Audit of Disaster Preparedness

1. Audit of Disaster Preparedness Arife COSKUN Turkish Court of Accounts Principal Auditor/ Audit Manager Preparedness INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

2. TCA’s Tasks within the AADA • Preparation&elaboration of the guidance for auditing disaster-preparedness. (Task 8) • Organization and coordination of a parallel audit on disaster-preparedness, on the basis of the Draft Audit Guidelines, especially the audit programme.(Task 9) INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

3. The Draft Guidelines For Auditing of Disaster Preparedness Responsible SAIs: • Austria • Kenya • Turkey (lead) INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

4. Respondent SAIs INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

5. Australia China Germany Hungary Japan Mexico Netherland Philippines Criticism and Contributions INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

6. TECHNOLOGICAL (Nuclear weapons, nuclear plant melt down, etc.) HYDROLOGICAL/METEOROLOGICAL (Windstorms, floods, tornados, draughts etc.) NATURAL DISASTERS GEOPHYSICAL (Earthquakes, tsunamis, land slides, etc.) MAN - MADE CLIMATOGICAL (Desertification, freezes, etc.) BIOLOGICAL (Plagues, Epidemics, etc) SOCIOLOGICAL (Terrorism, Famine, etc) COMBINATIONS DISASTERS ContributionsPart l: Types of Disaster INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

7. Present Introduction Challenges for the Auditor Mandate Types of Audit Planning and carrying out the audit work Suggestion Rationale/Audit function or legislative authority of the audit Planning and risk assessment - Audit objectives - Audit scope - Audit Methodology Execution - Audit programme Conclusion and reporting: Findings and recommendations ContributionsPart ll: Audit of Disaster Preparedness INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

8. Present Main Recommendation: SAIs should have full authority to access all kinds of information concerning the subject, including internal and external audit reports, as well as having an audit mandate that covers all activities. Basis of Main Recommendation: The SAI is the only institution with the potential to audit all the structures concerning disaster preparedness. If this is not yet the case, the SAI’s mandate should therefore be extended and broadened so as to involve all relevant institutions in its scope. Criticism In the guidelines, it shouldn’t be suggested that SAIs should have a full mandate to audit all relevant institutions. Suggestion SAIs’ biggest concern should be that an appropriate external audit should be conducted on all relevant institutions and SAIs should be able to obtain results from those audits. In accordance to this perspective, the statements should be reformulated regarding the extension of the mandate of SAIs. ContributionsPart ll: Audit Mandate INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

9. ContributionsPart ll: Audit Types Criticism: Both financial& performance audit are applicable in the audit of disaster preparedness. Therefore, which type of audit is the best shouldn’t be paid too much attention. Present: Compared to Financial Audit • Performance audit adds most value to auditing disaster preparedness. • Performance audit directly covers all aspects and activities of disaster preparedness management and reports as a whole. INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

10. ContributionsPart lll: Audit Programme Identification of the Disaster Characteristics • What are the possible combinations of the types of disasters? • What is the recent experience of major disaster? What were the government’s responses? What are lessons learned? • Has government estimated the costs and benefits of alternative mitigation efforts? • What is the probability of occurrence for each type of disaster taking into consideration geographic location of the country? • Types of climate/season of the country? • Are there assessments and early warning systems, standby arrangements for disaster, relief (i.e. inventory mgt/availability of goods) and emergency response? • The auditor should also need to have knowledge of whether there is reserve for materials which could be used for disaster preparedness • …… INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

11. ContributionsPart lll: Audit Programme Specifying and Understanding the NationalStrategy and Action Plans • The auditor should also examine whether a consistency and harmonization could be identified between the disaster plans in various regions and national disaster plan • Is the public ensured to access those plans? If yes, what are the methods to disseminate them? • To what extent do the disaster plans have compelling force? (e.g. limitations of ownership or property rights in case of emergency.) • What are reviewing entities? Are they independent third parties with objective views? • What disaster mitigation investment decision is government facing? • What does government know about threat, vulnerability and consequences? • Is the National Disaster Plan properly disseminated to all units of government? • …………………… INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

12. ContributionsPart lll: Audit Programme Identification of the framework and organization of the authorities involved • Are there any specific plans which ensure that the government will continue their operations even in case of a disaster? • The auditor for disasterpreparedness should also focus on how the coordination and the concertedactions could be achieved by various entities involved in disaster preparedness. • Is there an existing communication system that will effectively provide timely information to each level of government with regard to disaster preparedness? • What are the lessons learned from previous experiences of disasters in view of the framework and authority of related organizations? • …………………… INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

13. ContributionsPart lll: Audit Programme Assessment of the adequacy of coordination • Is the good horizontal communication among entities concerned ensured? Have persons to contact been identified? • What alternative means of communication, such as telephones, radios and internet, are prepared? Are there multiple options in case of a disaster? • Have expected activities in case of disaster been properly prioritized among stakeholders beforehand? • Is the expected level of coordination between and among the concerned agencies achieved during the occurrence of disasters? • …………………… INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

14. ContributionsPart lll: Audit Programme Evaluation of disaster management tools • Is there an existing disaster management information system to analyze risks and plan the disaster efforts to mitigate the impact? • Is the conduct of risk assessment and vulnerability assessment activities properly documented for reference and audit purposes? • If the government has a geographical information system (GIS), has it been tested for efficiency and effectiveness? • Is there an assessment being done by the agency to measure the efficiency and effectiveness of its disaster management tools and measures? When is the assessment done? • Are the results of this assessment used for decision-making and for improvement of future disaster management initiatives? • …………………… INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

15. ContributionsPart lll: Audit Programme Evaluation of emergency exercises and training • In order to raise public awareness, is the information on disaster drills properly open to public and easy to access? • At the local level, have more practical matters such as evacuation area, route been continuously considered, disseminated and reflected in the disaster drills? • Are local drills and simulation exercises conducted at all levels of the government? • Are training functions and activities assured of not being duplicated or overlapping? • Are they also informed of the government’s disaster risk mitigation and awareness campaign? • …………………… INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

16. ContributionsPart lll: Audit Programme Evaluation of disaster funds and grants administration • Regarding donated funds to be audited, how is the accountability including transparency in the use of them ensured? • Has the management process of receiving, managing, spending and recording been clearly established for each of different channels of funds, such as governmental fund, domestic and foreign donations? • The auditor should also examine how the policies of the central and local governments give impacts on the allocation of the funds,as well as on the choosing of the projects receiving the funds. • Are there specific laws in the country that govern the allocation and utilization of funds for the National Disaster Plan and are they complied? • Has the central government developed Guidelines in the Accounting and Utilization of Disaster Funds? Are they complied with? • Is there a periodic reporting of funds allocation and utilization by recipient agencies? INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

17. Present “The auditor should first have knowledge of the following issues” “The auditor should focus on these points” Suggestion “Having knowledge of the following issues are commonly agreed upon/endorsed by INTOSAI” “Focusing on these points are agreed upon by INTOSAI” ContributionsWording of Audit Programme INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

18. ContributionsLesson Learned Suggestion • The information in this chapter should be integrated into the description of the purpose of this guidance and part ll. INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

19. ContributionsAudit Plan of SAIs • In order to respond efficiently to the possible occurrence of disaster all of a sudden, SAIs should prepare an audit plan in advance. INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

20. Studies for Preparing Guidelines • Document analysis • Reviewed some articles & studies • Examined some disaster management acts • Made a study of some disaster plans concerning disaster preparedness • Interviewed with some institutions&organizations • Examinedsome reports on GIS • Sent the survey to the INTOSAI members and analysis of the results • Examined the audit reports INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

21. The Big Earthquake in Marmara Region(1999) • Magnitude: 7.4 and 7.2 • 18.243 citizens lost their lives • 48.901 people injuries • 376.379 dwelling units and workplaces were damaged • about 600.000 homeless. INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

22. Two Study in the Aftermath of the Earthquake (1999) The Activities of Reconstruction in the Aftermath of Earthquake in Marmara Region in 1999 INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

23. Two Study in the Aftermath of the Earthquake (1999) How well is Istanbul Getting Prepared for the Earthquake? INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

24. How well is Istanbul Getting Prepared for the Earthquake? Explored: • How the activities towards minimizing a possible Istanbul earthquake damage were planned and executed. • To the extent to which the plans and works done can be effective and sufficient in earthquake hazard mitigation. Searched: • Whether risks and priorities were taken into account in facing and solving problems. • Adequacy and deficiencies in the building development planning and implementation activities of Metropolitan and district municipalities that aims at ensuring construction of earthquake-resistantbuildings. INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

25. Audit Main Questions • Does Organizational Structure charged with Earthquake Preparedness for Istanbul measure up to meet necessities? • Are building development plans, their implementations and building reinforcement works executed in such a way that is to minimize earthquake damages? INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

26. Q.1: Organizational Structure Handled the following issues; • How an organizational structure prepares Istanbul for earthquake? • How are resources allocated for earthquake preparedness? • Is effective coordination and cooperation established? • Are activities properly planned and executed? • Is there sufficient work related to fires that increase earthquake damages? • How well do service groups prepare emergency plans? INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

27. Q.2: Building Development Plans& Building Reinforcement Works Evaluated sufficiency of • Building Development Planning • Construction Practices and • Reinforcement of Existing Structures INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

28. Importance of Audit Mandate Auditees visited during the on-site audit: • Disaster Management Center established within the Office of Istanbul Governor • Metropolitan Municipality Department of Fire Brigade • Istanbul Metropolitan Municipality • District municipalities, located in the first-degree seismic zone INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

29. Collaboration with the Other Actors Formulating audit criteria and obtaining audit findings were evaluated with • A significant number of scientists known to have contributed in minimizing earthquake risks, • Heads of relevant professional associations, • Representatives of NGOs INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

30. Conclusions and Recommendations of the 21st UN/INTOSAI Symposium-2011 The theme: “Effective practices of cooperation between SAIs and citizens to enhance public accountability”. • This provides the opportunity to assess both how SAIs engage citizens in their own work, as well as how SAIs communicate their work to citizens. • Aware that citizens have become natural partners of SAIs in terms of enhancing transparency in the public accountability process. • Noting that awareness of citizens’ expectations enables SAIs to include these in their strategic, action and audit plans as appropriate, which also could enhance the credibility of their reports. • By making SAIs’ reports public, they make government actions transparent for the citizens; and, by being responsive to the legitimate concerns of citizens, the civil society and the private sector, they help to build public confidence. INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

31. Top-downAudit Perspective (based on an overall owner perspective) Bottom-up Audit Perspective (viewed as an interpretation of the audit mission in order to meet citizens’ interest in having SAIs focus on problems of real significance to the people and the community) Audit Perspective INTOSAI Auditing Standards: Performance auditing must be free to examine all government activities from different perspectives. INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

32. Main Questions for Next Steps • What makes auditing disaster preparedness different than auditing any other policy area/measures? • How to contribute to the efforts towards enhancing accountability in this area and activities out of SAIs’ audit mandate? INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

33. Azerbaijan Chile India Indonesia Netherland Philippines Romania Ukraine Parallel/Coordinated Audit on Disaster Preparedness • Turkey (Lead) INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada

34. Thanks for your Patience&Contributions Arife COSKUN Turkish Court of Accounts (TCA) Principal Auditor- Audit Manager e-mail: acoskun@sayistay.gov.tr Tel: +90 312 295 37 01 INTOSAI Working Group AADA 5 th Meeting in Antalya, October 2011-www.sayistay.gov.tr/aada