Rob Prideaux

1
Parliamentary Audit Committees How to make them
work effectively

• Rob Prideaux
• Director of Corporate Affairs, UK National Audit
  Office
• Meeting of Representatives of Supreme Audit
  Institutions, Parliamentary Audit Committees and
  Ministries of Finance of Latvia, Lithuania and
  Estonia
• 17-18 October 2006

2
Key success factors

• An effective constitutional framework of public
  scrutiny
• A close working relationship with the audit
  office
• Productive evidence sessions
• A focus on policy implementation
• Remaining non-partisan and non-political
• Authority and influence

3
Key success factors

• An effective constitutional framework of public
  scrutiny
• A close working relationship with the audit
  office
• Productive evidence sessions
• A focus on policy implementation
• Remaining non-partisan and non-political
• Authority and influence

4
An effective constitutional framework of public
scrutiny

• Statute
• Independence of CAG and NAO
• Remit and powers of the Committee
• Convention
• PAC as NAO reporting route to Parliament
• Opposition Chairman
• Agreed reports

5
The accountability process
Government requests and Parliament grant funds
CAG examines spending and reports to Parliament
Government response
PAC session and report
6
Key success factors

• An effective constitutional framework of public
  scrutiny
• A close working relationship with the audit
  office
• Productive evidence sessions
• A focus on policy implementation
• Remaining non-partisan and non-political
• Authority and influence

7
A close working relationship with the audit office

• Benefits for the National Audit Office
• Focuses us on a clear parliamentary customer
• Raises awareness of NAOs work in Parliament and
  in Government
• Provides a support base in Parliament NAO
  funding reputation
• Can make principled arguments for enhanced
  accountability and wider CAG/ NAO access

8
A close working relationship with the audit office

• Benefits to the Committee
• Enables PAC to cover a high volume variety of
  topics
• Provides expertise and continuity
• Gives PAC a solid evidence base
• Allows the Committee to focus on performance
  issues and future action
• Provides a variety of practical support

9
NAO support to the Public Accounts Committee

• Hearings twice weekly on NAO reports
• 50-60 PAC reports a year based on NAO report and
  oral evidence
• Study programme derived by NAO
• feed PAC interests into programme
• consult PAC on programme annually
• undertake work at PACs request

10
Wider NAO support to PAC Chairman and members

• Advice on topical issues correspondence
• Publication and media support to the Chairman
  press statements, briefings, feature articles
• Bi-annual PAC Debate other speeches or
  interjections in the House of Commons
• Draft speeches to be delivered at other events

11
Key success factors

• An effective constitutional framework of public
  scrutiny
• A close working relationship with the audit
  office
• Productive evidence sessions
• A focus on policy implementation
• Remaining non-partisan and non-political
• Authority and influence

12
Productive evidence sessions

• Clear and simple messages
• NAO support for hearings
• Good PAC witnesses
• Preparing authoritative PAC reports to achieve
  impact
• Effective follow-up

13
Clear and simple messages

• Short reports
• 20 page limit
• Single page executive summary
• Clear headline messages
• Good use of graphics and illustrations
• Avoidance of technical language
• A paragraph providing an overall conclusion on
  value for money

14
NAO support for hearings

• Produce NAO report close to when PAC session will
  be
• Prepare written brief and detailed lines of
  questioning linked directly to the NAO report
• Orally brief the Chairman and Members before a
  hearing
• Attend the evidence session
• CAG as a witness
• Team in support

15
Good PAC witnesses

• Witnesses are senior and relevant (normally
  departmental Accounting Officers)
• Witnesses are well-briefed
• A witness is bound to answer all questions which
  the committee sees fit to put to him or her"
• The witness must respect the process
• The witness should not be arrogant or overly
  defensive

16
Preparing authoritative PAC reports to achieve
impact

• Audit team prepares a draft report for the
  Committee
• Based on the evidence session
• Focuses on issues of concern to MPs
• Teams attend when MPs consider the report
• Report makes detailed and SMART recommendations

17
Effective follow-up

• Government responds formally to PAC reports in a
  Treasury Minute
• NAO provides advice on the Treasury Minute
  response
• NAO follows up as appropriate
• follow-up reports
• briefing to PAC
• monitoring

18
Key success factors

• An effective constitutional framework of public
  scrutiny
• A close working relationship with the audit
  office
• Productive evidence sessions
• A focus on policy implementation
• Remaining non-partisan and non-political
• Authority and influence

19
A focus on policy implementation

• PAC examines how public money is spent
• Avoids discussing the merits of policy objectives
• Enables a pan-government perspective what works
  well in policy implementation?
• Leads to impact and substantive improvements in
  public services

20
Key success factors

• An effective constitutional framework of public
  scrutiny
• A close working relationship with the audit
  office
• Productive evidence sessions
• A focus on policy implementation
• Remaining non-partisan and non-political
• Authority and influence

21
Remaining non-partisan and non-political

• Cross-party membership, led by a member of the
  opposition
• By putting aside political differences, PAC is
  taken seriously by all
• Prepared to be hard-hitting
• Offers praise where its due, especially for
  innovation and well-considered risk-taking

22
Managing the risk of the Committee becoming
politicised

• As political debate becomes more administrative
  (eg the efficiency agenda), PACs work assumes
  greater prominence and media attention
• This increases the profile of the Committee and
  it attracts more prominent politicians
• BUT
• Increases the risk that discussion divides along
  party lines
• NAO must manage this and guard against political
  points being made through the Committee, such as
  by promoting balanced media briefing

23
Key success factors

• An effective constitutional framework of public
  scrutiny
• A close working relationship with the audit
  office
• Productive evidence sessions
• A focus on policy implementation
• Remaining non-partisan and non-political
• Authority and influence

24
Authority and influence

• Both NAO and PAC have a reputation for
  authoritative research, findings and conclusions
• Helped by non-partisan nature and focus on policy
  implementation
• Draws on the expertise of 800 professionally-quali
  fied staff
• A serious test for senior public servants

25
Beneficial impact

• Takes a broad view and makes recommendations that
  cut across government
• Scrutinises the whole delivery chain (private and
  voluntary sector partners, contractors, and
  service providers)
• Produces influential overview reports
• Improving the Delivery of Government IT Projects
  (2000)
• Improving Public Services for Older People (2004)
• Delivering High Quality Public Services For All
  (2006)
• Achieving Value for Money in the Delivery of High
  Quality Public Services (2006)
• Over 94 of PAC recommendations accepted by
  Government
• 555 million saved by NAO/ PAC work in 2005