Accountability and Integrity Systems WBICABRISA PFM TRAINING SEMINAR

Accountability and Integrity Systems WBI/CABRI/SA PFM TRAINING SEMINAR Pretoria, South Africa 18 -20 June 2007

What is accountability? l Definition l Dimensions l Rationale l Stakeholders l Whose accountability?

Principles of accountability l Clearly defined roles l Clear performance expectations l Balance of expectations and capacities l Credible reporting l Review and adjustment

Criteria for effective accountability l Key question: Is the accountability framework effective? l General criteria: – – – Accountability for results Financial considerations in decision-making Management of financial resources Readily available information Integrated internal control system

Accountability: How? l Lead by legislature l Oversight by ministry of finance l Performance reports by ministries and departments l Internal audit l Government audit by SAI l Making audit reports accessible to public

Watching the watchdogs Government Oversight bodies Oversight SAI Oversight • Legislature • External audit • Public reporting • QA

Measuring the state of accountability l Accountability laws l Oversight institutions l Regular reviews l Individual/ Organizational goals l State of audit recommendations l Institutional mechanism for learning lessons

In defence of public servants-1 l l l l Neutrality and political pressures Tribalism and customs Inconsistency of times Limitations of team leader Incumbents and predecessors Year-end rush orders Outdated rules and procedures

In defence of public servants-2 l l l Incompetent or negligent staff Culture of corruption Risk in public performance reporting Media blackmail Business by word of mouth Honest errors

Policy recommendations-1 l l l l Legislators as champions of accountability Devise accountability framework Create process of honest disagreement Protect whistleblowers Create environment of accountability Tone at the top Issue guidelines for discretion Introduce program budgeting

Policy recommendations-2 l l l l Move toward IPSAS Move toward cost accounting system Strengthen PACs Strengthen SAIs Strengthen internal audit Set up audit committees Enhance public awareness Make audit reports public

Policy recommendations-3 Issue best practice guides l Train public managers regularly l Review and replace redundant rules l Introduce financial disclosure requirements l