ASIAN JOURNAL OF GOVERNMENT AUDIT ASIAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS. XII ASOSAI Assembly Special Issue OCTOBER 2011

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1 ASIAN JOURNAL OF GOVERNMENT AUDIT th XII ASOSAI Assembly Special Issue OCTOBER 2011 ASIAN ORGANISATION OF SUPREME AUDIT INSTITUTIONS

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3 he is Tpublished twice i a year i Eglish o behalf of the Asia Orgaisatio of Supreme Audit Istitutios (ASOSAI). The Joural is a official orga of ASOSAI ad has the objectives of promotig soud ad effective State Audit Systems ad providig ASOSAI members with a forum for sharig of experieces i differet areas of State Audit. Articles, Special Reports, News items ad other material o State Audit ad related fields are ivited for iclusio i the Joural. Material should be set to the editorial office, c/o the Comptroller & Auditor Geeral of Idia, 9 Dee Dayal Upadhyay Marg, New Delhi Fax No. : sighj@cag.gov.i : ir@cag.gov.i BOARD OF EDITORS Mr. Viod Rai Comptroller & Auditor Geeral of Idia Ms. Ma. Gracia M. Pulido Ta Chairperso, Commissio of Audit, Republic of Philippies Mr. H.A.S. Samaraweera Auditor Geeral, Sri Laka EDITOR Mr. Jagbas Sigh (Idia) MEMBERS OF THE GOVERNING BOARD OF ASOSAI ( ) 1. Mr. Muhammad Akhtar Bulad Raa Auditor Geeral Office of the Auditor Geeral of Pakista ad Chairma, ASOSAI 2. Dr. Ku Yag Chairma, Board of Audit ad Ispectio (BAI) Korea ad Secretary Geeral, ASOSAI 3. Mr. Ahmed Ataul Hakeem Comptroller & Auditor Geeral of Bagladesh 4. Mr. Liu Jiayi Auditor Geeral People's Republic of Chia 5. Mr. Viod Rai Comptroller & Auditor Geeral of Idia 6. Mr. Hadi Poeromo Chairma of the Audit Board of the Republic of Idoesia 7. Mr. Abdul Basit Turki Saeed Presidet of the Board of Supreme Audit, Iraq 8. Mr. Hiroyuki Shigematsu Presidet, Board of Audit, Japa 9. Mr. Abdulaziz Yousef Al-Adsai Presidet State Audit Bureau, Kuwait 10. Mr. Racai Akeyal Presidet Turkish Court of Accouts 11. Mr. Dih Tie Dug Auditor Geeral State Audit of Vietam 01

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5 Editorial am happy to preset the, special issue of ASOSAI th IJoural. Sice this is the last issue before the 12 ASOSAI Assembly, the Joural icludes cotributios from Heads of SAIs o their visio for ASOSAI ad the directio i which they would like to see ASOSAI progress i future. I am extremely grateful to the heads of SAIs of Bagladesh, Japa, Pakista, Turkey ad Idia for cotributig these special articles. I also thak the Secretary Geeral of ASOSAI for his cotributio. Readers will fid iformatio o ew heads of SAIs, iformatio o the various activities i ASOSAI, as also ews o developmets i INTOSAI, apart from updates o ASOSAI's traiig programmes ad other plaed activities. The Joural also icludes material o specific iitiatives take i differet coutries, such as participatio i iteratioal/atioal meetigs, sigig of agreemets, ad traiig programmes udertake. As always, this editio brigs you articles cotributed by SAIs of Nepal, Oma, Pakista,Vietam o the topics such as Statutory Domai i Govermet Auditig, Challeges i auditig Sovereig Wealth Fuds, Pesio Fuds ad Ivestmet Compaies, Admiistrative Expediecy ad the SAIs, ad Publlic Debt & the Role of the State Audit Office of Vietam. 03 We hope that these articles will be of iterest ad value to our commuity. Your costat feedback ad iputs ecourage us as we cotiue to improve o the Joural. I request readers to sed us material for future issues such as articles, reports ad case studies at ir@cag.gov.i. (JAGBANS SINGH)

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7 Cotets Page No. 1 From the Desk of Secretary Geeral of ASOSAI (Dr. Ku Yag) 06 2 Special Cotributios The ASOSAI Today ad Tomorrow - Achievemets, challeges ad opportuities (Mr. Muhammad Akhtar Bulad Raa, The Auditor Geeral of Pakista & Chairma ASOSAI) Future Visio for ASOSAI i comig years (Mr. Viod Rai, Comptroller & Auditor Geeral of Idia) Capacity Buildig - Goals, Efforts ad Achievemets (Mr. Hiroyuki Shigematsu, Traiig Admiistrator of ASOSAI &Presidet, Board of Audit of Japa) ASOSAI Visio for Cooperatio (Mr. Ahmed Ataul Hakeem, FCMA,Comptroller ad Auditor Geeral of Bagladesh) Need for effective cooperatio amog Asia SAIs ad the role of ASOSAI (Dr. Recai AKYEL Presidet of Turkish Court of Accouts) New Heads of SAIs Pakista Maldives Vietam Cambodia INTOSAI News Workig Group o Key Natioal Idicators met i Filad EUROSAI held semiar o SAI Commuicatio with the Media th Workig Group o Public Debt celebrated its 20 Aiversary Workig Group o the Fight agaist Corruptio ad Moey Lauderig held a iteratioal semiar i Prague ASOSAI News 41 6 Activities of Member SAIs 46 7 Articles addresses of member SAIs 72 9 Other importat addresses ASOSAI Caledar October, March,

8 From the desk of the Secretary Geeral of ASOSAI Dr. Ku Yag Secretary Geeral, ASOSAI & Chairma, Board of Audit ad Ispectio of Korea I am pleased to meet my hoorable colleagues i the ew colum of the ASOSAI Joural. rd The 43 Goverig Board Meetig of ASOSAI was held successfully i Istabul, Turkey, i September The meetig was especially meaigful for me because it marked my first time participatig i a ASOSAI meetig sice my iauguratio as the ASOSAI Secretary Geeral i March of this year. 06 rd At the 43 Goverig Board Meetig, the key ageda item was the Actio Pla of the ASOSAI Strategic Pla for The Secretariat formulated the Actio Pla with a view to supportig the ASOSAI Strategic Pla, which was approved i February of this year. I am very pleased to iform you that the Goverig Board approved the Actio Pla with overwhelmig support. You are well aware of the visio, missio, ad strategic goals of the ASOSAI. The visio of the ASOSAI is to promote good goverace by ehacig the role of the SAIs i improvig performace, effectiveess, trasparecy, ad accoutability i the public sector. The missio of the ASOSAI is to promote professioalism, mutual support, ad uderstadig amogst the member SAIs. The ASOSAI Strategic Pla is composed of three strategic goals: 1) Istitutioal Capacity Buildig, 2) Kowledge Sharig ad Kowledge Services; ad 3) fuctioig as a Leadig Regioal Workig Group of INTOSAI. The Actio Pla was developed i aligmet with the orgaizatioal visio ad missio of the ASOSAI i order to achieve the strategic goals of the ASOSAI Strategic Pla. The Actio Pla sets forth four mai objectives: 1) to explore more diverse capacity-buildig activities for the members; 2) to make full use of the established programs or projects; 3) to cemet regioal ad iterregioal cooperatio; ad 4) to facilitate o-lie as well as off-lie commuicatio ad activities. Successful implemetatio of the Actio Pla is essetial. Therefore, i this colum of the ASOSAI Joural, I will focus o three mai issues regardig the Actio Pla: 1) the efficiet allocatio ad distributio of the ASOSAI budget i order to eable more capacity-buildig activities; 2) the cooperatio with EUROSAI, ad 3) the implemetatio of the activities associated with the objectives of the Actio Pla. First, cosiderig the issue of the budget of the ASOSAI, the aim is to build the capacity of member SAIs for promotig accoutability ad trasparecy i the public sector. The ASOSAI has ivested more tha 95% of its resources i capacity activities. The ASOSAI has

9 From the desk of the Secretary Geeral of ASOSAI hosted aually oe ASOSAI-sposored workshop ad biaually oe ASOSAI-sposored semiar. Aually, ASOSAI ad JICA have co-sposored a kowledge-sharig evet. The themes of these workshops, semiars, ad evets have bee based o the commo iterests of the sposorig orgaizatios ad the member SAIs i public sector auditig. Eve though cosiderable fiacial resources have bee used through the available ASOSAI budget, ufortuately the preset programs provided by the ASOSAI caot satisfy the icreasig eeds for capacity-buildig activities. Therefore, the ASOSAI must secure the requisite fiacial resources to eable expasio of the traiig opportuities. However, the estimate for the trieial budget ( ) shows that the traiig costs will exceed the available fiacial resources by USD 396,905. The total ASOSAI reveues from 2012 to 2014 would reach USD 695,040, while the total expeses would reach USD 1,091,945. Thus, the Secretariat will explore the meas to provide more traiig opportuities at the lowest possible cost. Secod, cosiderig the issue of cooperatio betwee ASOSAI ad EUROSAI, the establishmet of a ew iter-regioal cooperatio program is a major aim of the ASOSAI st Strategic Pla for Aliged with the goal of the Strategic Pla, the 1 ASOSAIrd EUROSAI Joit Coferece was held i Istabul, Turkey, immediately after the 43 ASOSAI Goverig Board Meetig. The Goverig Board members of ASOSAI ad EUROSAI discussed the theme Challeges for Esurig Trasparecy ad Accoutability i Public Fiacial Maagemet. This impressive coferece was the first-ever cooperatio project of the ASOSAI with aother regioal group sice its iceptio i This coferece offered may valuable opportuities to discuss issues related to trasparecy ad accoutability amogst the SAIs. The Goverig Board members shared their experieces ad committed themselves to tacklig the challeges. 07 Durig the Joit Coferece, a MoU o cooperatio betwee the ASOSAI ad the EUROSAI was siged. Through the MoU, the ASOSAI ad the EUROSAI are securig a strog basis for expadig the scope of their cooperatio to several areas, icludig joit research, exchage of traiig experts, ad traiig for auditors. Iitially, the ASOSAI Secretariat will lear from the good practices which the EUROSAI already has experieced i its shared activities with other orgaizatios. Thereafter, ASOSAI ca iteract more effectively i the plaig ad the implemetatio of cooperative activities with EUROSAI. I am cofidet that the cooperatio with EUROSAI will provide a solid basis for the further developmet of ASOSAI. Third, cosiderig the implemetatio of the ASOSAI Actio Pla, successful implemetatio will oly be achievable by aimig for all of the member SAIs to commit earestly to its objectives ad to cotribute steadily to its activities. Thus, i my capacity as the Secretary Geeral of ASOSAI, I ask you to joi your efforts i implemetig the Actio Pla. The ASOSAI Secretariat strigetly will pursue all possible meas to achieve the goals of the ASOSAI Strategic Pla ad the objectives ad the activities of the associated Actio Pla. I coclusio for this colum, I would like to express my deepest gratitude to the member SAIs for their sicere support for ad cooperatio i the activities of the Secretariat. Your active participatio is essetial for the achievemet of the visio ad missio of the ASOSAI ad for the achievemet of the strategic goals of the ASOSAI Strategic Pla.

10 From the desk of the Secretary Geeral of ASOSAI Overview of the ASOSAI Strategic Pla Visio of ASOSAI ASOSAI promotes good goverace by ehacig the SAI's role of improvig perfor-mace, effectiveess, trasparecy, ad accoutability i the public sector. Missio of ASOSAI ASOSAI is a professioal ad o-political orgaizatio established to ehace member SAIs' professioalism; to provide mutual support ad uderstadig; to foster cotiuous improvemet amog member SAIs; ad to promote cooperatio with INTOSAI ad other orgaizatios i the field of public audit. 08 Goals of the ASOSAI Strategic Pla for Goal 1 Istitutioal Capacity Buildig Goal 2 Kowledge Sharig ad Kowledge Services Goal 3 Leadig Regioal Workig Group of INTOSAI Objectives of the Actio Pla 1. To explore more diverse capacity-buildig activities for the members 2. To make full use of the established programs or projects 3. To cemet regioal ad iter-regioal cooperatio 4. To facilitate o-lie as well as off-lie commuicatio ad activities

11 Special Cotributios The ASOSAI Today ad Tomorrow - Achievemets, challeges ad opportuities Mr. Muhammad Akhtar Bulad Raa Chairma ASOSAI & Auditor Geeral of Pakista The Trasitio Whe I took over as the Chairma, the ASOSAI had smoothly trasitioed from the ie years old Secretariat i the SAI Idia to a brad ew Secretariat i the SAI Korea, ad the Chair had passed o to the SAI Pakista from Chia i a seamless way. What ormally happes i trasitios, the ASOSAI trasceded that. I trasitios the focus remais o stabilizig the outcomes of previous iitiatives ad there is a reticece i lauchig ewer itervetios to avoid ay possible disruptios to what had already bee achieved. But it is a matter of great satisfactio for me that the ASOSAI did ot uecessary slow dow uder the perceived weight of the trasitio. 09 th I the period precedig the 11 ASOSAI Assembly i Pakista, whe the trasitio took place, the ASOSAI had already bee recogized as a resposive Regioal Workig Group of the INTOSAI, matchig other Regioal Workig Groups i ehacig collaboratio betwee its members ad cotributig positively to the professio of state auditig with research projects, capacity buildig traiig ad icisive techical papers. Ad the challege durig the trasitio was ot oly to maitai the impetus, but also to break ew grouds for future susteace of the orgaizatio. I this short article I do ot wish to recast all the activities of the ASOSAI carried out durig the last three years as they are already covered i my ad the Secretary Geeral's reports that we will be preseted before the XII ASOSAI Assembly. My itetio here is to uderlie some of the critical measures that were take by the ASOSAI as a orgaizatio durig the last two years for furtherig its objectives. Tweakig the istitutioal arragemet With the overall membership of ASOSAI reachig 45, it remais the secod largest Regioal workig Group of the INTOSAI. With a view to ivolvig a larger umber of its members i decisio makig ad with a eye o esurig cotiuity, the size of the Goverig Board was icreased from ie to eleve. This eabled the outgoig Chairma to remai o the GB for aother term to esure that the first had experiece of maagig the affairs of the orgaizatio was available to the GB which is the collective body resposible for ruig the orgaizatio o day to day basis. The decisio of icreasig the size of the GB also uderlied that the mai activity of the INTOSAI ad its Regioal Groups remais to be the capacity buildig of its members. Sice traiig is the axis aroud which the capacity buildig revolves, it was felt that the Traiig

12 Special Cotributios Admiistrator should also be made a itegral part of the ASOSAI GB. With the icrease i the umber of GB members from ie to eleve, the GB has approved the proposal to amed the Rule 15 of the ASOSAI Rules ad Regulatios to revise the quorum from five to six ad it was decided that decisios o all matters would require agreemet of at least six GB members. The ext assembly will ratify the proposed chage. Aother istitutioal chage that took place durig the last two years resulted from a th decisio of the previous Assembly. The 11 Assembly held i Pakista i 2009 ameded the ASOSAI Charter to make the Traiig Admiistrator of the ASOSAI a ex-officio member of the ASOSAI Goverig Board. Sice we eeded to select the ew Traiig Admiistrator as a ex-officio member i 2012, there was a eed to establish the selectio procedure for the Traiig Admiistrator. This was also accomplished durig rd the 43 GB meetig held i Istabul. I additio, a comprehesive, ecyclopedic documet explaiig the selectio procedures for importat ASOSAI posts has bee assembled by the Secretariat ad circulated to all member SAIs i Jue th It was also i this period after the 11 ASOSAI Assembly that the Secretariat prepared a three-year rollig budget pla. This was made possible with the help of the SAI of Japa, the Traiig Admiistrator, ad the SAI of Idia, the publisher of the ASOSAI Joural, who submitted their budget estimates for Traiig ad the publicatio of the Joural for a three years period. Towards professioal competece The utirig efforts of the Traiig Admiistrator ad the Secretariat ad the active participatio of the member states resulted i a sigificat umber of capacity buildig programmes durig the last two years. The member states beefited from the followig activities: The Istructors' Desig meetig for the ASOSAI-sposored workshop o the Audit o Public Debt Beijig, Chia The JICA-sposored semiar o How to Stregthe SAIs to Meet the Public Expectatio o SAI Tokyo, Japa The Strategic Plaig meetig for the program o Quality Assurace i Performace Audit (QAPA) Haoi, Vietam Istructors' Desig meetig for the program o QAPA Paro, Bhuta Workshop for the program o QAPA, Kuala Lumpur, Malaysia, followed by a Review Meetig, Bagkok, Thailad Workshop o Eviromet Audit Istabul, Turkey Semiar o How to Itegrate Ethics ad Itegrity ito the Auditig Practice of a SAI, Seoul, Korea

13 Special Cotributios I search of excellece th The ogoig 9 Research Project o Evaluatio ad Improvemet of Iteral Audit Systems ad Relatioship betwee the Iteral Audit Uits (IAUs) ad SAIs is progressig productively with the cooperatio of 12 member SAIs, amely, Chia, Idia, Idoesia, Ira, Iraq, Korea, Kuwait, Malaysia, Pakista, Russia, Saudi Arabia, ad th Vietam. The result of the 9th Research Project will be reported to the 12 Assembly to be held i Jaipur, Idia i February I hope that the research results will afford the ASOSAI members a opportuity to make the best use of both ISSAI GOV 9140 o Iteral Audit Idepedece i the Public Sector ad ISSAI GOV 9150 o Coordiatio ad Cooperatio betwee SAIs ad Iteral Auditors i the Public Sector. Kowledge sharig Regular ad timely publicatio of the biaually idicates the member states' iterest i curret developmets i the professio of state auditig. The SAI Idia deserves commedatio for ot oly makig the publicatio possible but also for itroducig ew features to make the ASOSAI joural a effective ad popular medium for sharig professioal experiece ad exchage of iformatio amog the ASOSAI fraterity ad the SAIs the world over. It is also a matter of satisfactio that the ASOSAI website upgraded i Jauary 2010 with ew features has received icreased attetio of the member SAIs. I this age of olie exchages, it is hearteig to kow that the ASOSAI members are also collaboratig with each other actively i a virtual eviromet besides egagig i physical exchages i cofereces, meetigs ad semiars. This healthy chage is idicative of the resposiveess of the ASOSAI members to the chagig realities i the fields of kowledge sharig ad capacity buildig. 11 Reachig out st The ASOSAI has come a log way i the past 32 years ad this was evideced by the 1 Joit coferece that o Challeges for Esurig Trasparecy ad Accoutability i Public Fiacial Maagemet that we held together with the EUROSAI i Istabul It is a sig that we cotiue to break ew grouds for mutual beefits of the SAIs aroud the world. Orgaizatios cotiue to thrive as log as there are ew iitiatives o the avil of their orgaizers ad stakeholders. Holdig of this Joit Coferece is also a evidece of our desire to brig together the rich pool of competet professioal auditors i may subject areas that would be mutually beeficial for the capacity buildig of member SAIs of both the regioal Workig Groups. This desire has bee traslated i the Istabul Memoradum of Uderstadig, which has ideed become a milestoe i the iteratioal collaboratio betwee the SAIs.

14 Special Cotributios Strategy & Actio At the begiig, whe I uderlied that the ASOSAI did ot capitulate uder the weight of d trasitio, my major referece was to the fializatio ad approval of the 2 Strategic Pla of the ASOSAI. Traditioally, we had bee workig uder the umbrella of the INTOSAI Strategic Pla, till such time whe it was realized that there was a eed to structure the iitiatives of our Regioal Workig Group ito workable plas ad discreet chuks of st activities. That was whe the 1 ASOSAI Strategic Pla was coceived i It was ecessitated, if also for the fact that whe we have distict targets it becomes easier to measure the performace. The approval of the ASOSAI Strategic Pla is thus a corerstoe i that it uderlies the resolve of the orgaizatio to realize its objectives uder a structured approach. This was achieved despite procedural stumblig blocks. Ad it goes to the credit of our Secretariat that it devised a igeious way of gettig the approval of the member states for the Strategic Pla despite the fact that the Assembly was far away i time. 12 But we all kow that plas remai promises till such time they are traslated ito cocrete ad verifiable actios. For us resposible for the maagemet of ASOSAI, it is quite rd satisfyig that the 43 Goverig Board has approved the Actio Pla diligetly prepared by the Secretariat to implemet the ASOSAI Strategic Pla It may ot be out of place to metio here the saliet features of the Actio Pla for the pla perspective will eable us to visualize future itervetios. The Actio Pla for the implemetatio of the Strategic Pla focuses o the followig: 1. exploratio of more diverse capacity-buildig activities for the members, 2. makig full use of the established programs or projects, 3. cemetig regioal ad iter-regioal cooperatio, ad 4. facilitatig o-lie as well as off-lie commuicatio ad activities. While presetig the Actio Pla, the Secretary Geeral of the ASOSAI uderlied that the Actio Pla has bee desiged to pursue the followig three goals: Buildig capacity through ASOSAI-EUROSAI Cooperatio, INTOSAI-Door Cooperatio, implemetatio of the Iteratioal Stadards of Supreme Audit Istitutios (ISSAI), ad ew capacity-buildig activities; Sharig ad dissemiatig kowledge through the ASOSAI Joural, the ASOSAI website, ad various other kowledge-sharig evets, such as the ASOSAI- EUROSAI Joit Coferece, the ASOSAI Symposium ad Semiars, ad the ASOSAI Research Project; ad Empowerig ASOSAI to become a model of excellece amogst the seve Regioal Workig Group of INTOSAI to be achieved through collaboratig with INTOSAI for the implemetatio of INTOSAI Iitiatives, through successfully implemetig the ASOSAI budget reform, ad through moderizig the operatios of the ASOSAI Secretariat. While the ASOSAI goals remais withi the overall framework of the INTOSAI, their utility lies i providig the ASOSAI member states a platform where they ca further their collaboratio for professioal developmet.

15 Special Cotributios Movig forward Now, that the medium term objectives emaatig from the goals of the ASOSAI Strategic Pla have bee defied i the fialized Actio Pla, is the time for us to take cocrete measures for realizatio of these objectives. While the istitutioal chages that I referred to above provide a platform for structured itervetios, there will always be a eed for a proactive approach for esurig that our programs ad projects stay o course. The followig eed a metio i this regard: We eed to esure availability of resources for our capacity buildig programs ad research projects through icreased door participatio. We eed to erich our recet collaboratio with the EUROSAI ad cotemplate joit vetures with them i research ad modular traiig programmes. We also eed to persuade our atioal govermets to provide adequate resources to the SAIs so that their improved fuctioig leads to greater trasparecy i govermetal operatios. This i my view ca be achieved if the SAIs ca demostrate that they are fuctioig uder the iteratioally accepted priciples ecoded i the ISSAIs. The remaiig part of my article thus highlights the importace icorporatig the ISSAIs ito state auditig practices ad I believe that i the comig years, the ASOSAI ca play a proactive role i this regard. 13 Embeddig the ISSAIs i the SAI systems Iterestig though the geesis of the ISSAIs is, it remais to be see as to how the SAIs embed them i their systems ad procedures. We are all aware of the trials ad tribulatios of variegated auditig systems whe it came to developig a cosesus o the adoptio of a commo stadards system. State auditig systems, owig to differig state structures ad maagemet systems, were iitially perceived to require massive customizatio to suit the state-specific requiremets. Ad such adjustmets were thought to require auditig stadards parameterized to match the so called geo-political groud realities. Sustaied iteractio betwee state auditig istitutios, slowly but surely, resulted i awareess that differeces are essetially the maifestatios of form rather tha the substace. The resultat cosesus o core values like Idepedece, itegrity, Professioal Competece, Due Care ad the like, provided the basis for a agreemet o commo auditig stadards. Ad whe the fiacial maagemet systems across the board gave i to the idea of trasparecy i fiacial reportig, the stage was set for the promulgatio of IFRS that fially culmiated ito IPSAS with a geeral cosesus o commo accoutig ad fiacial reportig framework. Time was ot far off whe commoly accepted auditig stadards were to be adopted for state auditig as well. This i my view has bee the geesis of the ISSAIs. Despite, cosesus ad formalizatio of the Iteratioal Stadards o Auditig (ISAs) ito ISSAIs, the challege, for the world SAI commuity ad for the ASOSAI i particular, is to alig the state auditig practices to meet the requiremets of the ISSAIs. At the XX

16 Special Cotributios INCOSAI held i Johaesburg, South Africa i November 2010, the implemetatio of ISSAIs was adopted as the 2011 INTOSAI Iitiative. I this regard, all of the seve Regioal Workig Groups of the INTOSAI were requested to play their ow parts i supportig their respective member SAIs' implemetatio. I am glad that the ASOSAI commuity has agreed to deliberate o this issue durig their ext trieial semiar th to be held together with the 12 Assembly i Jaipur, Idia. While the SAI Pakista will be presetig a detailed paper o the implemetatio of ISSAIs i a particular area, here I would like to flag two area o which the ASOSAI as a orgaizatio ca possibly dilate durig the ext few years. Oe is esurig the idepedece of the SAIs, ad the other relates to developig a workig model for the implemetatio of the ISSAIs. Towards SAIs' Idepedece 14 The first priciple of the Mexico Declaratio o the Idepedece of SAIs, also coded as ISSAI 10, stipulates the existece of a appropriate ad effective costitutioal/ statutory/legal framework ad of de facto applicatio provisios of this framework as a precoditio for effective fuctioig of a SAI. It also requires legislatio that spells out, i detail, the extet of SAI idepedece is required. While the SAIs are strivig to move i this directio, there are specific examples of SAIs that have made leaps towards attaiig their idepedece. For istace, durig 2010 the SAI Pakista's idepedece received costitutioal protectio. While o the oe had, the teure of the head of the SAI Pakista was costitutioally protected, o the other the sactity of his audit jurisdictio was recogized i the costitutio i the followig words: The audit of the accouts of the Federal ad of the Provicial Govermet ad the accouts of ay authority or body established by, or uder the cotrol of, the Federal or a Provicial Govermet shall be coducted by the Auditor-Geeral, who shall determie the extet ad ature of such audit It eeds to be oted that with this amedmet to the Costitutio of Pakista, ay restrictios o the madate of the SAI Pakista, which may have bee perceived by some quarters to have existed i the prior legislatio, have bee lifted. Ad ow all operatios of the federal ad provicial govermets fall squarely i the audit jurisdictio of the SAI Pakista. I am sure that i other coutries of our regio also there are efforts i had to secure greater idepedece for the SAIs. Dissemiatio of iformatio about such developmets i the madates of SA. Is from the platform of the ASOSAI i a structured way is likely to ecourage a larger umber of states to make similar legislative chages for esurig the idepedece of the state auditig fuctioality.

17 Special Cotributios Model for implemetig ISSAIs The other area where the ASOSAI ca led its fuctioal arm for eablig the member states to move towards ISSAIs is to develop a model for the implemetatio of the ISSAIs. I its ow effort to cooperate with INTOSAI, The Board of Audit ad Ispectio of Korea as the Secretariat of ASOSAI has put the etire collectio of the ISSAI ito oe CD to make it hady for the members. The CD has bee circulated to the member SAIs i February This may be a opportue time for the ASOSAI to lauch its first Workig Group o the patter of the INTOSAI workig Groups. This WG o Embeddig ISSAIs i State Auditig Practices (WGEISAP) ca be madated by the ASOSAI to develop a model for the purpose. This ca be achieved whe the WG is chaired by a SAI that has re-aliged its codes, mauals ad guidelies alog the ISSAIs ad the other member of the WG idetify other such iitiatives i this regard. As a matter of fact, the developmet of such a model ca lead to stadardized codes, mauals ad guidelies for various sectors of state auditig. I remai cofidet that the ASOSAI will cotiue to thrive as a resposive Regioal Workig Group of the INTOSAI alert as ever to the chagig realities takig place i our professio of state auditig. 15

18 Special Cotributios Future Visio for ASOSAI i comig years Mr. Viod Rai Comptroller ad Auditor Geeral of Idia th We stad o the threshold of the 12 Assembly of ASOSAI. The ASOSAI movemet has come a log way from its modest begiig i From 11 members who first got together i New Delhi, we ow have a commuity of 45 SAIs. SAI Idia was bestowed with the hoour of hostig the first meetig of the Goverig Board ad the first Assembly i 1979 i which rules ad regulatios of ASOSAI were framed. We were agai reposed with th the resposibility of hostig the 6 ASOSAI Assembly i year 1994 ad we ow have the privilege of welcomig you to Idia for the third time. 16 These are mometous times i the histories of may atios. New paradigms are evolvig i the political systems of some coutries. Global ecoomy is i a tumult ad atios are seekig ovel solutios to critical ecoomic problems. All these evets pose major challeges to the Supreme Audit Istitutios of our coutries. We have to respod to these challeges to help our respective Govermets tackle these problems i the most effective maer. Oly by doig so ca we remai relevat ad credible. Techological iovatio has revolutioised the way Govermets coduct their busiess today. The rage of public activity has proliferated areas hitherto alie to the Govermet ad ew structures for delivery of goods ad services have bee created. With the Govermet operatios becomig more complex ad the Govermet adoptig iovative methods to foster developmet ad parterig with local bodies, societies, NGOs ad the private sector to deliver public services, it requires a equal degree of sophisticatio to detect ad prevet attempts at subversio of such complex goverace structures. The SAIs are expected to uravel this vast ad complex maze ad provide assurace to their stakeholders that public moeys are beig spet as these were iteded to be ad public programmes are beig implemeted with due regard to ecoomy, efficiecy ad effectiveess. The Iteratioal SAI commuity has ot bee a bystader while these developmets have bee ufoldig. INTOSAI has bee quick to focus its attetio o these issues with a view to recommed effective ways for SAIs to respod to the situatios prevailig i their coutries. While INTOSAI ca oly provide a broad guidace, the regioal groups are better placed to defie a more focused approach towards these issues. This is where ASOSAI eeds to step i ad foster coditios withi the group which ecourage exchage of experieces, kowledge ad skills.

19 Special Cotributios ASOSAI Assemblies are apt occasios for us to take stock of thigs ad set our sights at d our future goals. The strategic pla of ASOSAI for year , as adopted i 42 Goverig Board Meetig held i Haoi, has set the ball rollig. I am sure that ASOSAI would emerge as oe of the leadig regioal group of INTOSAI committed to brigig the smaller ad ew SAIs at par with established SAIs through frequet exchages of ideas, kowledge ad various capacity buildig measures. The recet developmet of sigig of MoU with EUROSAI ad proposed collaboratio with IDI withi the frame work of INTOSAI Door Cooperatio for capacity buildig iitiatives is a step i this directio. It is also a matter of great satisfactio that the Research Projects udertake by ASOSAI have yielded good divideds. th The 12 ASOSAI Assembly would oce agai give us a opportuity to rededicate th ourselves to the tasks set out i our Charter. The 5 Symposium o the topic, Assimilatig the Iteratioal Stadards of Supreme Audit Istitutios could ot have bee orgaized at a better time give the fact that the Johaesburg INCOSAI adopted a large bouquet of ISSAIs. The Symposium would provide a excellet opportuity to the ASOSAI fraterity to discuss strategies which would best suit idividual SAI situatios i adoptio of these Stadards. I am extremely grateful to the Chairma ad Secretary Geeral of ASOSAI ad the Heads of the SAIs of Bagladesh ad Turkey for sharig their visio for ASOSAI through this Joural. I also thak my other colleagues for cotributig very elighteig articles which make this Special Editio of the Joural a collectors' item. I eagerly look forward to receivig you i the historic city of Jaipur i February

20 Special Cotributios Capacity Buildig Goals, Efforts ad Achievemets Mr. Hiroyuki Shigematsu Traiig Admiistrator of ASOSAI ad Presidet, Board of Audit of Japa Itroductio It is my great privilege to share my view o the future prospect of ASOSAI i this memorial ASOSAI Assembly Special Issue prior to the XIIth ASOSAI Assembly to be held i Idia i I greatly appreciate the editors of the who kidly provided me with this precious opportuity. 18 ASOSAI is oe of the successful regioal workig groups of INTOSAI with the membership of 45 SAIs as of today, which has promoted uderstadig ad cooperatio amog the members through exchage of ideas ad experieces i the field of public audit ad provided facilities for traiig ad cotiuig educatio for govermet auditors sice its establishmet i I cocrete, ASOSAI has udertake various traiig activities o emergig audit issues, ASOSAI Symposiums, Research Projects, activities of ASOSAI Evirometal Workig Group, ad establishmet of commuicatio tools such as joural ad website. st I the 21 cetury where socio-ecoomic situatio is dramatically chagig due to globalizatio, iovatio of iformatio techology, etc., govermet activities have bee complex ad specialized for addressig challeges i broad areas ad expectatio towards SAIs has bee icreasig ad uprecedeted challeges to the SAIs have bee preseted. The SAIs i the Asia regio are urged to further improve the quality of audit to esure trasparecy ad accoutability i public fiacial maagemet. I parallel, the role of ASOSAI has become more importat ad rage of its activities is expected to be expaded moreover. Uder the curret circumstaces, I, as Traiig Admiistrator of ASOSAI, fully recogize my ow resposibility for makig utmost efforts i order to provide the member SAIs with useful opportuities of capacity buildig i close cooperatio with Chairma, Secretary Geeral ad other all parties cocered. Therefore, I would like to focus o the future prospect of the capacity buildig activities i ASOSAI i this article. Before startig, let me briefly touch upo my role of Traiig Admiistrator of ASOSAI. I am takig office as my capacity of Presidet of the Board of Audit of Japa. The Presidet of the Board of Audit of Japa has bee cotiually servig as Traiig Admiistrator of ASOSAI (Admiistrator of the ASOSAI Traiig Program before 2009) sice 2000 whe the positio was established i ASOSAI. Thaks to the members' ackowledgemet of our cotributio, Traiig Admiistrator has become a ex-officio member of the Goverig Board sice the 11th Assembly i The Terms of Referece of the ASOSAI Traiig Committee stipulates that the Traiig Admiistrator of ASOSAI shall pla, implemet ad

21 Special Cotributios follow up of the area of traiig activities uder directio of the Goverig Board ad i close cooperatio with the Secretary Geeral. I lie with this, we have bee coductig traiig eeds surveys every few years to grasp the actual eeds ad expectatio of the member SAIs, plaig traiig programs by reflectig the eeds, submittig the proposal to the Traiig Committee, Goverig Board ad Assembly, implemetig traiig programs i the efficiet maer, ad followig up ad reportig the results of the programs. We have also coordiated capacity buildig programs with importat parters such as the IDI which provides us with tremedous ad value-added assistace. Takig this opportuity, I wish to exted my sicere gratitude to all parties cocered who have kidly cooperated i the traiig activities. ASOSAI-sposored traiig activities Huma resources are utmost crucial i every orgaizatio, particularly i SAIs. Accordigly, capacity buildig such as traiig activities is the most importat pillar i ASOSAI as the fact shows that more tha 96% of the curret ASOSAI budget is allocated to the traiig activities. Lookig back to the past, as you may kow, ASOSAI had already recogized ad ackowledged the importace of traiig activities for govermet auditors of the regio as early as at the 1st Assembly i ASOSAI coducted semiars ad workshops i collaboratio with doors such as Asia Developmet Bak (ADB), IDI ad Japa Iteratioal Cooperatio Agecy (JICA) from the late 1980s to the mid 1990s. Alog with these collaboratios, ASOSAI started its ow traiig programs i 1992 by usig its ow fuds, that is, aual ad volutary cotributios. Curretly the programs are orgaized as ASOSAI-sposored workshop every year to stregthe the audit capabilities of its member SAIs. The targets of the said workshop are juior or middle-level auditors who shall be uder 40 years of age. The topic of the workshop chages every year to cover latest ad various eeds of the member SAIs to the extet possible. For istace, ASOSAI dealt with the areas of Audit of Public Debt, Eviromet Audit, Audit of Privatizatio, Performace Audit ad Fiacial Audit i a IT eviromet for the recet five years. 19 Programs fuded by ADB ad the IDI For implemetig fruitful ASOSAI-sposored workshops, capable istructors are idispesable, ideed. Focusig o this poit, ASOSAI implemeted first ad secod Log Term Regioal Traiig Programs (LTRTPs) with ADB fuds i cooperatio with the IDI from 1997 to 2000 ad 2002 to 2004 i order to establish a regioal traiig ifrastructure with which ASOSAI ca pla ad implemet more regioal based traiig programs,. Thaks to the two LTRTPs, ASOSAI fostered 27 traiig specialists from 15 SAIs ad 32 traiig specialists from 20 SAIs respectively. I additio, the IDI kidly provided ASOSAI with aother program amed E-eabled Bleded Traiig Program for Traiers (EBTPT) for creatig ew traiig specialists by usig a combiatio of e-learig techology ad traditioal traiig methods i 2007 to 2009 ad 32 traiig specialists from 15 SAIs were urtured. These competet traiig specialists of various coutries have actively played importat roles through participatig i the ASOSAI-sposored workshops ad other activities as istructors ad may of them have also played importat roles i the traiig courses of their ow SAIs. I believe these professioal traiig specialists have made a great impact o the capacity buildig eviromet i the regio as a whole.

22 Special Cotributios IDI-ASOSAI cooperatio program As per the LTRTPs ad EBTPT programs, ASOSAI have received great assistace from outside parters, particularly i the fields that ASOSAI caot cover with its fuds. For istace, ASOSAI orgaized a ADB-IDI-ASOSAI cooperatio program i 2005 to 2007 for supportig ewly developed SAIs to fill the gap of audit capabilities with SAIs havig log history. ASOSAI ad the IDI have further accelerated its cooperatio programs o capacity buildig sice Targetig the member SAIs which are eligible for the IDI assistace ad have ot participated i the IDI programs of other regioal workig groups, ASOSAI orgaized, i close cooperatio with the IDI ad its fuds, a workshop o fraud ad corruptio, a program o Quality Assurace i Fiacial Audit, a program o EBTPT, ad a program o Quality Assurace i Performace Audit i 2004 to 2011 which require log-term ad active commitmet of the participatig SAIs ad it has led to the istitutioal capacity buildig of the SAIs, ideed. Semiars for kowledge sharig 20 Sice 2005, ASOSAI has lauched a ew traiig scheme called Semiars for Kowledge Sharig for middle- or seior- level audit maagers. Oe is ASOSAI semiar ad the other is JICA-sposored ASOSAI semiar. The semiars' topics are also determied by the results of the traiig eeds surveys. The ASOSAI semiar is orgaized every alterate year by usig ASOSAI's ow fuds, coverig the topics of maagig audit results, how to stregthe iteral cotrols i SAIs ad how to itegrate ethics ad itegrity ito the auditig practices of a SAI so far. Meawhile, the JICA-sposored ASOSAI semiar is orgaized with the fuds of JICA ad the techical ad admiistrative support of the Board of Audit of Japa for the member SAIs eligible for JICA assistace. JICA provided semiars o challeges to ew audit frotiers-how to develop ad maage huma resources for dealig with emergig audit issues-, tacklig fraud ad corruptio i auditig ad how to stregthe SAIs to meet the public expectatio o SAI i 2005 to The semiars are owadays regarded as precious opportuities for seior officials to share ad exchage the commo challeges ad to seek practical solutios. As described above, ASOSAI has keely focused o capacity buildig activities with the joit efforts of all the member SAIs ad the great parters. I believe such cotiuous edeavor of ASOSAI will cotribute to good commuicatio ad mutual uderstadig amog the members as well as to ehacemet of audit capabilities of each SAI. ASOSAI Strategic Pla for O the other had, ASOSAI should ot be satisfied with the curret stage sice eviromet surroudig the member SAIs has bee chagig ad the eeds for capacity buildig activities for addressig diversified challeges have bee rise. To meet such members' expectatio, ASOSAI approved the Strategic Pla for ad its Actio Pla which icorporate the udertakig of future capacity buildig activities. Particularly, Goal 1 Istitutioal Capacity Buildig ad Goal 2 Kowledge Sharig ad Kowledge Services describe the future prospect of ASOSAI's capacity buildig i cocrete.

23 Special Cotributios Goal 1 Istitutioal Capacity Buildig Goal 1 cosists of four sub-goals, that are, 1.1 ehace the practicality ad effectiveess of traiig programs, 1.2 explore e-learig as a future capacity buildig methodology, 1.3 implemet iteratioal audits stadards ad guidace i collaboratio with INTOSAI ad 1.4 facilitate fiacial ad techical assistace to capacity buildig activities. For achievig 1.1 ehace the practicality ad effectiveess of traiig programs, a scheme of plaig, moitorig ad evaluatio of traiig programs should be stregtheed. ASOSAI will regularly coduct surveys o details of the members' traiig eeds ad formulate a multi-year traiig pla i more cocrete by reflectig the survey results to the maximum extet possible. After the implemetatio of traiig programs, evaluatios will be cotiually coducted ad the results will be carefully moitored by the Traiig Committee for more effective traiig programs. ASOSAI will also try to diversify the cotets of capacity buildig programs. I additio to the curret programs, ASOSAI will explore possibilities for ew capacity buildig activities i cosultatio with the INTOSAI-Door Cooperatio. INTOSAI-Door Cooperatio is a joit effort of INTOSAI ad doors with the objective of providig a commo approach towards strategic focus ad coordiatio betwee doors ad the SAI commuity i stregtheig SAI capacity i parter coutries. Takig ito accout cosiderable demad for icreased levels of support to the member SAIs, ASOSAI cotiues to seek collaboratio with the INTOSAI-Door Cooperatio. If this effort is succeeded, I believe optios of capacity buildig will be further diversified to the member SAIs. 21 I order to ehace the quality of traiig activities, ASOSAI will make a attempt to mobilize competet traiers from iside ad outside of ASOSAI such as EUROSAI which siged Istabul Memoradum of Uderstadig (MoU) with ASOSAI i terms of cooperatio at the 1st ASOSAI-EUROSAI Joit Coferece i September Various expertise from other regio will erich ASOSAI's activities. With regard to 1.2 explore e-learig as a future capacity buildig methodology, ASOSAI is curretly cosiderig the itroductio of e-learig for its capacity buildig activities as oe of the methodologies give the curret costrais of fuds, time ad huma resources. As a first step, ASOSAI will coduct a research to the member SAIs ad other parties cocered ad carefully formulate a strategy for the developmet of e-learig programs which meet the members' expectatios. Sice IT eviromet of each SAI is differet, ASOSAI will proceed with e-learig approach i a careful maer. I terms of 1.3 implemet iteratioal audits stadards ad guidace i collaboratio with INTOSAI, as you may be aware, the mai cocer is Iteratioal Stadards of Supreme Audit Istitutios (ISSAIs). The XX INCOSAI i 2010 affirmed that the ISSAIs preset the essece of public sector auditig ad called upo INTOSAI 's members to implemet the stadards i accordace with their atioal madates. Thus, ASOSAI will cotiually make efforts to dissemiate the ISSAIs materials to the members ad to icorporate the ISSAIs ito the cotets or/ad courseware of ASOSAI capacity buildig activities as well as to provide the members with opportuities for discussio o the

24 Special Cotributios ISSAIs. I order to achieve the above sub-goals, it is ecessary for ASOSAI to pursue the sub-goal of 1.4 facilitate fiacial ad techical assistace to capacity buildig activities. For better capacity buildig activities, ASOSAI eeds cotiual cotributios from the members ad outside doors. I this regard, the Board of Audit of Japa as Traiig Admiistrator of ASOSAI will make the best efforts to cotiue the largest scale of volutary cotributio to ASOSAI. At the same time, ASOSAI will keep talkig with exteral parters such as INTOSAI-Door Cooperatio for explorig sources for further activities. Goal 2 Kowledge Sharig ad Kowledge Services Goal 2, amely Kowledge Sharig ad Kowledge Services, also refers to capacity buildig activities whose sub-goals are 2.1 Ehace the utility of the ASOSAI website ad the ASOSAI Joural, 2.2 icrease opportuities for kowledge sharig ad exchage of experieces, 2.3 promote techical cooperatio ad cosultig services amog member SAIs, 2.4 facilitate peer learig through sharig best practices, ad 2.5 develop audit guidace ad best practices through research o issues of mutual iterests ad cocers. 22 For istace, 2.1 Ehace the utility of the ASOSAI website ad the ASOSAI Joural ecourages ASOSAI to make the website fuctio as iformatio hub of capacity buildig. ASOSAI will keep the curret maer to upload the course materials of the ASOSAIsposored workshop o the ASOSAI website so that the member SAIs could easily refer to. I terms of 2.2 icrease opportuities for kowledge sharig ad exchage of experieces ad 2.3 promote techical cooperatio ad cosultig services amog member SAIs, ASOSAI ecourages ow iitiatives for orgaizig kowledge sharig evets to be hosted by the member SAIs ad facilitatig joit work ad study visits, etc. amog the member SAIs. I believe wide-ragig activities ot oly by ASOSAI but also by the member SAIs will lead to further istitutioal capacity buildig i the regio. I this mometum, ASOSAI will be a catalyst of the commuicatio amog the member SAIs through collectig the iformatio of each member's iitiative ad sharig it o the ASOSAI website. The sub-goals of 2.4 facilitate peer learig through sharig best practices ad 2.5 develop audit guidace ad best practices through research o issues of mutual iterests ad cocers also ecourage member SAIs' commitmet to ISSAIs ad commuicatio amog member SAIs. At the same time, ASOSAI will cotiually promote the curret platform of kowledge sharig such as ASOSAI Symposium, ASOSAI semiar ad JICAsposored ASOSAI semiar as well as Research Project. Through various activities associated with the said Goals such as ehacemet of the relatioship amog ASOSAI members as well as with INTOSAI ad other workig groups, facilitatig of partership with iteratioal door commuity, etc., Goal 3 Leadig Regioal Workig Group of INTOSAI of the Strategic Pla is to be also accomplished.

25 Special Cotributios Closig As metioed above, ASOSAI is ow embarkig o the ew period of its history, adoptig the ewly developed strategic pla which aims at broadeig the area of ASOSAI's activities. ASOSAI has cotiually paid greater attetio to capacity buildig ad set Goals 1 ad 2 i the Strategic Pla to achieve i the comig five years. ASOSAI will soudly cotiue its efforts i implemetig the curret programs o capacity developmet. I additio, ASOSAI aims to expad the scope of capacity buildig activities through various actios, such as cosultatio with exteral parters, e-learig, cooperatio with other regioal workig groups, the members' iitiatives ad so o. ASOSAI also iteds to improve the quality of its activities through ehacemet of evaluatio ad moitorig, arragemet of capable istructors, iformatio sharig, etc. The beefits brought by these edeavors of ASOSAI will make a greater impact o the member SAIs, leadig to improvemet of accoutability ad trasparecy of public admiistratio ad fiace i the regio. With all these hopeful sigs, I caot help but expect ASOSAI's further progress i comig years. As Traiig Admiistrator of ASOSAI, I will do my best i order to achieve the Goals of the Strategic Pla ad to erich the capacity buildig activities, i close cooperatio with all the member SAIs ad parties cocered. To fully meet the members' expectatios, I would be obliged if the member SAIs could cadidly give us recommedatios ad/or opiios towards the capacity buildig activities. I believe our joit efforts will beefit all as the INTOSAI's motto says mutual experiece beefits all. 23

26 Special Cotributios ASOSAI Visio for Cooperatio Mr. Ahmed Ataul Hakeem, FCMA, Comptroller ad Auditor Geeral of Bagladesh Itroductio ASOSAI had bee formed with a visio of mutual cooperatio amog Asia SAIs to forge uity i diversity i the structure ad auditig methodologies for esurig trasparecy ad accoutability i public fiacial maagemet. Sice its iitiatio i 1979, ASOSAI has bee successfully ivolved i developig uderstadig ad cooperatio amog member SAIs to build istitutioal capacity i promotig good goverace. ASOSAI cotiues to play a importat role through the support it provides to member SAIs i terms of traiig, developig methodologies, guidelies ad sharig kowledge ad experieces. I all these efforts, ASOSAI has addressed issues of commo iterests fulfillig its strategic goals ad members' eeds. 1.2 The cotiuous chages i the ecoomic, social ad political area withi the regio, iovatios made i commuicatio techology ad growig expectatios of the stakeholders have made it essetial for ASOSAI to become more dyamic i its activities. ASOSAI, therefore, eeds to pursue its predefied goals of stregtheig istitutioal capacity of SAIs, icreasig kowledge sharig ad services amog SAIs ad leadig Regioal Workig Groups of INTOSAI with more cooperatio ad coordiatio. 1.3 All these issues demad that we further alig the existig strategy to face the immese challeges of the future. Accordigly, this article evaluates the ogoig efforts, highlights the key challeges ad suggests future role of ASOSAI i comig years. 2.0 Ogoig Efforts ad Challeges 2.1 ASOSAI eters the fourth decade of operatios with a impressive record of achievemet ad a ambitious strategic pla that icludes a variety of capacity developmet iitiatives withi the regio. Its membership has grow to 45 from 11 SAIs at the very outset of its jourey. This has resulted i ecouragig ad promotig research i auditig ad related fields, orgaizig traiig, cofereces ad semiars for the exchage of ideas ad experieces i the field of public sector audit. 2.2 ASOSAI is oe of the diversified regioal orgaizatios i INTOSAI, i terms of geography, culture, laguage ad developmet of govermet audit. While such

27 Special Cotributios diversity is stregth to the orgaizatio, it also poses difficulties related to various traiig eeds of member SAIs, laguage, fiacial costraits, etc. Moreover, the member SAIs rages from those 150 years old to others that were established very recetly. The varied experiece levels make for rich debates ad exchage of ideas. 2.3 The adoptio of the Strategic Pla for comes at exactly the right time ad sets forth a blueprit for cocerted actio that is adapted to the priorities of our time. The ogoig ASOSAI strategic pla aims to achieve three strategic goals: 'Istitutioal Capacity Buildig', 'Kowledge Sharig ad Kowledge Services' ad 'Leadig Regioal Workig Group of INTOSAI'. These are i lie with the INTOSAI's goal structure. Each goal cosists of several strategies which will fulfill the missio of ASOSAI. The focus of the pla is to promote professioalism ad cooperatio amog the member SAIs. 2.4 Much has bee achieved i this regard. However, may of the features that are still very cetral to the fuctios of ASOSAI are yet to be formulated. As a result, further chages have become imperative. The challeges ahead are to stregthe ASOSAI capability for collective actio ad thus forge a commo destiy. 3.0 Makig ASOSAI More Beeficial for its Members 3.1 ASOSAI has adopted the INTOSAI motto of 'Mutual experiece beefits all' i all its activities ad capability buildig iitiatives. The basis of ASOSAI's achievemets lies i mutual uderstadig, cooperatio ad kowledge sharig amog its members SAIs. To meet the challeges of this cotext, ASOSAI would have to focus o the followig areas for cotiued progress: Diversifyig the Existig Cooperatio Regime ASOSAI eeds to ceter its capacity developmet itervetios i mitigatig deficiecies of its member SAIs to attai essetial capacities ad kow-how. As a first step, a eed aalysis of the member SAIs ca be coducted. This would idetify commo as well as specialized requiremets eeded to foster strog ad effective istitutios capable of promotig good goverace through esurig trasparecy ad poverty reductio Ehacig Istitutioal Developmet I developig effective istitutios, ASOSAI ca be ecouraged to further develop traiig programs to address the commo capacity eeds. Successive E-bleded traiigs may be itroduced to cover more participats with iadequate resources. A Maagemet Developmet Program may be lauched for heads ad seior maagers of SAIs. This iteds to familiarise them with key maagemet skills, attitudes, kowledge ad their roles ad resposibilities for addressig the challeges faced by the supreme audit istitutios Developig Strategic Pla ASOSAI ca assist idividual SAIs i creatig capacity ad providig support for developig Strategic Plas ad Capacity Buildig Strategies to address the

28 Special Cotributios specialized eeds of differet SAIs. These documets have to be flexible ad adaptive to support chagig circumstaces, ad ca become the catalysts to further professioalism ad ehace SAIs' performace effectiveess i lie with the developmet treds of SAIs aroud the world Esurig Implemetatio of ISSAIs Aother major area is the developmet of istitutioal capacity of SAI to support all types of audit they coduct - fiacial ad regularity audits, performace audits, evirometal audit, social audit, IT audit, special audits ad foresic audits. Efforts to implemet Iteratioal Stadards for Supreme Audit Istitutios (ISSAIs) ad INTOSAI GOVs must be completed uder a project to be put ito effect coverig its member SAIs. Accordigly, ASOSAI ca arrage traiig programs, pilot audits, workshops, joit audits to improve audit quality Collaboratio with Professioal Bodies Collaboratig with professioal bodies ad other orgaizatios such as IFAC, IIA, ISACA, legislature, civil society ad media to further the performace effectiveess of its member SAIs are fudametal to the developmet of idividual SAIs. Cooperatio betwee SAIs ad its citizes is a key elemet to ehace trasparecy ad esure public accoutability. SAIs also eed to clearly demostrate their values ad beefits so that they ca be recogized by society as a credible model istitutio that makes a positive impact o the lives of the citizes. This ca also help to idetify ew grouds for capacity developmet ad sharig of kowledge. 3.2 Stregtheig Peer to Peer Support Previous experieces i the INTOSAI ad its Regios have show that collaboratios betwee peer SAIs are recogized by the members as the most effective form of capacity buildig itervetio. Therefore, ASOSAI eeds to develop a forum for facilitatig peer to peer support amog its members i the areas discussed below: Attachmet for Experiece Sharig The first step i this process is to idetify areas where various member SAIs would wat to share their expertise with or provide assistace to their peers. The mode of assistace ca take the form of attachmet of auditors i the supportig SAI, as well as exchage of auditors amog SAIs, to experiece at firsthad how audits are coducted. Experts ca also be provided to the recipiet SAIs for capacity developmet ad sharig of skills ad kowledge Joit or Parallel Audits The implemetatio of Memoradum of Uderstadig (MoU) betwee members SAIs ca help mobilize more resources to establish partership ad stregthe the capacity of sigig SAIs. Uder the MoU, joit or parallel audits ca be coducted to the beefits of coutries sharig similar social eeds ad circumstaces. Further collaboratio may be forged betwee coutries ad respective SAIs for coductig joit audits i areas of eviromet ad sustaiable developmet (climate chage, marie pollutio, forest resources,

29 Special Cotributios atmospheric air pollutio, iteratioal evirometal accords, etc.) disaster maagemet, regioal cocers (poverty reductio, border water sharig, fiacial crisis maagemet, etc) coverig cross atioal borders Peer Review ASOSAI also has the opportuity to facilitate Peer Reviews amog its members ad with SAIs from other INTOSAI Regios. This will facilitate the exchage of iformatio betwee SAIs o completed audit. Ad at the same time, it will meet the frequetly asked questio 'who audits the auditors?' Network of Traiers & Traiig Istitutios Developig a etwork amog the traiig istitutes of member SAIs will create a opportuity for SAIs to avail the opportuity to participate i traiig programs orgaized by other SAIs. I this way, SAIs ca also utilize experts from aother SAI i their traiig programs ASOSAI Door Cooperatio Partership with iteratioal orgaizatios ad door commuity should cotiue to beefit member SAIs. ASOSAI ca lear from the experiece of INTOSAI i the perspective of collaboratio with the door commuity to icrease fudig available for its developmet iitiatives ad peer to peer cooperatio. Similar to INTOSAI Door Secretariat, ASOSAI ca develop a database for eed assessmet reported by various SAIs, ogoig cooperatio programs ad a list of potetial cooperatio parters. I this process, mobilizatio of support from iter doors will allow ASOSAI to further move forward Research Projects Fially, joit research projects ad exchage program ca be itroduced for specific areas ad relevat topics. Emphasis should also be give o addressig poits of costraits ad weakesses by usig the experiece of other SAIs. 4.0 Coclusio ASOSAI exists ad presets itself as a sigificat opportuity for mutual experiece sharig. Future efforts should focus more o successfully creatig a dyamic eviromet coducive to meaigful developmet ad effective cooperatio withi the regio. The priority will be set at creatig a vibrat learig commuity. The accomplishmet i terms of formig a learig commuity will deped o how flexible the ASOSAI as a orgaizatio ca become ad acquire the stregths to adapt with the chagig eviromet ad perspective.

30 Special Cotributios Need for effective cooperatio amog Asia SAIs ad the role of ASOSAI Dr. Recai AKYEL, Presidet of Turkish Court of Accouts 28 Cotaiig coutries with the highest growth rate i the world, Asia is at the same time oe of the regios that most eed developmet. We ca readily say that with its dyamic populatio, rich atural resources ad eormous potetial for growth, Asia cotiet has a promisig future. For Asia commuities to reach its well-deserved level of welfare ad to achieve sustaiable developmet, supreme audit istitutios (SAIs) as well as public admiistratios have critical roles. ASOSAI plays a importat part ad assumes resposibilities for SAIs to fulfil their madates i a effective maer. Each ad every activity to be performed uder the umbrella of ASOSAI is of great importace, whereby we ca cotribute to the rise of Asia i the world as well as to the welfare of our atios. Missio of SAIs i Promotig Good Goverace The mai elemets of good public fiacial goverace are trasparecy, participatio, resposiveess, compliace with the rule of law, effectiveess, oversight, accoutability ad predictability. These are key factors for ecoomic ad social developmet as well. Likewise, the World Leaders at the 2005 World Summit cocluded that good goverace is itegral to ecoomic growth, the eradicatio of poverty ad huger, ad sustaiable developmet. The ex-secretary Geeral of the Uited Natios, Mr. Kofi Aa also emphasizes that Good goverace is perhaps the sigle most importat factor i eradicatig poverty ad promotig developmet. I esurig good goverace, SAIs are key istitutios, ad idepedet auditig is oe of the most effective istrumets. As it's well kow, SAIs have crucial roles i esurig the soudess of public fiacial system ad its stability ad sustaiability through stregtheig the maagemet of potetial risks of public fiace, ad esurig the effectiveess of systems of budgetary ad fiacial cotrol. Strog coectio betwee the quality of the public maagemet ad social ad ecoomic growth ad the level of democratizatio i ay coutry shows the importace of SAIs ad their audit fuctio as a idepedet oversight body. There is o doubt that oe of the most importat drivig forces of achievig high level of quality i public maagemet is idepedet auditig ad SAIs have crucial roles to improve public maagemet at atioal ad iteratioal level. The audit fuctio exercised by idepedet Supreme Audit Istitutios (SAIs) plays a istrumetal role i copig with the most importat challeges that all huma beig face ad i achievig vital objectives which may esure a better life for curret ad ext

31 Special Cotributios geeratios. SAIs have a wide rage of resposibilities ad fuctios such as maitaiig social security ad peace, promotig huma rights ad democratic values, eradicatig corruptio ad moey lauderig ad protectig disadvataged groups of the populatio. SAIs have crucial roles i detectig mismaagemet ad iefficiecy ad ca improve strategies ad measures agaist corrupt practices i public maagemet. By promotig efficiet ad effective fiacial maagemet, they ehace good goverace ad add value to the life of the citizes. They cotribute to promotio of good fiacial goverace through their work, which has potetial effects i the fields of; Icreasig trasparecy ad disclosure of public fiacial iformatio, Ehacig exteral scrutiy of public fiaces, Performig a educatioal ad prevetive fuctio o auditees, Stregtheig the demad for greater accoutability i the maagemet of public resources, Esurig cotributio to savigs or more efficiet use of fuds i idividual areas. SAIs cotribute also to better goverace by objective, idepedet ad credible reportig, ad by successfully demadig the implemetatio of their recommedatios. At the same time, they geerate a better uderstadig of the priciple of govermet accoutability ad of the role accorded to it by the public. A effective, idepedet ad credible exteral public audit is key for the stregtheig of parliametary scrutiy ad the buildig of the cofidece of citizes i the govermet ad public admiistratios. As recogized i the Lima Declaratio, SAIs' credibility i deliverig value is affected by their degree of idepedece, adequacy of resources ad skills, adoptio of iteratioal auditig stadards, reliability ad results. 29 As emphasized i the Coclusios ad Recommedatios of 19th UN INTOSAI Coferece o The Value ad Beefits of Govermet Audit i a Globalized Eviromet i Viea, the value of SAIs stems from promotig good goverace for today ad tomorrow, through: ehaced govermet fiacial ad budgetary reportig ad accoutability to their parliamets, citizes ad the iteratioal commuity, icludig supportig the adoptio of iteratioal accoutig ad reportig stadards; greater trasparecy of govermet ad advocacy of the importace of parliametary scrutiy, improvig public awareess ad supportig a culture of scrutiy amog legislative bodies ad citizes; improvemets i public maagemet ad public service delivery, icreasig its ecoomy, efficiecy, effectiveess, equity ad ethics; ad deterrig fraud ad corruptio i public admiistratio ad addressig it i collaboratio with aticorruptio bodies. Accordig to ASOSAI Strategic Pla for , the core of the visio of ASOSAI is promotig good goverace, which is stated as ASOSAI promotes good goverace by ehacig the SAI's role to improve performace, effectiveess, trasparecy ad accoutability i the public sector.

32 Special Cotributios Need for Ehacig SAIs' Capacity The last global fiacial ad ecoomic crisis, which was recetly trasformed ito a debt crisis i some coutries, has highlighted the major advatage of a professioal, accoutable ad high quality public auditig. This kid of audit would provide a clear ad reliable image of the problems ad their origis, ad would focus o the appropriate solutios that may redress the situatios i time ad prevet major ad prejudicial risks. To achieve this i a progressive, professioal ad efficiet maer, SAIs must be edowed with sufficiet professioal, orgaizatioal ad istitutioal skills to meet the challeges of coductig effective auditig. Especially the maturity of SAIs i ew audit areas such as auditig e-govermet is geerally proportioal to the level of techical capacity ad the skills i the SAIs themselves. SAIs eed to have a greater capacity to ehace reportig o public fiace ad atioal budgets with a view to achievig stroger accoutability of govermets ad admiistratios. Audit effectiveess eeds to be raised primarily through icreased attetio to quality cotrol process, ad for that reaso, oe of the most importat compoets of buildig capacity i ay SAI is focusig o quality assurace activities. 30 SAIs fulfill their duties ad resposibilities o behalf of the parliamet ad they esure that parliamet has access to idepedet audit iformatio as part of the framework of accoutability. So, oe of the mai areas to focus o i ehacig their capacity is improvig relatios betwee SAIs ad the Parliamet. Good commuicatio with the Parliamet gives ample opportuities to improve their effectiveess ad legitimacy. Improvig commuicatio capacity of SAIs i relatios with audited etities, the media, academic istitutios, civil society orgaizatios ad the public at large is very importat for effectively fulfillig their roles ad resposibilities. Settig up a strog ad effective SAI will cotribute to stregtheig the trust of parliamets, govermets, citizes ad civil society i the idepedece, objectiveess, quality, efficiecy ad effectiveess of govermet audit, ad hece atioal stability, ecoomic growth ad good goverace as well. Techological ifrastructure of SAIs also eeds to be developed. There is o doubt that SAIs should play a proactive role i promotig e-govermet, as it ca lead to more trasparecy ad better services to citizes. To help govermet i such fields, SAIs eed to improve their techical capacity ad qualificatios of staff as well. We ca add ay other areas where SAIs are i eed to improve their istitutioal ad operatioal capacities. I Asia regio, we kow that differet SAIs have excelleces i differet areas ad each SAI may set a example for the others i that specific area. So, effective cooperatio is a exceptioal tool to stregthe capacity of our respective SAIs, ad ASOSAI must support each member i this process ad egage i a joit effort towards achievig ad stregtheig idepedece ad excellece. I brief, to improve their effectiveess ad impact, SAIs eed to improve their istitutioal capacities. This will improve their legitimacy at the same time ad add value to their works.

33 Special Cotributios Iteratioal Cooperatio for Ehacig SAIs' Capacity To improve their istitutioal capacities, iteratioal cooperatio is oe of the most essetial tools for SAIs. To be tied ito iteratioal etworks of exchage gives great opportuities to ay orgaizatio for developmet. Icreasig global dimesio of govermets' actio ad more frequet traslatio of this dimesio ito iteratioally agreed goals, such as the Milleium Developmet Goals adopted by the UN, requires also for SAIs ehaced degrees of iteratioal coordiatio i order to assist govermets i pursuig their commo ad agreed objectives. Some issues that SAIs have to focus o reflect iteratioal or global characteristics more tha atioal. Close cooperatio is key for success i dealig with such problems. Auditig evirometal issues is the most relevat example that refers to the eed for cooperatio amog SAIs. Corruptio is also a pervasive, global problem, which threates public fiace, legal order ad social prosperity, edagers social security ad impedes the reductio of poverty. ASOSAI ca build up a framework ad develop required tools for SAIs to fight agaist corruptio ad fulfil their resposibilities to esure trasparecy ad prevetio. To prevet ad fight agaist corruptio, close cooperatio is required by INTOSAI ad its Regioal Workig Groups icludig ASOSAI ad idividual SAIs, with iteratioal orgaizatios ad civil societies i a ati-corruptio etwork ad other similar activities, provided that this cooperatio fully addresses the idepedece of INTOSAI ad its member SAIs ad the objectivity of the auditig work, as well as the atioal SAIs' madates, scope ad pertiet legal framework. 31 From iteratioal activities held by INTOSAI, ASOSAI ad other regioal orgaizatios, we ca lear clearly that each SAI has differet experieces i differet areas. Whereas some of them are more capable i developig ew audit methodologies, some have effective techiques i fightig agaist corruptio. Some SAIs are highly experieced i commuicatio with the parliamet, civil society, the media, etc. ad the others have comprehesive traiig facilities for developig huma resources to produce more effective outputs. Therefore, to improve the istitutioal ad operatioal capacity of each SAI, mutual sharig of experieces is the key, as is highlighted i INTOSAI's motto Experietia mutua omibus prodest (Mutual experiece beefits all). The Commuicatio Policy adopted by XIX INCOSAI i 2007 focuses o the beefits of free flow of iformatio, ideas, experiece ad kowledge betwee INTOSAI members, ad ecourages free commuicatio amog themselves. Importace of ASOSAI for Iteratioal Cooperatio ASOSAI was fouded i 1978 ad sice the, has bee workig for effective cooperatio amog respective members to fortify ad stregthe them through exchage of ideas ad experieces i the field of public audit. Accordig to its charter, the objective of ASOSAI is to provide facilities for traiig ad cotiuig educatio for govermet auditors with a view to improvig the quality of their performace; to serve as a ceter of iformatio ad as a regioal lik with orgaizatios ad istitutios i other parts of the world i the field of

34 Special Cotributios public audit ad to promote closer collaboratio ad brotherhood amog auditors ad regioal groups. To achieve its objectives, the Charter of ASOSAI determies mai tools as orgaizig cofereces ad semiars for the exchage of ideas ad experieces i the field of public audit, ecouragig ad promotig research ad udertakig publicatio of research papers ad professioal articles i auditig ad related fields. ASOSAI Strategic Pla for sets its missio as promotig member SAIs' professioalism ad mutual support ad uderstadig. Likewise, its visio is set to promote good goverace by ehacig SAI's role to improve performace, effectiveess, trasparecy ad accoutability i the public sector. The Strategic Pla has three strategic goals: 'Istitutioal Capacity Buildig', 'Kowledge Sharig ad Kowledge Services' ad 'Leadig Regioal Workig Group of INTOSAI'. The focus of the pla is o how to promote professioalism ad cooperatio amog member SAIs. Particularly SAIs i the developig coutries eed to cooperate with others. To achieve its goals, it is importat for ASOSAI to work with SAIs with particular attetio to the specific eeds of developig coutries to build their capacity ad defie their traiig eeds ad workig with others, icludig INTOSAI ad its specialized uits such as IDI. 32 As it is well kow, cooperative audits facilitate mutual sharig ad learig, capacity buildig, etworkig, ad idetificatio of best practices for SAIs. However, cooperative audits amog SAIs i the regio are very limited. ASOSAI should motivate member SAIs ad udertake active role to exted such iteratioally coordiated ad parallel audits. Adoptio ad implemetatio of ISSAI framework highlights the eed for sustaied capacity buildig efforts. Therefore, ASOSAI shall play role to help raise awareess of iteratioal stadards ad provides traiig. ASOSAI should also cotiue to develop audit guidace ad best practices through research o issues of mutual iterests ad cocers, as is determied i its strategic pla as a objective. As a workig group of INTOSAI, ASOSAI ca play importat roles to improve awareess of INTOSAI's outputs i the regio. INTOSAI is a autoomous, idepedet ad opolitical orgaizatio established as a permaet istitutio i order to foster the exchage of ideas ad experieces amog SAIs o govermet auditig. As the iteratioally recogized leader i public sector auditig, INTOSAI issues iteratioal guidelies for fiacial maagemet ad other audit topics, develops methodologies, provides traiig ad exchage of experieces. ASOSAI ca support such activities more actively ad make the outputs of them available for the beefit of its members. ASOSAI ca add value to the quality of goverace i the regio through stregtheig its members ad is therefore coviced that good goverace i Asia states ca be promoted i a joit effort by the followig: Ehaced reportig o public fiace ad atioal budgets, ad stroger accoutability of govermets ad public admiistratios; More trasparecy of govermet actio, ad active edorsemet of the essetial role of parliametary scrutiy, deepeig public uderstadig ad media

35 Special Cotributios perceptio of the fuctios ad tasks of govermet audit, as well as raisig awareess with the law-makig bodies ad the people at large; Improvig public maagemet ad better public service delivery at greater ecoomy, efficiecy, effectiveess, fairess ad itegrity; Promotig legitimacy of state orgas through ehacig their sesitiveess for demads ad expectatios of public ad esurig efficiet ad effective receipt ad use of public resources for the beefit of citizes; Prevetig ad fightig fraud ad corruptio i the public sector i cooperatio with ati-corruptio agecies. ASOSAI ca also udertake importat roles to support the iteratioal positio ad global stregtheig of SAIs as exteral auditors of govermet i their respective atios. Coclusio As a regioal orgaizatio, ASOSAI has to review its roles ad commitmets to achieve further accomplishmet ad maximize its cotributio to the member SAIs, ad should cotiue to promote ad support further developmet i their performace. It should be the primary objective of ASOSAI to add value to its member SAIs to make more visible the value ad beefits of exteral govermet audit i the regio ad to provide a suitable platform for a extesive exchage of experiece betwee SAIs of developed ad developig coutries as well as betwee SAIs of differet legal ad orgaizatioal forms. 33 To support its members more effectively, ASOSAI should maitai a ope ad regular dialogue with global ad regioal professioal orgaizatios, iteratioal door commuity, global civil society ad others for the beefit of its members. I brief, ASOSAI should be a stauch advocate of a closer exchage of experiece ad best practice i public maagemet ad auditig to stregthe govermet audit as a cotributio to social ad ecoomic developmet. Each ad every SAI should be active ad voluteer parters i iteratioal cooperatio to promote its effectiveess ad impacts at atioal ad iteratioal level. I am more tha cofidet that SAIs, which will further stregthe thaks to the assistace of ASOSAI, will cotribute to buildig up welfare, peace ad security ot oly i their societies but also i the whole world at a time whe the world is globalized, societies have coverged ad mutual iteractio is o the rise.

36 New Heads of SAIs Pakista Mr. Muhammad Akhtar Bulad Raa, Auditor Geeral of Pakista th Mr. Muhammad Akhtar Bulad Raa took the oath of office o 27 August, 2011 as the seveteeth Auditor Geeral of Pakista for a four year term. At the time of his appoitmet Mr. Raa was the seior-most officer of the Pakista Audit ad Accouts Service. 34 Mr. Muhammad Akhtar Bulad Raa joied the Cetral Superior Services i February He carries a Masters degree i Political Sciece ad a Law degree from the Pujab Uiversity Lahore. His overseas exposure icludes traiig courses i Public Fiacial Maagemet from the Uiversity of Coecticut, Heart-Ford, USA, Commercial Practices i Telecommuicatio Accoutig from UK ad Australia. As a career public servat he has received itesive ad extesive traiig i Ivestmet Aalysis ad Ecoomic Maagemet, Problem Resolutio & Decisio Makig, Advace Performace Auditig, ad Advace Public Maagemet. He is a fellow of the Natioal School of Public Policy, Lahore after attedig its Natioal Maagemet Course. Mr. Raa brigs rich experiece to this assigmet as the Auditor Geeral of Pakista. Startig his career with public sector auditig, he remaied egaged i maagig ad maitaiig the accouts of the Defece Services of Pakista ad later i the cosolidatio of atioal accouts. Besides, he served i key public sector commercial etities of Commuicatios ad the IT sectors as a advisor o Ivestmet ad Fiace. Prior to beig appoited as the Auditor Geeral of Pakista, he headed the Miistry of Huma th Rights as its Additioal Secretary I-charge. As the 17 Auditor Geeral of Pakista, Mr. Raa evisios the SAI Pakista as a icreasigly professioal ad resposive public body addressig the cocers of the domestic ad iteratioal stakeholders i good goverace. For additioal iformatio, please cotact the office of the Auditor Geeral of Pakista. saipak@comsats.et.pk, Web site: Maldives Mr. Niyaz Ibrahim, Auditor Geeral of Maldives th Mr.Niyaz Ibrahim assumed office as the Auditor Geeral o 4 May 2011 to begi his 7-year term as the Head of the Supreme Audit Istitutio of the Maldives. Pursuat to the sectio 210 of the Costitutio of the Republic of Maldives, Presidet Mohamed Nasheed preseted Mr. Niyaz to the People's Majilis as his omiee for the post. After due cosideratio, the Public Accouts Committee decided that Mr. Niyaz was qualified to be the Auditor Geeral, ad this decisio was subsequetly approved by all the members of the People's Majilis that participated i a vote held i the People's Majilis.

37 New Heads of SAIs Prior to Mr. Niyaz's appoitmet as the Auditor Geeral, he was the head of Iteral Audit Departmet of the state-ru Maldives Ports Limited. Whe Mr. Niyaz assumed office the positio of the Head of the Supreme Audit Istitutio of the Maldives had bee vacat sice 29th March Mr. Niyaz, who is a Chartered Certified Accoutat, has extesive experiece workig i the Supreme Audit Istitutio (SAI) of Maldives. Mr. Niyaz joied the Maldives Audit Office i late 2000 as a Accouts Officer (traiee). His resposibilities as a accouts officer traiee icluded workig with auditors coductig audits of govermet offices, miistries ad departmets. He was also ivolved i the audits of state-owed busiess eterprises. After a two-year break, Mr. Niyaz rejoied the Maldives Audit Office i July 2004 where he assumed the role of a audit maager resposible for hadlig multiple audit assigmets providig directio ad guidace to his subordiates. His positio as a audit maager afforded him the opportuity to travel to differet parts of the world to gai more exposure i the field of auditig. Mr.Niyaz took a oe-year break from work i 2007 to cocetrate o his academic ad professioal studies. He bega his secod stit as a audit maager at the Auditor Geeral's Office i 2008 durig oe of the most hectic periods i the history of Supreme Audit Istitutio of the Maldives. He was tasked with reviewig ad updatig the Audit Maual of the Auditor Geeral's Office. Mr.Niyaz took up employmet i the state-ru Maldives Ports Limited i late 2009 as the head of the Iteral Audit Departmet. He remaied i their employ util his appoitmet to the post of the Auditor Geeral. His academic ad professioal qualificatios are as follows: Educatioal Qualificatios HELP Uiverstiy College, Malaysia, BA (Hoours) i Accoutig ad Fiace awarded by Uiversity of East Lodo of the Uited Kigdom Birmigham City Uiversity, Uited Kigdom, Master of Sciece i Audit Maagemet ad Cosultacy 35 Professioal Qualificatio Associatio of Chartered Certified Accoutats (ACCA), Uited Kigdom Vietam Mr. Dih Tie Dug, Auditor Geeral of the State Audit Office of Vietam Mr. Dih Tie Dug was appoited as Auditor Geeral of the State Audit Office of Vietam by the Natioal Assembly of the Socialist Republic of Vietam o 2d August 2011, succeedig Mr. Vuog Dih Hue who took o a ew task as Miister of Fiace of Vietam. Mr. Dih Tie Dug was bor o 10 May 1961 i Nih Bih. He has a Master degree i Ecoomics. Mr. Dih Tie Dug has wide leadership experiece i fiace-accoutig field as well as other fields from Cetral level to Provicial Level. He used to be a Chief Accoutat i

38 New Heads of SAIs the Corporatio - Miistry of Costructio of Vietam. I October 1997, he was appoited as Director of the Fiace Accoutig Departmet of the Miistry of Costructio of Vietam. I Jue 2003, he sat as Deputy Miister of Costructio of Vietam. I May 2008, he was appoited as Vice-Secretary of the Die Bie provicial Party. I July 2008, he took the role as Chairma of the Die Bie provicial People's Committee. I October 2010, he was appoited as Secretary of the Nih Bih provicial Party. Cambodia Mrs. Som Kim Suor, Auditor Geeral of Natioal Audit Authority, Cambodia 36 Persoal Data Name : Som Kim Suor Natioality : Cambodia Place of birth : Kampog Cham Provice, Cambodia Preset Address : # 24, Street 200, Sagkat Boeg Rag, Kha Dau Peh, Phom Peh Mobile Phoe : (+855) somkimsuor@yahoo.com Marital status : Married Educatio Backgroud Master of Sciece i Ecoomic ad Agricultural Developmet Doctor of Philosophy i Agricultural Sciece Work Backgroud - Preset : Auditor Geeral, Natioal Audit Authority of Cambodia; Member of Natioal Ati Corruptio Coucil : Miister of Natioal Assembly, Seate Relatios ad Ispectio : Secretary of State, Miistry of Wome' s Affairs

39 INTOSAI News Workig Group o Key Natioal Idicators met i Filad he INTOSAI Workig Group o Key Natioal Idicators (KNI) held its fourth meetig i T Helsiki, Filad, i April Durig the meetig, participats reviewed the workig group's activities over the past 3 years. These activities icluded implemetig five subprojects ad elaboratig a white paper o the developmet ad use of KNIs i SAI activity. I November 2010, the XX INCOSAI recogized the workig group's accomplishmets ad exteded its madate for the ext 3 years. Also, the INTOSAI Goverig Board ackowledged the workig group's participatio i developig the INTOSAI Glossary of Audit Terms. The workig group's other subprojects icluded its review of iteratioal experieces i developig ad usig KNIs, priciples for SAIs to use i applyig KNIs, ad recommedatios o developig ad usig KNIs i iovative ecoomies ad Commowealth of Idepedet States coutries. Represetatives of other INTOSAI workig groups expressed sigificat iterest i the outcomes of these subprojects at the secod meetig of the INTOSAI Kowledge Sharig Steerig Committee i Developig the white paper o KNIs was a major outcome for the workig group over the past 3 years. It ot oly provides iformatio to help uderstad the complex issues related to developig ad usig KNIs but also makes specific recommedatios. The workig group has prepared aalytical material that INTOSAI members are to preset for discussio as a maual for developig ad usig KNIs i SAI activity. 37 I additio, the Workig Group Secretariat is usig Orgaisatio for Ecoomic Cooperatio ad Developmet (OECD) iformatio resources to develop a electroic database o KNIs that will be available to all INTOSAI members. This tool will draw o multiple data sources (such as the Iteratioal Moetary Fud, the World Bak, ad OECD) to aalyze ecoomic processes over differet time periods, coutries, regios, ad ecoomic sectors. The SAIs of South Africa ad Armeia became members of the workig group at the Helsiki meetig, demostratig the growig iterest i KNI issues amog the INTOSAI commuity. EUROSAI held Semiar o SAI Commuicatio with the Media ommuicatio is a vitally importat issue for SAIs, whose task is to provide the public C with iformatio o the coditio of the govermet. It is especially importat i view of the ew tools ad platforms available i today's chagig commuicatios eviromet. To discuss this topic i the EUROSAI commuity, a semiar etitled SAIs' Commuicatio with Public Opiio via the Media was held May 10 11, 2011, i Warsaw, Polad. More tha 50 participats from 20 Europea SAIs ad the Europea

40 INTOSAI News Court of Auditors atteded the semiar, which was orgaized ad hosted by the Polish SAI (NIK), the EUROSAI Presidet at the time. The semiar was targeted to SAI staff resposible for desigig ad implemetig media policy as well as public relatios / press / media officers. Its mai objectives were to discuss the commuicatios process from the perspective of both a SAI's public relatios services ad the media ad to cosider how commuicatios betwee SAIs, the media, ad the geeral public ca be improved. I the semiar's opeig address, Mr. Jacek Jezierski, Presidet of the NIK, stressed the importace of cooperatio betwee SAIs ad the media. His presetatio discussed why SAIs should commuicate the results of their audits to the media ad the eed for civil society to be iformed if it is to make iformed decisios i a democratic coutry. 38 The semiar was divided ito three sessios. The SAI public relatios perspective: Whe jouralists get o press officers' erves. The media perspective: Whe media officers get o jouralists' erves. Problems commuicatig with the media that arise from a SAI's specific situatio: Whe a SAI gets o its press officer's erves. Durig each sessio, represetatives of the participatig SAIs discussed their istitutios' commuicatio policies, relatioships with the media, ad problems they have observed i the field. Several exteral speakers jouralists ad a expert i public relatios also participated ad preseted their experiece i cooperatig with SAIs. Semiar participats sought to idetify the most commo commuicatio problems ad possible solutios. They also focused o the eed to protect the iterests of auditees whe commuicatig audit fidigs to the public. Workig Group o Public Debt INTOSAI's Workig Group o Public Debt (WGPD) is celebratig its 20th aiversary i Sice its creatio i 1991, the WGPD has carried out specialized research ad geerated ad published guidelies ad other products to ecourage soud reportig ad proper auditig ad maagemet of public debt.

41 INTOSAI News The Natioal Audit Office of Lithuaia (NAO), a member of the WGPD sice 1996, hosted this year's meetig, which took place i a time whe the curret fiacial crisis has made public debt i particular its rapid growth ad implicatios for geeral fiscal stability a issue of primary importace for may coutries. Public debt has posed may uexpected challeges to govermets as well as their SAIs. I this cotext, Lithuaia Auditor Geeral Mr. Giedrė Švedieė, oted the followig durig her opeig address at the WGPD meetig: Such [a] situatio demads that SAIs redouble their efforts to help provide accoutability for their govermets, to esure trasparecy of borrowig, [ad to] look for more effective ways to maage the debt. The WGPD is uiquely positioed to support SAIs ow facig emergig public debt issues ad, I believe, will pay particular attetio to ew debt maagemet issues ad challeges emergig from the recet fiacial turmoil. 39 The WGPD's activities are part of goal 3 of the INTOSAI Kowledge Sharig Committee ad curretly revolve aroud six themes ragig from the impact of fiacial crises o public debt to cotiget debt ad iformatio systems related to public debt maagemet. Sice 2002, the WGPD has worked closely with the INTOSAI Developmet Iitiative to help create capacity-buildig programs o public debt maagemet. It also supports the work of the Professioal Stadards Committee i developig the Iteratioal Stadards of Supreme Audit Istitutios (ISSAI). Thus, the WGPD is harmoizig its official products with the ew ISSAI stadards ad determiig which should be modified, elimiated, or maitaied. As of July 2011, the members of the WGPD are Mexico (Chair), Argetia, Austria, Brazil, Bulgaria, Caada, Chile, Egypt, Fiji, Filad, Gabo, Idoesia, Jorda, Korea, Lithuaia, Moldova, Portugal, the Russia Federatio, Swede, the Ukraie, the Uited States, Yeme, ad Zambia.

42 INTOSAI News Workig Group o the Fight agaist Corruptio ad Moey Lauderig The Workig Group o the Fight agaist Corruptio ad Moey Lauderig, chaired by the SAI of Egypt, held a iteratioal semiar o September 12, 2011, i Prague, Czech Republic. The semiar icluded sessios o treds, approaches, ad successes i the fight agaist corruptio; promotig itegrity, trasparecy, ad accoutability i public admiistratio; ad the status ad powers of SAIs i the fight agaist corruptio, as well as the risks, ad proposals for aticorruptio measures. These sessios featured presetatios from experts i govermets, SAIs, ad iteratioal aticorruptio orgaisatios. After the semiar, the workig group held its fifth meetig o September 13 ad 14. Durig the meetig, the workig group discussed its progress o the ew work pla for , which had bee approved at INCOSAI XX. The group discussed cooperative efforts amog SAIs i preparig guidelies to support efforts to detect ad fight corruptio ad moey lauderig. 40 The workig group also addressed implemetig the followig: reviewig chaels of commuicatio ad cooperatio with key iteratioal parters amed by the World Bak's Fiacial Market Itegrity group, cooperatig with the INTOSAI Workig Group o Evirometal Auditig to develop a guidelie o corruptio ad fraud i evirometal auditig, developig a database of SAI best practices ad expertise i fightig corruptio ad moey lauderig, publishig the Russia SAI's documet o guidelies ad priciples for SAIs ad traslatig it ito INTOSAI's five official laguages, ad publishig the workig group's First Book i Arabic ad Eglish o its Web site.

43 ASOSAI News rd The 43 Goverig Board Meetig of ASOSAI rd he 43 Goverig Board Meetig of ASOSAI was held i Istabul, Turkey durig T September The meetig drew 65 delegates from 13 member SAIs of the Goverig Board ad the Audit Committee of ASOSAI. IDI also participated as a observer. The participats discussed various issues ad reached agreemet o the followig poits: The Goverig Board adopted the Secretary Geeral's report o the multi-year estimates of reveue ad expese for The Secretary Geeral formulated the report i close cooperatio with the Traiig Admiistrator (the SAI of Japa) ad the SAI of Idia, i accordace with the Secretary Geeral's budget d reform proposal, which was approved at the 42 Goverig Board Meetig i Vietam i The Secretary Geeral iformed the Goverig Board that, by the ext Goverig Board meetig, he will devise a pla to maximize the traiig opportuities at the lowest possible cost. 2. The Goverig Board approved the Actio Pla of the ASOSAI Strategic Pla for , which was drafted by the Secretariat i cosultatio with the ASOSAI Traiig Admiistrator ad the Goverig Board members with a view to spurrig the implemetatio of the ASOSAI Strategic Pla. 3. A strategic plaig meetig for a ew IDI-ASOSAI cooperatio program o Developmet ad Implemetatio of Strategic Pla was held i Istabul, Turkey, durig September The ASOSAI-sposored workshop for 2012 will be hosted by the SAI of the Philippies o the theme Dealig with Fraud ad Corruptio. * For more details, please see From the Desk of the Secretary Geeral of ASOSAI.

44 ASOSAI News 42 th 4. The 12 Assembly of ASOSAI will be held i Jaipur, Idia, from 29 February to 3 March The theme of the 5th ASOSAI Symposium will be Assimilatig Iteratioal Stadards of Supreme Audit Istitutios (ISSAI). th 5. As decided at the 11 ASOSAI Assembly i Islamabad, Pakista i October 2009, the umber of the Goverig Board members icreased from 9 to 11. I cojuctio the Secretary Geeral suggested to the Goverig Board that the requiremet be chaged from the curret five (5) to the required six (6) i order to achieve the quorum for a meetig or a majority for makig decisios. The Goverig Board approved the amedmet to Rule 15 of the ASOSAI Rules ad Regulatios. 6. Dr. Ku Yag, Secretary Geeral of ASOSAI, sought for reewal of his term of office for the period The Goverig Board offered overwhelmig support for the Secretary Geeral's earest willigess to cotiue cotributig to the developmet of ASOSAI. Dr. Yag has bee exertig impressively tireless efforts for the ASOSAI members durig his curret term. Accordigly, Dr. Yag's secod term as Secretary Geeral was approved by the Goverig Board ad will be th placed before the 12 Assembly for fial approval. th 7. Three meetigs of the 9 ASOSAI Research Project thus far have bee held sequetially i the Republic of Korea, Idia, ad Malaysia. The research team discussed a roadmap for the project through the framework of the coutry paper. The fial report will be submitted to the 12th Assembly. The two remaiig meetigs will be held i Kuwait i September ad i Idoesia i December th 8. Cocerig the 13 ASOSAI Assembly, to be held i 2015, the SAI of Malaysia was omiated as a cadidate host after wiig the majority of the votes amog the four self-omiatig SAIs Malaysia, the Philippies, Thailad, ad Vietam.

45 ASOSAI News 9. I recogitio of the absece of a established selectio procedure for the ASOSAI Traiig Admiistrator, as a ex-officio Goverig Board member, the Goverig Board adopted the due selectio procedure, as suggested by the Secretary Geeral. Thus, the Traiig Admiistrator for the period will be selected i accordace with this ewly established rule at the 44th Goverig Board Meetig o 28 February rd The 43 Goverig Board Meetig of ASOSAI was, ideed, a reflectio of harmoy ad cooperatio withi the ASOSAI family, thaks to the sicere support of the ASOSAI Goverig Board members. All ageda items were approved without a sigle objectio. All of the participats expressed their deepest gratitude to the SAI of Turkey for its excellet rd orgaizatio ad warm hospitability as the host of the 43 Goverig Board Meetig. Semiars for Kowledge Sharig JICA-sposored ASOSAI Semiar o How to Stregthe SAIs to Meet the Public Expectatio o SAI (Japa, Jue 2011) A JICA-sposored semiar o How to Stregthe SAIs to Meet the Public Expectatio o SAI was coducted i Tokyo, Japa from May 31 to Jue 8, JICA provided fiacial assistace for eight seior officials from six member SAIs, amely, SAIs of Idia, Idoesia, Jorda, M a u r i t i u s, N e p a l a d Thailad. A experieced audit director from SAI Pakista was ivited as a facilitator to erich the discussio. Durig the semiar, participats exchaged their views ad experieces regardig the semiar topic ad formulated a documet o iovative practices based o the discussio, lectures by staff members of SAI Japa ad study visits. The documet o iovative practices is uploaded o the ASOSAI website. 43 Istructors' Desig meetig for the ASOSAI-sposored Workshop o Audit of Public Debt (Chia, July 2011) A istructors' desig meetig for the ASOSAI-sposored workshop o Audit of Public Debt was held from July 4 to 15, 2011 i Beijig, Chia with the admiistrative support of the Natioal Audit Office of the People's Republic of Chia.

46 ASOSAI News 44 Six ASOSAI traiig specialists from six member SAIs, amely, SAIs of Bagladesh, Chia, Idia, Malaysia, Nepal ad Philippies atteded the meetig to desig the course ad to develop course materials for the workshop ad a Subject Matter Expert from the Uited States provided techical advice to the istructors' team. A represetative of the Traiig Admiistrator of ASOSAI (SAI Japa) also participated i the meetig for the maagemet of the meetig. The course materials formulated durig the meetig will be utilized for the ASOSAI-sposored workshop to be held i Beijig, Chia i November ASOSAI Semiar o How to Itegrate Ethics ad Itegrity ito the Auditig Practices of a SAI (Korea, ) A ASOSAI Kowledge Sharig Semiar o How to Itegrate Ethics ad Itegrity ito the Auditig Practices of a SAI was held from October 11 to 14, 2011 i Seoul, Korea with the admiistrative support of the Board of Audit ad Ispectio of Korea. Thirty participats from thirty member SAIs atteded the semiar with techical guidace provided by a Subject Matter Expert (SME) from SAI Korea. A represetative of the Traiig Admiistrator of ASOSAI (SAI Japa) also participated i the semiar for the maagemet of the semiar. Durig the semiar the participats gave presetatios based o their coutry reports o the above theme, which were followed by Q&A sessios, ad the semiar was wrapped-up by the SME.

47 ASOSAI News Further, a mii-workshop o Ito-SAINT (special sessio by a istructor from the SAI Netherlad) was held o the fial day of the semiar. Through these activities, all participats ejoyed exchagig their views ad experieces regardig the ethics ad itegrity issues amog various ASOSAI member SAIs IDI-ASOSAI Cooperatio program Strategic Plaig meetig for the program o Developmet ad Implemetatio of Strategic Pla (Turkey, September 2011) 45 d As agreed at the 42 ASOSAI Goverig Board meetig held i Haoi, Vietam i 2010, the IDI ad ASOSAI lauched a ew cooperatio program o Developmet ad Implemetatio of Strategic Pla with the aim of buildig capacity i strategic plaig i the target SAIs of the regio. Based o the results of the IDI-ASOSAI capacity buildig eeds assessmet survey, 7 SAIs, amely SAIs of Afghaista, Bagladesh, Cambodia, Lao PDR, Mogolia, Philippies, ad Vietam were selected as the target SAIs. A Strategic Plaig meetig was orgaized i Istabul, Turkey o September 25 ad 26, 2011 with the admiistrative support of the Turkish Court of Accouts. The heads/authorized represetatives from the target SAIs were ivited to the meetig. Represetatives of the IDI, the Traiig Admiistrator of ASOSAI (SAI Japa), ad, as a observer, ASOSAI secretariat (SAI Korea) atteded the meetig. Resource persos from SAIs of Idia ad Turkey were ivited to facilitate the discussio. Durig the meetig, the followig matters were discussed ad agreed o: 1) Desired outcomes of the program; 2) Outputs required to achieve the outcomes ad the correspodig activities; 3) Roles ad resposibilities of the parties cocered. At the ed of the meetig, a Cooperatio Agreemet was siged by all the parties cocered. (ASOSAI News cotributed by Secretary Geeral ad Admiistrator of traiig activities)

48 Activities i member SAIs SAI Kuwait News about latest activities of State Audit Board of Kuwait irst: a discipliary body o fiacial violatios is iaugurated i light of SAB role of F protectig public fuds ad the Fatwa ad Legislatio Departmet role defied by law i relevat cocepts. Such authority is totally idepedet from SAB i decisio makig. It is cocered i protectig public fuds ad achievig full justice i trial procedures ad takig eutral resolutios. 46 Accordig to SAB establishmet Law (No.30 of 1964) of SAB, article (60) of chapter 4 providig the formatio of a authority of discipliary trial o fiacial violatios to be chaired by the presidet of Fatwa ad Legislatio Departmet ad the membership of SAB udersecretary, Miistry of Fiace Udersecretary, Fatwa ad Legislatio Departmet Cosulter, ad Civil Service Commissio Udersecretary. As per the represetatio of claim before the above metioed authority, it is based o the articles (57, 58, ad 59) of SAB establishmet law ad what is stated regardig the right of SAB i expressig objectio towards the decisios made by the etities subject to cotrol i solvig fiacial violatios. The law provides that SAB presidet holds the right to file discipliary lawsuits agaist violators before the discipliary body-if required- withi a oemoth period of SAB receivig the etity respose the resolutio providig with the ecessary documets, or a 10-day period if the etity fail to respod to the body request of recosiderig the resolutios. Heceforth, filig for a discipliary lawsuit before the discipliary body is limited to SAB presidet thus he is authorized to assig who stads i presetig proclamatios before the metioed body. It is of the legislator's itegrated support of justice ad equality i resposibilities ad assuraces -particularly i admiistrative aspects - that made it the corer stoe of govermetal departmets. All laws, local ad iteratioal regulatios supported the priciple of protectig public fuds ad preservig the coutry's fortue. This forms the foudatio of developmet sice it has a direct ifluece o public security.

49 Kuwait Activities i member SAIs Secod: I terms of icreasig the professioal awareess amog all SAB staff of the strategic plaig importace ad its dimesios ad objectives, ad defiig SAB strategic plas, SAB orgaized a iformative campaig uder the motto "Together d th towards Excellece" durig the period from May 22 to Jue 9, The campaig icluded a workshop,semiar, geeral symposiums, ad a professioal excellece competitio. 47 th Third: The State Audit Bureau participated i the third meetig of the 9 ASOSAI Research Project workig group o "Evaluatio ad Improvemet of Iteral Audit Systems ad the Relatioship betwee the Iteral Audit Uits, which was held i th Malaysia from of Jue 2011.The State Audit Bureau of Kuwait also hosted the 4 Meetig of the Workig Group durig the period from 27 to 29 of September Fourth: A delegatio from the State Audit Bureau of Kuwait visited the office of the Comptroller ad Auditor Geeral of Idia from 4 to 6 of July 2011,to develop ad ehace cooperatio amog ASOSAI member SAIs, through the exchage of experieces ad kowledge ad the developmetof joit cooperatio with the leadig SAIs to beefit from their applicatios i performace audit, fiacial cotrol, compliace cotrol, compaies audit, ad accoutats iformatio techology audit. rd Fifth: The State Audit Bureau participated i the 43 meetig of ASOSAI Goverig Board, ASOSAI/EUROSAI first joit coferece ad the Traiig Committee meetigs that were held i Istabul, Republic of Turkey, from 19 to 24 of September 2011.

50 Activities i member SAIs Vietam SAI Vietam The State Audit Office of Vietam promulgates the Set of State Audit Stadards th 9 November 2010, Auditor Geeral of the State Audit Office of Vietam (SAV) O siged Decisio No. 06/2010/QD-KTNN o promulgatig a Set of State Audit Stadards i place of the Set of State Audit Stadards promulgated followig Decisio No. 06/1999/QD-KTNN dated December 24th, 1999 of Auditor Geeral of SAV. 48 Over 10 years, the Set of State Audit Stadards promulgated i 1999 promoted the sigificat effect o reality. It was a importat foudatio i drawig up priciples of professioal competece ad implemetig audits. However, towards promulgatio of State Audit Law i 2005 ad the SAV's requiremets i developig ad improvig audit methods ad professioal competece i accordace with the State Audit Developmet Strategy to the year 2020, the Set of State Audit Stadards i 1999 exposed shortcomigs ad requested to be reformed ad improved. Origiatig from the reality of those requiremets, sice 2007, SAV has deployed to study ad draw up the Set of State Audit Stadards, with the support of EC experts, to be i lie with iteratioal practices ad actual practices i Vietam. The Set of State Audit Stadards i 2010 icludes 3 groups with 21 stadards havig basic cotet as follows: Geeral Stadards (from Stadard No. 1 to No. 6) stipulate the essetial priciples ad requiremets i audit activities; coditios ad requiremets about ethical qualities ad competece of State auditors i the process of coductig audit activities i order to complete SAV's fuctios ad missio. Stadards of Field Work (from Stadard No. 7 to No. 19) stipulate the essetial priciples ad requiremets i practicig mai professioal competece of audit activities, icludig both maagemet activities ad audit implemetatio. Stadards of Reportig (from Stadard No. 20 to No. 21) stipulate the essetial priciples ad requiremets about cotet ad form of audit reports; drawig up, promulgatig the outcomes of auditig, ad reportig the outcomes of audit to esure quality ad validity of audit reports. This Set of State Audit Stadards takes effective to implemet after 45 days of siged date.

51 Vietam Activities i member SAIs Promulgatio of the actio pla to implemet the State Audit developmet strategy to the year 2020 th O 6, December 2010, Prof. Dr. Vuog Dih Hue - Auditor Geeral of the State Audit office of Vietam (SAV) siged to publicize the actio pla to implemet the State Audit developmet strategy to the year After 16 years of operatio, with the resposibility of Supreme Audit Orgaizatio, the SAV has bee reiforcig its importat role i the developmet path for the coutry. The SAV audit result has bee used more ofte i maagig, goverig, approvig ad decidig fiacial budget issues as well as i completig legal policies. With the goal of determiig core values to develop SAV as Trasparecy Quality Effectiveess ad cotiually stregthe value, the SAV has developed the State Audit developmet strategy to the year 2020 which has bee approved by the Stadig Committee of Natioal Assembly. The strategy is built up with the purpose to further stregthe effectiveess, professioalism ad ehace SAV's performace effectiveess that is i parallel with the developmet tred of Supreme Audit Istitutios over the world. To realize the Strategy ito feasible activities that bid together i a appropriate corerstoe to capture all target of the Strategy, over the year, with support from UK Departmet for Iteratioal Developmet (DFID) ad UK Natioal Audit Office (NAO), SAV has costructed the actio pla to implemet the State Audit developmet strategy to the year 2020 which was approved by the Auditor Geeral o 6th December The actio pla is divided ito specific topics with determied outputs such as: requiremet, target, activities, priorities ad ecessary resources to realize the Strategy, risk ivolved whe implemetig, methods to reduce risk, timelie, ad activities i the ext 5 years (up to 2015) ad a clear visio of what eed to be doe i the period The actio pla focus o 5 cotets: Developmet ad completio of Legal Framework for Orgaizatio ad Operatio of the SAV; Develop the Orgaizatioal Structure ad Maagemet of Huma Resources; Strategic Audit Plaig, Moderizatio of Audit methodology, Maagemet of Audit Activities; Develop ad Ehace the Use of Iformatio Techology; Develop ad Improve Exteral Relatios ad Commuicatios. 49 Orgaizig the Actio Pla successfully is a big challege for the SAV. To overcome this, the SAV eeds to have ot oly high-determiatio, professioalism, resposibility, effort from staff ad auditor but also support ad assistat from Natioal Assembly, Govermet, Miistries, local govermet as well as iteratioal sposors.

52 Activities i member SAIs Idia SAI Idia XII Ido-Polish Joit Semiar o Commuicatio with the Public Opiio via the media at Warsaw, Polad durig September th Uder the aegis of MoU betwee SAIs of Idia ad Polad, SAI Polad hosted 12 Ido- Polish Joit Semiar o Commuicatio with the Public Opiio via the media at Warsaw, Polad durig September From SAI Idia Ms. Malashri Prasad, Additioal Dy. CAG led the delegatio which comprises of Mr. Amitabh Mukhopadhyay, Director Geeral, Mr. Subir Mallick, Pricipal Director ad Ms. Alka Rehai Bhardwaj, Pricipal Director. Both SAIs preseted papers o the followig themes: 1. Priciples of Co-operatio of the SAI with the Media. 2. Priciples of work ad duties of the SAI's Press Officer. 3. Problem i Cooperatio / Workig with Jouralists. 4. Reachig the Public Opiio via the Iteret: Chaces of the SAI. 5. Iteral Commuicatio withi the SAI.

53 Idia Activities i member SAIs d 2 Ido-Chia Youg Auditor's Forum at Mumbai, Idia durig October-November 2011 d Uder the aegis of MoU betwee SAIs of Idia ad Chia, SAI Idia hosted the 2 Ido- Chia Youg Auditor's Forum. 10 delegates from each SAI participated i the Forum. The topics discussed i the forum were Uique role of Govermet Audit ad its distictio from other auditig practices ad Code of ethics for auditors. 51 Peer Review of SAI Idia The Australia Natioal Audit Office (ANAO) is leadig a iteratioal team for coductig peer review of SAI Idia. Alog with ANAO persoel, the iteratioal team cosists of the Uited States Govermet Accoutability Office (GAO), Office of the Auditor-Geeral of Caada (OAG), the Netherlads Court of Audit ad the Natioal Audit Office of Demark.

54 Activities i member SAIs Idia The objective of the peer review is to: provide the CAG of Idia with a assurace that the performace audit fuctio of SAI Idia adheres to applicable stadards of professioal practice; ad idetify ay opportuities for improvemet to SAI Idia's performace audit fuctio. The scope of the peer review is SAI Idia's performace audit fuctio icludig its quality assurace system coverig the Performace Audit Reports preseted to the Parliamet/ State Legislature durig the period April 2010 to March The review will cover SAI Idia's cetral office ad selected regioal offices, ad will examie a sample of performace audits reported durig the relevat period. I idetifyig opportuities for improvemet, the review will cosider SAI Idia's performace audit guidace i light of iteratioally accepted practices. The ANAO peer review team coducted iitial plaig meetigs ad received briefigs at the SAI Idia over October. The etire Iteratioal Peer Review team will retur to Idia i December 2011, whe SAI Idia will provide a overview of their performace audit fuctio ad test the review methodology. 52 Team from SAI Idia visits SAI New Zealad to study Public Sector Accrual Accoutig The Govermet of Idia has started a challegig iitiative to chage from cash basis of accoutig for its trasactios to a accrual based system. The Comptroller ad Auditor Geeral of Idia is major stakeholder i this trasactio. To study the process ad modalities followed i migratig to accrual accoutig ad lessos leart by other coutries which have maaged this process successfully, a team comprisig of Mr. T. K. Sayal, Deputy Comptroller ad Auditor Geeral, Mr Shakar Naraya, Director Geeral, ad Mr Satbir Sigh, Seior Audit Officer visited New Zealad from 17 to 21. The team had very fruitful discussios ad shared the experieces with the officials of SAI New Zealad, New Zealad Treasury, The Miistry of Educatio, The New Zealad Trasportatio Agecy ad the Ilad Reveue Departmet. The five day programme for the Idia delegatio was orgaized by Ms. Margaret Graham, who is New Zealad SAI's Corporate Plaer ad Iteratioal Activities Co-coordiator.

55 Articles Admiistrative Expediecy ad the SAIs Mr. Taweer Ahmed Deputy Auditor Geeral, SAI Pakista Perspective It is ow a widely accepted detail of our lives that executive govermets across the world, more ofte tha ot, act out of expediecy. Chagig iteratioal scearios, upredictability of ecoomic behavior of idividuals ad markets, ad ucertai prospects of peace, compel atioal govermets to take mometary decisios. At times these fire fightig decisios do ot come up to the strict stadards of trustworthy goverace. To mitigate agaist this arbitrariess of the executive, the civil society creates a system of checks ad balaces. Legislative accoutability, judicial oversight ad Ombudsma's vigil are some of the major istitutioalized measures that moder societies employ to esure that expediecy does ot eat away the fudametals of the civil society. I this system of checks ad balaces, without a hit at adversarial relatioship, it becomes imperative for each istitutio to play its defied role with o reverece for the costraits of the other. Because if ay oe of these istitutios starts actig as a surrogate for aother istitutio, the very basis of istitutioal couter check ca be at a risk of beig eroded. This article is purported to discuss the role of the Supreme Audit Istitutios (SAIs) withi the framework of legislative accoutability i the system of moder goverace. 53 State fuctioality ad role assigmet It is the job of the executive i a state to prepare ad implemet fiacial ad admiistrative iitiatives to achieve its goals ad objectives. Ad i the process if they fall short of the expectatios of the stakeholders, it is for the legislature to eforce the peoples' will. The executive assessmet of a particular iitiative ca be at variace with the assessmet of the people of a coutry. For a idepedet ad objective evaluatio of cotrary assessmets, i most cases the civil society makes istitutioalized arragemet by establishig a review process outside the executive. The expectatio from such a process is to objectively evaluate ad report to the stakeholders the regularity, appropriateess ad efficacy of admiistrative decisios ad their implemetatio. While it is essetial for the reviewers to uderstad the mechaics of a decisio ad its implemetatio, they are ot expected to support ad defed the decisio makers. Because if the reviewer becomes a party to the decisio makig ad implemetatio process, the civil society loses oe of its elemetary cotrol o the executive. It has bee argued that it is more efficiet to ivolve the vigil upfrot because if they have ay cocers about the policy or its implemetatio, their cocers ca be addressed before had so there would be o eed for their post mortem. The real dager i such a arragemet is the possible loss of objectivity; because it has bee recogized that huma beigs get emotioally ivolved with decisios ad processes that have their

56 Articles authorizatio. Oce the vigil becomes a party to the decisio makig or the implemetatio process, idepedet assurace for the people or their represetatives caot be assured. Withi the executive govermet also, idepedet ad autoomous bodies are created with a view to courtig i the expert view ad gettig the isight of those who are ot directly resposible for the results of decisios. For istace, quite ofte it has bee observed that i order to meet either a political objective or a expediet requiremet, executive govermets resort to idiscreet fiscal or moetary measures. It is the job of the Cetral Bak to provide a idepedet assessmet of the proposed measure with a complete disregard for govermet's priorities. It is ot to say that the Cetral Baks operate i a vacuum ad it is always expected of them to obstruct the executive govermet's fiacial iitiatives. As a vigil, the job of the Cetral Bak is to make the govermet aware of the cosequeces of its fiscal ad moetary proposals ad the govermet remais at liberty to accept or reject the Bak's assessmet. By their orietatio, the executive govermets are footloose ad facy free whereas Cetral Baks are coservative ad protective. Effective govermetal systems recogize this differece of orietatio, ad assig various roles to various istitutios of the polity. 54 Legislative Accoutability ad the SAIs Legislative accoutability operates i multifarious ways. The ieffective govermet is ot retured durig future electios. This is the ultimate facet of legislative accoutability. But durig the iterregum betwee electios the executive govermets are ot left ubridled. By prescribig the rules of busiess, the civil society esures that the elected govermet does ot misuse its madate to overrule the societal orms eshried i the Costitutio of the coutry. O a log term basis, this is doe by developig a elaborate system of rules ad regulatios that are compliat with the Costitutio ad the executive govermets are expected to demostrate the regularity of their operatios with referece to these rules ad regulatios. O a aual basis, the legislative accoutability is exercised through appropriatios cotrol by the represetatives of the people ad the executive govermet is required to perform i compliace with the authority to sped public moey. I most coutries the last two compoets of legislative accoutability are realized through the SAIs, who are also frequetly required to report o the overall results of govermetal operatios. As a vigil o behalf of the peoples' represetatives, the SAIs are expected to report to the legislatures o the regularity ad propriety of public expeditures. I the ame of familiarizatio with the auditees, recetly some discussio has bee geerated that requires the SAIs to assimilate the cocers ad costraits of the executive govermet i their audits, evaluatios, ad reports. The opposite view is that if the SAIs are itegrated i the fiacial maagemet system of a coutry, ad they start appreciatig the expediet cocers of the executive govermet, who is goig to idepedetly report to the parliamet as to whether the public fuds were spet i compliace with the itetio ad authority of the people as eshried i the Costitutio ad the body of rules ad regulatios emaatig from it? Expediecy as a coditio of moder govermet Comig to expediecy as a coditio of moder govermetal scee, i a give circumstace a executive may cosider it ecessary to act i a particular way, which may

57 Articles ot be i coformity with the established orms ad rules. The executive i its focused desire for meetig a objective is quite ofte likely to go aroud a prescribed procedure because fulfillig the requiremets of the procedure may be time cosumig or arduous. By avoidig a rule or a procedure, the executive may meet its target ad prima facie may eve deserve commedatio for accomplishig its immediate task. But there is always a likelihood that i the process the executive might cotribute to the erosio of a desirable societal orm. Is it for the SAI to appreciate the alacrity of the executive whe it achieves its objectives through expediet measures? Or is it the fuctio of the SAI to idepedetly evaluate ad report to the legislature the cosequece of the expediet measures of the executive govermet? Aswers to these questios determie the role of the SAI i good goverace. It may be expediet for the govermet of the day i a coutry to itroduce a Iteral Security Regime that leads to ifrigig o the costitutioal rights of its citizes ad results i the dehumaizatio of a sectio of the civil society. After takig a atioal security iitiative, a govermet may cosider it expediet to freeze the foreig exchage accouts i the coutry, ad this actio might lead to the flight of capital from the coutry ad as a result almost completely dry up the foreig ivestmet for a umber of years. It may be expediet for the executive govermet of the day i a poor coutry to sped most of its curret expediture o atioal security uder a perceived threat perceptio while as a result a icreasig umber of people, for whom the security is claimed to be esured, might be goig dow the poverty lie. Should the SAIs of these coutries, where these ad similar decisios might take place, be expected to appreciate the admiistrative expediecy? Or should they report to the people the cosequeces of the policy iitiatives perceivably take as a measure of expediecy? Ad if the SAIs do ot evaluate these expediet executive measures who should do that? 55 Ca a SAI be a parter i maagemet? I recet times there is spate of literature comig up which urges the state audit to act as a parter to the fiacial maagemet ad admiistratio of the coutry. This is probably due to a emphasis o achievig immediate results without creatig ay cotroversy. Prima facie it seems very prudet to associate oe's possible critics with oe's decisios, but societies do ot progress by avoidig criticism. Progress is a testimoy to huma edeavor i which some people or some sectios of the society take iitiatives ad others assess their moves from a differet overall perspective ad i the process the best policies ad iitiatives get selected ad the ieffective oes are relegated to history. I am sure o oe wats to lose the beefits of idepedet oversight. Aother argumet, which is recetly beig put forward i favor of associatig state audit with the admiistrative processes, relates to courtig i expertise. It is argued that there ca be cases i poit i which a executive may be short of expertise i some critical area therefore it may be more opportue to seek the help of the exteral auditors i that area. The argumet seems to be based o a assumptio that the auditors ad evaluators are privy to some techical kowledge that is otherwise ot available. This assumptio is obviously fallacious. Auditors do ot ivet theories. They use the trade ad idustry models developed by ecoomists ad statisticias. They use the idustry stadards to compare the performace of their cliets. Ad at all times it is required of the maagemet to be aware of the state of the art, at least, i their ow lie of work. Experiece shows that

58 Articles almost always the executive, as compared to their auditors, have more resources to acquire the best expertise available i the market. It is very iterestig to ote that auditors are ot kow to be the experts i the fields of their auditees but their fidigs are regarded as expert fidigs. It seems that there is a differece of diligece. Probably the admiistrative expediecy takes the better of the executive whe it comes to applicatio of kowledge available with them. While the post auditors ad evaluators, sice they are ot costraied by the exigecies of specific situatios, become attue to applyig their kowledge with a greater diligece. So if the society is to beefit from all the available kowledge, it may be more productive to leave the SAIs outside the admiistrative ad executive processes so that their idepedet ad diliget hidsight is available to the society for rectifyig the decisios take i the hurry of firefightig, ad the loger term gais of advacemet i huma kowledge ad practices are materialized. We must always keep i view the ways i which other disciplies, particularly atural scieces, progressed. Some researchers ad pioeers devise theories ad prescribe methods; others followig them poit out their weakesses ad suggest more iformed ad better ways of addressig the realities o groud. Goverace should ot be a exceptio to this time tested method, ad it appears that the system of checks ad balaces prescribed by moder democracies takes cogizace of this idispesable requiremet ad esures the idepedece of SAIs agaist the admiistrative cocers ad coveieces. 56 Similarly auditors do ot make laws ad rules ad they do ot set performace stadards. They follow the laws ad rules made by the law makers ad the performace stadards set by a professio. Sometimes it is argued that the executive may ot be aware of the itricacies of certai laws ad rules therefore auditors' prior cocurrece may be sought. By usig such a argumet the executive absolves itself of the resposibility of followig the itetios of the rule makers. Ad if the executive does ot appreciate the purpose of a rule, it is ot likely to respect it. A example may be i order. I a border city i Pakista a hospital admiistrator purchased a umber of air coditioers from a smuggled goods market which was agaist the rules that provided for such purchases to be made from the registered suppliers through a ope competitio. Whe the purchase was reported to the Public Accouts Committee of the provice, the Hospital Admiistrator defeded his positio by statig that by ot followig the rule he was able to purchase a larger umber of air coditioers because the price i the smuggled good market was much lower. This was a classic case of admiistrative expediecy overlookig the itetios of the rule makers ad thereby compromisig some of the priciples uderlyig the use of public fuds. The rules requirig purchases from the registered suppliers i a ope competitive process, as we all kow, is purported to ecode the civil society's itetios of ecoomy, fair play, ad equal opportuity i public operatios besides esurig the documetatio of the ecoomy. By makig the said purchase the Hospital Admiistrator achieved ecoomy at the cost of deyig equal opportuity to the citizes ad udermiig the priciple of trasparecy i govermet operatios. It was probably the admiistrative expediecy that clouded the Admiistrator's uderstadig of the itetios of the rule makers ad he proceeded with his actio without eve realizig that his apparetly commedable deed was deprivig some of the citizes of the coutry of their costitutioal rights. The materiality of the offece i terms of fiacial costs may be egligible but the stakes of the civil society are ideed very high whe such fudametal rules are trespassed uder the garb of admiistrative expediecy. Resposive executive is expected to fully comprehed the itetios of the lawmakers as eacted i the rules ad regulatios, ad their itricacy caot be used as a argumet for deviat admiistrative actios.

59 Articles Major priciples of covetio betwee the stakeholders ad their appoited maagers are at stake whe maagemet betrays its igorace of the rules of busiess. Stakeholders etrust goverace of their affairs to maagers o the basis of their competece ad o a uderstadig that the appoited maagers will uderstad ad respect stakeholders' goals ad itetios. We have oticed that a state's stakeholders ecode their aims ad objectives i the rules of busiess ad supportig regulatios. Whe someoe argues that the SAI's collaboratio with the executive is likely to esure better observace of rules ad regulatios, it amouts to tellig the stakeholders that their maagers are ot fully capable of uderstadig their aims ad itetios. It ca ever satisfy the stakeholders that the goverace of their affairs is i those hads that are depedet o exteral props for uderstadig their aims ad itetios. Realizatio i the private sector It may be of sigificat iterest for the state players to ote that oly a few years back the private sector realized that the idepedece of the exteral auditors was compromised whe they acted as maagemet cosultats for their auditees. This rather late realizatio led to the bifurcatio of all accoutig firms ito geeral practice ad cosultacy firms. As a matter of fact ow firms i the busiess of geeral practice, which is the trade term for 1 exteral audit, have bee debarred from offerig cosultacy services. Fortuately, i the public sector there has always bee a emphasis o makig the exteral auditors idepedet of their auditees ad, give the stakes ivolved, it has ot bee misplaced. I the private sector the exteral auditors essetially assure the stakeholders of the security of their ivestmets. I the public sector the assurace of the exteral auditors goes beyod the fiacial security oly ad ecompasses societal orms ad costitutioal rights. If the private sector has segregated the audit fuctioality from the maagemet cosultacy, there is a stroger case of esurig the same i the public sector. 57 Coclusio It is thus ot the job of the SAIs to coalesce with the executive govermets of the day i uderstadig their perceived expediecy. SAIs are ot expected to exercise the prerogative of the peoples' represetatives by attestig the actios of the executive without reportig to the legislature. Wheever a itetio of the civil society as eshried i the Costitutio, body of rules ad regulatios, ad appropriatio orders, is ot respected by a executive, it is the job of the SAI of the coutry to report this to the people through their represetatives. It is for the people ad their represetatives to either accept or reject the executive's perceptio of expediecy ad the SAIs would ot be fulfillig their obligatio if they do ot objectively report the deviat actios of the executive govermet to the people of the coutry. The peoples' represetatives ca empower the executive to take expediet actios by amedig the rules of busiess. Experiece shows that such empowermet is to be accouted for by the legislatures whe they face the civil society durig the ext electoral process. Ad if the grated empowermet goes beyod the societal orms, the gratig legislatures are ot retured to their lawmakig role ad the cycle of legislative accoutability is completed. 1 Although eve ow some geeral practice firms are doig Cosultat's work i the ame of Advisory Services for their auditees, yet the coflict of iterest uderlied by the America Court has bee drive home.

60 Articles Statutory Domai i Govermet Auditig Mr. Jaak Raj Gautam Assistat Auditor Geeral Republic of Nepal 1. Itroductio Statutory is that oe should follow all the legal basis sice as fixed by or as the spirit of law ad also that must be doe i cogruece to law. If statutory provisios are ot adhered regularly with coveats i the operatio of the orgaizatio, it could lead to puitive charges uder the law. Additioally, the Office of Auditor Geeral (OAG) of Nepal should carry out audit fuctios through statutory madate regardig axiom, postulates, cocept, priciples ad accoutig stadards. Regardig this fact, this small article mostly deals with the elemets of statutory aspects particularly with referece to govermet auditig of Nepal. 58 Practically, it is importat to make a list of laws ad regulatios for statutory compliace that are applicable to the etities. Therefore, statutory ackowledgemet to the statutory auditors is fudametal to perform statutory auditig i compliace closely to par excellece. Together with this, it is a professioal practice requirig a wide-rage of kowledge, skill, experiece ad abilities with sufficiet expertise i reviewig, verifyig, evaluatig ad assessig the fiacial trasactios. Our madate is to audit either i detail, sporadically or samplig a few percetage of fiacial trasactios. I this coectio, statutory criteria as a verificatio base must be relevat primarily to reliability, itegrity, cofidetiality, ad likewise, it is secodarily to compliace, effectiveess ad efficiecy. 2. Structures - The Govermet auditor, OAG, is statutorily empowered to implemet the provisios for various spectrum of statutory audit with a sese of fuctios, oerous duties, accoutability ad reportig. At preset, oe of the most resposible posts, the Auditor Geeral (AG), which is vacat because of the failure to recommed by the Costitutioal coucil because of the log stadig deadlock. The statutory auditor, credited with fiduciary resposibilities, examies the books of accouts beig iitiative towards visio, missio, goals ad professioal values of govermet auditig. statutory records are kept with orderliess as operatioal results, fiacial positio, loas, grats with accoutig of fiacial trasactios eclosig vouchers ad sub-vouchers i view of statutory requiremets. Furthermore, statutory audit ca also be selective with risk-based approach because of both time ad cost costraits. The expediture icurred, reveue eared, foreig sources ad iteral loas should be i compliace with the framework of accoutig policies ad legal requiremets ad the fiacial trasactios are recorded i the statutory forms of accouts. 3. Process - The geeral stadards, techiques, procedures ad priciples are applied for checkig of accouts ad documets i the audit of fiacial statemets i.e. stad-aloe ad cosolidated form as developed o the statutory grouds. This Statutory statemets eeds to be submitted with iformative, accurate, wellpreseted, disclosures, accoutig otes, tailor-made documetatio ad statutory periodical reports withi statutory deadlies.

61 Articles Testig ad checkig i this set of books of accouts ad statemets Operatioal trasactios Cosumptio expeses Capital expeditures Procuremet trasactios Fiace arragemets Recurret ad capital grats Statutory books of accouts Fiacial Geeral voucher Subsidiary books Budget expeses Bak cash book Geeral ledger Trial balace Icome ad expediture Balace sheet Cash flow statemet 4. Roles - SAI auditors have their ow statutory right to have a access to the books of accouts, vouchers, documets ad other statutory evideces to be gathered for ispectio ad verificatio alog with the statutory books of accouts. Furthermore, they have statutory authority to determie the ature, scope, methodology, extet ad timig of audit. The Statutory resposibility is whether the fiacial trasactios are i compliace with the statutory criteria with utmost fairess. Accordig to Mexico declaratio, 2008 SAI eeds to have adequate powers to obtai timely, ufettered direct ad free access to all the ecessary documets ad iformatio for the proper discharge of statutory resposibilities. Therefore, Auditors moitor the performace of Statutory tasks like fuctios, duties, roles ad authorities of auditee maitaiig Statutory relatioship betwee them. The other way roud, a statutory auditor should ot accept such a audit assigmet whe the limitatio ifriges o the auditor's statutory duties. Evetually, the Resposible officers ad Chief accoutig officers of govermet of Nepal are statutorily obliged to commet ad give explaatory resposes ad facts o every qualificatio reflected i the auditors' report withi oe year. It may eforce various miistries ad departmets to quickly respod with specifics agaist audit differeces rather tha sittig o the pile of discrepacies for a very log times, i.e. more tha two decades. AG, as statutorily idepedet apex authority, should ot be a subject of reducig the scope ad fuctios but istead feel free for verificatio without prejudice, biasess, iterferece ad pressure. A comprehesive approach for coductig performace audit varies accordig to the statutory limitatio ad orgaizatioal costraits o their wisdom, faithfuless, amout of discretio ad professioal prudece Elemets - It is better to kow for auditors about the statutory elemets alog with brief particulars are explaied i utshell as follows :-

62 Articles S.No. Statutory.. Particulars i brief 1 Body Office of the Auditor Geeral of Nepal (1959) is the apex watchdog. The Istitute of Chartered Accoutats of Nepal was setup to regulate the accoutig professio i Criteria A set of rules, regulatios, decisios, procedures, stadards, ad orders are for executig ad recordig the fiacial trasactios. 3 Aexure Bak recociliatio statemet, advace amout, program ad achievemet, positio of loa ad grat, previous years' irregularities. 4 Accoutig System Govermet accoutig as approved by the the Head of the State i Period Fiscal year starts from July16 of curret year to July 15 of the comig year. 6 Decisio A icumbet's authority for the budgetary expeses ad receipts cocerig public fud Paymet Paymet should be based o rate, orms, scale, price, ad cost plus chargig through budgetary lie items of expeses, clearace certificate of all dues ad custodias i case of trasfer of ay icumbets 8 Scope Regardig ature, time, extet ad way of checkig of books of accouts, documets ad fiacial statemets. 9 Liabilities Providet fud, tax deductio at source, value-added tax, employee's isurace, citize ivestmet fud, deposits, expeses booked i the accouts but ot paid. 10 Basis Carryig out the audit assigmet as fuctios of the Auditor Geeral. 11 Coverage Examie oe-o-oe basis or sporadically, or oly a few percetages of the fiacial trasactios. 12 Approval The books of accouts, aual progress report, stad aloe ad cosolidated fiacial statemets with aexure. 13 Resposes Resposible officers make resposes o every audit observatio withi 35 days of receivig the prelimiary audit report. 6. Procedures - Statutory documets should esure compliace i maitaiig aual accouts with fiacial, legal, admiistrative ad foudig evideces. Statutory cotrol must fudametally be a appropriate divisio of resposibilities ot to derail the fiacial trasactios. The discrepacies are detected with severe loopholes exposig i the form of fraud, mismaagemet, falsificatio, alteratio of records, leakage, abuse of authority, omissio of trasactios ad so o. Because

63 Articles they are ot-so-subtle threats to be foud by the auditors cotetedly. The statutory sources for auditig, as disclosed below, are primarily udertake to be systematic, reasoable, lawful ad a matter of judgmet of the auditors o the same. S.No. Area of cocer Goverig law for auditig ad its fidigs 1 Madates for Iterim Costitutio of Nepal, 2007 govermet auditig Audit act, 1991 Nepal Chartered Accoutats act, Persoel maagemet Civil Service act, 1993 Civil Service rules, 1994 Travelig expeditures rules, Budget ad expeditures Fiscal procedures act, 1999 Fiscal procedures rules, 2007 Aual budget declaratio Budget ad program authorizatio letter Public Procuremets act, 2006 Public Procuremets rules, Tax ad other reveue Icome tax act, 2001 Fiscal act of cocered year VAT act, 1996 ad its rules Cetral excise tariff act ad its rules 61 5 Local bodies Local body act, 1998, Local body rules, 2007 Local body fiscal rules, Corporate bodies Compay act, 2006 Public corporatio act, 1963 Developmet committee act, Reportig - The books of accouts are to be corrected ad restated before siged ad autheticated to the report as itroductory, scope, opiio paragraph, ad recommedatios i the report. I fact, public sector auditors may be able to statutory measure the audit differece as a qualificatio or reservatio i terms of moetary expressio. It should be regarded as a orgaizatioal based comprehesive audit i-total ad but ot treated as issue wise ad segmet wise. Statutory fidig may also relate to ecoomy of trasactios ad public iterest. Oe thig is to be oted that Statutory disclosures is ot a substitute for audit fidigs. The OAG certifies the appropriateess of total amout of cash, disbursemet, reimbursemet, receipts ad paymets of ay projects as required by the doors. Recetly, OAG is plaig to start the issue of the auditor's fial report with opiio i the operatioal level accoutig of every miistry from the fiscal year bearig i mid the matters ad the types of opiio as udereath reflected i the table:-

64 Articles Nature of matters Judgemet about the occurrece Effect o the Fiacial statemets Fiacial statemets are materially misstated Qualified opiio Adverse opiio Iability to obtai sufficiet Qualified opiio Disclaimer of opiio appropriate audit evidece 62 Uqualified opiio will also be preseted if the fiacial statemet is out of material misstatemets ad able to get sufficiet appropriate evideces. Our Supreme Audit Istitutio formally submits the report to the Presidet of the Republic of Nepal for ecessary actios, resposes, review ad follow up o recommedatios ad remedial measures to be take by the govermet. The the veil of secrecy of the audit report shall be lifted whe the same is set to the Public Accouts Committee (PAC) of the Legislative- Parliamet. Members of the PAC discuss the audit paragraph ad make decisios for the settlemet of the queries. Ay oe of the catch phrases true ad fair or 'full ad fair', or 'preset fairly, i all material respect' are used by the of accompayig with opiios, recommedatios, coclusio, ad other remarks expressig truthfuless ad fairess, or disset upo the fiacial statemets ad books of accouts. The OAG, as the supreme audit istitutio, has the full discretio of decidig the cotets, timig, materiality level ad audit fidigs for the for the presetatio i the statutory audit report.

65 Articles Challeges i auditig sovereig wealth fuds, pesio fuds ad ivestmet compaies Mr. G. Sriivas Sovereig Wealth Fuds (SWF) have daw a ew era i the global ecoomy. A era of huge Govermet owed ivestmet with multiple objectives propellig ecoomic activity across the boudaries. Oe of the spill-off effects of the icrease i crude oil prices has bee the large scale icrease i SWF i the oil producig coutries ad more particularly i the Middle East. SWFs alog with pesio fuds of Govermet ad other ivestmet vehicles (ivestmet compaies) poses major challeges to Public Sector Auditors i reviewig their activities ad establishig accoutability mechaism. This articles attempts to a critical isight ito practical issues faced by Supreme Auditig bodies i reviewig the activities ivestmet vehicles. Sovereig Wealth Fuds (SWF) Sovereig Wealth Fuds (SWF) are State Owed Ivestmet Fuds. They represet Govermet owed or Cotrolled ivestmets. The surplus wealth of Govermet (budgetary surplus, proceeds of privatizatio or the oil surplus) is specifically allocated to a fud for ivestmet i various kids of ivestmet opportuities. Pricipally, the ivestmets are i stocks (shares), fixed retur yieldig ivestmets (bods), private equity ivestmets ad short term deposits. The objective is to gai a reasoable retur o the ivestmets at a acceptable degree of risk. 63 SWF i Middle East regio While SWF existed sice fifties i the world, they emerged key global players oly i the past decade. I the middle-east regio, steep icrease i crude oil prices resulted i uprecedeted surpluses. Govermets embarked o creatio of specialized ivestmet vehicles i the form of SWF. More ad more fuds started flowig ito the existig SWF makig them formidable players i the global sceario. A illustrative list of SWF i the middle-east regio is idicated below: Name of SWF Abu Dhabi Ivestmet Authority SAMA Foreig Holdigs Kuwait Ivestmet Authority Qatar Ivestmet Authority State Geeral Reserve Fud Coutry UAE Saudi Arabia Kuwait Qatar Sultaate of Oma

66 Articles The Sovereig Wealth Fud Istitute (SWFI) estimates the total assets of SWFs across the world to be a whoopig amout of US$ 4.3 trillio. Eve this estimate would exclude may other etities that ca loosely be categorized as SWF. A estimate by Stadard Chartered idetified 'Super Seve' SWF across the world with each of them havig a ivestmet of over US$ 100 billio. I less tha a decade, a estimate by Stadard Chartered estimates idicates that SWF across the world will be worth $13.4 trillio while Morga Staley puts the figure at $17.5 trillio. Pesio Fuds ad other ivestmet vehicles While SWF are primarily focused o wealth coversatio ad maximizatio (withi a acceptable degree of risk), pesio fuds ivest i accordace to their charter to gai returs, while beig withi the articulated risk appetite. Other ivestmet vehicles ad compaies ca operate with multiple objectives icludig wealth maximizatio, employmet geeratio, productio of ecessary goods ad services required by the coutry. As such the uderlyig priciples amogst all these auditees are to idetify ad ivest i multiple ivestmet aveues. 64 Auditor's challeges i auditig the SWG, Pesio fuds ad other ivestmet compaies 1. Need for techical expertise: Ivestmets are exceptioally complex area of operatios. Usually the auditees are maed by experieced ivestmet professioals. Most of the decisios o ivestmet are difficult choices made amogst multiple opportuities by professioals. Auditors eed to possess i the audit team professioals with experiece ad expertise i ivestmet related activities. This expertise is scare i the world ad experieced ivestmet professioals are highly i demad i job market. It is a major challege for auditor orgaizatios i public sector to egage ad retai such expertise. 2. Absece of distictio betwee Fud ad Fud Maager: Auditor faces the typical dilemma i some cases where the same orgaizatio operates as fud ad fud maager. The ivestmet decisios would be collective withi the same orgaizatio. Ideally, there is eed for clear distictio betwee the roles of Fud ad Fud Maager. Fud should focus o its targeted returs ad achievemets ad i defiig its 'risk appetite'. The decisios of to ivest, hold ad divest are best left to Fud Maager. This would facilitate a critical evaluatio of ivestmet portfolio performace ad fud maager's performace by the Fud. I the absece of this distictio, auditor would face the dilemma of havig to make audit observatios o a etity where critical iteral review of performace may be structurally limited. 3. High level decisio-makig body with limited professioal expertise: Ivestmet decisio-makig beig highly professioal activities eeds to be maaged by expertise i the field. Beig Govermet agecies, decisio-makig i may such bodies may be cocetrated at the top, where there is limited professioal expertise. I this situatio, auditor faces the situatio where Board miutes ad ageda papers do ot adequately reflect the triggers for a ivestmet or divestmet decisio. Auditor may have to limit his examiatio based o iteractio with ivestmet professioals without i may cases havig audit evidece that the critical issues were carefully

67 Articles cosidered by the fial decisio-makig body. O may occasios, the decisiomakig body may rarely meet, with decisios made o circulatio with oe or two key members virtually avigatig the proposal for a favourable decisio. 4. No-commercial reasos ifluecig decisios: Beig Govermet bodies, it is atural that certai o-commercial reasos may affect the decisios of the Fuds. Auditors may fid that o-commercial reasos are ot adequately tracked ad documeted. With this, auditors risk the situatios of commetig o areas with are essetially 'policy decisios' of the govermet for atioal ad strategic reasos. 5. Ambiguity i core objectives: While pesio fuds usually have their core objectives clear, same is ot the case with SWGs. Multiple ad coflictig objectives keepig the goals rather vague creates a situatio keepig auditors guessig o whether a particular ivestmet is appropriate to the objectives ad madate of the fud. 6. Isufficiet articulatio of 'Risk appetite': Oe of the audit assertios that auditors seek to test is whether the asset allocatio of the ivestmet agecy is withi the risk appetite. 'Risk Appetite' by the 'owers' of the etity is the key policy directio for the maagemet. Risk appetite is the amout of risk that the Fud is willig to accept for the targeted retur profile. Risk appetite ca be articulated i quatitative or subjective terms. This would drive maagemet to focus o ivestmets that are withi this risk profile. Iadequate articulatio of risk appetite leaves the auditors to make subjective assessmet o the appropriateess of asset allocatio. 7. Diversificatio opes room for camouflagig poor decisios ad irregularities: Most of the fuds ad compaies employ a highly diversified portfolio, which is appropriate risk maagemet strategy. Auditors face the situatio where the overall returs are cosistet with the asset allocatio. However, there could be few specific ivestmets based o poor evaluatio or fraudulet reasos, the losses of which are off-set by gais i most of other ivestmets. Auditor eeds to critically aalyse ad idetify such specific ivestmets based o detailed ivestigatio of due diligece process No-compliace with SANTIAGO priciples: Iteratioal Workig Group of Sovereig Wealth Fuds (IWG) established i 2008 has issued Geerally Accepted Priciples ad Practices (GAPP) for Sovereig Wealth Fuds (SWF) popularly kow as Satiago Priciples. The GAPP is iteded to idetify a framework of geerally accepted priciples ad practices that properly reflect appropriate goverace ad accoutability arragemets as well as the coduct of ivestmet practices by SWFs o a prudet ad soud basis. The GAPP is a volutary set of priciples ad are ot bidig. These essetially reflect the collective thikig of best goverace ad maagemet practices i ruig SWFs. The workig group evolved ito Iteratioal Forum for Sovereig Wealth Fuds (IFSWF). The priciples i essece establish good goverace practices like appropriate data to be preseted to govermet, clear roles ad divisio of resposibilities, professioal ethics, accouts ad audit etc. If the Fud follows Satiago priciples, the auditor's geeral assessmet of eviromet would be positive. The comfort zoe of auditors would be fair if at the miimum the fud has examied the priciples ad absorbed the relevat best practices ito its processes. 9. Private equity ivestmets A miefield for auditors: Ivestmet i private equity by SWGs is a major challege for auditors to tackle. These are geerally treated as

68 Articles high risk ad high retur ivestmet category. Auditors faces dilemma of multiple 'valuatio models' used for evaluatig the ivestmets. The developmet of bechmarks available to moitor this asset class o a portfolio basis is limited. This asset class has low liquidity ad it is difficult to exit the ivestmets quickly. The holdig periods are usually log i accordace with strategies of fuds. Auditor faces substatial challeges i evaluatig the 'process' adopted by fud i makig ivestmet decisios ad maagig them over the project life time. 10. Global equities: Auditors may face typical challeges startig with decisio to go i for 'passively maaged portfolio' or 'actively maaged portfolio'. I case of passive maagemet, Fud Maager is earmarked to a particular idex ad he maages the ivestmet mappig with the idexed fud. It is based o the belief that passive idexig outperforms active maagemet, except for short ru. I case of passively maaged global equities portfolio, auditor eeds to review the compliace of fud maager to the madate prescribed by the fud. Sice the fud does ot exercise ay discretio i idividual ivestmets (i particular scripts), auditor would merely review the decisios of fud betwee oe geography to aother (i.e., oe idex to aother) based o their uderstadig of relatig stregths ad future. O the other had, i case of actively maaged portfolio, the auditors eed to test check idividual global ivestmets for the due diligece process Role of auditors i evaluatig ivestmet decisio-makig process: A critical role of auditors is to review the stadard procedure adopted for ivestmet decisiomakig. This icludes examiatio of the 'Due Diligece' process which may ivolve exteral cosultats. Auditors should review the oversight ad evaluatio work performed by professioal teams withi the fud o the reports provided by exteral cosultats. The reliace o 'seller made due diligece' eeds to be carefully examied i audit. 12. Hidsight i audit a double edged sword: Auditors typically operate from a advatage of hidsight sice the audit is a post-audit exercise. Auditor should avoid makig summary coclusios based o iformatio available at the time of audit, post-facto, whe the real trasactios are over. Observatios o asset allocatio ad idividual ivestmets eed be based o the iformatio available to ivestmet decisio-makers at the time of takig the decisio, i real time. The subsequet iformatio may be used to substatiate a observatio made based o iformatio available to ivestmet decisio-makers. Primary audit evidece ivariably has to be the iformatio available at the time of decisio-makig ad audit coclusios have to take ito cosideratio the efforts made or otherwise to reach a particular ivestmet decisio. Further, fud maagers typically ted to attribute losses to global evets ad profits to their performace. Auditors eed to carefully examie these claims ad cotetios to arrive at reasoable coclusios based o appropriate audit evidece. Coclusio Auditig SWFs ad Pesio Fuds is a area with scope for collaborative efforts amogst INTOSAI members. Presetly, there is limited iformatio sharig betwee SAIs i this area, particularly i view of the sesitivity of the ivestmet related iformatio. With more Govermets embarkig o ivestmets globally, there is a strog case for developmet of appropriate auditig stadards for auditig the Fuds.

69 Articles Public Debt ad the role of the State Audit Office of Vietam Assoc. Prof. Nguye Dih Hoa State Audit Office of Vietam Public debt maagemet Accordig to the decree No. 79/2010/ND-CP dated o 14 July 2010 o public debt maagemet operatios, take effective from 30 August 2010, the Govermet uified the maagemet of public debt through 4 istrumets. Specifically, these istrumets are log-term strategy for public debt, middle term debt maagemet program, detailled aual pla of borrowig ad repaymet of the Govermet, public debt safety ad moitorig idicators. Firstly, log-term strategy for public debt cotais assessig the reality of public debt ad public debt maagemet o implemetig strategy i the prevous period; objective, orietatio of loa mobilisatio, utilisatio ad public debt maagemet. O establishig log-term strategy for public debt, it based o socio-ecoomic developmet pla of 5 years ad 10 years, plas o developig braches, sectors, territories, ad resolutios, decisios of the Party commuist ad Govermet regardig policies of mobilizatio ad usig loas ad debt maagemet. 67 Secodly, middle term debt maagemet program cotais objectives, tasks ad measures for mobilizatio, usig loas, repaymet ad mechaisms, policies, debt maagemet orgaizatio i the period of three cosecutive years i order to implemet debt safety idicators idetified by Natioal Assembly o the objective, orietatio of mobilizatio ad usig loas ad public debt maagemet. Thirdly, detailled aual pla of borrowig ad repaymet of the Govermet cotais plas of domestic borrowig (icludig plas to mobilize capital for the state budget ad capital for ivestmet ad developmet); plas of foreig borrowig implemetig through the mobilizatio of loas, icludig ODA loas, preferetial loas, commercial loas ad beig specified to foreig creditors; pla of repaymet, beig specified to creditors, to the pricipal ad iterest repaymet, to the domestic ad foreig debt repaymet. Forthly, these are public debt 's safety idicators ad moitorig idicators. Moitorig idicators of public debt ad Natioal foreig debt cotai: public debt i comparatio with the Gross domestic product (GDP), atioal foreig debt i comparatio with GDP, Natioal repaymet obligatio i compariso with total import-export reveue; govermetal debt i comparatio with GDP... I additio of these 4 istrumets for maagig public debt, the Govermet established a fud for repaymet ad public debt moitorig. Establishig the accumulative fud for repaymet to esure the govermetal ability to foreig debt.

70 Articles Determiig the safety margi of public debt Safety margi of public debt is calculated by the percetage ratio of total public debt to GDP. I fact, there are o geeral safety limits for all the ecoomies o the world. Percetage ratio of total public debt to GDP depeds o the health of atioal ecoomy of each coutry through macro ecoomy idicator system. For example, the US, umber oe coutry i the world i term of ecoomic power. The US sometime hold about 50% of GDP of the world. However, i term of public debt, the US is i "worthy" positio i the list. I terms of the ratio of debt i compariso to GDP, the US raked the twetieth amog 20 atios i the world with 96% of GDP. However, i terms of absolute figure, the U.S is secod to oe with 13,770 billio USD (o the 3rd Quarter of 2009), but it is cosidered obtaied to stay i safety margi of public debt. 68 Japa is the secod positio o the world i term of size of GDP with millios USD has giat debt of billios ye (equivelet 200% of GDP) but it is cosidered to have a safety margi of public debt. While may coutries have low figure of Debt/ GDP ratio but they still suffer debt crisis such as Veezuela i 1981 with the debt amouted to 15% of GDP, Thailad had the same figure i 1996; whereas it was 45% of GDP i Argetia i I 2007, Ukraie's debt was accouted for 13% of GPD ad it was 20% of GDP i Rumaia. More recetly, Greece ad Irelad who have debt figures accout to 113,5% ad 98,5% of GDP respectively must call for exteral aid package with tight coditios ad close supervisio. I determiig the safety level of public debt issue, it is ot oly about the Debt/ GDP ratio but also more importatly, it eeds to take ito accout i parallel with macro ecoomic criteria, total factor productivity, effective capital usage through the ICOR criteria, govermet budget deficit, exchage rate, balace of trade, foreig exchage reserve, domestic savig ad social ivestmet, iflatio, iterest rate, etc. Firstly, examiatio of the grow speed ad grow quality i relatio with public debt We see that over the past 25 years of reovatio, Vietamese ecoomy has made importat developig step to chage the positio ad stregth of the coutries but there are still some drawbacks remaiig. Although the quality of growth has bee improved but the growth is maily from quatity rather tha quality, horizotally rather tha vertically, the impact of capital ad labor factor is much more tha the impact of productivity of geeral elemets factor. Eve the horizotal developmet, Vietam still iclies towards the capital factor rather tha the labor factor. I the period from , labor factor cotributed 21,15% to the Vietamese ecoomy growth, while it was 26,6% i Thailad. I this period, cotributio from TFP accouted for 22,7% i Chia ad 24,1% i Thailad. The figures were much higher tha 14,1% i Vietam i the period (Table 1).

71 Articles Tabular presetatio of Cotributio of 3 iput factors ito the ecoomic growth of Asia coutries i the period ad Vietam to 2004 Coutries GDP Growth Capital Labor TFP Chia 7,5 41,3 36,0 22,7 Thailad 7,5 49,3 26,6 24,1 Vietam ( ) 8,7 68,78 16,94 14,28 Vietam ( ) 6,6 60,20 25,37 14,43 Korea 8,3 51,8 30,1 29,6 Japa 9,2 33,7 27,1 39,2 The efficiecy of capital usage is low (public debt) Govermet should corporate closely ad flexibly the fiscal policy ad the moetary policy to esure the macroecoomic stability ad the social security with respect to the quality of sustaiable growth. Govermet must ope ad make trasparetly the maagemet of the public debt, ad especially the fiacial situatio of the state corporatios to stregthe the cofidece of iteratioal ivestors. Secodly, the relatioship betwee public debt ad budget deficit ad ivestmetsavig Vietam's public debt icreased rapidly i the cotext where the budget deficit (both withi ad beyod the estimate) icreased from 2.8% of GDP i 2001 to 9.6% of GDP i 2009 (accordig to EIU- Ecoomist Itelligece Uit) ad i accordace with the Estimate Report of Miistry of Fiace, the budget deficit i 2010 was 6.2%. For Vietam, the state budget deficit has become chroic, which is cosidered as a additioal factor decreasig the sustaiability of public debt. Accordig to the iteratioal practice, for coutries with developmet level like Vietam, the ceilig of state budget deficit is 5%. This violated a basic priciple of sustaiable maagemet of public debt, which is today's public debt must be fiaced by tomorrow's budget surplus. This is the mai reaso which caused Fitch (The global fiacial credit rakig compay) to lower Vietam's credit rak from BBto B+ (that is, four grades lower tha the ivestmet grade ) i the ed of July With demads for cotiuous ivestmet i developmet, it is sure that Vietam's public debt will cotiue to icrease i the comig years. Specifically, with the decreasig domestic savig/gdp ratio (about 27% of GDP at preset) while the social ivestmet (about 42% of GDP at preset) is icreasig, i additio to attractio of foreig ivestmet, the Govermet will have to cotiue to borrow greatly to compesate for the differece betwee savig ad ivestmet. With Vietam's joiig average icome coutries, its iteratioal preferetial loas will gradually decrease, o loger remai ad will be replaced by covetioal commercial loas i the iteratioal fiacial market with a much higher iterest rate. Thirdly, the relatioship betwee public debt ad iflatio, growth, iterest rate ad exchage rate I Vietam, iflatio has become the shadow followig GDP growth. The evidece is that whe the ecoomy has begu to recover, CPI ad iterest rate icrease rapidly agai. The

72 Articles cosequeces are that i 2010, the iterest rate of domestic shares icreased to over 11%, ad the iterest rate of iteratioal shares was higher tha that of competitors, causig the commo iterest rate of the ecoomy to icrease. As reported by the Prime Miister o th November 24, 2010 i the Sessio 8, the seveth Natioal Assembly, the ed of November, cosumer prices would icrease to 9.58% compared with December This has impacted egatively o the ivestmet motives of the private sector, which led them to shift from ivestmet to buy gold ad USD as a speculatio. Hoardig makes exchage rate of USD ad gold price happe uusual. Accordig to experts i the field of fiacial ad bakig, the people are ow hoardig the amout of 5 billio of foreig currecy ad 1,000 tos of gold. This is a very large source of capital for ivestmet ad developmet, but it was ot icluded ito circulatio. These developmets have put pressure o Vietam Dog (VND). From this fact, it is difficult to blame the people ad busiesses to have psychology of speculatig USD ad buyig USD rather tha borrow because of fear of exchage rate risk. This agai causig problems for the maagemet ad operatio of moetary policy whe a large amout of USD beig withdraw from circulatio ad destabilize the market. The fial result of icreasig the exchage rate icreases public debts, because most of loas from foreig coutries are maily i USD ad this makes a debt burde heavier to us. 70 Fourthly, the relatioship betwee public debt with the debt structure ad iterest rates The safety margi also depeds o the debt structure ad iterest rates. I the past time, Vietam was o a group of low-icome coutries, so it is borrowed a log-term loa aroud years with iterest rate icetives. The debt structure for the term of 40 years have iterest rate of 0.75% - 1% per aual, (the medium ad log-term loas accouted for 86.5%). This is a great advatage for Vietam. However, whe it is classified as a group of middle-icome coutries, these icetives will be reduced ad faded away, ad commercial loas with higher iterest rates are istead. Therefore, repaymet pressures will be more ad more greater ad impact o the safety margi of public debt. Through the above aalysis, it is said that Vietam's public debt had reached the safety margi ad eed to be vigilat i the maagemet of public debt, as Vietam's public debt is o the low level compared with other coutries ad o the high level compared with the health of the ecoomy. Although Vietam's debt structure is medium ad log-term loas with low iterest rate, chroic diseases of the ecoomy such as iflatio, State budget deficits, trade deficit are o the high level ad the Icremetal Capital - Output Rate (ICOR) is o the low level. They make Members of Natioal Assembly cocer about the sustaiability of public debt. It is importat to pay attetio to the effectiveess of usig loas, which are to esure solvecy i the future. Now it seems that we oly focus o aspects of disbursig loas, sellig bods ad guaratyig to borrow loas. Completig all above is cosidered as a success, while how to use those loas does ot attach much importace. The role of the State Audit Office i the public debt. SAV is a specialized agecy o examiatio of state fiace established by the Natioal Assembly, performig its duties idepedetly ad subject oly the laws. Audit activities of SAV is to examie, evaluate ad certify the accuracy ad truthfuless of the fiacial

73 Articles statemets; comply with law, ecoomic, effective ad efficiet maagemet ad use the state budget ad state property; cotribute to practicig thrift, fightig agaist corruptio, loss, waste, detect ad prevet the violatios of law; ehacig the efficiecy of State moey ad property; assist effectively the activities of the Natioal Assembly, the People's Coucil of all levels to perform the oversight fuctio ad decide importat matters of the atioal ad locality. With the above legal status ad fuctios, the public debt ad its maagemet is audited by SAV. SAV will coduct the audits ad explai the public debt with the Natioal Assembly ad people of the coutry. The audit results had the quality is a importat basis to assist the Natioal Assembly members i decidig correctly i its meetig sessio, ad it is also help the Natioal Assembly ad People's Coucil i givig the importat decisios about the ivestmet policies of the social-ecoomic developmet at the atioal ad local levels. Depedig o their resources, SAV combies three types of audit to coduct the audit of the public debt as the followigs: - To coduct the audit of the criteria o public debt as total debt, debt structure, iterest rate. It must be idetified the compoets of public debt as the Govermet debt; debt guarateed by the Govermet; debt loaed by the locality ad the state eterprises. Debt borrowed by state eterprises should moitor closely to avoid the cases that ca lead to ecoomic crisis. - To comply with the law o the limit of foreig commercial loas ad foreig loas guarateed by the Govermet. - To coduct the performace audit of public debt to verify the effectiveess ad efficiecy of the usage of the public debt through audit of projects ad the ivestmet programs by the Govermet, the curret debt limit ad the future debt limit set i relatio to the macro-ecoomic idicators which determied the safety threshold of debt ad idetified the risk level of public debt. This is a difficult ad complex cotet required the sufficiet ad accurate data ad auditors with deep kowledge of macroecoomics Through the audit results, SAV has the assessmet, risk idetificatio ad warig of risks to public debt portfolio ad the coutry's foreig debt to propose timely the solutios to the Natioal Assembly ad Govermet ad complete effectively ad efficietly the public debt maagemet policy.

74 /Webpage addresses of member SAIs SAI address Home page Afghaista Armeia Australia Azerbaija Bahrai Bagladesh Bhuta Bruei Darussalam Cambodia Chia Cyprus Georgia Idia Idoesia Ira Iraq Israel Japa Jorda Kazakhsta Korea Kuwait Kyrgyzsta LAO-PDR Malaysia

75 /Webpage addresses of member SAIs SAI Maldives address Webpage Mauritius Mogolia Myamar Nepal New Zealad Oma Pakista Papua New Guiea Philippies Qatar Russia 73 Saudi Arabia Sigapore Sri Laka Thailad Turkey U.A.E. Vietam Yeme ; Electroic commuicatio betwee Supreme Audit Istitutios is icreasig rapidly. I view of this, a list of ad World Web Site Address of ASOSAI members (as available with us) have bee compiled ad show i the above table. It is requested that addresses of those SAIs that do ot i appear i the table may please be itimated to the Editor for icorporatig i the future issues of the Joural. Please also let us kow i case there are ay modificatios to the addresses listed above.

76 Other Importat /Webpage Addresses address Webpage INTOSAI ASOSAI EUROSAI OLACEFS PASAI ARABOSAI INTOSAI Developmet Iitiative (IDI) INOSAI Workig Group o IT Audit (WGITA) ir@cag.gov.i Workig Group o Evirometal Auditig ifo@wega.org 74 Workig Group o Privatisatio, Ecoomic Tim.burr@ao.gsi.gov.uk regulatio ad Public Private wgap/home.htm Partership (PPP) Iteratioal Joural of Govermet itosaijoural@gao.gov Auditig ir@cag.gov.i doc_joural_list.jsp

77 ASOSAI Caledar October, March, 2012 Year Moth Dates Evet 2011 October ASOSAI Semiar o How to itegrate ethics ad itegrity ito the auditig practices of a SAI i Seoul, Republic of Korea November 7-18 ASOSAI Workshop o Audit of Public Debt at Beijig, Chia December 1-13 th 5 Meetig for the 9th ASOSAI Research Project i Bali, Idoesia 2012 February 28 th 44 Goverig Board meetig at Jaipur, Idia February 29 th 12 ASOSAI Assembly at Jaipur, Idia March March 2 3 th 5 ASOSAI Symposium at Jaipur, Idia th 45 Goverig Board meetig at Jaipur, Idia 75

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