1. Relationship: PAC's, SAI's and Accountant General in Improving transparency and accountability process Contributions for discussion from Mozambique National Parliament Contribution for IX SADCOPAC Conference and Annual General Meeting Plan and Budget Committee, National Parliament Eneas da Conceição Comiche President of the Plan and Budget Committe

2. Agenda 1.The relationship between PAC, SAI and Accountant General in Mozambique 2.Transparency and accountability System in Mozambique 3.Challenges Ahead 2

3. 1.The relationship between PAC, SAI and Accountant General in Mozambique 1.1 About the PAC  The Mozambique National Parliament has a Plan and Budget Committee  The Committee is responsible for:  Issue an Opinion in relation to the Annual Plan and Annual Budget Proposals submitted by Government and submit such Opinion for approval by the Plenary Session of Parliament;  Issue an Opinion in relation to the Annual Consolidated Accounts submitted by Government and submit such Opinion for approval by the Plenary Session of Parliament;  Issue Opinions on matter related to financial, monetary, tax and customs policies as well as in relation to banking, credit and insurance activities;  Supervise the accounts of state institutions and public enterprises. 3

4. 1.The relationship between PAC, SAI and Accountant General in Mozambique 1.2 About the SAI  The SAI in Mozambique is the Administrative Court. It follows the Judicial Model, as opposite to the Westminster or Anglo-Saxon Model and the Board or Collegiate Model  Under this model:  The SAI is an integral part of the judicial system operating independently of the executive and legislative powers;  The SAI has limited relationship with the National Parliament;  SAI is known as the Court of Accounts; its Members are judges who can impose penalties or corrections to the management of audited institutions; and such Members are appointed by the President of the Republic of Mozambique for a non time-limited term;  The President of the Court is appointed by President of the Republic;  The main focus of the audit work is to verify the compliance and legality of the income and expenditure transactions, public works, environment and performance auditing;  Technical professional staff in the SAI tend to have diversified backgrounds, from legal to engineers, as well as economists and accountants. 4

5. 1.The relationship between PAC, SAI and Accountant General in Mozambique 1.3 About the Accountant General  In the Mozambican Public Financial Management (PFM) system there is no “Accountant General” like in the Anglo-Saxon system  Ministry of Finance is organised in National Directorates being one of them the Public Accounts Directorate (the remaining Directorates are Treasury, Budget, Asset Management, Revenue Authority, Social Providence and General Inspectorate of Finance)  The Directorate is headed by a director and two deputy directors 5

6. 1.The relationship between PAC and SAI and Accountant General in Mozambique 1.3 About the Public Accountant Directorate  The Public Account Directorate within Ministry of Finance is tasked to:  Monitor and control the State Budget Execution ensuring proper application of public funds and resources;  Define the rules, procedures and instructions for public sector accounting;  Prepare monthly and annual expenditure statements;  Record all transaction and maintain all books required;  Ensure the payment of salaries, pensions and other types of payment under the State Budget;  Prepare the Annual Consolidated Accounts of Government  Submit to the SAI State Employees files after ensuring respective budgetary allocation;  Prepare the quarter Budget Execution Reports;  Prepare the Annual Circular for State Budget Execution; The lines highlighted are the ones where there is a link between the Public Accounts Directorate and the Plan and Budget Committee in Parliament. 6

7. 2.Transparency and accountability system in Mozambique The current transparency and accountability system functions as follows: 7 Public Accounts Directorate

8. 2.Transparency and accountability system in Mozambique Key features of the system include:  At the national level, Parliament authorises public spending in the Annual Budget Law;  Officials, based in Ministry of Finance, line ministries and other bodies, act as public accountants, being responsible for the proper expenditure of funds and for drawing up the annual financial statements of the spending body;  Ministry of Finance plays an active role both in setting rules for public accountants and other officials to follow and in checking that these rules are being compiled with (it exercises a strong internal audit role trough the General Inspectorate of Finance);  The Administrative Court audits the annual financial statements (the Annual State Account) prepared by National Directorate of Public Accounts; and judges the legality of the public accountant’s actions being able to impose a penalty where illegal transactions are found to have occurred;  The Administrative Court presents a report and opinion on the General State Account to the Parliament, drawing on its findings from the audit of individual public accountants as well as wider analytical review procedures;  Plan and Budget Committee issues its own opinion and recommendation to Government based on the Administrative Court report and opinion. 8

9. 3.Challenges Ahead  Improve the capacity of the Plan and Budget Committee in the review of the Quarter Budget Execution Reports and the Annual State Account submitted by Ministry of Finance  Review the current legal framework under which basically the Annual General State Account Audit and Opinion is provided by the Administrative Court to Parliament:  A Public Accounts Committee and a Audit Committee instead of only one Committee?  The Administrative Court produces other types of audits, for example, Value for Money Audits – should these be reviewed by Parliament?  Improve the level of the technical opinions (namely the recommendations include in such opinions) issued by the Plan and Budget Committee;  Reduce the time taken to review N-1 Annual Accounts (the N-1 accounts are reviewed in year N by the SAI but only reviewed by Parliament in N+1, ie, more than 12 months after the year the accounts relate to)  Create the working condition the Plan and Budget Committee, a specialised committee, required to perform its roles and responsibilities (adequate professional advisors, technical secretariat, ICTs, etc) 9

10. THANK YOU! 10