1. PARLIAMENTARY OVERSIGHT Niall Johnston Parliamentary Consultant

2. Fiduciary Obligations Explained Parliament, committees and public audit  Parliament holds ‘power of the purse’ and obligation to hold the Executive to account  Specified oversight committees oversee use of public funds & resources by Executive  Do this by examining public accounts

3. Fiduciary Obligations Explained Mandates of oversight committees  Mandate determined by SOs, some case by Constitution  Narrow Focus - financial probity and regularity  Wider Focus - value for money, performance audits, program effectiveness  Other matters can be referred

4. Fiduciary Obligations Explained Committees and the Auditor General  Committee work often determined by the AG reports  Committee must decide follow-up issues  An effective committee = depts. taking AG concerns more seriously  Cooperation with AG on follow-up = greater accountability  Ensures Depts. are taking corrective action

5. Specified oversight committees  How can parliament ensure that the budget as approved was properly implemented?  Audit report only effective if findings are used to improve public financial management  First PAC established in 1861 as an institutional mechanism to close the “circle of financial control” (Gladstone)  Traditional focus on regularity and propriety  Increasingly also on “value for money”

6. First principles: policy neutrality & non-partisanship  PAC not to question underlying policy  Main interaction with departmental officials  In practice, often difficult to separate administrative and political responsibility  Inter-party co-operation and preference for unanimity in decisions  Opposition chairperson in 67% of PACs

7. Some challenges  How ensure follow-up? Tracking reports or chapters Departmental report backs Use of audit findings for budget approval Co-operation with civil society  How strengthen relationship with AG? Parliamentary liaison offices Some AGs Officers of Parliament  How deal with varying quality of reports? Skills enhancement & sufficient funding Parliamentary and AG networks for mutual learning

8. Oversight : The Budget Process  “The development, deliberation and passage of a budget with both legislative and executive participation represents one of the vital checks and balances of democracy”  Budget development is typically the domain of the executive branch.  Proactive estimate committees can seek public input into the budget planning cycle  Public Accounts and other oversight committees, often chaired by a member of the opposition, oversee the integrity, economy, efficiency, and effectiveness of government financial management

9. Heart of Executive-Legislative Relations : The Budget Process

10. Defining Oversight  Financial Oversight: Linked to budget review and budget cycle Exante and Exposte review finance / budget, Public Accounts committees Traditional approach Linked to ‘power of the purse’  Program Oversight: Linked to changes in budgeting and financial scrutiny / accountability Greater emphasis on linking budget, expenditure and delivery Greater role for sectoral committees Demands greater coordination of oversight

11. Challenges to Oversight:  Resources Staff, information, money Possibly requires structural changes  Information Access / Retrieval Greater oversight demands more information and timeliness of information Information demands not always met Requires “alternate sources”  Planning by committees Change from reactive to proactive oversight Strong leadership of committee  Partisanship Non-partisanship helps build consensus  Consensus within committee On issues to be examined  Political support

12. Opportunities for More Effective Oversight:  Improved Resources for Committee: Role of Parliamentary Service Boards Separate budget for parliament Professionalization of staff – especially committees and research staff Development of “coalitions” to assist committees  Media  Civil society  Research groups  World Bank / IMF / donors

13. Opportunities – Information Access  Availability of timely and accurate information Makes oversight “real” and relevant Also takes foresight  Access to Information Laws Increase Parliament’s position to acquire information from Executive on expenditures, programs Improves overall accountability through increased transparency  Research and committee staff Support and “feed” committees  Coalitions / partnerships for information “Alliances of accountability” Civil Society Think Tanks Donors

14. Opportunities – Improved Planning  Use existing legislative “frameworks” Budget Cycle Legislative Agenda Policy Pipeline  Help committees to be more proactive Especially for sectoral committees and program oversight  Help to determine “issues” for committees to consider Requires greater cross-party cooperation  Select ‘key’ or ‘strategic’ issues to consider Cannot look at all issues Requires coordination, use of sub-committees

15. Key Questions for consideration:  Financial / Programmatic oversight or both?  How are revenues and revenue predictions scrutinized?  Main Challenges to Oversight in your parliament?  How are you overcoming these?  Are there country-specific lessons?