Presentation format:

1. Meeting of Representatives of Supreme Audit Institutions, Parliamentary Audit Committees and Ministries of Finance of Latvia, Lithuania and Estonia - Hosted by Lithuanian National Audit Office (LNAO) Discussion Area 3: Developing the important role of the Ministry of Finance at the Parliamentary Audit Committee Some SIGMA thoughts on Good Practices from Colm Dunne and Nick Treen Vilnius 17 – 18 October 2006 Colm Dunne SIGMA Expert colmdunne@epsilon.ie

2. Presentation format: • Accountability has two dimensions • Min of Finance has an active role at all stages of the accountability cycle • Three good Min of Finance practices: • Maintain standards • Reporting • Guidance

3. Accountability has two dimensions • Holding budget holders and decision makers responsible for the decisions they make; • With an expectation of continuous improvement in public services

4. There are 4 actors in public accountability • The Supreme Audit Institution • The Parliamentary Audit Committee (PAC) representing the public/ tax payers • The persons in Ministries and budget entities who are responsible and accountable for the sound management and stewardship of public resources; and effective delivery of services. • The Ministry of Finance (MF)

5. Min of Finance has an active role at all stages of accountability

6. Ministry of Finance has a leadership role in Accountability because • It has final decision on budgetary matters • It is responsible for setting and monitoring financial management and control standards • It holds Ministries to account for spending decisions

7. MF stands beside auditees at the Parliamentary Audit Committees • Successful accountability depends on a proper working relationship between : • Min of Finance and spending Ministries; • Min of Finance and the Parliamentary Audit Committee • Min of Finance and the SAI • Min of Finance has an overall responsibility for statutory annual budget execution reporting to parliament and for accounting and financial reporting standards • This is the “co-ordination” role.

8. Min of Finance is a directparticipant in the process • Min of Finance should be present at all PAC meetings • Min of Finance is an active participant (not merely a note-taker) • This provides a permanent direct communication channel between PAC and Min of Finance • and gives the Min of Finance first hand knowledge of the audit issues discussed

9. Good practice 1: Setting and maintaining standards Participation at PAC meetings: • enables Min of Finance to respond quickly to identified systems improvement • keeps Min of Finance alert and well informed • strengthens its authority as a standard setter

10. Good practice 2: Reporting on actions taken Min of Finance has a unique position to: • co-ordinate the response to the recommendations of the PAC • take up PAC recommendations in future strategic plans, budgetary proposals and financial control improvements • monitor and evaluate implementation

11. Good practice 3: Min of Finance has a guidance role Min of Finance can: • provide advice and guidance to attendees and witnesses at the PAC hearing on how to behave • support the PAC with invaluable guidance and advice on central issues relevant to the audit issues being discussed • give advice and guidance on the broader lessons learnt

12. Thank you for your attention Questions and comments are very welcome.