List of Participants s11

Draft Summary of the Fourth INTOSAI-Donor Steering Committee Meeting

Jaipur, India, February 24-25, 2012

LIST OF PARTICIPANTS

Donor Community Nishant Bhardwaj Asian Development Bank Dylan Roux AusAID Roswitha Kremser Austrian Development Agency Thomas Hennessy Department of Foreign Affairs and Trade, Ireland Stephen Sharples UK Department for International Development (DFID UK) Renu Deshpande UK Department for International Development (DFID UK) Lars Wilke EuropeAid - Directorate-General for Development and Cooperation European Commission Meike Janosch German International Cooperation (GIZ) Håkon Mundal Norwegian Agency for Development Cooperation (Norad) Anders Hjertstrand Swedish National Audit Office Peter Rostedt Swedish National Audit Office Monica Rubiolo Swiss State Secretariat for Economic Affairs (SECO) David Ostermeyer US Agency for International Development (USAID) Anthony Hegarty World Bank Manuel Vargas World Bank Savinay Grover World Bank Papia Bhatachaarji World Bank

INTOSAI Community Joohyung Lee ASOSAI Secretariat (SAI Korea) Wookyung Park ASOSAI Secretariat (SAI Korea) Terence Nombembe Auditor-General of South Africa Megumi Ino Board of Audit of Japan Keisuke Kato Board of Audit of Japan Yasushi Suzodo Board of Audit of Japan Patricia Arriagada Contraloria General de la República, (SAI Chile) Fuad Khoury Zarzar Contraloría General de la República (SAI Peru) Mohammed Kamal Daoudi Cour des Comptes, (SAI Morocco) Ahmed El Midaoui Cour des Comptes, (SAI Morocco) Osama Faquih General Auditing Bureau Saudi Arabia Nezar Ahmad Abduljabbar General Auditing Bureau Saudi Arabia Mohammad Suleiman Bindayel General Auditing Bureau Saudi Arabia Rashad Muhammed Amin Kassim General Auditing Bureau Saudi Arabia Jørgen Kosmo INTOSAI Development Initiative (SAI Norway) Martin Aldcroft INTOSAI Development Initiative Yngvild H. Arnesen INTOSAI Development Initiative Einar Gørrissen INTOSAI Development Initiative Silje M.Sandstad INTOSAI Development Initiative Josef Moser INTOSAI General Secretariat (Austria) Monika Gonzalez INTOSAI General Secretariat (Austria) Robert Sattler INTOSAI General Secretariat (Austria) Vinod Rai Office of the Comptroller and Auditor General (SAI India) S. Alok Office of the Comptroller and Auditor General (SAI India) Anupam Kulshreshtha Office of the Comptroller and Auditor General (SAI India) Amitabh Prasad Office of the Comptroller and Auditor General (SAI India) Jagbans Singh Office of the Comptroller and Auditor General (SAI India) Bruce Robertson PASAI Secretariat (SAI New Zealand) Eroni Vatuloka PASAI Secretariat Nanna Schnipper Rigsrevisionen, (SAI Denmark) Walton Alencar Rodrigues Tribunal de Contas da União (SAI Brazil) Luciano dos Santos Danni Tribunal de Contas da União (SAI Brazil) Helena Abreu Lopes Tribunal de Contas (SAI Portugal) Gene Dodaro U.S. Government Accountability Office

Welcome and opening remarks

1. Anthony Hegarty, Donor Chair of the Steering Committee and Vinod Rai, Comptroller and Auditor General of India, welcomed the participants to the 4th INTOSAI-Donor Steering Committee Meeting. They expressed that great achievements have been made so far and that there was still much to be done.

Terence Nombembe, Auditor-General of South Africa and Chair of INTOSAI and Osama Faqueeh, INTOSAI Chair of the Steering Committee, also welcomed participants and commented on the considerable progress already made to implement the Memorandum of Understanding between INTOSAI and the Donor community. They noted that INTOSAI was becoming increasingly prominent in the global development community through events such as the 4th High Level Forum on Aid Effectiveness in Busan, and that future work such as the development of a performance measurement framework for SAIs would do much to strengthen the recognition of INTOSAI as a model organization.

Update on INTOSAI-Donor Activities

2. The INTOSAI-Donor Secretariat (Secretariat) gave an overview of the progress made on the 2011 Work Programme for the INTOSAI-Donor Cooperation. The Secretariat has taken steps to improve the flow of communication on the Cooperation targeting both the INTOSAI and donor communities, by among other things publishing a quarterly newsletter and having a regular feature in the INTOSAI Journal. The Secretariat is also increasingly serving as a competence and knowledge centre and broker of information on SAI capacity development. 3. Participants expressed the need to further strengthen communication with the donor community. The Secretariat agreed to expand its outreach to the donor community by raising awareness of the SAI Capacity Development Database, making available standard presentations on INTOSAI and the INTOSAI-Donor Cooperation and giving presentations at donor fora and gatherings as opportunities and invitations arise. The forthcoming World Bank hosted Fiduciary Forum was mentioned as one such opportunity.

4. Participants noted the importance of encouraging the BRICS countries to also sign up to the MoU, given their importance in the emerging shape of international development. The participation of South Africa and Brazil in the meeting was warmly appreciated by all.

5. One of the main activities for the Secretariat in 2011 has been matching of prioritized regional and global activities prioritizes in the 2011 Action Plan with donor financing. The Secretariat noted that considerable progress has been made in this activity and that:

 The Inter-American Development Bank has agreed to fund the development of a new strategic plan for CAROSAI.  SECO (Switzerland) has provided funding to develop a new Strategic and Development Action Plan for CREFIAF, the French speaking sub region of AFROSAI.  Funding provided from Swedish SIDA allowed the IDI to run two parallel strategic planning programmes for 14 SAIs in CREFIAF where virtually no SAIs had such plans.  The African Development Bank has agreed to support a third round for the remaining SAIs in CREFIAF that does not have a Strategic Plan.  The World Bank has made up to 2 850 000 US dollars available for a global programme to help implementing the International Standards of Supreme Audit Institutions, which will be implemented by the IDI in cooperation with the PSC and the INTOSAI regions. The program has been launched during early 2012.  DFID has agreed to provide support for a global program benefiting the INTOSAI Capacity Building Committee.  With support from Swedish SIDA, the IDI will support the role out of regional management development programme in 5 SAIs in the English speaking sub region of AFROSAI.  Development partners in Austria, Ireland and Norway have taken on the financing of the INTSOSAI-Donor Secretariat until the end of 2012.

4th High Level Forum on Aid Effectivness in Busan 2011

6. The World Bank presented the main outcomes from the 4th High Level Forum (HLF4) on Aid Effectiveness in Busan, on behalf of the OECD-DAC Task Force on Public Financial Management. Public financial management features prominently in the Busan Partnership for Effective Development Cooperation, as well as in a number of the Busan building blocks, particularly the New Consensus on Effective Institutions and Policies. This was endorsed by a large number of organizations, including INTOSAI, and gives further prominence to the role of SAIs in effective national development.

7. The INTOSAI-Donor Secretariat provided a short reflection on its main observations from HLF4, focusing on the implications for INTOSAI. In particular:

There is an increased focus on the role of national institutions, such as SAIs, for sustainable development, and continued emphasis on the importance of strengthening and using country systems.

Effective country systems remain essential to sustainable development. Donors should maintain and strengthen implementation of their commitments to channel funds through country systems, and strengthen those systems. Countries should show leadership of plans to strengthen country systems.

There is an increasing focus on transparency as a basis for effective accountability relationships, and ultimately for an effective ‘social contract’ between the state and society. Institutions such as SAIs, which are part of the accountability chain between tax payers and the executive, may be especially important for social cohesion in countries emerging from internal conflicts.

Donors are focusing more on results. There is increased emphasis on developing results frameworks, understanding processes of change, defining indicators, measuring baselines and measuring achievements. This is in part about better monitoring and evaluation and better development practices, and in part driven by donors’ needs to report to their domestic stakeholders on the results of their work. INTOSAI is potentially very well placed to adapt to this new environment, and the agreement at the XX INCOSAI to develop credible performance measurement tools needs to be followed through.

At HLF4 there was an increasing interest in the global partnership model of development, as embodied in INTOSAI and the INTOSAI-Donor Cooperation. The nature of development is changing from traditional donor-recipient models to those of partnerships, including triangular cooperation, regional work and global partnerships. Other professions are looking at the INTOSAI model and learning from it.

Global Call for Proposals

8. The Secretariat presented a summary of the global call for proposals, noting that 55 proposals had been received with an aggregate amount of 90,2 million US Dollars sought. The proposals are diverse in nature and include applications from all the INTOSAI regions. The proposals reveal that there is a strong interest for peer-peer cooperation and a great diversity of proposed peer implementing partners.

9. Participants expressed their appreciation for, and satisfaction with, the work on the global call for proposals to date. Donors especially recognized that the results of the call for proposals constituted a body of country-led proposals embodying aid effectiveness principles. All donors have begun the process of circulating the summary of the proposals across their organization. A number of donors and SAIs provided indicative interest in certain proposals, while larger donors were in the coordination and decision making phase, and committed to providing an organizational response within agreed timeframes.

10. Key decisions in response to the call for proposals were as follows:

 Donors and SAI providers expressed indicative interest in 4 regional proposals and 10 country level proposals, as summarized below. It should be noted this is an indication of initial interest only, based on the summary of proposals, and that potential providers of support are now examining the detailed proposals with a view to entering dialogue with the applicants. The interest expressed may be to provide support to part, or all, of the proposal, in the form of financial support and/or peer to peer support, or to reexamine existing support.

Proposal Name Indicative Interest Regional Proposals Capacity Development Support for Activities Contained in African Development Bank the Work Plans of AFROSAI-E for 2012-2014 Building Functional and Organizational Capacity of IDI ARABOSAI and Training Capacity of Members, 2012-2014 Strengthening the Capacity of SAIs in CAROSAI to Promote IDI and Inter American and Enhance Public Sector Accountability in the region, Development Bank 2012-2015 Build In-House Capacity in Performance Audit in the 23 SAIs African Development Bank from CREFIAF Country Level Proposals Preparation of Training Programs for Barbados Audit Office Inter American Development Bank Capacity Development Support to SAI Bhutan, 2012-2015 Austrian Development Agency Development of Audit Methodologies, Techniques and Tools, Inter American Development 2012-2015 (Tribunal de Contas da União – Court of Audit of Bank Brazil) Strengthened Capacity of SAI of El Salvador, 2012-2015 Inter American Development Bank Improvement in Efficiency and Quality of Audit work with Office of the Auditor General of Application of an Audit Management System, 2012-2015 Norway and Norwegian (Macedonia) Ministry of Foreign Affairs Capacity Development Support to the Court of Accounts of Swedish National Audit Office Moldova, 2012-2015 Institutional Excellence and Quality Performance, 2012-2016, Swedish National Audit Office State Audit and Administrative Control Bureau of Palestine Capacity Development Initiative, SAI Uganda 2012-2014 Swedish National Audit Office Capacity Development Support to Office of the Auditor Swedish National Audit Office General of Zambia, 2012-2014 and NORAD Capacity Development Support to SAI Zimbabwe, 2012- Office of the Auditor General of 2014 Norway

 The Comptroller and Auditor General of India offered to provide its training and capacity development facilities to assist with implementation of proposals.

 GIZ noted it would examine the content of its existing SAI capacity development programs in light of the requests made under the call for proposals, and reminded the Steering Committee it was a possible implementing partner where financing is available.

 EUROSAI offered to provide help to identify possible implementing partners from its members, in cases where SAIs had requested support in identifying an implementing partner. To enable this, the Secretariat agreed to share the summary of the call for proposals with all INTOSAI regions for dissemination to their members. The Secretariat also agreed to send a communication to all regions on the purpose of the database and to request all INTOSAI members to ensure their capacity development projects were entered onto the database.

11. The Steering Committee recognized that some SAIs were unfamiliar with the process of writing funding applications and that as a result, some proposals were weaker than others. In this regard it was necessary in the short term to work with SAIs to strengthen their proposals, and in the medium term to systematically support efforts to strengthen the capacity of SAIs to develop proposals. The Secretariat agreed to liaison with the INTOSAI regional bodies to examine the best way to take this forward.

The Steering Committee recognized that, in accordance with the MoU, support would be provided through multiple funding channels including bilateral and pooled fund support, and that the two forms were complementary.

The Steering Committee also recognized that the global call for proposals did not constitute the full body of capacity development needs and that many SAIs did not apply, for various reasons. A number of SAIs asked when there would be a future call for proposals. The Secretariat committed to produce a short paper with options for future methods to apply for funding before the next Steering Committee meeting. 12. A sequenced timetable was adopted to move forward with the matching process, including:

 SAI capacity development database to be fully populated by 31 March.  Donors and SAI providers to provide concrete interest in proposals by 24 May, with a summary to be circulated by the Secretariat by 31 May.

Capacity Development Pooled Fund

13. The Pooled Fund Task Force reported good progress since the Washington meeting and presented the draft Operating Arrangements.

The Steering Committee recognized that a pooled fund was complementary to bilateral support and addressed objectives such as allocate efficiency that bilateral support alone could not ensure.

14. Switzerland and Demark expressed an intention to providing funds through a pooled mechanism subject to internal approvals, whilst Australia also expressed an interest in exploring this mechanism. Three further donors who were not present had previously indicated to the Secretariat their interest in providing pooled funds. The Secretariat will follow up with them after the meeting.

15. It was agreed that the Secretariat will continue to work with the pooled fund task force to finalize the operating arrangements and indicative allocation by 24 May and contracts as soon as possible afterwards. In parallel, the co-chairs will send out a call for funding request to the appropriate country governments asking for responses on indications of levels of pooled funding by 24 May.

16. The Secretariat committed to develop short information and advocacy material on the pooled fund that donors and SAIs could use when approaching their governments about possible contributions to the pooled fund. A number of donors and SAIs indicated they would make such approaches to their governments.

Closing day one

17. All SAIs were reminded of the crucial role of SAI independence and appropriate resources in enabling SAIs to fulfill their mandates effectively, and were urged to approach their Parliaments on the subject of strengthening their independence in light of the recent UN General Assembly Resolution. Similarly, donors were urged to continue to support SAIs in their capacity development efforts and in promoting suitable operating environments for SAIs.

ASOSAI Activities

18. The ASOSAI Secretariat presented its capacity building strategy, activities and programs for training. The ASOSAI Secretariat pointed out key challenges for SAIs in the region, in particular linked to implementation of the ISSAIs. They underlined the need for ASOSAI to seek more active cooperation with external donors, to support developing countries to strengthen their audit capacity. They also noted the high levels of peer-to-peer and South- South cooperation used within ASOSAI, which brought more efficient and effective results to capacity-building programs within ASOSAI.

Database on SAI Capacity development support

19. The INTOSAI-Donor Secretariat presented the re-launched SAI Capacity Development Database, where all ongoing and planned projects/programs targeting SAIs should be registered. The database is available on: www.saidevelopment.org. One of the main purposes of the database is to improve the planning and coordination of all forms of support to SAIs. The Secretariat agreed to amend the database so it could also record proposed programs, and committed to registering summaries of all the proposals received under the call for proposals on the database.

The Steering Committee reaffirmed the agreement that donors and SAI providers will seek to register all proposed, planned and ongoing SAI capacity development programs on the database by 31 March 2012. The Secretariat agreed to send out appropriate reminders and facilitate this exercise. After 31 March, the Secretariat will liaise with the INTOSAI regions to review the database and ensure all relevant projects have been entered.

Providers of Capacity Development Support

20. The Chair of the INTOSAI Capacity Building Committee (CBC) underlined the value and importance of peer-peer cooperation in light of the findings of the 2010 SAI Stocktaking and demand for peer implementing partners in the 2011 global call for proposals.

The CBC will take the lead in a consolidated effort in strengthening the SAI supply side by arranging a knowledge sharing seminar for current and potential SAI providers with support from the Secretariat, and in promoting increased partnering of experienced and emerging providers through triangular cooperation. Performance Measurement Framework for SAIs

21. The work on developing a single global SAI Performance Measurement Framework (PMF) is done under the auspices of the INTOSAI Working Group on the Value and Benefits of SAIs (WGVBS), as agreed at the XX INCOSAI in Johannesburg.

The Secretariat presented the rationale for assessing SAI performance. It also presented the results of the mapping of existing frameworks which measure SAI performance that was carried out in 2011. The mapping covered more than 20 tools and concluded that no tools meet all the 12 criteria for a single, global SAI PFM approved by the WGVBS. Criteria can be met if the strengths of a few tools are combined; hereunder the PEFA, AFROSAI-E Capacity Building Framework, IDI Needs assessment guide, African Development Bank SAI Capacity Assessment Diagnostic Tool, Inter-American Development Bank PFM assessment tool. The recommendation was that the WGVBS Task Team starts to work on the development of a new, global SAI PFM, while building on the relevant existing tools.

22. A Task Team and a Reference Group have been established under the WGVBS. The IDI is coordinator for the task. A draft concept note was presented at the meeting. It covers proposed roles and responsibilities in developing the SAI PMF (WGVBS to provide oversight, final approval of PMF by 2013 INCOSAI), proposed structure of the PMF, and suggestions on how the PMF may be applied, promoted and maintained.

23. The Steering Committee expressed great appreciation of the progress made, provided input, and endorsed the initiative and the proposed way forward. The Steering Committee emphasized the importance of:

 Effective communication with all SAIs, taking the opportunities presented by INTOSAI regional gatherings.

 The importance of following INTOSAI due process.

 The importance of quality assurance to ensure credibility of the assessments

 Ownership by the SAI community.

 Ensuring that timing pressures do not undermine the quality of the product.

 Piloting the tool in diverse INTOSAI regions.

Next Meeting

24. It was proposed that the next meeting will be held in October 2012, giving suitable time to agree and adopt a plan for the 2013 and beyond. The SC Chairs would confirm the location of the meeting shortly. Work Program 2012

25. The Steering Committee agreed on the 2012 work program for the Secretariat. This is included at Annex 1.

The Steering Committee agreed on the continuation of the current high priority activities into 2012, and to add a number of lower priority activities to the work plan. All agreed on the overriding importance of consolidating the current work and not to let new priorities undermine delivery of current activities.

Recognizing that the current financing agreement with Austria, Ireland and Norway ends 31 December 2012, the Secretariat agreed to develop a proposal for 2013 and beyond. This would take a multi-annual view on the future on the INTOSAI-Donor cooperation. It would be developed and discussed with the three existing donors before being presented at the next SC meeting.

Summary and conclusions

26. The Steering Committee recognized the work being done by the Secretariat and supported the priorities in the Work Program 2012. Participants expressed their support and commitment to the future work of the INTOSAI-Donor Cooperation, beginning with populating the SAI Capacity Development Database and continuing the matching or proposals under the global call for proposals.

It was noted that the Asian Development Bank, Denmark and Australia had all recently expressed interest in joining in the INTOSAI-Donor Cooperation and the Steering Committee committed to follow this up. Annex 1 – INTOSAI-Donor Cooperation Work Program 2012

No Task Priority Responsibility Deadline . for 2012 1 1) Update and 2) administer the SAI HIGH 1) All SC members 1) 31 March Capacity Development Database 2) Secretariat 2) Continuous 2 Matching of initiatives submitted under HIGH Secretariat October 2012 the Global Call for Proposals and donors 3 Establish SAI Capacity Development HIGH Pooled Fund Task Force October 2012 Fund (pooled fund) 4 SAI Performance Measurement HIGH SAI PMF Task Team December Framework – 1st draft and commence (Coordinator – 2012 pilots Secretariat) 5 Support CBC work on strengthening SAI MEDIU Secretariat Autumn supply side M 6 Awareness raising and communication MEDIU Secretariat Continuous activities targeting INTOSAI and Donors M 7 Facilitate SC leadership and SC meetings HIGH Secretariat Continuous 8 Review of funding levels of SAIs (possibly LOW To be discussed with TBC linked to future INTOSAI stock taking) appropriate INTOSAI bodies 9 Building capacity of SAIs to develop MEDIU Regions with support Initiated in funding proposals M from Secretariat 2012 10 Acting as a knowledge centre and MEDIU Secretariat Continuous repository to enhance coordination of M support to SAIs 11 Explore the question of SAI involvement LOW Secretariat to TBC in the audit of extractive industries and coordinate with INTOSAI engagement with the Extractive INTOSAI bodies, OAG Industries Transparency Initiative (EITI) Norway, EITI, DFID, NORAD, IMF etc. 12 Develop program document and funding HIGH Secretariat October 2012 proposal for 2013-15, for Austria, Ireland and Norway