1. The 4th Meeting of INTOSAI Working Group on KNI Helsinki, Finland 1 Use of KNI for Measuring the Scientific Development of China in SAIs Activity and Future Perspectives by CNAO The 4th Meeting of INTOSAI Working Group on KNI Helsinki, Finland - 13 April, 2011

2. The 4th Meeting of INTOSAI Working Group on KNI Helsinki, Finland 2 Overview  KNI and China’s Five-Year Plan  How CNAO actually works: a case study of the use of KNI  What’s in store for the next five years  What CNAO shall do in the future

3. The 4th Meeting of INTOSAI Working Group on KNI Helsinki, Finland 3 KNI in China Scientific Outlook on Development National Five-Year Plan A complex web of Chinese policy-making, KNI and China’s Five-Year Plan

4. The 4th Meeting of INTOSAI Working Group on KNI Helsinki, Finland 4 Obligatory Indicators the indicators with clearer and intensified government responsibilities adhered, on the basis of Anticipated Indicators. Anticipated Indicators the development goals which are anticipated by the State and mainly realized by voluntary actions undertaken by the marketers. KNI in FYP KNI and China’s Five-Year Plan

5. The 4th Meeting of INTOSAI Working Group on KNI Helsinki, Finland 5 Population GDP Urbanization The release of major pollutants Healthcare Insurance Farmland Reserves KNI in 11th FYP KNI and China’s Five-Year Plan

6. The 4th Meeting of INTOSAI Working Group on KNI Helsinki, Finland 6 Identify KNICommunicationUse of KNI Other AuthoritiesCNAOThe Audited Entities How CNAO actually works: a case study of the use of KNI

7. The 4th Meeting of INTOSAI Working Group on KNI Helsinki, Finland 7  Case Study I-- Special Audit on the Safety of Drinking Water in Rural Areas of 103 Counties How CNAO actually works: a case study of the use of KNI

8. The 4th Meeting of INTOSAI Working Group on KNI Helsinki, Finland 8 11th FYP of Clean Drinking Water in Rural Areas 160 million people 103 counties in 19 provinces Investment, etc. Target population, etc. KNI Program Targets Indicators Findings How CNAO actually works: a case study of the use of KNI

9. The 4th Meeting of INTOSAI Working Group on KNI Helsinki, Finland 9 Audit Finding 2 Audit Finding 3 Audit Finding 1 Under investment: the actual investment value only amounted to 3.186 billion RMB, accounting for 84 percent of the planned value of 3.793 billion RMB; Unsatisfactory coverage: the total target population for this program is 7.8083 million people, but 1.233 million, accounting for 16% remain uncovered; Program Defects: poor quality of supplied water, relatively high operation cost, poor management and maintenance, and low utilization rate. How CNAO actually works: a case study of the use of KNI

10. The 4th Meeting of INTOSAI Working Group on KNI Helsinki, Finland 10  Case Study II: The Special Audit on the Energy Conservation and Emissions Reduction of 41 SOEs How CNAO actually works: a case study of the use of KNI

11. The 4th Meeting of INTOSAI Working Group on KNI Helsinki, Finland 11 Audit Findings Indicators Major Pollutants 41 SOEs Meet the targets Compare and analyze SO2 and COD Electricity, etc. How CNAO actually works: a case study of the use of KNI

12. The 4th Meeting of INTOSAI Working Group on KNI Helsinki, Finland 12 1 conserved 8.7981 million tons of standard coal equivalent, and met the targets set for the 11th FYP period ahead of schedule 3 limited effects of some energy conservation projects, and emissions of some enterprises exceeding the prescribed standard 2 compared with the level of 2005, SO2 emissions of 41 enterprises in 2007 fell by 21.64%, and COD of 25 enterprises fell by 24.57% How CNAO actually works: a case study of the use of KNI

13. The 4th Meeting of INTOSAI Working Group on KNI Helsinki, Finland 13 Other Development Economic Restructuring Reform Opening Environmental Protection Economy Development Social Development People’s Wellbeing 12th National FYP What’s in store for the next five years

14. The 4th Meeting of INTOSAI Working Group on KNI Helsinki, Finland 14 Major Pollutants Population Growth  CO2 Compulsory Education Farmland Reserves  Healthcare Insurance Obligatory Indicators What’s in store for the next five years

15. The 4th Meeting of INTOSAI Working Group on KNI Helsinki, Finland 15 Policy Government People’s Wellbeing Leading Persons Real time audit over the implementation of key policies and macro- control measures of the central government Audit over budget implement -ation Audit over key projects and funds to improve the people’s wellbeing Audit over leading persons in performing their the economic accountabilities What CNAO shall do in the future

16. The 4th Meeting of INTOSAI Working Group on KNI Helsinki, Finland 16 corruption cases and economic crimes resources, environmental protection and control serious issues, deep-seated problems and potential risks defects in systems, mechanisms, institutions and policies What CNAO shall do in the future

17. The 4th Meeting of INTOSAI Working Group on KNI Helsinki, Finland 17

18. The 4th Meeting of INTOSAI Working Group on KNI Helsinki, Finland 18 Any Questions?

19. The 4th Meeting of INTOSAI Working Group on KNI Helsinki, Finland 19 Thank you!