tcus contribution to governance and developmpent tcus contribution to governance and developmpent...
TRANSCRIPT
TCU’S CONTRIBUTION TO GOVERNANCE AND
DEVELOPMPENTBRAZIL INSTITUTE
Wilson Center
Minister João Augusto Ribeiro NardesPresident of TCU
May 6, 2014
SUMMARY
THE STATE AS A PROMOTER OF DEVELOPMENT
GOVERNANCE
TCU GUIDELINES FOR IMPROVEMENT OF GOVERNANCE
GOOD PRACTICES IN GOVERNANCE 2013
MAIN PROJECTS DEVELOPED IN 2013
CONCLUSION
Brazil 2013
GDPR$ 4.8 trillion
Federal BudgetR$ 2.48 trillion (budgeted in 2013)R$ 2.0 trillion (executed in 2013)
How much the
country produced
Government expenditure
and debt rollover
THE STATE IS A STRONG PROMOTOER OF DEVELOPMENT
States (R$ 430 bi) and Municipalities (R$ 350 bi) spent R$ 780 billion (Source: IBGE – data from 2011)
Source: OFSS 2013 and IBGE
48% 52%
Public Expenditure by Government Function
R$ 988 billionSpecial Charges
R$ 1.056 biAll Others Expenses
Executed Budget: 2.0 trillion
Dados provisórios de 2013
Source: OFSS 2013 and IBGE
42%
10%8%
8%
6%
6%
4%2%
13%
Previdência Social Energia SaúdeEducação Trabalho Assistência SocialDefesa Nacional Judiciária Demais
Refinancing: R$ 577 bi
Transfer: R$ 193 bi
Interest rates and charges: R$ 142 bi
Others: R$ 76 bi
TOTAL: R$ 988 bi
RATIONALIZATION OF PUBLIC EXPENDITURE
MORE PRODUCTIVITY
MORE NATIONAL
DEVELOPMENTBetter policies in the
areas of health, education, security, urban mobility, etc. at the federal, state and municipal levels
EDUCATION
RESEARCH AND INNOVATION
INFRASTRUCTURE
SOCIAL AND REGIONAL INCLUSION
DEMOCRACY FEDERATIVE COORDINATION
POLITICAL AND TAX REFORM
CHALLENGES FOR DENVELOPMENT
FISCAL RESPONSIBILITIY
MONETARY STABILITY
GO
VERN
ANCE
BUT WHAT IS GOVERNANCE ?
GOVERNANCE – THE AGENCY’S PROBLEM
Agent
Delegates
Executes
Self-interest
Principal
The agency’s (agent) problem(public and private)
Self-interest
Conflict of interest
7
Information asymmetry
THE AGENCY’S PROBLEM
8
The develoment of theories on governance aims at finding better answers to the following question:
How to maximize the likelyhood that the behavior (actions) of the Agent (top managers) is directed to meet the interests of the Principal and not his own interests or those of another?
CONCEPT OF GOVERNANCEPublic governance is the capacity that governments
have of assessing, directing, and monitoring the management of several public policies put in place to meet the needs of the population, by using a set of appropriate instruments and tools.
Achieving good governance requires strong leadership, a safe strategy and effective oversight of the actions of various managers that comprise a particular government.
Fonte: Referencial de Governança - TCU
Institutional Planning (mission, objectives, indicators, targets and allocation of resources)
Strategic committees (Business, HR, IT etc.)
Personnel excellence and decentralization Risk Management, Internal Controls and Internal Audit Publication of plans, portfolios and results Evaluation of individual and institutional performance Government Oversight
Legislative Branch with the help of the courts of accounts Social Control (participation of citizens and organized society)
GOVERNANCE PRACTICES
10
RELATIONSHIP BETWEEN GOVERNANCE AND MANAGEMENT
Fonte: Referencial de Governança - TCU
VIDEO ON GOVERNANCE
12
Now we will watch a video on governance available on the TCU Facebook page and on Youtube.
TCU STRATEGY TO IMPROVE PUBLIC
GOVERNANCE
TCU STRATEGIC PLAN2011-2015
MISSIONOversee Public
Administration in order to contribute to its
improvement in the benefit of society.
VISIONTo be known as an
institution of excellence in oversight and in the improvement of Public
Administration.
MAIN GUIDELINES FOR PERFORMANCE
Greater specialization of the Court by function of
government (health, education, environment, etc.);
Improvement of management and public corporate
governance, without leaving aside evaluation of legality
and compliance of the administrative acts;
Performance of coordinated audits;
Closer ties with international organizations.
SPECIALIZATION
EVOLUTION OF TCU STRUCTURE(COORDINATION AND SPECIALIZATION)
TOPICSSERVICES THAT ARE ESSENTIAL TO THE STATE
National Defense
and Pulbic Safety
State Administra
tion
Personnel Information
Technology
Logistic Procureme
nt
Audit Departments in the States: Midwest and South Regions
TOPICS – SOCIAL AREA
Education, culture and
sports
Social security,
Labor and Social
Assistance
Health
Audit Departments in the States: Northeast Region
TOPICS - NATIONAL DEVELOPMENT
Economic Develop-
ment
Audit Departments in the States: North Region
TOPICS – INFRASTRUCTURE
Airport and cons-truction works
Road works
Energyand sani-
tation works
Ports, water and rail
road works
Denationalization and transport regulatio
n
Denational
ization and
Energyand
Commu-nications regulatio
n
Indirect Adminis-tration in
Rio de Janeiro
Audit Departments in the States: Southeast Region
Coestado(11)
Cosocial(12)
Codesenvolvimento(11)
Coinfra(11)
GENERAL COORDINATION OFFICES
GOVERNANCE ACTIONS
PERFORMED IN TCU IN 2013
BASIC GUIDE ON GOVERNANCE
Document that gathers and organizes good practices in public governance
Applicable to Public Administration Institutions and Entities.
If observed, the practices contained in the Reference Guide can enhance the quality and effectiveness of public policies and services delivered to citizens.
ASSESSPrior Assessment – scenarios and environments in the Strategic PlanContinuing assessment – Public Dialogues and Meetings with Congressmen, Government authorities, Business community, Press and members of Organized Society.
Main related Governance Reference Guide practices To establish and disseminate communication channels and consulta-
tion with stakeholders;
To assess the level of satisfaction with the strategies and actions of the organization and assess the Court’s public image and trustworthiness;
To establish an objective and professional relationship with the media and other institutions;
To ensure that our strategies and actions cater to the stakeholders in a balanced way.
DIRECTSpecialization and Creation of Coordination Offices
Choice of leaders for our administrationGovernment Oversight Plan and Audit Plan alligned with
Strategic Plan guidelines ,Getting closer to international institutions and to the
INTOSAI Congress (INCOSAI)Main related Governance practices
To establish and formalize the organization’s strategy.
To establish coherent objectives that are alligned with all organizations involved in the implementation of the strategy so that the expected results may be achieved.
To establish a management [and structure] model that favors the allignment of operations with the strategy and that enables verification of the achievement of benefits, results, objectives, and targets.
MONITORMeeting of Top Managers (national and regional), Meetings
of the Presidency with Audit Departments and internal Meetings of the General Secretariats
Main related Governance practices
To monitor the administration of the organization, especially the achievement of institutional goals and behavior of top management members.
To be responsible for establishing policies and guidelines to manage the organization and for achieving expected results vis-a-vis the internal governance structures.
To monitor and assess execution of the strategy, the main operational indicators and the outcomes of the organization.
• In order to increase its productivity and consolidate itself as one of the world leaders in terms of development, Brazil has to establish a great pact to strengthen public governance.
• Government Oversight plays an essential role, at the federal, state and municipal levels, as a promoter of public governace in favor of development, without forgeting oversight of legality and compliance and the fight against corruption.
CONCLUSION
THANK YOU!