State Audit Office of Georgia’s real time experience in recommendation follow-up with innovative ARIS platform
By: Mr. Tsotne Karkashadze and Ms. Salome Verulashvili, State Budget and Strategic Analysis Department, State Audit Office of Georgia
Introduction
The State Audit Office of Georgia (SAO) has emerged as an inspiration for innovation and accountability for advancing effective public financial management. To fulfill its mandate of identifying and addressing systemic deficiencies in public administration, the SAO has embraced innovative technology, launching a transformative initiative of Audit Recommendation Implementation System (ARIS). This article explores the impact of the ARIS, the groundbreaking platform that has significantly changed the follow-up process of audit recommendations in Georgia.
Beyond Monitoring: How ARIS Empowers Stakeholders for Systemic Change
The SAO’s mission is to enhance citizen welfare through high-quality audits and effective implementation of recommendations. Recognizing the pivotal role of technology in strengthening its efforts, the development of ARIS was initiated as a strategic imperative. Designed to modernize and digitize the recommendation implementation monitoring process, ARIS represents a standard shift in how audit recommendations are monitored and executed.
Over the last years increasing volume of the audit recommendations strained traditional monitoring mechanisms, creating an urgent need for innovation that urged the SAO to redefine the established practice. With audit findings, detailed action plans, progress reports and evidences integrated in the system, ARIS serves as a centralized hub for facilitating real-time recommendation follow-up.
The system’s comprehensive features involve audit recommendations, findings, full audit reports, action plans, status updates, evidence materials and analytical data. Through intuitive interfaces and automated reminders, ARIS ensures adherence to timelines, fosters proactive engagement, and minimizes delays in the submission of information or evidences.
ARIS transformative impact showcases its role as a promoter of systemic change as well. By providing consistent, updated information and facilitating easy access, ARIS empowers Executives and the Parliament to make informed decisions, driving efficiency and effectiveness in public administration. By granting specialized access to the Finance and Budget Committee of Parliament, ARIS contributes strengthening oversight and accountability.
Launched in 2021, currently, all ministries, both autonomous republics, 51 municipalities and even several State Owned Enterprises (SOEs) are engaged in the system. Over 1,300 recommendations issued between 2021 and 2024 are under real-time monitoring through ARIS.
The ARIS has enhanced communication and collaboration between auditors and auditees. Through ARIS, auditees are able to report their progress in implementing recommendations, streamlining communication process and fostering a more transparent and accountable governance environment. This approach not only enhances the efficiency of recommendation implementation monitoring but also strengthens the relationship between the SAO and auditees.
One of the noticeable outcomes of the system is evident in increased number of successfully implemented recommendations. Comparatively, where the implementation rate stood at 60% in 2021, ARIS has driven this figure to 74% in 2024. In addition, the proportion of modified or unmodified audit opinions in financial audits increased. In 2023, 73% of financial audits received modified or unmodified opinions, compared to 46% in 2021 before the ARIS was launched, correspondingly leading to the decreased number of adverse opinions.
By empowering the SAO to adopt a more strategic approach, ARIS facilitates creation of targeted action plans by auditees with measurable outputs and outcomes. This shift from a quantity-based metric to a quality-focused not only enhances the effectiveness of recommendation implementation but also strengthens the SAO’s role in promoting responsibility and accountability within the public sector.
ARIS goes beyond the process automatization and fostering communication. The platform generates a valuable data on recommendation implementation. This data allows the SAO to identify trends across various public entities, analyze progress over time, and tailor future audits accordingly. By leveraging data analytics, the SAO gains insights into the effectiveness of recommendation implementation strategies, enabling informed decision-making and targeted interventions where needed. This data-driven approach ensures that future audits are strategically targeted, focusing on the areas with the highest potential for improvement. Ultimately, ARIS serves as a powerful tool for driving continuous improvement within the public sector, facilitating evidence-based decision-making and promoting transparency and accountability.
The cooperation between the SAO and the Parliament of Georgia is growing stronger through audits, aiming to improve public administration. The ARIS plays a significant role in this process, acting as an important oversight tool for the Finance and Budget Committee. Strengthening relations with the Parliament in the process of scrutinizing audit reports and recommendations follow-up ensures accountability and an increasing rate of implementation.
In conclusion, ARIS represents a transformative innovation forward in public administration for Georgia. By reform processes, prioritizing high-impact recommendations, generating valuable data and creating real time follow-up, ARIS empowers the SAO to fulfill its mission of improving public finance management system.
Looking ahead, the SAO plans to extend access to the system by opening it to the public. Citizens will be empowered to hold public agencies accountable for implementing audit recommendations, fostering a more transparent and responsible public administration.
About the authors:
Mr. Tsotne Karkashadze, Head of State Budget and Strategic Analysis Department, State Audit Office of Georgia
Ms. Salome Verulashvili, Analyst, State Budget and Strategic Analysis Department, State Audit Office of Georgia
Contact: iroffice@sao.ge
