Working with Supreme Audit Institutions in Central Asia

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Working with Supreme Audit Institutions in
Central Asia

Opportunities Challenges
FIDUCIARY FORUM MARCH 2008
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SAIs in CA Control Vs Audit

• Control Revision Soviet legacy
• Ex-ante activity rather than Ex-post audit
• No certification role in respect of year-end
  financial statements
• Emphasis on expediency and effectiveness of
  public spending compliance with budget law
• Responsible to the President
• No scope limitation, BUT Limited independence
• Inadequate legal institutional framework

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Audit Requirements in Bank-financed Operations

• Annual Financial Statements audited in accordance
  with acceptable auditing standards ISA
  INTOSAI
• Traditionally
• Reliance on Private Sector Auditors
• Focus on Financial Audit Fiduciary Compliance
• However
• Increasing emphasis on Country Systems
• Reliance of public sector auditors SAIs
• Blend of Financial Performance Audit

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WB- SAI Relationship

• Engagement with SAIs in CA
• Audit of Bank-financed Operations Kyrgyz Health
  SWAp Twinning with UK NAO
• Capacity Development
• PFM Reform Kyrgyzstan, Tajikistan
• IDF Grants Kyrgyzstan, Tajikistan, Uzbekistan
• Support to legal reform Kyrgyzstan, Tajikistan,
  Uzbekistan
• Very limited success

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CA SAI Challenges

• SAIs in CA still face a number of challenges
• Weak institutional legal framework
• Independence limited resources, composition
  selection, tenure, reporting, scope
• Capacity Limited professional
  expertise/technical knowledge, access to
  information, mandate, adversary relations between
  SAI and audited objects
• Impact No public availability of findings,
  inappropriate focus, lack of follow up,
  inadequate legislative oversight

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Conditions for Successful SAIs(Kenneth M. Dye
Rick Stapenhurt Pillars of Integrity Importance
of SAIs in Curbing Corruption)

• Supportive environment permitted to conduct
  their work and their reports are used to promote
  accountability
• Clear mandates Auditing mandates should be
  anchored in rules set by legislation
• Independence reporting directly to legislature
  without interference from other branches of
  government
• Adequate funding, facilities, and staff
• Sharing of knowledge and experience

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SAI Capacity Building Strategy

• Three Dimensions
• Stronger support for role performance of SAI to
  promote increased reliance on Country systems
• Increased partnership with SAIs to promote
  capacity building initiatives
• Progressive Reliance on audits conducted by SAIs

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THANK YOU FOR YOUR ATTENTION