Oversight by Supreme Audit Institutions: the Korean Experience Keakook Song, Ph.D. Board of Audit and Inspection Republic of Korea

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Oversight by Supreme Audit Institutionsthe
Korean ExperienceKeakook Song, Ph.D.Board
of Audit and InspectionRepublic of Korea

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CONTENTS

• INTRODUCTION
• BACKGROUND OF BAI
• DIRECTIONS OF OPERATION
• PROGRAM EVALUATION
• CONCLUSION

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INTRODUCTION

• Seoul Accords of the XVII INTOSAI Congress
• - SAI as Auditor, Advisor, Researcher
  Developer
• New Administrations Participatory Government
• Past and Present Perspectives Directions of
  Operation
• Future Perspective Program Evaluation

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BACKGROUND OF BAI

• History of more than 1,300 years
• Duties and Functions
• - Closing Accounts, Audit, Inspection
• - Reporting to President and National
  Assembly
• - Request of Audit by National Assembly

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BACKGROUND OF BAI

• Organization
• - Chairperson, Council of Commissioners,
  Secretariat
• - Commission for the Prevention of
  Corruption
• Utilization of IT CAIS, NAIS
• Other Major Activities
• - Re-examination, Petitions and Complaints
  (188),
• Request for Audit

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DIRECTIONS OF OPERATION
PAST PRESENT PERSPECTIVES

• Reform-Oriented Audit
• - Government Reform, National Competitiveness
• - Developing IT, BT and NT, and Nurturing
• Creative Human Capital
• Audit on E-government Project (Appendix 1)

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DIRECTIONS OF OPERATION
PAST PRESENT PERSPECTIVES

• Productive Audit
• - Preventing Inefficiency and Ineffectiveness
• - Improving Quality of Construction, and
• Encouraging well-balanced Local Growth
• Audit on 2002 World Cup Preparation Status
• (Appendix 2)

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DIRECTIONS OF OPERATION
PAST PRESENT PERSPECTIVES

• Open Audit
• - Meeting Higher Expectations from the Public
• - Improving Living Conditions Environment
• and Expanding Social Safety Net
• Audit on Status of Water Quality Management
  around
• the Four Rivers (Appendix 3)

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PROGRAM EVALUATION
FUTURE PERSPECTIVE

• Introduction
• INTOSAI Auditing Standards say
• - Regularity Audit Financial Accountability
• - Performance Audit 3Es
• 3Es Economy, Efficiency, Effectiveness

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PROGRAM EVALUATION
FUTURE PERSPECTIVE

• From Regularity Audit to Performance Audit
• - Large-scale and Rapid Growth in Government
  
• Spending
• - Peoples Interests in 3Es of Public Spending
• BAI used 90 of manpower for performance
• audits in 2002.

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PROGRAM EVALUATION
FUTURE PERSPECTIVE

• Performance Audit and Program Evaluation
• - Auditing vs. Evaluation (in case of US
  GAO)
• - Administrations Evaluations to be
  Distrusted
• as being Self-serving or Superficial
• - Increasing Evaluation and Focusing Program
  
• Effectiveness (Audit Case, Appendix 4)

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HOW TO CARRY OUT
PROGRAM EVALUATION

• Major Propositions
• - Evaluation to be Integrated into
  Auditing
• - External vs. Internal Evaluation
• Three Factors to be Considered
• - Users, Evaluation Agency, the Evaluated

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HOW TO CARRY OUT
PROGRAM EVALUATION

• Users Applying Evaluation Results to their Needs
• - the Evaluated to take Necessary Measures
• - National Assembly for its Legislative
  Activities
• - Executive Branch Agencies for their own
  Needs
• (e.g. MPB for budgeting, OGPC for
  coordinating)
• - People who Participate in Policy-making
  Procedure

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HOW TO CARRY OUT
PROGRAM EVALUATION

• Evaluation Agency (BAI)
• - Personnel Professional, Research
  Training
• - Organization to maintain Flexibility
• (i.e. How Team is organized depends on
• What is Evaluated)
• - Operation based on Contracts

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HOW TO CARRY OUT
PROGRAM EVALUATION

• The Evaluated
• - Evaluation Plans to reflect Users Opinions
  and
• to be made Public
• - Evaluation Reports to show Who did the Job
• and to be made Public
• National Evaluation Committee within BAI

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CONCLUSION

• Responding to the changing audit needs and
• the emerging audit issues, SAI has to be
  changed.
• Integrating auditing and evaluation can lead
  to
• making Oversight by SAI more efficient.

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Thanks a lot!