helping the nation spend wisely public sector accountability and auditing in the uk role of national...

HELPING THE NATION SPEND WISELY

Public Sector Accountability and Auditing in the UK

ROLE OF NATIONAL AUDIT OFFICE&

RELATIONSHIP WITH PARLIAMENT

for

Distinguished IRAQI Delegation

18 June 2009

Bill Burnett, Director, International &

Nigel Penny, International Manager & Project Leader


UK Public Accountability Framework

OVERALL FRAMEWORK (background for understanding PAC & NAO)* UK Constitution highlights* Separation of functions

INTERNAL ACCOUNTABILITY (not covered further in this presentation)* Controls in Ministries & Corporate Governance* Internal Controls, including Financial Controls* Public Reporting* Internal Audit

EXTERNAL ACCOUNTABILITY* Overview*Parliament & PAC* NAO role within cycle of accountability


Overall - UK Constitution - highlights

Separation of duties between – the Crown (the Queen and her Ministers); and– Parliament– Judiciary

Legislative and financial authority rests with Parliament

Legislation exists to limit and/or regulate powers of Ministers

Ministers may do what they are not precluded from doing but can only pay for activities agreed or voted by Parliament


Overall - UK Government Administration

Role of Ministers– Set strategy and policy

Role of Civil Servants– Implement policy– Provide policy advice– Day to day administration


External Accountability

Parliament– PAC and other select committees– National Audit Office

Media

Whistle blowing policies

Freedom of Information

Inspectors/Regulators – professional reviews & guidelines

Ombudsmen – administrative reviews on complaint


The External Accountability Process: the Committee of Public Accounts

Government requests

and Parliament grant funds

PAC session and report

Government Response

C&AG examines

spending and reports to Parliament


UK Public Accounts Committee


The Committee


External Accountability – Committee (1)

Chaired by senior opposition MP (by convention)

Membership represents balance of parties

Addresses Policy Implementation NOT Policy

Non-political – (a Committee of Parliament rather than Parties)

Unanimous reports – very rare for need of a vote


External Accountability – Committee (2)

Sits twice a week when Parliament is in session

Verbatim transcript and video

Meetings are open to Press and Public

Prepares a report and recommendations to government

Government must respond in writing within 2 months (coordinated by HM Treasury who may also attend the hearing)


Role of Department


External Accountability - Role of Department

Answer questions on what happened, why and what will change in the future

Based on agreed facts (report clearance)

Represented by the Accounting Officer

Inquisitorial

Department may provide supplementary evidence


External Accountability – Comptroller & Auditor General

The C&AG is:

appointed by the Queen

on recommendation of Prime Minister

with the agreement of Chairman of the

Public Accounts Commission

and approved by House of Commons

INDEPENDENT and employs the National Audit Office


Role of NAO


External Accountability - Role of NAO (1)

citizens MEETING THE GETTING THE

auditors COST BENEFIT

Holding to Where’s the How good is account Money gone? the Service?

Helping to Could we get it Could we get Improve for less? better results?



For UK: Annual audit of some 570 financial statements

Prepare 60 Value for Money reports per year

Prepare corporate governance reports (discretionary)

Also:

European Union, International Audits and Capacity Building



Assist Parliament in holding government to account, primarily through PAC – assurance and advice

Relationship with PAC

Provide analysed & evaluated facts and advice to other Committees of the House of Commons

Provide recommendations and advice to departments to improve practice



C & AG determines VfM future programme

His decision as informed by:

* parliamentary & public interest

* discussions with Departments

* horizon scanning & previous knowledge

Necessary corporate planning & resourcing

Schedule hearings in conjunction with Chairman



BEFORE the Hearing

NAO prepares report, agrees facts with department

Publishes report in Parliament & issues press release

Briefs the Chairman and Committee members

AFTER the Hearing

Drafts the Committee’s report

Monitors progress

Performs a follow up study if deemed necessary


External Accountability – Role of NAO internationally

Work with EU Contact Committee

Work in conjunction with Westminster Foundation for Democracy

e.g. Macedonia, Ukraine, parliaments

Work through direct capacity building e.g. Slovenian parliament


External Accountability – Key Points

Role of Parliament in ‘holding Government to account’, especially via Parliamentary Accounts Committee – a Committee of the House

Implementation rather than Policy focus attendance required

C & AG independent of government, an ‘officer’ of the House, liaison with Committee

NAO remit, professionalisation, reputation through a track record

Committee Meetings open, transparent, verbatim record, Press & Public

Government must respond in writing within 2 months

Follow up as appropriate by NAO

helping the nation spend wisely public sector accountability and auditing in the uk role of national...

Documents