Concept Paper on Post PIFRA Strategy
Audit Competency Centre
A good Public Financial Management (PFM) system is essential for the implementation of policies and the achievement of developmental objectives by supporting aggregate fiscal discipline, strategic allocation of resources and efficient service delivery. An open and orderly PFM system is one of the enabling elements for those three levels of budgetary outcomes: •
Effective controls of the budget totals and management of fiscal risks contribute to maintain aggregate fiscal discipline. •
Planning and executing the budget in line with government priorities contributes to implementation of government’s objectives. •
Managing the use of budgeted resources contributes to efficient service delivery and value for money. The PEFA Performance Measurement Framework identifies External scrutiny and audit as one of the six critical dimensions of performance of an open and orderly PFM system. Auditing services have been changing rapidly over the last decade. Audit practices have been evolving in response to growing public expectations of accountability, and to the complexities in economic and technological advances being made in the organizations. An important recent development has been the challenge of globalization and the need for harmonization of financial reporting in facilitating the most efficient allocation of funds globally. Harmonization applies not only to the financial reporting standards applied in preparing financial statements but to the credibility attached by the audit process. In an increasingly complex world, the OAGP should be able to maintain confidence in its reputation for independence, objectivity, knowledge and understanding of the public sector environment. The OAGP plays an important role in helping to improve financial reporting, project management and accountability in the public sector. OAGP audit reports and related products and services are designed to meet the evolving needs of the Parliament, the Executive and public sector entities. We should be fully committed to providing professional auditing and related services that are of high quality, timely and cost-effective. It should be the independence of the Auditor-General and the OAGP, and the quality and objectivity of our work, that should underpin our standing and reputation. Critical to our success is our ability to recognize and respond to changes occurring in our environment which impact directly and indirectly on the provision of our products and services. The environment we operate in will have a significant and sustained impact on the way we do our work and the cost of meeting our statutory responsibilities. Key environmental issues facing the OAGP include;
The increasing complexity of the public sector operating environment as a result of factors such as: 1. the continuing trend in using the private sector to provide government services to the public with the attendant need for appropriate management and accountability arrangements; 2. the increasing variety of channels being used to deliver services to the community including whole of government approaches; 3. the ever increasing reliance on, and complexity of, information technology systems; 4. the need for more effective use and retention of corporate knowledge and the importance of effective record keeping, particularly electronic records; 5. challenges in recruiting and retaining the required skills for today’s resource person; and 6. an increased focus on the physical environment for example, clean water, poverty alleviation and security matters.
Developments in the accounting and auditing profession:
1. continuing attention to sound corporate governance;
2. the emphasis on risk management and the importance of robust control environments; 3. the adoption of international accounting and auditing standards; 4. the continuing development of government accounting...
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