INTOSAI Strategic Plan 2005-2010Capacity Building Committee (CBC)

CBC Subcommittee 2 Meeting

Development of INTOSAI Capacity Building Development of INTOSAI Capacity Building CommitteeCommitteeCommittee Committee

Lima, Republic of Peru 19Lima, Republic of Peru 19--20 June 200820 June 2008

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Plan

Overview on the CBC

Challenges of building capabilities in SAIs and the vision of the INTOSAI CBC

CBC development and main achievements during the period 2007-2008p

CBC expected outcomes for the period 2008-2010

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Introduction

In 2004 during INCOSAI in Budapest, INTOSAI adopted a new Strategic Plan for the period 2005-2010.Thi Pl i l d i i l d f t t iThis Plan includes a vision, core values and four strategic Goals.The capacity building committee (CBC) was established byThe capacity building committee (CBC) was established by INTOSAI to deliver and achieve its strategic gaol 2

Capacity building strategies

The INTOSAI Strategic Plan identified four main strategies to achieve the objectives of the CBC – namely:

Promote increased capacity-building activities among INTOSAI members through the CBC in collaboration with the IDI;Develop partnerships with international development organizations, consistent with INTOSAI’s independence requirements;qDevelop Advisory and consultant services; and Promote best practices and quality assurance through peer reviewpeer review.

O i th CBCOverview on the CBC

Goal 2 of INTOSAI Strategic Plan: Institutional Capacity BuildingCBC Mission is «to build the capabilities and professional capacities of SAIs through training, technical assistance and other development activities». 2005: Establishment of the CBC (Chair and goal liaison Election, adoption of the Terms of Reference) 2006: Inaugural meeting of the CBC in London and2006: Inaugural meeting of the CBC in London and constitution of the governing bodies2007: Development of capacity building activities; first Steering Committee meeting and report to INCOSAISteering Committee meeting and report to INCOSAI

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CBC organisational structureCBC organisational structure

Main Committee

.Chair (SAI of Morocco)

GOAL Liaison: SAI of USA

Main Committee

Chair (SAI of Morocco)

SubC 1: Promote increased

Steering Committee•Coordination •Evaluationcapacity building activities

Chair: SAI of UK

Evaluation •Development of partnerships with international development organizations

SubC2: Develop advisory and consultant services

Chair: SAI of Peru

Chair: SAI of Morocco

Secretariat

SubC3: Promote best practices and quality assurance through voluntary peer reviews (Chair:

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voluntary peer reviews (Chair: SAI of Germany

Capacity building challengesCapacity building challenges

Capacity building represents one of the most important challenges in SAIs community;It’s on the agenda of individual SAIs, INTOSAI Regional Groups and International organisations;Groups, and International organisations;For the States, it represents an important aspects in financial system reforms and a key factor to achieve developement objectivesobjectives.SAIs are in a different stage of development, and operate in various political and economical contexts. The challenges and demands facing each SAI vary widely TheThe challenges and demands facing each SAI vary widely. The initiatives suggested are some examples that could form part of a long term institutional development program for an individual SAI.

Définition of capacity buildingDéfinition of capacity buildingBy ‘capacity’, it is meant “the skills, knowledge, structures and ways of working that make an organisation effective Building capacity meansworking that make an organisation effective. Building capacity means developing further each of these, building on existing strengths, and addressing gaps and weaknesses”. Many SAIs are continually building capacity, through internal training, staff

f fdevelopment schemes and daily informal and formal exchanges between colleagues and partner institutions world-wide. A programme of capacity building goes further. It involves the SAI:

systematically assessing its current level of capacity, and its strengthssystematically assessing its current level of capacity, and its strengths and weaknesses; deciding why it is seeking to build capacity and what barriers or constraints it faces; d t i i h t dditi l it it k t b ild th itdetermining what additional capacity it seeks to build, the resources it will need and the outcomes it expects to achieve; developing a strategy for delivery of this increased capacity, and related outcomes, without interfering with delivery of its remit;outcomes, without interfering with delivery of its remit; implementing this strategy; evaluating the impact of the changes and the outcomes achieved.sustaining the changes and developing a new strategy to build on what g g p g gyhas been achieved.

Capacity Building ProcessCapacity Building Process

Th CBC i i f it b ildiThe CBC vision of capacity building

The CBC vision of building capacities is based on building tree types of capacities at tree levels in order to

i bl d l i SAIsetup a sustainable development process in SAIs:Categories of capacities

Professional audit capacity;p yOrganizational capacity; andCapacity to deal with external environment.

Levels of developmentLevels of developmentCountry,Regional, and GlobalGlobal

Key Aspects of building capacitiesKey Aspects of building capacities

Professional audit capacityp yCountry• Strategic plan development where none exists. g p p• Identify opportunities to strengthen legal and regulatory framework • Develop program of professional training leading to a recognized qualification• Support the elaboration of audit manuals and best practice guides

C d t il t e f e dit• Conduct pilot performance audits.• Peer reviews and other quality assurance mechanisms

Regional• Assistance in connection with education and outreach on standards• Develop case studies for use on regional topics • Training and educational programs execution

Global• Supporting joint, coordinated and parallel audits • Support INTOSAIs efforts relating to IASB and IAASB• Create a gro p of de eloping SAIs to ad ise on the adoption/implementation of• Create a group of developing SAIs to advise on the adoption/implementation of

international standards• Support for the role of best practice peer review guidance• Selected Benchmarking Studies (e.g. SAI Independence, Governance, Audit g ( g p , ,

Authorities, Key Performance Indicators)

Organizational capacityOrganizational capacityCountry • Offer assistance and support to institutional and regulatory reforms necessary

for the reinforcement of independence, rationalization and improvement of management structures strengthening financial autonomy as well asmanagement structures, strengthening financial autonomy as well as professional, voluntary, planned and accepted leadership

• Infrastructure Support• Assistance with development of modern human resource management and

change management capability including recruitment staff performancechange management capability including recruitment, staff performance, management of under performance, pay and remuneration, succession planning

• Development of internal and external communications capability • Support senior management in developing modern governance, strategic

planning budget setting and monitoring arrangementsplanning, budget setting, and monitoring arrangements,

Regional • Master Classes for senior SAI officials, including: change management, good governance, technical audit skills in financial and performance audit, and g , p ,strengthening human resource management

• Conduct joint workshops with key stakeholders in project management, resource management systems, and human resource management

Gl b l S t l t d d i d i l t ti f l b l lti iGlobal • Support selected design and implementation of global consulting services• Develop best practice guides for corporate governance in SAIs; better

management of SAI resources; and Modern Human Resource Management in SAIsT f ti S i (US B t f d ti b INTOSAI/IDI)• Transformation Seminar (US Beta for adoption by INTOSAI/IDI)

• Support peer review engagements, preparation, and execution seminars• Global audit and knowledge sharing initiatives (e.g. natural disasters, anti-

money laundering)

Capacity to deal with external environmentCCountry:

• Strengthen communication strategy with parliament, business community, civil society organizations, media

• Providing training and advise on working with Parliaments, preparing user friendly reports, briefing committees, supporting public hearings

RegionalB i i f M t Cl f i SAI ffi i l• Begin series of Master Classes for senior SAI officials on strengthening links with external stakeholders

• Awareness raising and communication on the importance of SAIs capacity building targeting mainly the legislative and executive

ll diff t t k h ld d t tpowers as well as different stakeholders and partners at international and regional levels.

Global• Translation of key INTOSAI documents into main languages• Translation of key INTOSAI documents into main languages• Promoting awareness and communication of the importance of

SAIs – targeting mainly the legislative and executive powers• Develop mechanisms to maintain and enhance INTOSAI

communications initiativescommunications initiatives

CBC main achievements during CBC main achievements during

the period 2007the period 2007--20082008

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Promote increased capacity-building activities among INTOSAI members

1. Production of a Guide to Building Capacity in SAIsg p yNAO conducted wide ranging consultations and hosted a workshop in London. Draft guidelines and incorporating of feedbacks the revisedDraft guidelines and incorporating of feedbacks, the revised Guide was presented to the CBC Steering Committee in September 2007 formally approved by INCOSAI.Available at the CBC website in English and FrenchAvailable at the CBC website in English and French

2. Activities related to the compilation of a database of capacity development projectsThe Swedish NAO has produced a template for recording this informationCreation of a database to collate the results. Populating the database will be undertaken.

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Promote increased capacity building activities (Ctd)

3 Sub-committee Action Plan for the Period 2008-20103. Sub committee Action Plan for the Period 2008 2010SubC1 action plan was endorsed by the CBC Steering Committee in September 2007 and covers the following four key areas:

Disseminating the Guide across the SAI community and among g y gdonors;Building links with key development agencies;Collecting and assessing training materials and case studies to support the use of the Guide; andthe use of the Guide; andAssessing the impact of capacity building among SAIs.

4. Links with IDIIDI is an observer at the CBC steering committeeIDI is an observer at the CBC steering committee.IDI provide CBC Steering Committee with reports on its activities. Since 2007, the CBC Chair has become an observer at the Governing Board of the IDI. IDI constituted an important source of material for the Subcommittee 1 while developing the Guide on Building Capacity in SAIs.

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D l t hi ith i t ti lDevelop partnerships with international development organizations

Links have been forged with the World Bank and the International Monetary Fund.Since 2006 the CBC chair and the Goal Liaison have met regularly with senior officials at the Bank and the IMF. Participation of the World Bank, and other donors as observers i CBC ti i L d d R b tin CBC meetings in London and Rabat. Other meetings between the CBC and the OECD and donor community were held in Paris and Washington. Th Ch i f th CBC k d ll b ti l ith th h i fThe Chair of the CBC worked collaboratively with the chairs of the other three goals and the respective goal liaisons from the Board to develop a funding proposal for international donors.

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Advisory and consultancy services

Subcommittee 2 conducted a survey on joint audit workingSubcommittee 2 conducted a survey on joint audit working, internships and visit programmes (Some 90 responses)Survey objectives

learn from previous experiences and to find out fields oflearn from previous experiences and to find out fields of common interest for future programs.Identify the technical advisory requirements and available services of SAIs Identify clearly the cooperation needs and establish an appropriate work programme.

Report on the questionnaire presented to CBC steering itt d t INCOSAIcommittee and to INCOSAI.

Work plans drawn up on the basis of the survey approved by INCOSAI.

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Advisory and consultancy servicesS b itt 2 i d l i d t bSub-committee 2 is developing a database on potential experts and specialists (shortly in 2008 circulation of technical information sheet on SAIs experts and specialists in public finances;Analyze the existing and available tools, systems

d d b l d i f i dand databases related to information on experts and specialists in public finances with close collaboration with major SAIs and international jbodies and organisations.

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Promote best practices and qualityPromote best practices and quality assurance through voluntary peer reviews

Sub-committee 3 (SAI of Germany) developed a draft set of guidelines on peer reviews. Consultation with members of the Sub-committee and involved a meeting organized by the German Court of Accounts in Bonn in J 2007 d t i il hJune 2007 and extensive email exchanges. Draft set of guidelines submitted to INCOSAI

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CBC expected Outcomes for the periodCBC expected Outcomes for the period20082008--20102010

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CBC Bodies Outcomes - Outputs

St i itt E t bli h d li k ith d l t i i d t f tSteering committee (Chair and goal

liaison)

• Established links with development agencies in order to foster a better understanding among these organisations of the value, position and needs of SAIs.

• A strategic, integrated long-term, results based and sustainable h t t th SAI d th i l t ti f l b lapproach to strengthen SAIs and the implementation of global

standards.• Creation of trust fund.

Subcommittee 1 • Assess the extent and impact of capacity building among SAIs and p p y g gthe contribution of the Capacity Building Committee to that process.

• Translate the guide on building capacity in SAIs to at least INTOSAI official languages other than English and French and its g g gdissemination.

• Refine and enhanced Capacity Building Guide for practical benefit to SAIs and Use of the Guide by donors.

• Develop a Directory of capacity building projects and make it p y p y g p javailable to SAIs on the INTOSAI website and to update the information which it contains each year.

• Collect training materials relevant to capacity building in SAIs.• Otganise workshops on capacity building

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g p p y g

Subcommittee 2 • A database of experts and investigators in the public finance field who are available to participate in auditing programs,field who are available to participate in auditing programs, based on information from SAIs.

• Progress report on a conceptual framework for the development, implementation and administration of joint coordinated and parallel audit programs.coordinated and parallel audit programs.

• Comprehensive guideline on bilateral and multilateral cooperative audit.

• Comprehensive Guideline on internships and technical visit programs.programs.

• Webpage regrouping internships and visit programs offer.

Subcommittee 3 • Database with information on Peer reviews carried out made available to members on the INTOSAI homepageP i id li• Peer review guidelines.

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Building capacities through the multi-donor trust g p gfund

Since 2006, the CBC has initiated a long process of ti ti d di l b t INTOSAI d th dnegotiation and dialogue between INTOSAI and the donor

communityIt participates as member in the INTOSAI Task Force on Donor funding activitiesDonor funding activities. This process has led to the elaboration of a proposal to establish a multi-donor trust fund.The aim of the proposal is to “secure the agreement andThe aim of the proposal is to secure the agreement and commitment of all relevant parties to the concept and its translation into practical action”.The vision is to “work in partnership with the donor e v s o s o wo i pa t e s ip wit t e do ocommunity so that all stakeholders take benefit from the trust fund”. It remains to address the structure, the mechanisms of administration and the criteria and priorities for distributing and allocating the resources made available through the fund.

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Update of the INTOSAI Strategic PlanUpdate of the INTOSAI Strategic Plan

INTOSAI Governing Board has expressed its satisfaction with g pthe current Strategic Plan that would be updated for the period 2011- 2016. Methodology for updating the plan should adhere to the

i i l f lt ti dprinciples of consultation and consensus. Creation of a F&A Task force in charge of updating the Plan Goal chairs will take the lead in updating the strategies,

ti iti d d th i ti lactivities and programs under their respective goals. The main objective of this process would be:

to identify what has been addressed; t id tif hi h f th CBC t t t i ti iti dto identify which of the CBC current strategies, activities and programs need additional attention and refinement, and to consider needs for new additional activities and programs to support the achievement of the Goal 2.suppo t t e ac e e e t o t e Goa