THE ROLE OF OFFICE OF THE AUDITOR GENERAL (OAG) IN THE MANAGEMENT AND ACCOUNTABILITY OF PUBLIC RESOURCES IN ZAMBIA.

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THE ROLE OF OFFICE OF THE AUDITOR GENERAL (OAG)
IN THE MANAGEMENT AND ACCOUNTABILITY OF PUBLIC
RESOURCES IN ZAMBIA.

• PRESENTER - T. CHIKONKO
• Assistant Director - Copperbelt Province

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MANAGEMENT

• Life is all about management. Although in the
• corporate world, management has several
  definitions, I
• just want to refer to two major ones
• the act of getting people together to accomplish
  desired goals and objectives, or
• the process of getting activities completed
  efficiently and effectively with and through
  other people to gain the best return on all
  resources.
• Unfortunately, the role of OAG in management
• of public resources may not be very obvious.
• However, it comes out as an off shoot of the
  effect
• that the office has on accountability.

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ACCOUNTABILITY

• To be held accountable means that you are
  required, whether by law or custom to provide a
  statement of your actions to those with a
  legitimate interest.
• The parliamentary system contains the BEST CHECKS
  to ensure that a government remains accountable
  in all its actions.

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ACCOUNTABILITY CYCLE

• Every year, the Minister of Finance and National
  Planning presents the national budget which,
  among many other issues, sets out the needs of
  government and how they would be met.
• Based on the Budget, Government collects
  revenues, borrows funds and receives grants from
  cooperating partners.
• The funds raised are given to Ministries,
  Provinces and other spending agencies (MPSA)
  according to the approved budget.
• Ministries Provinces have Accounting staff
  employed by government to carry out the
  Accountability duties in accordance with the
  Public Finance Act of 2004

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ACCOUNTABILITY CYCLE (continued)

• In a private company, Managers and Directors are
  required to account on their stewardship to the
  shareholders through the presentation of audited
  financial statements,
• In the same way, Governments account on their
  stewardship to the tax payers, by providing
  audited financial statements.
• This Government proof of accountability is
  achieved through the work of the Office of the
  Auditor General (OAG).

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ESTABLISHMENT/MANDATE

• Article 121 and 122 of the constitution of Zambia
  establishes Office of the Auditor General
  headed by the Auditor General (AG) who is
  appointed by the President and ratified by
  National Assembly.
• These articles
• Confer duties, responsibilities and rights of the
  AG,
• Prescribe tenure of office of the AG,
• Allows for enactment of other laws Public Audit
  Act Cap 378 - empowers the AG to audit
  statutory bodies, departments and private
  entities that receive government grants.
• The office does not belong
• to any Ministry.

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MISSION STATEMENT

• Office of the Auditor General exists in
• order to provide quality audit and related
• consultancy services to Government and
• other institutions in order to PROMOTE
• ACCOUNTABILITY and value for money
• in the MANAGEMENT of public funds
• and other resources for the benefit of
• SOCIETY.

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GOAL/OBJECTIVE STATEMENT

• The goal of the office is to increase the scope
  and coverage, and improve the quality of audit
  services in order to contribute to the
  ENHANCEMENT of ACCOUNTABILITY in the MANAGEMENT
  of public resources.
• The objective of the OAG is to conduct
  independent, timely and cost effective audits to
  ENHANCE optimal collection and utilization of
  resources by those entrusted with the
  responsibility to collect or to spend.

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TYPES OF AUDITS PERFORMED

• Previously only Financial and Regularity audits
  were conducted.
• Now other types of audits such as Forensic,
  Performance and Environmental Audits are carried
  out. However, here on the Copperbelt, I only
  coordinate Financial and Regularity audits.

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AUDIT PROCESS

• Auditing
• History Auditing comes from a Latin word called
  Audire which means to Hear. In the middle
  ages owners of property entrusted it to others to
  manage. Once in a while they would go hear
  how managers of their properties had performed.
  However, this has evolved in modern days and is
  now described as An independent examination of
  and expression of opinion on a set of financial
  statements.
• Owners now appoint financial specialists to go
  through the records
• maintained by managers of property and report to
  them.
• And during each audit exercise, auditors in the
  OAG
• Examine records and ask questions to SATISFY
  THEMSELVES whether the ACCOUNTABILITY PROCESS set
  up within the institution is being adhered to,
• Discuss their findings with the auditee
  throughout the period of the audit,
• Brief the management staff at the end of the
  audit issue an Audit Inspection Report which
  should be responded to within 1month.
• In cases where we suspect that financial crimes
  have been committed, management is advised to
  report to relevant law enforcement agencies.

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AUDIT PROCESS..

• At the end of 1 month, all unresolved paragraphs
  are compiled in a Draft Audit Reference Sheet
  (DARS), signed by the Director of the directorate
  that audited the institution.
• Two weeks later if issues have not been resolved
  a Draft Annual Report Paragraph (DARP) is issued
  informing the Controlling Officer that the
  contents of the document will be a paragraph in
  the Auditor Generals Annual Report.
• A DARP is signed by the Auditor General.

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AUDIT REPORTS

• Earlier on I stated that the Minister of Finance
  and National Planning presents the Budget to
  National Assembly. The constitution also requires
  that the Minister lays before the National
  Assembly, the audited Financial Report The
  ACCOUNTABILITY REPORT, nine months after the end
  of the fiscal year.
• It is the responsibility of the Auditor General
  to audit this Financial Report before the
  Minister presents it to the National Assembly.
• Thereafter, the Auditor General submits her/his
  Annual Report, not later than 12 months after
  the end of the financial year, to the President
  who causes it to be laid before the National
  Assembly.

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AUDIT REPORTS

• Other types of reports are submitted in the same
  manner and are tabled in the National Assembly as
  soon as they are ready.
• Through the Annual Audit Report the Auditor
  General informs the public (who are the
  shareholders) of the results of her/his audit on
  public finances. One English man said that the
  Auditor General is not a BLOOD HOUND but a
  WATCHDOG of the public purse. So his/her role
  ends in reporting to Parliament.
• It is therefore important that members of the
  public takes keen interest in the Auditor
  Generals report as it tells them how tax payers
  money has been spent by those entrusted with the
  responsibility to do so.

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PUBLIC ACCOUNTS COMMITTEE(PAC)

• The National Assembly hands over the
• Auditor Generals Report to PAC.
• This is a general purposes committee of the
  National Assembly.
• It consists of nine(9) members, eight(8) from the
  back bench and the ninth member is the honourable
  Minister of Finance and National Planning
  (Ex-Official).
• Its Chair person traditionally belongs to an
  opposition party.

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FUNCTIONS OF PAC

• To examine the accounts showing the
  appropriation of sums granted by the National
  Assembly to meet the public expenditure.
• To examine the reports of the Auditor General on
  the accounts of the Republic.
• To report on their findings, observations and
  recommendations to Parliament.

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PAC RELATIONSHIP WITH OFFICE OF THE AUDITOR
GENERAL

• The committee largely bases its work on the
  reports of the Auditor General on the accounts of
  ministries, departments, as well as parastatals
  and other institutions receiving government funds.

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CONCLUSION

• The role of the OAG is to
• PROMOTE ACCOUNTABILITY
• and value for money in the
• MANAGEMENT of public funds
• and other resources for the
• benefit of SOCIETY.
• www.ago.gov.zm

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I REST MY CASE!

• ANY QUESTIONS????