This year’s theme for the joint seminar organised in collaboration between the National Audit Office (NAO) and the European Court of Auditors (ECA) touches on the heart of the primary mission of these respective entities. Indeed, this year’s seminar was about ‘Supreme Audit Institutions: How Can They Influence Governments to Address Citizens’ Concerns’.
NAO and ECA auditors as well as their auditees – which in this case are the leadership of the public service – are actively committed to offer the best possible service to citizens. Citizens should never view the relationship between them as adversarial, as sometimes seems to be the case. Rather, there should be complementarity between the auditor and the auditee since these have one common objective.
One cannot speak about this complementarity without making reference to the International Standard for Supreme Audit Institutions (ISSAI) 12. This is entitled ‘The Value and Benefits of Supreme Audit Institutions – Making a Difference to the Lives of Citizens’.
Every public auditor is aware that this document emphasises the considerable benefits that citizens can derive from the objective and independent service provided during audits conducted across the public service. Since the NAO does not have any executive powers, its audit service ultimately provides significant added value only when the recommendations it makes are implemented in a reasonably timely manner.
The report issued recently, entitled ‘Governance Action on the Annual Report by NAO on Public Accounts 2017 and other NAO Reports 2018’, is a very positive initiative, especially since enhanced accountability and transparency – two main pillars of good governance – lead to a more efficient and effective public service for all citizens.
The fact that such improvements will ultimately make an impact on the lives of citizens is a great satisfaction for all auditors. Referring to the Performance Audit that NAO had published in January 2014 relating to abuses in the social services field, it should be noted that, as a result of this report, the Ministry of Social Policy set up a task force incorporating experts from different fields and headed by the Permanent Secretary, Mark Musù.
The NAO actively participated in this task force and, eventually, new regulations were issued with the objective of curbing social benefits abuse. This led to a sharp decline in abuse in this important sector that incurs more than a quarter of the recurrent expenditure of the nation’s budget.
The fact that such improvements will ultimately make an impact on the lives of citizens is a great satisfaction for all auditors
As stated during a symposium held in Vienna last year, the tangible contribution given by Supreme Audit Institutions in order to promote accountability in the public service is intrinsically linked to Sustainable Development Goal 16 that, inter alia, encourages autonomous and effective institutions for good governance in the country.
It is imperative that Supreme Audit Institutions, like the NAO, continue to enjoy the respect and full confidence of citizens. Obviously, this respect needs to be hard-earned. This can only be ensured if all audit assignments are conducted, without fail or exception, according to the fundamental values of objectivity, independence, professionalism and integrity.
Admittedly, enjoying such respect (although it is a sine qua non condition) is not enough for national audit institutions to remain relevant and useful. The NAO needs to continue being increasingly innovative in its work. This requires it to be at the forefront in adopting new work systems based on rapid and ongoing technological developments to render its operations more efficient and effective.
In fact, the NAO is developing its data-analytics capability, allowing it to be more accurate in its data analysis. The Office also recognises the need for enhancing communication with citizens, both at the initial stage when deciding which areas to audit, as well as at the final stage when reports are eventually published.
To render its reports as user-friendly as possible, the Office is making better use of infographics as well as social media, which today is no longer an option.
The NAO is always ready to accept constructive criticism since this is the only way by which it can continue improving its performance. That being said, such criticism always ought to be constructive and fair. Unfortunately, negative and unfair criticism only leads to loss of public confidence in our institutions, which is very harmful to our country.
The NAO’s vision, built on the above considerations, is essentially based on the Office’s strategic plan, published in October 2018. As reflected in its title, this five-year plan focuses on the primary mission of the Office to enhance its contribution towards the improvement of governance and performance in the public sector.
While communication with citizens should be strengthened to become more effective, the Office must at the same time ensure that this will not result in any negative impact on independence. Without total independence, no national audit institution can fulfil its mandate effectively and objectively or preserve the full trust of citizens.
More effective communication with citizens should therefore never lead to any form of interference in the operations or decisions related to audits undertaken by the NAO. At the same time, the absolute need to safeguard our independence should never be used by the Office as an excuse not to communicate more effectively with citizens.
The NAO should not remain in its comfort zone since, if it wants to improve, it cannot afford to resist implementing the necessary changes. The Office must always be ready to adopt any methodology or system used successfully in other auditing institutions. Hence, continued cooperation with colleagues in foreign national audit offices is essential for the correct functioning of Malta’s national audit institution.
Charles Deguara is the Auditor General at the National Audit Office
Parts of this article were originally presented as a speech addressed to the auditors present at the joint seminar organised by the National Audit Office (NAO) in collaboration with the European Court of Auditors (ECA) on July 8, 2019.