Dimension: 1.8.5 Supreme audit institution
This dimension concerns the supreme audit institution (SAI) as the body responsible for auditing public financial administration and the management of public funds. The SAI plays a central role in the efficient, effective, transparent and accountable use of the public resources approved by parliament through the annual budget process.
The SAI is an important, independent source of information for parliament about budget outcomes and performance. Through its reporting to parliament and the public, the SAI provides information to the public about the use of public funds, thereby acting as a significant check on possible misuse of, or corruption in relation to, public funds.
The SAI should have a sufficiently broad mandate, and should audit both the legality and regularity of the accounts of the entities it audits. It should also conduct performance audits, which examine the efficiency and effectiveness of public entities and programmes. An independent SAI is therefore an essential body in a democratic system.
Aspiring goal
Assess your parliament against this dimension
Assessment criteria
No 1: Legal framework
The constitution and/or other aspects of the legal framework provide the basis for the existence, functions and powers of the SAI, and define the entities that it audits.
No 2: Independence of members
SAI members are independent of the executive and the entities that they audit. Members enjoy independence in terms of their appointment to, and cessation of, office, and are persons of integrity and competence.
No 3: Independence of mandate and resources
The SAI has access to the entities it audits and their records and documents, and has the power to require a response to its findings. The SAI has the funding and expert staff necessary to perform its audit functions.
No 4: Relationship between parliament and the SAI
Parliament and the SAI have a special relationship, which is legally defined and well-functioning in practice. The SAI is legally required to report regularly and independently to parliament and the public.
No 5: Practice
In practice, the SAI demonstrates its independence, conducts its auditing work thoroughly, and reports regularly and independently to parliament and the public. Parliament systematically scrutinizes SAI reports and takes action as necessary on their findings and recommendations.
How to complete this assessment
This dimension is assessed against several criteria, each of which should be evaluated separately. For each criterion, select one of the six descriptive grades (Non-existent, Rudimentary, Basic, Good, Very good and Excellent) that best reflects the situation in your parliament, and provide details of the evidence on which this assessment is based.
The evidence for assessment of this dimension could include the following:
- Provisions of the constitution and/or other aspects of the legal framework establishing an independent SAI, and outlining its membership, powers, mandate, resources and reporting requirements
- Information relating to the mandate, resources and powers of the SAI
- Examples of SAI reports and findings
Where relevant, provide additional comments or examples that support the assessment.
Sources and further reading
- David Beetham, Parliament Parliament A national body of elected (or sometimes appointed) representatives that makes laws, debates issues and holds the government to account. and democracy in the twenty-first century: A guide to good practice (2006).
- International Organization of Supreme Audit Institutions (INTOSAI), INTOSAI-P 1: The Lima Declaration, endorsed in 1977, revised edition (2019).
- INTOSAI, INTOSAI-P 10: Mexico Declaration on SAI Independence, endorsed in 2007, revised edition (2019).
- INTOSAI, INTOSAI-P 12: The Value and Benefits of Supreme Audit Institutions – making a difference to the lives of citizens, endorsed in 2013, revised edition (2019).
Get help with this assessment
The assessment of indicators involves diagnosing and considering strengths and weaknesses, i.e. the things parliament is doing well, and the things it could do better or more effectively, taking into account established good practices that are described in the indicators.
Read the assessment guidance to find out what to consider when conducting an assessment against the Indicators. Find out how to prepare, how to set the objectives of the assessment, how to organize the process, and more. Contact the project partners for expert advice.
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