Transcript 1. LOGOTIPO DO TCU

Visit of India Government
Delegation
August 2008
Brazil – An Overview
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Population - 187.5 million
Area – 8.5 million sq. km
26 states and the Federal District
5,700 municipalities
Economy
 Gross Domestic Product (GDP) – USD 1.35 trillion* (29
% industry, 6% agriculture, 66% services)
* exchange rate in 13/08/2008: R$/USD 1.617
* indicadores de volumes e valores correntes/current values
Brazil – An Overview
 Political structure
 Type of State and Form of Government: Multi-party
Federative Republic - Union, States, Municipalities and
the Federal District
 Chief of State and Head of Government: President
 Branches of power
 Executive: Presidency of the Republic and Ministries
 Legislative: The National Congress (Chamber of
Deputies and the Senate)
 Judiciary: Superior Courts, Courts and Judges.
Brazil - Public Administration Control
External Control
National Congress
Internal Control System
Legislative
Executive
CGU
SFC
Judiciary
TCU
Brazilian Court of Audit
External Control
 The National Congress, with aid of the Brazilian
Court of Audit (Federal Constitution, article 71)
 All administrative activities developed by the
public power that involve gain or profit or create
expenses and the creation or extinction of rights or
obligations
Internal Control System
 Main agency: CGU
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Internal Control System
Corrective and disciplinary system (Sistema de correição)
Ombudsman of the Executive Branch
Prevention of corruption
 Internal Control System: Federal Control Secretariat (SFC)
 Evaluates the execution of the goals of the pluriannual plan
and the execution of government programs and budget
 Proves the legality and evaluate results of the administration
of the agencies and entities and the investment of public
resources by private entities
 Supports external control in the execution of its work
Brazilian Court of Audit
 Head office in Brasilia
 26 field offices (one in each state)
 9 Ministers and 3 Substitute Ministers (Collegiate Institution)
 1 appointed freely by the President of the Republic
 6 are chosen by the National Congress
 2 are chosen from the Court´s Staff – one from the team of
Substitute Ministers and one from the Court’s Public
Prosecutor´s Office
 All confirmed by the Senate
 2,484 employees hired through public exam (including 626 in
field offices)
Ver no SAD
Brazilian Court of Audit - Structure
Public Prosecution
Office
Full Court
1st Chamber
Associate
Justices
(3)
Offices
Justices
(9)
Offices
2nd Chamber
Presidency
VicePresidency
Internal Affairs
Internal Rules
Committee
Jurisprudence
Committee
Brazilian Court of Audit - Secretariat
PRESIDENCY
SECOI
ADVISORY STAFF
Segepres
SEGECEX
SEGEDAM
General Secretariat of External Control
SEGECEX
Adcon
Semag
Serur
Sefid
Adfis
Sefip
Seprog
Secob
Sefti
SECEX
Main Office
(7)
SECEX
States
(26)
TCU and expenditure in social
programs
 Effectiveness
 Are social programs able to reduce poverty and social
inequality?
 How much? How?
 Efficacy
 Are the goals of the government programs and interventions
being reached?
 Efficiency
 Are the best intervention strategies and management
procedures being used?
 Is there appropriate institutional coordination?
 Are the control mechanisms operational and adequate?
 Economy
 Are the resources obtained at market prices?
Performance Auditing according to INTOSAI
Performance auditing is an independent
examination of the efficiency and
effectiveness of government undertakings,
programs or organizations, with due regard to
economy, and the aim of leading to
improvements.
INTOSAI’s Implementation Guidelines for Performance Auditing (ISSAI 3000)
What is Performance Auditing according to INTOSAI?
Performance auditing is concerned with the audit of economy, efficiency and
effectiveness and embraces:
(a) audit of the economy of administrative activities in accordance with
sound administrative principles and practices, and management policies;
(b) audit of the efficiency of utilisation of human, financial and other
resources, including examination of information systems, performance
measures and monitoring arrangements, and procedures followed by
audited entities for remedying identified deficiencies; and
(c) audit of the effectiveness of performance in relation to achievement
of the objectiveness of the audited entity, and audit of the actual impact of
activities compared with the intended impact.
INTOSAI’s Auditing Standards (AS 1.0.38 and 1.0.40)
Cooperation Agreements
 Technical Cooperation Project TCU - DFID
 Agreement signed by the governments of Brazil and the
United Kingdom
 Carried out by the Brazilian Court of Audit (TCU) and the
Department for International Development – DFID:
 Phase I : 1998 to 2001
 Phase II : 2002 to 2006
 World Bank Project
 Developing methodologies of impact evaluation of public
policies
 Focus on effectiveness
Technical Cooperation Project TCU-DFID
Phase I : 1998 to 2001
(KPMG technical support)
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Development and dissemination of methodologies, techniques and
standards of performance auditing
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Pilot audits
 Areas of interest: health, education, and environment
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Study tours - United Kingdom
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Provision of training courses and development of teaching materials
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Technical support to other units
Technical Cooperation Project TCU-DFID
Phase II : 2002 to 2006
Improving external control with focus on reducing social
inequalities (CERDS)
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Evaluation of government programs (national or regional coverage) and
regulatory models for public services through Performance Auditing by
TCU and 2 State Courts
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Focus on
 equity
 poverty reduction
 strengthening of social control
 engagement of civil society in overseeing government performance
Pitágoras Project Impact Evaluation Group
 Partially funded by a disbursement of the World Bank.
 Start: March/2008.
 Target : Implement impact evaluation methodologies of
public policies, as well as quantitative analysis, to be used
in the auditing activities of TCU.
 Main activities: training (statistics, econometrics and
sampling), participation in auditing works, pilot audit using
impact evaluation methodologies.
New audit strategy
 A new model for elaborating an audit plan
 Audit plans by AREAS – government ROLES
 Evaluate comparable government interventions
 Pluriannual agenda
 From a complete diagnosis
 Not only of the program characteristics
 Take into account the diagnosed demands
 Conclusions from the “state-of-the-art” literature
 and previous TCU experience
 TOP-DOWN approach
 Facilitate knowledge development
 Systemic vision of the areas to be audited
Audit plans by AREAS - ROLES
 Definition of the areas to be analyzed
 Education and social benefits
 Research and diagnosis in 2007
 Audits starting in 2008
 Health
 Research and diagnosis in 2008
 Audits starting in 2009
 Definition of methodological strategy
 Database analysis
 Social-economic researches (IBGE)
 Administrative database of the programs
 Management analysis
 Mapping of processes and risk analysis
 Evaluation of control mechanisms
Approach proposed in the research results
 Studies to propose strategy of evaluation, audit and control
 Mapping of government interventions
 Policies, programs, actions
 Diagnosis of the social problems
 Connection between problems and interventions
 Budgetary, institutional and legal analysis
 10-year budget historical series
 Institutional stakeholders analysis and legal criteria
 Division in sub themes
 Criteria for sub themes selection
 materiality
 relevance
 risk
Mapping of government intervention
A New Model of Selection
Thank You