Improving Parliamentary Oversight: Current Issues and Future Trends

1. CURRENT ISSUES & FUTURE TRENDS IN PARLIAMENTARY OVERSIGHT Rick Stapenhurst World Bank Institute

2. OVERVIEW OF PRESENTATION • The Budget Cycle + Parliament (Ex-Ante and Ex-Post) • Conceptual Approach to Parliament’s Role in the Ex-Post Budget Cycle • Current Situation in Commonwealth • Future Challenges & Directions incl. Support for PACs • Conclusions

3. The Budget Process

4. The Budget : Amendment powers: a survey

5. Conceptual Approach: Key Actors and their Relationships PUBLIC FINANCIAL ACCOUNTABILITY Parliament Accountability Relationship Reports Public Auditor General Executive Examines

6. Conceptual Approach to Parliamentary Oversight … continued • Accountability Relationship with Executive • Committees used to hold Exec. to account • PAC deals with use of public funds - other committees with policies & outcomes • AG assists, & reports to Parliament

7. Conceptual Approach…cont. : Fiduciary Obligations ExplainedParliament, PAC and public audit • Parliament holds ‘power of the purse’ and obligation to hold the Executive to account • PAC oversees use of public funds & resources by Executive • Does this by examining public accounts

8. Conceptual Approach…cont. : Fiduciary Obligations ExplainedMandates of PACs: • PAC mandate determined by Rules/ SOs, some case by Constitution • Narrow Focus - financial probity and regularity • Wider Focus - value for money, perf. audits, program effectiveness • Other matters can be referred to PAC

9. Conceptual Approach…cont. : Fiduciary Obligations ExplainedThe Role of Other Committees • PAC oversight = entire Executive • Other Committees also exercise oversight responsibilities • PAC / other committees need to cooperate, share workplans for greater oversight • Policy and dept’l issues better addressed by other committees or PAC sub committees

10. Conceptual Approach…cont. : Fiduciary Obligations ExplainedPAC and the Auditor General • PAC work often determined by the AG reports • PAC must decide follow-up issues • An effective PAC = depts. taking AG concerns more seriously • Cooperation with AG on follow-up = greater accountability • Ensures Depts. are taking corrective action

11. Current Situation in the Commonwealth: • Recent CPA study on PACs – The Overseers • - similar issues, developments and challenges across Commonwealth • Key issues : Status of PAC, Relations with the AG, Membership, Training/ Capacity-Building, Resources, Working Practices, Reporting and Follow-up

12. Average size = 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. Current Situation in the Commonwealth: Common Features:

13. A broad scope Power to select issues w/o gov’t 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 Current Situation in the Commonwealth: Success Factors*

14. Current Situation in the Commonwealth:Common Challenges: • Highly partisan climate • Government dislike of legislative oversight • Lack of media or public involvement • Lack of a strong ethical base for public service

15. 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

16. Future Directions and Challenges: • Public Sector reforming and moving towards performance systems • Are PACs mirroring these reforms? • Can PAC be a catalyst for reform in public financial accountability?

17. Improved AG links Improved resources for PACs Structured training for PAC members Better use of sub-committees by PAC Better involvement of public & media Better procedures for follow-up Greater links and info exchanges with other PACs Future Directions and Challenges: Some Recommendations:

18. Conclusions: • PAC one part in public accountability framework but only one with links to all other actors • Accountability relationships affect PAC effectiveness • Perf. reporting & VFM audits require greater consideration of relationships /capacity of PACs and AG • PAC exchanges = strengthening PACs & accountability frameworks