Relationship between the SAI of Bhutan (RAA)

& the Public Accounts Committee

(PAC)“A binding relationship that promotes accountability”

An experience of (Dasho) Ugen Chewang, Auditor General of Bhutan

OUTLINE

Constitutional Mandate of Supreme Audit Institution - Bhutan

Constitutional requirement of Public Accounts Committee - PAC

Deriving the Relationship between the RAA & the PAC based on the Constitutional provisions

Annual Audit Reports & other reports deliberated in the Parliament based on the report submitted by the PAC

Impact of the Relationship between RAA & PAC

Due importance given to the Annual Audit Report by the Parliament

Understanding the Role of the RAA

Importance of the relationship

The Constitution

of the Kingdom of

Bhutan

Mandate

Royal Audit Authority

SAI-BHUTAN

Article 25.1 of the ConstitutionThere shall be a Royal Audit

Authority to audit and report on the economy, efficiency and effectiveness

in the use of public resources

LINKING LAPSES WITH

ACCOUNTABILITIES

AUDITING REPORTING

FOLLOW UP

Performance Audit

Financial Audit

Compliance Audit

Propriety/Regularity Audit

Special Audit

Certification Report of the Annual

Financial Statements

AG’s Advisory series

AG’s Occasional Paper

Direct Accountability

Supervisory Accountability

Team level

Divisional Level

Committee level

PAC/Parliament

Annual Audit Report

Individual reports to the agencies

Environment Audit

System of Fixing the

Accountability against the

lapses

OFFICIALS

Direct

Accountability

Supervisory

Accountability

AUDIT

CLEARANCE

Promotion

Training

Further studies

Claiming retirement

benefits

Parliamentary Election

Local Government

Election

Levels of accountability

Purpose of Audit Clearance

Who needs AC?

Civil Servants including executives

Govt. Corporate employees

Politicians

Local Govt.

Leaders

Promoting Effectiveness of Accountability – in SAI Bhutan

AUDITOR GENERAL

Article 25.5 of the Constitution“The Auditor General shall submit an annual audit report to His Majesty the King, the Prime Minister and the Parliament”

Submits to His Majesty the King, the Prime Minister

and the Parliament

The Annual Audit Reports

Significant individual audit reports

Significant performance audit reports

Other reports such as AG’s Advisory Series

Public Accounts

Committee

The National Council

The National Assembly

Article 25.6 of the Constitution:

“Parliament shall appoint a five member Public Accounts Committee, comprising members of Parliament who are reputed for their integrity, to review and report on the Annual Audit Report to Parliament for its consideration or on any other report presented by the Auditor General”.

is a joint Committee of both the Houses

HM. The King

The Prime Minister

The Parliament

Public Accounts

CommitteeReview & Report

Annual Audit Report & any other significant reports

AUDITOR

GENERAL

Importance of the relationship between SAI & PAC

Promoting

Accountability

JOINT

COLLECTIVE

EFFORT

COORDINATED

End Result

Serving the interest of the Bhutanese Citizens

AG’s Advisory Series

9th Plan Review of Dept. of Roads

9th Plan Review of Chukha District

Some of the reports reviewed & submitted to the Parliament includes

PUBLIC ACCOUNTS COMMITTEE OF THE FIRST PARLIAMENT

Bhutan Broadcasting

Services Corp.

Constitutional Development

Grant

Farm Roads in Bhutan

Due Importance given to AG’s report by the PAC & 1st Parliament of Bhutan

Sessions during which AG’s report

deliberated

No. of days allocated for whole Session

No. of days allocated for AG’s report

deliberation%

2nd Session 2008 23 days 5 days 22%

3rd Session 2009 24 days 3 days 13%

5th Session 2010 31 days 2 days 6%

7th Session 2011 33 days 4 days 12%

9th Session 2012 20 days 3 days 15%

Parliamentary directive to impose 24% penalty on overdue accounts

Strong follow-up action on unresolved audit observations

Fostered greater sense of accountability

Resolved all pending audit issues up to 2007

Resolved over 90% of the pending audit issues up to 2010 (unresolved cases pertain to pending court cases)

2007 2008 2009 2010 2011 Total0

50

100

150

200

250

300

350

79.6

52.857.2 62.8

87.4

339.8

Audit Recoveries made over 5 yearsN

u. in

mill

ion

THANK YOU