee on Knowledge Sharing and Knowledge Services (KSC)
September 7-9, 2016
Mexico City, Mexico
| WGPD

2. Nanjing 30 participants 14 member SAIs IDI World Bank
2016 WGPD meeting
Nanjing
30 participants
14 member SAIs
Chinese Academy of Social Sciences
IDI
World Bank

3. Chinese Academy of Social Sciences
2016 meeting participants
Argentina
Austria
Azerbaijan
Brazil
Bulgaria
Chile
China
Egypt
Fiji
Finland
Gabon
India
Indonesia
Jordan
Korea
Lithuania
Mexico (Chair)
Moldova
Portugal
Romania
Russian Federation
Ukraine
USA
Yemen
Zambia
IDI
(key partner)
Chinese Academy of Social Sciences
World Bank
SAI attending the 2016 meeting
Invitees at the 2016 meeting

4. 2016 WGPD meeting Administrative status Progress made on WG activities
Agreements on next steps of WG projects

5. WGPD membership Azerbaijan July 16, 2015 August 6, 2015
Contact
July 16, 2015
Formal Request
August 6, 2015
Admission
August 22 – September 8 (WGPD Consultation)
September 2015

6. WGPD membership Cape Verde Contact through World Bank
Georgia
Contact through INTOSAI General Secretariat
June 6, 2016  Request to be admitted as WGPD member
July-August 2016  Analysis by WG members
Cape Verde
Contact through World Bank
June 20, 2016  Informal communication with WGPD
From mid-July on  mutual exchange

7. ISSAIs Revision Five Key Criteria for the revision of WGPD ISSAIs
1. Usefulness
2. Updating required
3. Potential harmonization with other Working Group’s products
4. Alignment to other standards in the ISSAI Framework
5. Harmonization of the general ISSAI terminology

8. “Guidance on Definition and Disclosure of Public Debt”
ISSAIs Revision
Updated and withdrew WGPD ISSAIs
ISSAI 5410
“Guidance for Planning and Conducting an Audit of Internal Controls of Public Debt”
ISSAI 5421
“Guidance on Definition and Disclosure of Public Debt”
ISSAI 5422
“An Exercise of Reference Terms to Carry out Performance Audit of Public Debt”
ISSAI 5430
“Fiscal Exposures: Implications for Debt Management and the Role of SAIs”
ISSAI 5440 “Guidance for Conducting a Public Debt Audit - The Use of Substantive Tests in Financial Audits”
ISSAI 5420
“Public Debt: Management and Fiscal Vulnerability: Potential Roles for SAIs”
Revised ISSAIs
Withdrew ISSAI

9. ISSAIs Revision Updated and withdrew WGPD ISSAIs Guidance provided by
PSC Secretariat
Due Process  ISSAIs’ updating
Changes not of substance  Minor editorial changes
No need to expose them for comments by INTOSAI Community
Translation into INTOSAI languages + updating of preambles, and forewords for XXII INCOSAI

10. ISSAIs Revision
Updated and withdrew WGPD ISSAIs
ISSAI “Guidance for Conducting a Public Debt Audit - The Use of Substantive Tests in Financial Audits”
Revision concluded
Minor editorial changes
No need to expose for comments by INTOSAI Community
Translation into INTOSAI languages + updating of preambles, and forewords for XXII INCOSAI

11. Revision to start in 2016 fall
ISSAIs Revision
WGPD ISSAI to be revised
ISSAI 5411
“Debt Indicators”
Revision to start in 2016 fall

12. Investigation Themes
WGPD Strategic Plan’s Objective
“to prepare and publish guidelines and other material to be used by SAIs in order to encourage sound management, proper reporting, and auditing of public debt”

13. 1st Exposure for comments by the INTOSAI community
Investigation Themes Guidance of Auditing on Public Debt Information System
Draft ISSAI 5450
Due Process
1st Exposure for comments by the INTOSAI community
22 SAIs (July – September 2013)

14. Nature of comments received during the first round of comments
Investigation Themes Guidance of Auditing on Public Debt Information System
Re-exposure for comments by the INTOSAI community – 4 SAIs (January – March 2015)
Lessons learned post-implementation of this guideline as reference for a coordinated parallel audit
Nature of comments received during the first round of comments

15. Translation into INTOSAI languages
Investigation Themes Guidance of Auditing on Public Debt Information System
Exposure comments appropriately reflected in revised version of draft ISSAI 5450
Approved by the WGPD to be forwarded to the KSC Steering Committee for endorsement
Submission to the INTOSAI Governing Board and the INCOSAI for final approval
WGPD:
Translation into INTOSAI languages

16. Investigation Themes Public Debt Management Office
Guidance to establish an effective public debt management office
Expectation: Working Group’s first INTOSAI GOV
To be exposed for comments by the INTOSAI Community

17. Investigation Themes New projects to be undertaken by WGPD
Call for candidates
Sub-groups responsible for drafting these materials
Areas of opportunity to develop new guidance material for public debt auditors
Stages of debt authorization & contracting
2016 WGPD Meeting

18. Concept Framework of Coordinated Parallel Audit of PDM Information Systems
General Information
Work Plan:
Objective:
To assess the appropriate implementation of management and control process in relation to the efficiency of Public Debt Management National Information Systems
9 participant SAIs
Brazil, Bulgaria, Fiji, Georgia, Moldova, Romania, Ukraine, Yemen, and Zambia
4 observer SAIs
China, Egypt, Mexico, and the Russian Federation

19. Concept Framework of Coordinated Parallel Audit of PDM Information Systems
Findings
Government bodies established reliable and sustainable Public Debt Management Information Systems along with respective infrastructure (at the state-of-the-art technological level).
The reviewed information systems ensured capturing, processing and reporting debt data and transactions in accordance with the national requirements and users expectations of working capacity of the system facilitating the management of public debt.

20. Concept Framework of Coordinated Parallel Audit of PDM Information Systems
Findings: Deficiencies related to overall debt management IT systems (areas of opportunity)
Information system strategy
Alignment to the auditees’ strategy goals and core business processes
Integration of the debt management into an IFMIS or its interconnection with the DMFAS
Division of roles and responsibilities among the debt management personnel at technical level
Staff’s regular training

21. Concept Framework of Coordinated Parallel Audit of PDM Information Systems
Reference:
Guidance for Conducting a Public Debt Audit (developed by the IDI in collaboration with the WGPD)
Guidance of Auditing on Public Debt Information System (draft ISSAI 5450)

22. WGPD’s Strategic Plan (First Goal):
Capacity building and enhancing SAIs’ expertise
WGPD’s Strategic Plan (First Goal):
WGPD
IDI

23. Influencing effective sovereign lending and borrowing practices
2nd Trans-regional capacity building program
Influencing effective sovereign lending and borrowing practices
Objective:
Strengthening professional and institutional capacity of SAIs in conducting in-depth and effective audit of lending and borrowing frameworks
Trans-regional Programme on Strengthening Public Oversight and Audit of Sovereign Lending and Borrowing Frameworks (ALBF)

24. Identification of the lessons learned
2nd Trans-regional capacity building program
IDI
WGPD
UNCTAD
Foreseen actions:
Compendium of findings and a summary and analysis of the findings from the programme
Updating of the guidance prepared by the IDI and the Working Group on public debt management and a Quality Assurance mechanism
Identification of the lessons learned
WGPD will provide assistance in terms of resource persons to complete these tasks

25. Public Debt Auditors (PDA) Platform
Community of practice for public debt auditors
KSC-IDI portal
WGPD-IDI  Joint collaboration to define the Work Plan for the platform’s design and development
Aimed at promoting the capacity development of SAIs about public debt auditing

26. Revision of the WGPD Strategic Plan.
WGPD established a task force for revising and updating its Strategic Plan
Update will consider: developments and challenges faced by the INTOSAI, as well as the INTOSAI Strategic Plan
SAIs willing to take part:
Argentina, Mexico, Moldova, and the Russian Federation

27. Cooperation with other partners in 2016.
World Bank
OECD
Virtual mechanism for knowledge-sharing between public debt auditors and the World Bank experts on public debt management
Potential element of the Community of Practice to be developed with IDI and the KSC

28. New WGPD’s Chairmanship
SAI of Mexico  WGPD Chair since 1991
call for nominations
New perspectives to continue effectively addressing the Working Group’s agenda

29. New WGPD’s Chairmanship
WG members approved the SAI of Argentina’s application to take over the WGPD Chairmanship
SAIs of Mexico and Argentina have regular videoconferences for adequate transition
INCOSAI  ideal setting to hand over the WGPD Chair

30. 2017 meeting
SAI of Argentina will shortly confirm the venue and dates of the 2017 meeting

31. WGPD membership Argentina (upcoming WG Chair)) Austria Azerbaijan
Brazil
Bulgaria
Chile
China
Egypt
Fiji
Finland
Gabon
India
(KSC Chair)
Indonesia
Jordan
Korea
Lithuania
Mexico
(WG Chair)
Moldova
Portugal
Romania
Russian Federation
Ukraine
USA
Yemen
Zambia
IDI
(key partner)

32. Motions 1. To take note of the Working Group’s annual report.
2. To endorse the revised version of ISSAI “Guidance for Conducting a Public Debt Audit – The Use of Substantive Tests in Financial Audits”, so that it could be submitted for the INTOSAI Governing Board and the 2016 INCOSAI approval.

33. Motions
3. To take note on the actions carried out by the Working Group’s Secretariat, in coordination with the PSC Secretariat, for the following revised ISSAIs to be approved by the INTOSAI Governing Board and the XXII INCOSAI: - ISSAI 5410 “Guidance for Planning and Conducting an Audit of Internal Controls of Public Debt” -ISSAI 5421 “Guidance on Definition and Disclosure of Public Debt” -ISSAI 5422 “An Exercise of Reference Terms to Carry out Performance Audit of Public Debt” -ISSAI 5430 “Fiscal Exposures: Implications for Debt Management and the Role for SAIs”.

34. Motions
4. To take note on the actions carried out by the Working Group’s Secretariat, in coordination with the PSC Secretariat, for the ISSAI 5420 “Public Debt: Management and Fiscal Vulnerability: Potential Roles for SAIs” to be definitely withdrawn from the ISSAI Framework.
5. To take note that, in fall 2016, the Working Group will start the revision of ISSAI 5411 “Debt Indicators”.
6. To take note on the current status and actions carried out for the document “Guidance on Auditing Public Debt Information System”, to be submitted to the INTOSAI Governing Board and Congress for approval as ISSAI

35. Motions
7. To take note that the guidance to establish a “Public Debt Management Office”, will be shortly exposed for comments by the INTOSAI community, so it could follow the Due Process for potential/future endorsement as the Working Group’s first INTOSAI Guideline on Good Governance (INTOSAI GOV).
8. To take note that, following a call for nominations and the WGPD members’ approval, the SAI of Argentina will take over the Working Group’s Chairmanship from the XXII INCOSAI on.

36. Working Group on Public Debt Annual Report to KSC
Mr. Juan M. Portal, CPA
Auditor General of Mexico
WGPD Chairman
8th Meeting of the Steering Committee of the
INTOSAI Committee on Knowledge Sharing and Knowledge Services (KSC)
September 7-9, 2016
Mexico City, Mexico
| WGPD