1. Annual meeting of the WGPD Helsinki, Finland September 10-12, 2012
WGPD’s contribution to the XXI INCOSAI Theme II: The Role of SAIs on Safeguarding Long-term Sustainability of Fiscal Policies
WGPD Secretariat
Annual meeting of the WGPD
Helsinki, Finland
September 10-12, 2012
| ASF

2. Background XXI INCOSAI Theme II Main task Principal Paper
(Deadline: June 30)
XXI INCOSAI Theme II
The Role of SAIs on Safeguarding Long-term Sustainability of Fiscal Policies
62nd Governing Board Meeting, Vienna 2011
SAI of Mexico appointed as Theme officer (Chair)

3. Background Principal Paper (key elements):
Questions related to ideas and arguments expounded in the paper
Objective:
Compilation of SAIs’ views and input
Country Paper:
Participation of INTOSAI members.
Discussion Paper (INCOSAI):
Document containing members’ responses.

4. Principal Paper’s content
Definition of Debt Financing
a. Fiscal Policy
b. Monetary Policy
c. Public Debt
2. Definition of Public Finance Stability and Sustainability
3. Fiscal Rules, Economic Growth and Development
a. Description
b. Auditing (ISSAIs)
4. Public Revenues
5. Budget and Public Expenditure

5. Principal Paper’s content
6. Public Debt
a. Description
b. Auditing (ISSAIs)
7. Relevance and Evaluation of Internal Control
8. Auditing and Integrality Strategic Planning
9. Effective communication, public value and benefits of SAIs

6. Sources of Information
INTOSAI Products and References
Efforts on ISSAIs Awareness Raising and Implementation
ISSAIs
Principal Paper

7. Principal Paper’s starting point
Clarity
Inclusiveness regardless the development level
Definition of financial policy and sustainability

8. Integrality in Public Auditing
Relevance of “integrality” in public auditing
Propose a wide definition on three concepts
Fiscal Revenue and other Public Incomes
Public Expenditures
Public Debt

9. SAIs’ Role according to ISSAIs
Integrality
SAIs’ Role according to ISSAIs
Fiscal Revenue and other Incomes
Public Expenditure
Public Debt

10. SAI’s role
Break down each concept and outline the role of SAIs in each one  ISSAIs
Not all SAIs are entitled to carry out audits in these concepts
Mandates varies (legal restrictions on audit scope)

11. Include questions relating to SAIs mandate
SAI’s role
Include questions relating to SAIs mandate
Possibility of change through a close relationship with the Parliament/Congress/Government

12. SAI’s role
Rule out the possibility for SAIs to intervene in the design of fiscal policies
Stress out the relevance for SAIs work result to become an input for policy makers as one of the main sources of information
Auditing independence

13. Public Expenditure Importance for SAIs work
Opportune and timely delivered
Input for members of Parliament / Congress
Discussion on allocation of public funds as reflected in public budgets

14. SAI’s to conduct the audits
Public Debt
Main
suggestions
and recommendations
WGPD
SAI’s to conduct the audits

15. Concepts of fiscal policy definition
Strong argument for the assessment of internal control  part of the SAIs work
Effective way to understand and detect institutional risks
SAIs role to contribute to long-run sustainability of fiscal policies
Relevance of strategic planning of audits
Conduct audits  revenue-expenditure-debt triad  generate alerts and suggestions for Congress and Governement on existing risks

16. Principal Paper Content
Necessity for SAIs to:
1. Have a fluent communication and relationship with Congress / Parlimanet
2. Implement an effective communication policy
3. Consider the application of elements included in the INTOSAI V&B of SAIs framework  audit result taken into account and generate a real impact