CONTENTS

1. Oversight by Supreme Audit Institutions:the Korean ExperienceKeakook Song, Ph.D.Board of Audit and InspectionRepublic of Korea XI IACC (WS 3.1)

2. CONTENTS • INTRODUCTION • BACKGROUND OF BAI • DIRECTIONS OF OPERATION • PROGRAM EVALUATION • CONCLUSION XI IACC (WS 3.1)

3. INTRODUCTION • Seoul Accords of the XVII INTOSAI Congress - SAI as Auditor, Advisor, Researcher & Developer • New Administration’s “Participatory Government” • Past and Present Perspectives: Directions of Operation • Future Perspective: Program Evaluation XI IACC (WS 3.1)

4. 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 XI IACC (WS 3.1)

5. 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 XI IACC (WS 3.1)

6. 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) XI IACC (WS 3.1)

7. 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) XI IACC (WS 3.1)

8. 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) XI IACC (WS 3.1)

9. PROGRAM EVALUATION: FUTURE PERSPECTIVE • Introduction “INTOSAI Auditing Standards” say - Regularity Audit: Financial Accountability - Performance Audit: 3Es * 3Es: Economy, Efficiency, Effectiveness XI IACC (WS 3.1)

10. PROGRAM EVALUATION: FUTURE PERSPECTIVE • From Regularity Audit to Performance Audit - Large-scale and Rapid Growth in Government Spending - People’s Interests in 3Es of Public Spending * BAI used 90% of manpower for performance audits in 2002. XI IACC (WS 3.1)

11. PROGRAM EVALUATION: FUTURE PERSPECTIVE • Performance Audit and Program Evaluation - Auditing vs. Evaluation (in case of US GAO) - Administration’s Evaluations to be Distrusted as being Self-serving or Superficial - Increasing Evaluation and Focusing Program Effectiveness (Audit Case, Appendix 4) XI IACC (WS 3.1)

12. 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 XI IACC (WS 3.1)

13. 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 XI IACC (WS 3.1)

14. 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 XI IACC (WS 3.1)

15. 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 XI IACC (WS 3.1)

16. 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. XI IACC (WS 3.1)

17. Thanks a lot! XI IACC (WS 3.1)