- 2 - T a b l e o f c o n t e n t s

Transcription

1 - 2 - I. T a b l e o f c o n t e n t s page 1) Introduction by the Secretary-General of INTOSAI President of the Austrian Court of Audit Dr. Tassilo Broesigke ) EUROSAI/IDI Eastern-European Seminar Velence, Hungary, September 8 to 20, ) Report on the 35 th Meeting of the Governing Board of INTOSAI Washington, USA, October 7 to 8, ) General Assembly of OLACEFS Quito, Ecuador, December 2 to 6, ) Preview: United Nations DTCD/INTOSAI Workshop on Government Auditing Vienna, Austria, May 27 to June 4, ) Jörg Kandutsch Supreme Audit Institution Award ) News from member SAIs... 16

2 - 3 - EUROSAI/IDI Eastern-European Seminar The first EUROSAI/IDI Seminar for Eastern Europe took place from 8 th to 20 th September 1991 in Velence, Hungary, at the Training Centre of the Hungarian State Audit Office. The idea for the Seminar goes back to a proposal submitted to the 34 th Governing Board Meeting in Vienna The intention was to provide the newly founded SAIs in the former socialist countries to become acquainted with the audit methods and experiences of the other Western European states. The Eastern European countries showed great interest in the seminar. This was manifested by the large number of delegates from the various countries as well as by the stimulated and very fruitful discussions of the papers presented, which gave a clear indication of the new developments and the process of democratisation in Eastern Europe. It is became quite obvious, that the SAIs are fully aware of their significance and responsibility as supreme audit authorities in the process of accountability for public funds and assets in a democratic state. The seminar programme included papers on the following subjects: - The Lima Declaration - the philosophy, practice, topical questions and principles of modern auditing - A historical review of the foundation of SAIs in Western Europe - constitutional position and certain specific characteristics - Presentation of audit systems in the Eastern European countries - Audit of privatisations - Audit of state enterprises - Audit of local governments - Audit of the state budget - Audit of loans granted by the European Community for the countries of Central- Eastern Europe - Methodology of auditing - Auditing and the information systems - Education and training in the development of audit work and methodology IDI and its programmes

3 - 4 - Report on the 35 th Meeting of the Governing Board of INTOSAI October 7 to 8, 1991 The 35 th meeting of the Governing Board of INTOSAI was held from October 7 to 8, 1991 in Washington, D.C., USA. The main items on the agenda were the follow-up of issues already dealt with at the 34 th meeting of the Governing Board in May 1990 in Vienna and the preparations for the forthcoming congress of INTOSAI, the XIV th INCOSAI, which will take place in October 1992 in Washington D.C. 1. Opening The meeting was opened by the Chairman of the Governing Board, the president of the German Court of Audit, Dr. Heinz Günter Zavelberg. 2. Report by the Chairman of the Governing Board In his report, the Chairman of the Governing Board pointed to the dramatic political and economic changes that had taken place all over the world since the last meeting of the Board and their impact on government auditing and the work of INTOSAI. 3. Report by the First Vice-Chairman of the Governing Board Mr. John C. Taylor, Auditor General of Australia, reported on his participation in the ASOSAI Seminar and Congress in 1991 and the topics then discussed, on changes in the leadership of this regional organization and on his attendance at the Meeting of Commonwealth Auditor Generals in London in As chairman of the INTOSAI Auditing Standards Committee he thanked first and foremost the US General Accounting Office (GAO) and the Secretary General of INTOSAI for their cooperation and help in enabling the publication of the Draft Audit Standards now available.

4 Report by the Second Vice-Chairman of the Governing Board Mr. Charles A. Bowsher, Comptroller General of the United States and Second Vice- Chairman of the Governing Board, reported on the state of preparations for the XIV th INCOSAI and the topics to be discussed, also drawing attention to the EDP symposium which will take place following the congress. The proposals submitted by the congress host on the rapporteurs for the themes, subthemes and discussion groups - consisting of representatives from 44 nations - were discussed and adopted unanimously. 5. Report by the Secretary General 5.1. The Secretary General reported on the Secretariat's financial management The accounts and financial statements for 1989 were audited by Spain and submitted to the Governing Board for examination and approval. The Governing Board unanimously adopted the statements and the audit report for The Secretary General furthermore reported on the forthcoming audit of the 1990 accounts and statements to be carried out by the SAI of Egypt The Secretary General submitted to the Governing Board an application for membership by EUROSAI, the European Organization of Supreme Audit Institutions, founded in 1990 in Madrid, Spain, as a regional working group. The application for membership was presented in an oral statement made by representatives of EUROSAI. In their statement, they also gave a historical survey on the coming into existence of EUROSAI, which can be traced right back to the 60ies, underlining in particular the major role the XIII th INCOSAI in Berlin played in the foundation of EUROSAI. The EUROSAI representatives furthermore reported on a joint IDI/EUROSAI Eastern Europe Seminar, which took place in September 1991 in Velence, Hungary, and gave an outlook on other events planned for the future.

5 - 6 - The Governing Board resolved to recognize EUROSAI as a regional working group of INTOSAI. 5.4 The Secretary General reported on an application submitted by the Southern African Development Coordination Conference, SADCC, in April 1991, requesting to be recognized as a subregional organization of INTOSAI. The Secretary General told the Board that he would address a letter to the SADCC acknowledging receipt of the application for recognition as a subregional organization and at the same time informing them that AFROSAI had been requested to comment thereon. When this comment by AFROSAI had arrived, the issue was to be dealt with by another meeting of the Governing Board. 5.5 The Secretary General reported on an application for membership within INTOSAI filed by the SAI of the Marshall Islands in April As the Marshall Islands had been a member of the United Nations since September 17 th, 1991, the requirements for admission were fulfilled. The Governing Board unanimously resolved to admit the SAI of the Marshall Islands as a member of INTOSAI The Secretary General reported on an application for membership within INTOSAI filed by the SAI of Guinea Bissau. As Guinea Bissau had been a member of the United Nations since September 17, 1974, the requirements for admission were fulfilled. The Governing Board unanimously resolved to admit the SAI of Guinea Bissau as a member of INTOSAI The Secretary General reported on the progress made by the INTOSAI Committee on EDP auditing, which was established pursuant to a recommendation of the XIII th INCOSAI in Berlin in 1989.

6 - 7 - Responding to a written enquiry by the General Secretariat, the SAI of India had declared its preparedness to set up and chair this committee. The SAIs of Sweden and the United Kingdom agreed to participate in the work of the commission. The Governing Board unanimously resolved to confer chairmanship in the INTOSAI Committee on EDP auditing to the SAI of India The Secretary General informed the Board on the current state of preparations for the XV th INCOSAI to be held in 1995, which, in following a well-established rotation system, will take place on the African continent. The SAI of Egypt submitted an application to host this congress, another SAI had withdrawn its application. A letter by the SAI of Egypt, in which it stated its willingness to host the XV th INCOSAI in 1995, was brought to the attention of the delegates. The General Secretariat will prepare a full documentation necessary for a decision to be taken thereon for the next meeting of the Governing Board, which will take place prior to the XIV th INCOSAI in The Governing Board adopted the Secretary General's report and reconfirmed the candidature filed by the SAI of Egypt to host the XV th INCOSAI With regard to cooperation between INTOSAI and the United Nations, the Secretary General reported on a joint seminar which had taken place in September 1990 in Vienna, one of the central themes being the accounting and auditing of development aid programmes. A follow-up conference on the same subject staged in Paris in April 1991 by the United Nations, which was inspired by the results of the Vienna seminar, had also been attended by an INTOSAI representative. A further joint UN/ INTOSAI seminar on "EDP auditing" was scheduled for 1992, the venue again being Vienna. The United Nations will defray the cost of travel and accommodation for 15 participants at the said seminar, INTOSAI will sponsor 7 participants. A United Nations representative thanked the INTOSAI Governing Board for many years of fruitful cooperation and gave a summary of past joint UN/INTOSAI seminars.

7 - 8 - The Governing Board supported the motion to finance seven participants at the UN/INTOSAI Seminar 1992 in Vienna with INTOSAI funds earmarked for such purposes. 6. International Journal of Government Auditing Mr. Charles A. Bowsher, Comptroller General of the United States and Second Vice- Chairman of the Governing Board, reported on the business year 1990 of the International Journal of Government Auditing. The panel was then informed about new technologies for the rational production of the Journal and the improvement of its visual presentation by executive officials of the Journal. Reference was also made to the high professional standard of the contributions and articles received and the topicality of coverage. Words of thanks were addressed to those SAIs which enable the Journal's publication in the five INTOSAI languages by providing translation. The Governing Board adopted the report on the Journal. 7. Draft Charter The chairman of the INTOSAI Standing Orders Committee gave a brief survey on the development of the presented draft for the new INTOSAI Charter. The Secretary General elucidated the comments received on the Draft Charter. Following a motion by Costa Rica, paragraphs 1) and 2), Article 3 of the Draft Charter were deleted, since paragraphs 1) and 2) of Article 7 were worded almost identically. The delegate from Kenya suggested to amend Article 4, paragraph 5) h) by adding a provision to the effect that the country hosting the next congress was to be determined by the congress at the proposal of the Governing Board. The Governing Board adopted this suggestion. Referring to Article 5, paragraph 2) 1)a) the Secretary General noted that hosting a congress was - even for well-to-do industrialized nations - a heavy burden on any SAI and that it should be avoided to restrict the opportunity of hosting a congress to a limited number of countries. He therefore supported another suggestion made by the

8 - 9 - Kenyan representative to extend membership in the Governing Board from two to three congress periods, agreeing that the duration of five congress periods as laid down in the current Standing Orders was excessive. The Secretary General nevertheless held the view that the Kenyan proposal should only be adopted by unanimous consent of all Governing Board members. The Governing Board unanimously agreed to set the duration of membership of a congress-hosting country in the Governing Board at three congress periods, with the Governing Board then counting 16 members. With regard to the financial provisions of the Draft Charter (Articles 9 and 10), a draft will be elaborated until after the XIV th INCOSAI in accordance with Article 9, paragraph 8. Australia suggested to set up a committee which should work out the Draft Financial Provisions, with Indonesia assuming the function of rapporteur, and the United States and the General Secretariat participating. The Governing Board carried this motion. In order to allow for a transition from the current Standing Orders to the new Charter with regard to the composition of the Governing Board, transitional provisions were added to the Draft Charter as Article 14. These transitional provisions provide for a total of four Governing Board members to be elected by the XV th INCOSAI in 1995 and lay down a period of membership in the Governing Board for certain countries, which diverges both from the present Standing Orders and from the proposed Draft Charter. The Governing Board adopted the transitional provisions. The Chairman of the Governing Board reiterated all modifications proposed and submitted the entire text as it stood for adoption. The Governing Board then adopted the presented new Draft Charter. The Australian delegate suggested to entrust each outgoing chairman of the Governing Board with carrying out the necessary coordination prior to the election of Governing Board members as laid down in the Standing Orders. He moved to entrust the present chairman of the Governing Board with this task before the forthcoming Congress. The motion was unanimously adopted by the Governing Board.

9 INTOSAI Development Initiative (IDI) The head of the Canadian Office of the Auditor General (OAG) presented the annual report on the INTOSAI Development Initiative (IDI), referring to the mission entrusted by the XIII th INCOSAI in Berlin to the OAG to continue the programme, which is mainly aimed at providing EDP training and development, for a further period of three years. He underlined in particular contacts maintained with the regional organizations. The first vice-chairman emphasized the meritful contribution of Mr. Ken Dye, former Auditor General of Canada. The Governing Board adopted the report on IDI. 9. Reports by the INTOSAI Standards Committees 9.1. The Chairman of the Audit Standards Committee gave a brief account of the further development of the audit standards since the XIII th INCOSAI in Berlin in Audit principles of French-speaking countries were now incorporated in the document. He thanked the head of the Belgian SAI for his cooperative efforts and pointed to the successful meeting of the committee members in Brussels in spring He furthermore suggested that the audit standards as well as all other standards be generally put on the agenda of the meetings of the regional organizations, in order to ensure better coordination with the regional organizations. The Chairman of the Governing Board thanked the Audit Standards Committee Chairman for his outstanding work. The report on the audit standards was unanimously adopted by the Governing Board The Chairman of the Governing Board asked the chairman of the Committee for Internal Control Standards, the Auditor General of the United States, to present his report. The latter drew a survey on the development of the internal control standards and referred to a decision of the INTOSAI Governing Board made at its meeting in Innsbruck (Austria) in A total of 40 SAIs had responded very positively to a draft mail-out and had come up with very constructive suggestions and comments. The Governing Board unanimously adopted the report on the internal control standards.

10 The Chairman of the Committee for Accounting Standards noted the preliminary input by his predecessor, Mr. Ken Dye. As early as May 1990 a provisional draft for parts two and three of these standards had been submitted to the committee. The text presented as part one could serve as a sound basis for further development and finalization. The chairman of the Governing Board felt that the work effected so far was a first compilation of material from which standards could be elaborated. The presented material should be revised by mid-1992, presented in a systematically structured form by spring 1993 to the Governing Board Meeting in Vienna and submitted as a final draft to a vote by the XV th INCOSAI in He once again pointed out how important these standards were. The Governing Board agreed to the suggested timetable With regard to the INTOSAI Public Debt Subcommittee, the head of the Australian SAI recalled that he had been entrusted at the Vienna Governing Board Meeting in 1990 to head this subcommittee under the mandate of the Audit Standards Committee. Given the magnitude of the task, he had asked the head of the Mexican SAI to take over chairmanship of this committee. The head of the Mexican SAI proceeded with further explanations. He thanked the head of the Australian SAI from whom he had received first suggestions on how to deal with the topic for his support and assistance. He then thanked the SAIs of the United Kingdom and the United States for seconding experts to the committee. At a meeting of the Audit Standards Committee in spring 1991 in Brussels a working group had formed, consisting of the SAIs of Argentina, the United Kingdom and the United States. The subcommittee had agreed on the subjects to be covered and the aims to be reached. It had met twice, with representatives from Mexico, the United Kingdom and the United States participating. A good deal of work had been accomplished. A document had been drafted which provided, as a first step, the creation of an information basis for the conduction and evaluation of surveys on the "authorization and contracting of public debt". Another subject for in-depth study was the role and responsibility of SAIs in the context of public debt as well as training measures for public debt accounting. Topics treated by this subcommittee would also be on the agenda of an OLACEFS meeting in Quito, Ecuador, in December It was envisaged to enlarge the subcommittee to a total of ten members.

11 The Governing Board agreed to transform the Public Debt Subcommittee into a separate Committee on Public Debt, entrusting the head of the Mexican SAI with the chairmanship of the committee. It furthermore agreed that a mandate be defined The delegate representing the Finnish SAI commented on a letter addressed to the Governing Board of INTOSAI, in which the Scandinavian SAIs expressed their concern about progress being achieved in the INTOSAI standards committees. The Governing Board unanimously resolved to request the Congress for a mandate allowing it to modify standards. The panel furthermore agreed that the regional organizations include the standards as a regular item on the agenda of their meetings. 10. Awards With regard to the Jörg Kandutsch Award, the Chairman of the Governing Board proposed the appointment of a panel of jurors, consisting of the Secretary General and the SAIs of Costa Rica and the Philippines. The Governing Board adopted this proposal. 11. Miscellaneous A letter by the SAI of Libya addressed to the Chairman of the Governing Board was brought to the attention of the panel. The Board then requested the Secretary General to respond accordingly. 12. Retirement of the Secretary General The chairman of the Board noted that this was the last meeting at which the Secretary General of INTOSAI, Dr. Tassilo Broesigke, who had acted for eleven years, could attend, since his term of office as president of the Austrian Court of Audit expired in mid During this period he not only represented an element of continuity, but also acquired large merits in acting as an intermediary in conflict situations, a skill which he acquired in many years of parliamentary activity. The chairman stressed the hospitality extended by the Austrian Court of Audit when hosting a number of Governing Board Meetings. He

12 also underlined to how much the outgoing Secretary General had contributed to the success of the past three INTOSAI congresses. The Secretary General responded in emotional words of thanks and farewell, calling on the Board members to "... take good care of INTOSAI, as this organization merits to be well looked well after in the interest of cooperation and understanding between the peoples of the world." The Chairman then closed the 35 th Meeting of the INTOSAI Governing Board.

13 General Assembly of OLACEFS Quito, Ecuador, December 2 to 6, 1991 Delegates representing 14 member states, observers from other countries as well as from international and regional organisations attended the General Assembly of the Latin- American and Caribbean Organisation of Supreme Audit Institutions, OLACEFS, which took place from December 2 to 6, The following topics were discussed in the course of the technical programme: Topic I Topic II Topic III Topic IV Auditing public debt Environmental costs and audits Auditing the privatisation of public enterprises Development of audit systems in Latin-American integration projects

14 Preview United Nations DTCD/INTOSAI Workshop on Government Auditing Vienna, Austria, May 27 to June 4, 1992 Venue: Topic: United Nations Vienna International Centre EDP Auditing - Sharing Experiences, Opportunities and Challenges The basic paper will be drafted by the United Nations. Additional documents will deal with the use of EDP as an audit tool, with audits of computer-stored data, audits of EDP systems and the introduction of computer technology in an SAI. Speakers at the workshop will include representatives from the SAIs of Canada, Sweden, the United Kingdom and the United States. The meeting will close with a panel discussion on questions of further education and training in EDP auditing. Funding: The United Nations will defray the costs of travel and per diems for one participant each of the following countries: Bangladesh Bolivia Chile Costa Rica Ethiopia Jamaica Jemen Malawi Mali Myanmar Pakistan Papua New Guinea Philippines Poland Tunisia INTOSAI will defray the on-site costs of the meeting and the travel expenses and per diems of another seven participants who will be appointed at the proposal of their regional organisations.

15 Jörg Kandutsch Supreme Audit Institution Award The Jörg Kandutsch Award, which was established to recognize important achievements in the field of auditing by supreme audit institutions and to commemorate the valuable services of Dr. Jörg Kandutsch, former Secretary General of INTOSAI, will again be presented at the forthcoming INCOSAI in Washington in October 1992 to the head of delegation of the winning SAI. All members of INTOSAI are now invited to present their nominations for this Award to the General Secretariat of INTOSAI in Vienna. Nominations of candidates for the Award must be accompanied by a supporting statement showing the achievements and contributions of the nominee in the following areas: - organisational structure, development and implementation of new methods of work - positive results achieved upon the introduction of well-designed systems for auditing public revenues and expenditure, and - contributions and assistance rendered in favour of other member nations of INTOSAI. The period of eligibility for the award covers achievements or contributions of an SAI in the three calendar years preceding the year of the INCOSAI. Members may not nominate themselves. Please send your nominations to the General Secretariat of INTOSAI, Rechnungshof, Dampfschiffstraße 2, 1033 Vienna, Austria by 30 th May The nominees will then be judged by a panel of jurors which, according to the decisions of the 35 th Governing Board Meeting in Washington 1991, is composed of the SAIs Costa Rica, the Philippines and the General Secretariat.

16 News from member SAIs SAI dissolved Since the German reunification on October 3, 1990, the German Federal Court of Accounts has taken over the function of government auditing in the area of the Former German Democratic Republic (GDR). The State Audit Office of the GDR was dissolved. INTOSAI members should therefore address their mail to: Bundesrechnungshof, Berliner Strasse 51, D Frankfurt 1. Austria The Austrian Court of Audit has issued a Manual of Government Auditing. Divided into two sections, the manual is designed as a valuable tool for auditors in their day-to-day audit work. The Manual is available in German from the Austrian Court of Audit. Please address your order to: Österreichischer Rechnungshof Dampfschiffstrasse 2 A Vienna