GUIDANCE ON SUPREME AUDIT INSTITUTIONS’ ENGAGEMENT WITH STAKEHOLDERS Table of Contents Abbreviations ............................................................................................................................ 3 Glossary of common terms used in SAI stakeholder engagement ....................................... 4 Chapter 1 Introduction to SAI Engagement with Stakeholders ......................................... 6 1.0 Background .................................................................................................................... 6 1.1 Purpose of the guide ........................................................................................................ 7 1.2 How to use this guide ...................................................................................................... 7 1.3 Who should use the guide................................................................................................ 7 Chapter 2 The Foundation/Framework of SAI Engagement with Stakeholders .............. 8 2.0 Overview of the landscape of SAI engagement with stakeholders ................................... 8 2.1 Frameworks supporting SAI engagement with Stakeholders .......................................... 8 2.2 International frameworks ............................................................................................... 8 2.3 The link between SAI legal framework and stakeholder engagement ............................ 12 2.4 Benefits of increased engagement with stakeholders ..................................................... 12 Chapter 3 SAI Stakeholders and Expectations .................................................................. 14 3.0 SAI stakeholders and clients/users ............................................................................... 14 3.1 What are the expectations of the key stakeholders? ....................................................... 16 Chapter 4 Current SAI Practices in Engaging with Key Stakeholders ........................... 20 4.0 Introduction .................................................................................................................. 20 4.1 Current SAI strategies for engaging with stakeholders ................................................. 21 4.2 Challenges SAIs face in engaging with stakeholders ..................................................... 23 4.3 Conclusion on current SAI/stakeholder practices........................................................... 26 Chapter 5 Linking Stakeholder Engagement to the SAI Strategic and Operational Planning Processes ................................................................................................................. 27 5.0 Introduction 5.1 Stakeholder engagement in SAI strategic planning ....................................................... 28 5.2 Stakeholder engagement in operational planning ......................................................... 29 Chapter 6 Key Factors in Engaging with Stakeholders …………………………………34 6.0 SAI readiness to engage ................................................................................................ 33 6.1 Planning the engagement .............................................................................................. 39 6.2 Proactive rather than reactive approach ....................................................................... 40 6.3 Analyse and control the expectations of stakeholders .................................................... 41 6.4 Adopt a participatory type of engagement (understanding the power of information) 44 Chapter 7 How to Develop Strategies for Stakeholder Engagement …………………47 7.0 Introduction ................................................................................................................... 45 7.1 Factors to consider in developing a stakeholder engagement strategy Error! Bookmark not defined. 7.2 How to develop the stakeholder engagement strategy .................................................... 45 7.2.1 Planning the strategy development process ........................................................................ 47 7.2.2 Understanding the SAI environment .................................................................................. 47 7.2.3 Undertake a mapping of stakeholders and analysis of their expectations .......................... 53 7.2.6 Develop a communication plan for each stakeholder ......................................................... 70 7.2.7 Write the strategy report and have it approved by the SAI top management ..................... 75 1 | P a g e 7.2.8 How to operationalise strategies ......................................................................................... 77 Chapter 8 Engaging Stakeholders in the Audit Process .................................................... 82 8.0 Introduction 8.1 The audit process: How and when to engage with stakeholders ................................... 83 8.2 Engaging stakeholders before the audit ........................................................................ 85 8.3 Engaging stakeholders during the audit ........................................................................ 88 8.4 Engaging stakeholders after the audit ........................................................................... 90 8.5 The impact of audit reports........................................................................................... 91 8.6 Challenges and risks of engaging stakeholders in the audit process .............................. 92 Chapter 9 Engaging with Stakeholders for Greater Independence ................................ 93 9.0 Who to involve, and how ............................................................................................... 93 Appendices Appendix 1 Engaging with the Legislature ................................................................................ 101 Appendix 2 Engaging with the Executive .................................................................................... 103 Appendix 3 Engaging with the Audited Entities ........................................................................ 103 Appendix 4 Engaging with the Media and the Public ................................................................ 104 Appendix 5 Engaging with Development Partners and with Professional and Academic Bodies .......................................................................................................................... 107 Appendix 6 Engaging with the Citizens and Civil Society Organisations ............................... 108 2 | P a g e Abbreviations INTOSAI: International Organisation of Supreme Audit Institutions IDI: The INTOSAI Development Initiative SAI: Supreme Audit Institution CSOs: Civil Society Organisations AFROSAI-E: African Organisation of English-speaking Supreme Audit Institutions CAROSAI: Caribbean Organisation of Supreme Audit Institutions ASOSAI: Asian Organisation of Supreme Audit Institutions ARABOSAI: Arab Organisation of Supreme Audit Institutions CREFIAF: African Organisation of French-speaking Supreme Audit Institutions PAC: Public Accounts Committee ISSAIs: International Standards of Supreme Audit Institutions UN: United Nations NGOs: Non-Governmental Organisations EIP: Effective Institution Platform 3 | P a g e Glossary of common terms used in SAI stakeholder engagement Stakeholder: A person, group or organization that has interest or concern in a SAI and who can be affected by the SAI action or can affect its operations. Engaging: Use of strategies and tools to hold someone´s attention. Accountability: The obligation of an individual or organization to account for its activities, to accept responsibility for them, and to disclose the results in a transparent manner Citizen participation: A process in which ordinary people take part—whether on a voluntary or obligatory basis and whether acting alone or as part of a group—with the goal of influencing a decision involving significant choices that will affect their community Communication: Process of using words, sounds or signs to convey information, express ideas, or send a message to someone else. Involves a sender, a message, a channel, a decoder, and a receiver of the message Effectiveness: Production of an intended result Efficiency: Ability to produce something without wasting materials, money, time or effort Environment: Conditions that surround someone or something that influences and affects the organization. Composed of people, organizations and facts that affect the performance of the organization, positively or negatively Expectations: A belief or feeling that something will happen or is likely to happen Impact: Have a strong effect on something or someone Independence: Freedom from outside control Legal framework: a broad system of rules that governs and regulates decision-making, agreement, laws etc. Mapping: Process to identify actors or facts that surround the organization that could affect or be affected by an action Opportunity: Right time or situation in which something can be accomplished Positioning: The place of someone or something in relation to other people or things Reputational risk: Chance that the organisation will lose or affect its credibility or legitimacy by a decision it takes Risk: The possibility that something bad, such as an injury or a loss, will happen to the organisation 4 | P a g e Strategy: A plan or method for achieving a particular goal, usually over a period of time Strategic planning: Systematic and continuous analysis of current