1. The 4 th Meeting of the INTOSAI Working Group on Key National Indicators,, Helsinki, 13 April 2011 1 Wojciech Misiąg, Ph. D. Supreme Audit Office (NIK) - Poland Adviser to the President Preparation of Draft Methodology on the KNI selection for the use in SAIs activity

2. Goal of the presentation To propose a concise set of recommendations answering the question: How to select the KNI for use in SAIs’ activities? The 4 th Meeting of the INTOSAI Working Group on Key National Indicators,, Helsinki, 13 April 2011 2

3. Starting point KNI in the Polish Supreme Audit Office 1. In general, the Supreme Audit Office did not compose its own set of indicators to evaluate the audited activities of the Government 2. When auditing the strategic government’s program with the performance indicators set by the Government, the Supreme Audit Office should audit and evaluate the achieved values of these indicators 3.When evaluating the execution of the state budget, the Supreme Audit Office examines the macroeconomic indicators and, on that basis, evaluates the Government’s activity concerning the state budget Source: presentation on the OECD World Forum, Busan 2009 The 4 th Meeting of the INTOSAI Working Group on Key National Indicators,, Helsinki, 13 April 2011 3

4. General rules 1.The set of KNI for the use in SAI’s activity should be adjusted to the: –socio-economic situation of the country; –SAI’s mandate; –kind of SAI’s activity, where the KNI are using. 2.Each of KNI in use should match the SMART* criteria. 3.If possible, SAI should use the KNI designed, calculated and published by the external institutions, and not to produce its own indicators * SMART = Specific + Measurable + Attainable + Relevant + Specific + Time-bond The 4 th Meeting of the INTOSAI Working Group on Key National Indicators,, Helsinki, 13 April 2011 4

5. Kinds of SAIs’ activities… … where the KNI can be useful: Risk analysis and audit planning Macroeconomic assessment of national economy Audit of strategic programs Other audit activities (?) The 4 th Meeting of the INTOSAI Working Group on Key National Indicators,, Helsinki, 13 April 2011 5

6. KNI in risk analysis and audit planning For internal purposes, such as risk analysis or audit planning, SAIs can use any „good” set of KNI The set of KNI for internal purposes should cover all matters subject to SAI’S audit The 4 th Meeting of the INTOSAI Working Group on Key National Indicators,, Helsinki, 13 April 2011 6 Is the definition of a „good set of KNI” needed?

7. KNI in macroeconomic assessment If SAI is authorised or obliged to present a macroeconomic assesment of the government’s policy, SAI should determine the set of KNI for this purpose If possible, SAI should use the KNI designed and calculated outside SAI The set of KNI used for macroeconomic assesment should be as stable as possible The 4 th Meeting of the INTOSAI Working Group on Key National Indicators,, Helsinki, 13 April 2011 7

8. KNI in the audit of strategic programs The KNI being the performance measures for the multi-year strategic programs carried out by the government, should be treated as the audit determinants Other KNI (in general – other performance indicators) should be treated as the auxiliary tools The 4 th Meeting of the INTOSAI Working Group on Key National Indicators,, Helsinki, 13 April 2011 8

9. KNI in other audit activities ??? The 4 th Meeting of the INTOSAI Working Group on Key National Indicators,, Helsinki, 13 April 2011 9

10. Additional recommendations  If the government has prepared its own set of KNI, and publishes the values of KNI, SAI should audit the information systems generated the values of these KNI  SAIs should avoid the KNI similar to the indicators used in data published by the international organizations The 4 th Meeting of the INTOSAI Working Group on Key National Indicators,, Helsinki, 13 April 2011 10

11. Thank you for your attention The 4 th Meeting of the INTOSAI Working Group on Key National Indicators,, Helsinki, 13 April 2011 11