ASOSAI News

Governing Board Meetings

The 28th and 29th ASOSAI Governing Board meetings were held in Chiang Mai in Thailand on October 10 and 13th 2000 respectively. As per tradition the 28th meeting was held before the Assembly and 29th meeting immediately afterwards.

Proceedings of the meetings are briefly summarised below:-

The 28th ASOSAI Governing Board Meeting

The Secretary General presented his report to the Governing Board. The report contained information on:

3 LTRTP training courses organized since the last Governing Board and Instructors Training meetings that preceeded each of these courses.

Publication of course materials RC-2, RC-3 and RC-4.

Plans for evaluation of the LTRTP phase I and II and presentation of a new proposal to ADB.

Two ASOSAI workshops in Kuwait and China.

The Secretary General reported on the 1999 Financial Statements and the Philippines Head of SAI read out the audit report on the Financial Statements. SAI-India informed members that on transfer of the ASOSAI Secretariat to India the accounts for ASOSAI will be maintained in India.
The Secretary General presented the triennial budget for 2000-2002. He gave details of voluntary contribution made/committed for the year 2000. The Governing Board approved allocation of US$ 70,000 for the ASOSAI sponsored seminar in China in June 2000 out of an estimated amount US$ 88,000 available for “Training Activities” in 2000.
The Convenor of the Training Management Committee presented the ASOSAI Training Management Committee Report. Important features of the report were:

A proposal to amend the existing terms of reference of the TMC enabling appointment of SAI-Japan as administrator of ASOSAI Training Programmes to assist the Secretary General in planning and implementing these Programmes.

Presentation of the result of a training needs survey conducted by the TMC. This survey identified the top 5 regional priorities.

Details of the three LTRTP workshops and related Instructors Meetings.

Plans to evaluate Phases I and II of LTRTP and prepare a new proposal for the next phase of LTRTP.

Details about the 1999 ASOSAI Seminar in Kuwait and the 2000 ASOSAI Seminar in China.

The report gave a broad picture of the plans and budget for 2001 ASOSAI Courses. A course on VFM Audit and another on Financial Audit for newly established SAI, have been planned. It was reported that the course for 2002 would be on IT Audit.

The Board agreed to suggestions that the proposal to amend the terms of reference of the TMC should not name a specific country and accepted an amendment allowing the Secretary General to appoint an Administrator in consultation and with the Board’s prior approval.

The Board, with the above change, adopted the report of the TMC.

The 29th ASOSAI Governing Board Meeting

The Governing Board approved the appointment of SAI-Japan as the Administrator of ASOSAI Training Programmes.
The Governing Board approved a proposal allowing the ASOSAI Secretary General to obtain suggestions from all ASOSAI members to enable determination of a suitable topic for the 6th ASOSAI Research Project. The ASOSAI Secretary General would identify a topic for the research project and a project team in consultation with the ASOSAI Chairman. This would be subsequently intimated to Governing Board members for formal approval.
The Governing Board took note of reports on:

Preparation for XVII INCOSAI.

INTOSAI Governing Board Activities.

Activities of INTOSAI Standing Committee on EDP Audit.

Motion to amend INTOSAI Statutes.

The Governing Board decided to hold its next (30th) meeting in Kuwait.
The Governing Board approved a proposal by the Administrator of ASOSAI Training Courses to hold two ASOSAI Training Courses in 2001.
The Board approved the launch of the ASOSAI Working Group on Environmental Auditing.
The Board approved the Performance Auditing Guidelines produced as a result of the 5th ASOSAI Research Project. The guidelines would be published both as a booklet and in electronic format. 1000 copies of the guidelines would be printed and each ASOSAI member would receive 20 copies. The guidelines would not be on sale.
The Board approved that the 2nd ASOSAI Journal Award be presented to Mr. Pritom Phookun of SAI-India for his article “Good Governance” that appeared in the 2000 issue of the Journal.
The Board of Audit Japan was appointed a member of the ASOSAI Governing Board for its special contributions to ASOSAI.
The Governing Board approved SAI Kazakhstan’s admission to ASOSAI.

Participants of 29th ASOSAI Governing Board Meeting

5th ASOSAI Research Project

In 1997, at its 6th International Seminar, held in Jakarta, the Asian Organisation of Supreme Audit Institutions (ASOSAI) Assembly approved the Jakarta Declaration on Promoting Efficient and Effective Public Administration through Performance Auditing. The Declaration resolved that broad guidelines for performance auditing be developed. In September 1998 the 26th ASOSAI Governing Board in Beijing, approved that the fifth ASOSAI Research Project on the topic “Performance Auditing Guidelines”.

The fifth ASOSAI Research team consisted of the SAIs of Australia, New Zealand, India and Malaysia. The following team represented these 3 SAIs:

Mr. I.P. Singh - Deputy Comptroller & Auditor General of India.
Mr. Ab. Rahman bin Mohammed - Deputy Auditor General of Malaysia.
Mr. P.H. Robinson - Sr. Director, Australian National Audit Office.

These guidelines provide a methodology and a broad framework for the conduct of the performance auditing process and also provide the basis by which the quality of the audit product can be judged. The guidelines will assist performance auditors:

to be attuned to the needs, expectations and priorities of clients, which in the case of SAIs are the legislature, government institutions and those entrusted with the task of managing public affairs;
to add value to agencies through performance auditing services;
to provide an environment which enables performance auditors to enhance their skills and achieve their full potential;
to achieve audit excellence; and
to manage performance audit operations efficiently and effectively.

The guidelines take into account relevant INTOSAI Auditing Standards and are based on generally accepted principles of performance auditing distilled from the experience of ASOSAI members. They therefore comprise contemporary performance auditing methodology and reflect a `best practice’ consensus among the member SAIs. The guidelines are a `living document’ which will need to be updated as performance auditing methodology and practice develops.

The fifth ASOSAI Research Project Report was printed and circulated by the Australian National Audit Office. As agreed at the 8th ASOSAI Assembly in Chiang Mai twenty copies of the project report have been sent to all member SAIs. In addition this project can be viewed and downloaded from the ASOSAI Website where it is available in PDF format.

ASOSAI Website: http://www.ASOSAI.org

LTRTP Training Programmes

Report on the ASOSAI workshop on Value for Money Audit Process held in Bangkok, Thailand from February 21 to March 3rd, 2000.

This workshop was funded by ADB under the ASOSAI LTRTP Programme for the ASOSAI member SAIs. The course spanned ten days, each day divided into four sessions. A case study - The Road Rehabilitation and Maintenance Project - was selected to assist the process of learning to conduct and report on Value for Money audit. The material related to the case study followed a consistent pattern, which helped in understanding the systematic approach required to be observed.

Participants of ASOSAI RC-3 held in Bangkok, Thailand during
21 February-3rd March, 2000

Closing ceremony of the ASOSAI RC-3, held in Bangkok, Thailand
March 3rd 2000

The closing ceremony took place in the evening on the last day and included speeches by the representatives of the Instructors, the participants and the ADB, the Auditor General of Thailand and the Asst. Director of the ASOSAI Secretariat. The closing ceremony finished with a cultural programme presented by the auditors of the office of the Auditor General of Thailand.

Workshop On Performance Audit Of Revenue Agency, Langkawi, Malaysia 17-28 July 2000 (RC-4).

The workshop was presented as an activity of the Asian Development Bank (ADB)- funded ASOSAI Long Term Regional Training Programme with the National Audit Department of Malaysia as the host.

The goal of this workshop was to provide participants with the opportunity to upgrade their knowledge and skills in the Performance/Value for Money audit of revenue agencies.

This course was planned for ten days, each day being divided into four sessions. There were participants from 21 different countries and faculty from 6 countries. The method adopted was learner-centred and the participants took the lead in all sessions. This methodology evoked active involvement of the participants in the training programme. The Training aids were flip charts, OHP, group discussion, quiz, role plays, vote plays and case studies. There was consistency between the theoretical course contents and material in the Case Studies and other instructions. The material related to the Case Study followed a consistent pattern, which helped to undertake a systematic approach to the performance Audit.

The closing ceremony took place in the afternoon of 28.7.2000 at Langkawi and included speeches by the representatives of the instructors, the participants and the ADB, the Auditor General of Malaysia and the Assistant Director of ASOSAI Secretariat.

Note: Both “Value for Money Audit” and “Performance Audit” mean the same concept, e.g. audit from economy, efficiency and effectiveness viewpoints, and are often used interchangeably. During the previous workshop (RC-3_ on the VFM Audit Process held in Bangkok, it was felt that “Performance Audit” is more widely used in ASOSAI member SAIs than “VFM Audit”. Also, “VFM Audit” seems more appropriate for expenditures than revenue. Hence, the instructors team decided to use term “Performance Audit” for this workshop.

ASOSAI Working Group on Environmental Auditing

During the 27th ASOSAI Governing Board meeting, the Korea SAI, the trekker of the ASOSAI Working Group on Environmental Auditing, submitted a Draft Resolution on the Establishment of the ASOSAI Working Group on Environmental Auditing, which was adopted unanimously by the board members.

The analysis of the results showed that out of 35 member SAIs, 23 respondent SAIs acknowledged the importance of environmental auditing and 19 members wished to take part in the Working Group.

The first meeting of Environmental Working Group was held on October 13, 2000 immediately after the 29th ASOSAI Governing Board Meeting. It was a working level meeting where the main agenda was to elect the Group’s Chair and to discuss the future course of action. 50 participants from 20 member countries attended the meeting. The trekker SAI-Korea presided to the point of the election and gave the Chair to SAI China after their being elected as Chair SAI of the group. The future action plan of this group was decided in this meeting.

The general objectives of the Working Group are:

To help SAIs acquire a better understanding of issues in the area of environmental auditing;
To facilitate exchange of information and experience in this field; and
To publish guidelines and other informative materials for use by SAIs (including suggestions on the possible content of, and methods to be applied to, environmental auditing.