LEGISLATIVE%20SCRUTINY%20OF%20PUBLIC%20EXPENDITURES

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LEGISLATIVE SCRUTINY OF PUBLIC EXPENDITURES
M. Mozammal Hoque Financial Management Sector
Board April, 2003
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OVERVIEW OF PRESENTATION

• Pillars of National Integrity System and
  Financial Accountability Cycle
• Conceptual Approach to Parliaments Role in
  Ex-Post and Ex-Ante Control
• Current Situation
• Future Challenges
• Recommendations

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Pillars of National Integrity System
Sustainable Development
National Integrity System
Civil Society
The Media
The Judiciary
Admin. Reforms
Political Will
The Private Sector
Parliament
Watch Dog Agencies
Economic Reforms
Anticorruption agencies, Supreme Audit
Institution, and Ombudsman's Office
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People
Donors
Media
Public Financial Accountability
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Building Trust Capturing the Promises of
Accountability
Parliament

• Performance reports
• Audits
• Redress Mechanisms
• Media

• Long-term
• Goals
• Improved Services
• Confidence
• Trust

• Intermediate
• Objective
• Transparency
• Disclosure
• Redress

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Financial Accountability Cycle 3 Questions

• What information can Oversight Agencies obtain
  about the Governments activities how relevant,
  accurate, timely and comprehensive is the
  information?
• How well are the Oversight Agencies able to
  analyze the information, and develop
  action-oriented conclusions?
• What kind of response are Oversight Agencies able
  to generate from the executive?

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Conceptual Approach - Fiduciary Obligations - 1

• Composition of Committees various patters
• Committee chair and membership
• Accountability Relationship with Executive
• Committees used to hold Executive accountable
• PAC, Finance Committee and Public Undertakings
  Committee deals with use of public funds
• other Standing committees deals with policies and
  results
• Auditor General/Court of Accounts Assists, and
  Reports to Parliament

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Conceptual Approach Fiduciary Obligations - 2

• Parliament holds power of the purse and
  obligation to hold the Executive accountable.
• PAC oversees use of public funds and resources
  by Executive
• Does this by examining public accounts

Courtesy Rick Stapenhurst, WBI
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Conceptual Approach Fiduciary Obligations - 3

• PAC work often dependent on the Auditor Generals
  reports
• Effectiveness depends on follow-up
• Report of PAC Should it be discussed by the
  Parliament
• Key issues Status of PAC, Relationship with the
  AG, Capacity, Resources and Working Practices,

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Current Situation Common Features

• Average size of 11 MPs
• Size reflects party in legislature.
• 2/3 of Chairs from an opposition party and 1/3
  from the governing party
• Prime focus on Public Accounts reports of AG.
• PAC reports generally available to the public.
• Generally, PAC hearings are open to the public
  and media.

Courtesy Rick Stapenhurst, WBI
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Current Situation Success Factors

• A broad scope
• Power to select issues w/o govt direction
• Power to report, suggest improvements, and
  follow-up

• Strong support from AG, MPs and research staff
  that creates a unity of purpose about PAC work.
• Based on recent World Bank survey

Courtesy Rick Stapenhurst, WBI
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Current Situation in the Commonwealth Common
Challenges

• Highly partisan climate
• Government dislike of legislative oversight
• Lack of media involvement
• Lack of a strong ethical base for public service

Courtesy Rick Stapenhurst, WBI
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Future Directions and Challenges

• Some PACs deal primarily with specific audit
  findings and transactions
• PAC evolution parallels growth in mandate of
  legislative auditors into value for money
• PACs not always prepared to handle broader scope
  of the work/more complex accountability
  arrangements of modern governments

Courtesy Rick Stapenhurst, WBI
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Future Directions and Challenges

• Improve capacity of Auditor General
• Improve research and secretariat
• Capacity building of PAC members
• Better use of sub-committees
• Better involvement of public media
• Better procedures for follow-up
• Strengthen International linkages

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Integrated Financial Management and Control
Approach

Public Accounts Committee
Oversight Functions
Public Undertakings Committee
Parliament
Committee on Estimates
Ministries
Standing Committees on Min.
External Audit
Ministry B
Ministry A
Ministry C

• Identify change agents from Ministers/Secretaries
  
• Prepare Strategic /Perspective Planning for
  Ministries
• Give a Corporate look to Ministries
• Focus on outputs than inputs/Measurement concept
• Address human infrastructure of Ministries
• Move from red taped file to a technology based
  system
• Submit annual performance report to Parliament
• Link with broader administrative reforms

• Chief Executive Officer
• Principal Accounts Officer
• Chief Accounts Officer

Go for Pilots and Roll out