Transcript Presentation

SAIs and Stakeholder
Engagement for Enhanced
Accountability
Jennifer Thomson
Chief Financial Management Officer
The World Bank
World Bank Group Goals
End
Extreme
Poverty
• People living with less than
$1.25 a day to fall to less
than 3% globally by 2030
Boost
Shared
Prosperity
• Foster income growth of
the bottom 40% of the
population in every country
Title of Presentation
2
From Billions to Trillions: Transforming Development Finance
To meet the investment needs of the Sustainable Development Goals, the global
community needs to move the discussion from “Billions” in ODA to “Trillions” in
investments of all kinds: public and private, national and global, in both capital and
capacity.
Globally, achieving the proposed SDGs will require the best possible use of each
grant dollar, beginning with some US$135 billion in ODA. Yet flows for development
include philanthropy, remittances, South-South flows and other official assistance, and
foreign direct investment—together these sources amount to nearly US$ 1 trillion that
needs to be used just as effectively.
The most substantial development spending happens at the national level in the
form of public resources, while the largest potential is from private sector business,
finance and investment. This is the trajectory from billions to trillions, which each
country and the global community must support together to finance and achieve the
transformative vision of the SDGs.
“Billions to trillions” is shorthand for the realization that achieving the SDGs will
require more than money. It needs a global change of mindsets, approaches and
accountabilities to reflect and transform the new reality of a developing world
with highly varied country contexts.
From Billions to Trillions: Transforming Development Finance Post-2015 Financing for Development: Multilateral Development
Finance Development Committee Discussion Note 2015
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Global Financial Flows for Development
Financial Flows to Developing
Countries
Composition of Financial Flows to
Developing Countries – in 2012
ODA=Official Development Assistance; OOF=Other Official Flows; LMICs=Lower Middle Income Countries; UMICs
=Upper Middle Income Countries; LDCs= Least Developed Countries. Source: OECD
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What is Needed ….
Ending Extreme Poverty & Boosting
Shared Prosperity NEEDS …
Sustainable
Public
Finances
G
o
o
d
G
o
v
e
r
n
a
n
c
e
Demand for
Good
Governance
Sustainable Public Finances
Budgeting
Treasury
Management
Debt
Management
Audit
Good Governance
Parliamentary
Oversight
Role of SAIs – “The Bridge”
Impacting the Lives of Citizens
Government
7/17/2015
Audit
Demand for
Good
Governance
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Essentials for Effective Engagement
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

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Independence
Model of Accountability
Creditability - Standards
Relevance
Transparency
Follow up
Title of Presentation
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Good Governance – Who are the Stakeholders
Government
Citizens/
CSOs
Parliament
SAI
Donors/ IFIs
such as
WBG
Private
Sector
Media
Citizens/CSOs
ISSAI 12: The Value and Benefits of Supreme Audit
Institutions – making a difference to the lives of
citizens
“Acting in the public interest places a further responsibility on SAIs to
demonstrate their ongoing relevance to citizens, Parliament and other
stakeholders.
SAIs can show their relevance by appropriately responding to the
challenges of citizens, the expectations of different stakeholders, and
the emerging risks and changing environments in which audits are
conducted.
Furthermore, it is important that SAIs have a meaningful and
effective dialogue with stakeholders about how their work facilitates
improvement in the public sector.”
Citizens/CSOs
DESA - The
Department of
Economic and Social
Affairs of the United
Nations Secretariat
Engagement with Citizens/CSOs
Reality
Although citizens are
the most important
stakeholders of SAIs,
very often they are least
informed about the work
of SAIs.
Benefits of Engagement with Citizens/CSOs
 Efficient Public Financial Management: positive impact on more efficient,
equitable, and inclusive budget processes, pro-poor fiscal policies
 Service Delivery: Closing the gap between planned and actual service
delivery; feedback from users and beneficiaries to the government
 Fighting Corruption: Potential whistle-blowers in observing and reporting
fraud & corruption; deterrent to fraudulent and corrupt acts
 Strengthening External Oversight: Demand for transparency; for concrete
response from the Government and Parliament to act on audit observations
and recommendations
Media - Benefits
• Enhances visibility of audit
results
• Communicates
findings,
draws attention to key audit
findings that may go
unnoticed
• Increases public legitimacy
of the SAI & independence
of the SAI
.
Donors – Expectations & Challenges
Standards
Leadership
Commitment
SAIs develop
comprehensive
, realistic,
prioritized
Strategic Plans
& t Action
Plans
SAIs
implement
their Strategic
Plans and
Development
Action Plans
Collaborate
Independent
Stronger
SAIs support
weaker SAIs
in building
capacity
SAI’s perform
their duties
independently
without fear or
favor
SAIs
implement
international
standards,
such as
ISSAIs, in
conducting
their work
Challenges and Risks of Engagement
 Political Economy – environment for engagement,
mandate, government and legislature relationships,
support from private sector, citizens & others (donors)
 Institutional Challenges – willingness and continuity in
commitment to engagement, mandate, capacity to
engage beyond one way communication
 Understanding and capacity of stakeholders to engage
- “Unprepared” citizens/CSOs, capture of CSOs and
media, uninformed media and parliamentarians;
distortions of audit findings
 Managing Expectations!!
Essentials for Effective Engagement
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Independence
Model of Accountability
Creditability - Standards
Timeliness
Relevance
Transparency
Follow up
Title of Presentation
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Thank You