Pacific Association of Supreme
Audit Institutions
Suva, Fiji, September 1998
Conscious of the common cultural, social, economic, and political relationships of the peoples of the Pacific Island Nations
Convinced of the need for the Governments to attain their objectives with due regard to accountability and transparency of objectives, and consequently public accounts, and the necessity for the public audit to ensure the efficient, effective, economic, and environmentally safe utilisation of public resources
Recognising the Pohnpei Accords of 1996 as a living document that needs constant support and enhancement
Members of the South Pacific Association of Supreme Audit Institutions (SPASAI) endorsed the following Accords in the Congress held in Suva, Fiji in September 1998:
For the role of the SAI to be a properly independent and constitutional one, the SAI and its functions should be accountable and subject to periodic reviews.
There were two schools of thought on this matter. Some delegates were of the view that the legislature, particularly the Public Accounts Committee should periodically review the SAI. The risk with this approach is that the members of the Public Accounts Committee, particularly the government members, may perceive the success of the SAI as a threat and may ultimately take steps to the detriment of the SAI.
The second view was that the manner in which the SAI should be reviewed should be legislated. This approach would ensure that the level of subjectivity is minimal.
SAls recognised that to be independent, the following essential characteristics of independence (precepts of the Lima Declaration) should exist:
Auditors-General, like any other institution, must accept that they are accountable for their stewardship of the resources given to them and the performance of their functions. The accountability should be to Parliament and not to the audit client. However, SAls must recognise that Government controls Parliament and its influence can be pervasive; independence therefore benefits from effective monitoring of SAls by Parliament.
While Auditors-General are to be seen as accountable, accountability should not be at the total expense of independence. SAls need to find the right balance between accountability and independence. The balance is influenced by the strength of the relationship between the Auditor-General and Parliament.
SAls undertaking institutional strengthening projects must ensure that the major stakeholders are involved.
It is important that the major stakeholders including the Legislature, the Executive, the Government and the media are well aware of the changes or developments taking place in the SAI otherwise it would appear that the SAI is furthering its own interests.
SAIs must ensure that they provide value-added service.
The public must know that the SAI is adding value through its auditing services.
SAIs must design and implement mechanisms to gather and share knowledge.
At present most of the smaller island nations only receive knowledge and information from the more advanced members of the SPASAI. It would be more appropriate if there is sharing of knowledge from both sides because most of the problems that threaten accountability cut across national boundaries.
It is vital that the smaller island nations gather and share relevant knowledge amongst themselves on a regular basis.
SAIs must focus on the concept of capacity development.
In this process SAls should note that:
SAls must continue to stress that their responsibilities are to report to Parliament (not the Government) in respect of the accounts and operations of government.
SAls should actively inform the public and media of this role.
SAls should support the adoption of public sector accounting and disclosure principles as a statutory code backed up by enforcement.
SAls continue to recommend changes in accounting and management systems for better and more accountable practice.
SAls support and promote the existence of Public Accounts Committees, tasked to examine and report to the Parliament on audit reports and to conduct other inquiries.
SAls ensure that audit plans where possible include testing of compliance and probity aspects including internal controls.
SAIs must act where possible to have agencies make up backlogs in accounting and reporting where these exist, reporting such arrears to the Parliament, and recommending ways for agencies to improve reporting.
SAls should be timely in their own reporting so that audit results, findings and recommendations are current.
SAls support the adoption of appropriate accounting treatments such as the application of generally accepted accounting principles, accrual accounting and recording and management of assets.
SAI recommend where possible logical and clear trails of decision making by governments.
SAls support stronger rules of disclosure by agencies in their reporting - accounting disclosure, performance indicators, output and outcome measures.
The association should develop standards for preferred accountability practices e.g. in relation to checklists of Corporate Governance, Codes of Conduct and Ethics, Disclosure and Registers of Interests, and procedures for enforcement. These standards should be along the lines of the INTOSAI standards on internal controls.
There is a need for roles and responsibilities of government agency to be clearly identified.
There is also a need for agencies to identify and report against key results which align with government's policy objectives, including non-financial indicators.
There is a need to identify minimum standards regarding accounting for the operation, maintenance and replacement of infrastructure assets, including plans to address risks from natural disasters and contingency plans to deal with such events.
The role and responsibility of Auditors-General in provision of prospective assurance should be clarified including clear statement on role and rights of Auditors-General in relation to parties providing services to Government under contract.
There is a need for training in dealing with restructuring and organisational reductions and generally on accounting and auditing developments.