Relationship between the SAI of Bhutan (RAA) & the Public Accounts Committee (PAC)

1. 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

2. Constitutional Mandate of Supreme Audit Institution - Bhutan • Understanding the Role of the RAA OU T L I N E • Constitutional requirement of Public Accounts Committee - PAC • Deriving the Relationship between the RAA & the PAC based on the Constitutional provisions • Importance of the relationship • Annual Audit Reports & other reports deliberated in the Parliament based on the report submitted by the PAC • Due importance given to the Annual Audit Report by the Parliament • Impact of the Relationship between RAA & PAC

3. The Constitution of the Kingdom of Bhutan S A I - B H U T A N Mandate Royal Audit Authority

4. Direct Accountability • LINKING LAPSES WITH ACCOUNTABILITIES Supervisory Accountability Individual reports to the agencies Performance Audit Financial Audit Certification Report of the Annual Financial Statements • REPORTING • AUDITING Compliance Audit Propriety/Regularity Audit Annual Audit Report Special Audit AG’s Advisory series Environment Audit AG’s Occasional Paper • FOLLOW UP Team level Committee level Divisional Level PAC/Parliament

5. Levels of accountability Purpose of Audit Clearance Who needs AC? A U D I T C L E A R A N C E Promotion O F F I C I A L S Civil Servants including executives System of Fixing the Accountability against the lapses Training Direct Accountability Furtherstudies Govt. Corporate employees Claiming retirement benefits Supervisory Accountability Parliamentary Election Politicians Local Government Election Local Govt. Leaders Promoting Effectiveness of Accountability – in SAI Bhutan

6. 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” • The Annual Audit Reports • AUDITOR GENERAL • Significant individual audit reports • Significant performance audit reports • Other reports such as AG’s Advisory Series

7. 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”. • The National Council • Public Accounts Committee is a joint Committee of both the Houses • The National Assembly

8. A • U • D • I • T • O • R • G • E • N • E • R • A • L • HM. The King Annual Audit Report & any other significant reports • The Prime Minister • The Parliament Review & Report Public Accounts Committee

9. Importance of the relationship between SAI & PAC J O I N T C O L L E C T I V E C O O R D I N A T E D E F F O R T Public Accounts Committee Royal Audit Authority Audit & Report Review & Report Stakeholders Parliament Promoting Accountability End Result Serving the interest of the Bhutanese Citizens

10. Public Accounts Committee of the First Parliament Some of the reports reviewed & submitted to the Parliament includes • AG’s Advisory Series • 9th Plan Review of Chukha District • 9th Plan Review of Dept. of Roads • Bhutan Broadcasting Services Corp. • Constitutional Development Grant • Farm Roads in Bhutan

11. 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 % 7th Session 2011 9th Session 2012 5th Session 2010 3rd Session 2009 2nd Session 2008 20 days 23 days 31 days 24 days 33 days 3 days 3 days 5 days 2 days 4 days 13% 6% 22% 12% 15%

12. 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) Impact of the Relationship

14. THANK YOU