3.2. The SAI of Poland – the annual state budget execution audit

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SAIs audit tax and expenditure systems for their effectiveness, efficiency and accuracy. Through compliance audits, SAIs evaluate the implementation of controls within public entities and across government, and the effectiveness of leaders in their rollout of a wider control system. Over the years, SAIs have found many deficiencies in the implementation of controls and of the budget, which point to a lack of coherence, communication and coordination amongst relevant bodies. Communication and co-ordination has therefore become a focus of many SAIs, who aim to reduce overlaps across government discovered through other audit activities. SAIs have also been active in assessing the implementation of regulatory policies, their reforms, and the effectiveness of the bodies responsible: namely regulators. Financial and compliance audits should remain a core part of a SAIs’ portfolio. However, building on the examples provided in this chapter, it is clear that there are benefits to SAIs scaling up the insight gathered in these audits and leveraging existing expertise and practices to provide commentary on the effectiveness and efficiency of policy implementation. In doing this, SAIs do not necessarily have to build knowledge and expertise of a new form of auditing (i.e. performance auditing or research), but rather incorporate value-for-money criteria into existing audit processes and repackage the way that information is presented.

Case studies of SAI activities supporting policy implementation

Communicating and co-ordinating

Box 3.1. The SAI of Brazil – TCU's Framework to Assess Public Policies

Objective

Brazil’s TCU has developed the Framework to Assess Public Policies as a way of assessing the governance of public policies. The framework’s main purpose is to guide more comprehensive auditing of cross-cutting challenges in key areas, including: development, economic and financial stability, and increased strategic investment in health, education, technological innovation and infrastructure. The framework centres on eight components: institutionalization, plans and objectives, participation, organizational capacity and resources, co-ordination and coherence, monitoring and assessment, risk management and internal control, and accountability. Each component is supported by good practice examples.

Type

Audit guidance.

Scope and methodology

The development of the Framework to Assess Public Policies was based on adapting existing methodological models, including:

 The TCU’s own National Regional Development Policy (TCU, 2009)

 Governance and Sustainable Development Policies, by Guy B. Peters, that focuses on the four pillars that comprise good public governance  Characteristics of good governance for drug policy: findings from an expert consultation (UKDPC, 2010).  The Coordination of Australian Illicit Drug Policy: A Governance Perspective (NDARC, 2010).  Modern Policy-Making: Ensuring Policies Deliver Value for Money (2001)

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3 – SUPREME AUDIT INSTITUTIONS’ INPUT INTO POLICY IMPLEMENTATION – 109

Box 3.1. The SAI of Brazil –TCU's Framework to Assess Public Policies (continued)

 A Practical Guide to Policy Making in Northern Ireland, OFMDFMNI (2003)  Framework for assessing governance of the health system in developing countries: Gateway to good governance (Health Policy Journal 2009)  Integrated Governance and Healthy Public Policy: Two Canadian Examples (NCCHPP, 2008)

Methodology

The TCU established a working group to support collaboration with the OECD. This working group developed the Framework to Assess Public Policies. To check the consistency of the framework’s elements, the TCU consulted representatives from academia, Centre of Government entities, select Courts of Accounts of states and municipalities, and select states and municipal governments.

Criteria

Country laws/regulations, foreign laws/regulations, standards/guidance from international organisations.

Resources

The development of the framework involved five auditors over four months, from February to May 2014. Each worked approximately eighty days, costing a total of BRL 800 000. The competences of the team related to capacity for performance auditing, assessment of public policies and evaluation of public management.

Good practices used

Pilot audits were conducted in 2014, based mainly on the framework component of coordination and coherence of policies related to urban mobility, health, education, programmes and tools of public management, and administrative aspects of foreign trade. The audits provided those audited with guidance on improving co-ordination to meet policy requirements. The findings of these audits will be integrated into the President's year-end report and, once judged, available will be made available on the TCU’s portal.

Further reading

http://portal2.tcu.gov.br/portal/pls/portal/docs/2686056.PDF. Source: OECD Survey of Peer Supreme Audit Institutions; further reading link above.

SUPREME AUDIT INSTITUTIONS AND GOOD GOVERNANCE: OVERSIGHT, INSIGHT AND FORESIGHT © OECD 2016