Tag: Recommendations

In recent years, the General Court of Audit (GCA), Saudi Arabia’s Supreme Audit Institution (SAI), has undertaken measures to bolster its framework, aiming to elevate its oversight capacity with a focus on objectivity, efficiency, and professionalism. Embracing a proactive stance, the GCA is committed to adapting to the swift evolution in financial auditing and performance oversight. GCA leveraged a modern technologies and methodologies to conduct audits with heightened effectiveness and quality, ensuring alignment with contemporary standards and practices. On the other hand, government agencies and ministries within the Kingdom of Saudi Arabia’s public sector have also undergone significant transformations in recent years. These efforts are aligned with the ambitious goals outlined in Vision 2030 of the Kingdom of Saudi Arabia, which aims to diversify the economy, enhance public sector efficiency, and promote sustainable development. 

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.

In the dynamic landscape of public sector management, the pursuit of enhanced accountability, efficiency, and transparency is never-ending. Traditional metrics and oversight mechanisms, while foundational, often fall short in capturing the continued progress of implementing audit recommendations. 

The State Audit Office Law stipulates that the State Audit Office of Latvia (SAI Latvia) has the right to provide recommendations for addressing the deficiencies discovered during the audit, as well as to specify a time limit by which the audited entity shall notify, in writing, that the deficiencies have been resolved. In 2023, SAI Latvia celebrated its centenary, and over time, the State Audit Office has refined its approach in providing recommendations and in facilitating their implementation by the auditees.

In 2023, the Federal Court of Accounts (TCU), the SAI of Brazil, issued 137 decisions containing deliberations for its jurisdictional units. These decisions generated 1,110 items subject to monitoring, including determinations and recommendations. Monitoring the implementation and impact of these deliberations is a process as important as the audits themselves, demanding a considerable effort from the SAI’s resources.

Efficient and effective utilization of public funds and resources is essential for all countries to achieve their development targets. Government auditors, led by national supreme audit institutions (SAIs), play a critical role in monitoring the utilization of these resources. SAIs are countries’ top watchdogs on government finances and are mandated, often by national constitutions, to scrutinize whether governments are managing public funds properly. SAIs conduct financial audits that examine the legality of financial transactions and performance audits to assess whether public funds have been used efficiently and effectively. Audit reports issued by SAIs contain recommendations on how to improve financial management. 

In this era that witnesses rapid developments in technology fields and growing administrative challenges, there is an increasing need to modernise auditing systems to enhance transparency and efficiency in the management of public resources. For decades, the Kingdom of Saudi Arabia relied on a regulation of government warehouses that was adopted in 1983, which was, at the time, appropriate and effective according to the standards and requirements. This regulation, which was implemented under the supervision of the Ministry of Finance (MOF), provided a solid foundation for managing resources efficiently and effectively. In this context, the Supreme Audit Institution of the Kingdom (the General Court of Audit  (GCA)) played a pivotal role in pioneering digital transformation and modernising systems through active participation in restructuring and developing the regulations of government warehouses. The last of these regulations was issued in 2020, which came into effect following its communication with the government authorities, most notably the MOF on one hand, and higher authorities on the other. This process included introducing advanced automated systems, improving government procedures, and activating administrative governance in accordance with best practices, which contributed to significantly improving government operations and services.

The Supreme Audit Institution (SAI) of Brazil, known as the Tribunal de Contas da União (TCU), is tasked with overseeing the federal entity’s accounting, financial, budgetary, operational, and asset management to ensure legality, legitimacy, and economy. The Federal Constitution of 1988 empowers the TCU to enforce compliance with the law by setting deadlines for necessary corrective measures upon detecting illegality.

The successful implementation of audit recommendations serves as a key indicator of the effectiveness and efficiency of audit activities. Therefore, monitoring and inspecting the implementation of audit recommendations play a critical role in evaluating the quality, effectiveness of audit activities and impact on the management and use of public finances and assets. This process not only demonstrates the level of agreement from audited entities but also identifies reasons for any unimplemented audit recommendations.

The National Audit Office’s (NAO Malta) mission is to assist in promoting accountability, propriety, and best practices in government operations. This mission is continuously achieved through the substantial number of audits of a compliance, financial, performance or investigative nature in various Ministries, departments and Government entities. 

The Government Accountability Office’s (GAO) work routinely generates recommendations for improving the efficiency and effectiveness of government programs, resulting in measurable savings and improvements. Since fiscal year (FY) 2002, GAO’s work has resulted in about $1.38 trillion in financial benefits and over 28,000 program and operational benefits that have helped change laws, improve public safety and other services, and promote better management throughout government. In FY 2023 alone, GAO’s work yielded $70.4 billion in financial benefits—a return of about $84 for every dollar invested in GAO. GAO also identified 1,220 other benefits—those that cannot be measured in dollars but led to program and operational improvements across the government.  Examples of recent accomplishments include:

In Peru, there are three main types of control services in the governmental sphere: ex-ante, simultaneous and ex-post.

Ex-ante control is implemented before any financial disbursement is made. A clear example is the ex-ante authorization requested from the Office of the Comptroller for the payment of additional services in investment or construction projects.

Audits performed by Supreme Audit Institutions (SAIs) are valuable tools that help identify risks, inefficiencies and areas of improvement for a wide variety of governmental programs.  These audits fill the gap between policy and practice by providing timely audit results and constructive feedback to those audited.  Included in this constructive feedback are recommendations meant to enhance performance and implementation of recommendations to ensure policy and/or standards are being met. This closing of the audit loop is an essential, final step in the audit process.  

Through their work, Supreme Audit Institutions (SAIs) are compelled to promote positive changes in people’s lives. To achieve this purpose, auditing stands out as one of the most important tools at SAIs’ disposal to increase the public value generation. By carrying out audits, a SAI can evaluate whether processes are executed in compliance with established norms, identify performance improvements (under the usual principles of effectiveness, efficiency, and economy), or conclude on the financial information of an entity.

Many auditors have developed considerable experience conducting each stage of an audit, yet those same auditors often lose momentum when it comes to moving from one stage to the next. One reason is that auditors must get the details right to support convincing findings and conclusions; however, that same focus on the details may prevent an auditor from considering how decisions on one stage will impact the next stage of the audit. Consequently, in addition to developing technical skills needed to execute each stage of an audit, auditors should also develop the ability to think ahead to help an audit move smoothly from one stage to the next. 

As the Auditor General of Thailand, I have observed firsthand the key role that follow-up audits play in ensuring the integrity and effectiveness of government financial management. The State Audit Office of the Kingdom of Thailand (SAO) is committed to rigorous follow-up procedures that uphold our mandate under the Organic Act on State Audit B.E. 2561 (2018).