Promoting Good Governance in the Public Sector through the SAI’s Jurisdictional Functions

1. Promoting Good Governance in the Public Sector through the SAI’s Jurisdictional Functions The case of Tribunal de Contasof Portugal Conceição Ventura

2. The Portuguese Court of Auditors at a glance Overview of TCP jurisdictional powers Strengths and weaknesses (Impact of these functions in society Discussingimprovementswithsociety Mainresults Envisagingthe future 2

3. The Portuguese Court of Auditors at a glance Supreme, independent Audit Institution of Portugal Court model, laid down in the Constitution as a sovereign body; Makes part of the Judicial system; • Therefore, constitutionally established principles for Courts apply to the SAI, as for instance: • The principle of independence and exclusive subjection to the law; • The right to cooperationfrom other entities • The principles that decisions must be grounded, that they are obligatoryand that they must prevail • The principle of publicity 3

4. The Portuguese Court of Auditors at a glance Collegial body composed by the President and 18 Members(Including one member in each regional chamber) The members of the Court have the same rights and privileges of the Judges of the Supreme Court and are appointed after a public competition Legal certification from 2019 on! The mission of the Court is: To control the legality and regularity of public revenues and expenditure To appreciate the financial managementwithin both Administrative Public Sector and Business Public Sector To control the application of financial resources arising from the European Union The number of entities under the Court’s actionis vast, and generally encompasses any and all entities in charge of public funds or assets, irrespective of their legal nature 4

5. The organisation of the Court The Portuguese Court of Auditors at a glance 5 Chambers: 3 specialized and 2 generic Acts produced by the Court 1stChamber exercises a priori control competencies and concomitant control of acts and contracts 2nd Chamber exercises concomitantand a posterior audit 3rd Chamber exercises the jurisdictional function 2 Chambers with all these functions in the Autonomous Regions ( Madeira and Azores) • Report and opinion on the General State Account (addressed to Parliament ) and on the Accounts of of the Autonomous Regions (addressedto the Assemblies/ Parliaments of the Region) • Audit reports • Decisions on seal approval concessionor refusal • AnnualReport • Judgementdecisions • Fines imposition 5

6. The Portuguese Court of Auditors at a glance Main 2017 outcomes 26,1 M € 0,03% TCP Budget Portugal budget 3538 acts a priori controlled 39 seal refusal 228.500 M€ Controlled 1 459 controlled entities 78 Audits 723 accounts verified 3 reports and opinion on the General State Accounts (National and Regional level) 30 Liability enforcement procedures initiated 357 complaints analysed 6

7. Overview of TCP jurisdictional powers These powers are brought to practice through two main competencies allocated to the Court by the Constitution: Regional Chambers 3rdChamber 1stChamber To give or refuse the Seal in acts and contracts before its set up The PCA prior control aims at verifying if the acts submitted to it are compliant with the applicable laws and if the respective costs have budgetary cover. To enforce financial liabilities The financial liability may be reintegratory or sanctionatory, the first being the imposition on those responsible for restoring the sums corresponding to the damage caused; and the second on the imposition of a fine. 7

8. Overview of TCP jurisdictional powers The Public Prosecutor Service has seat at the Court The magistrates that represent the Public Prosecutor Service next to the Court closely monitor the prior control procedures, also receiving all the audit reports in order to take legal action in the cases whereby it appears to exist enough evidence of facts that origin financial liability. They put forward actions for account judgement and for financial liability judgement. The internal control bodies reports referred to the Court of Auditors with financial infringements are also sent to the Public Prosecutor Service to enforce financial liabilities 8

9. Overview of TCP jurisdictional powers Some numbers… Judgements of financial liabilities Total sum ofreimbursements: 487.225 € Total of fines payed by responsibles: 1.038.273 € 9

10. Strengths and weaknesses of jurisdictional powers Impact of these functions in society • Independence assurance • Power of rapid sanction , thus contradicting the impunity feeling • Direct interaction with citizens • Equidistance between the Legislative and Executive powers • Enlarged mandate • Jurisdictional powers add to audit ones • The weight of historical values: • Collegialdecisions • Fair trial • Credibility reinforced (Court’s usual good reputation) 10

11. Strengths and weaknesses of jurisdictional powers Impact of these functions in society • Audit Objectives VERSUS enforcement of liabilities: • Pedagogy, education, building (Audit) • Looking for misbehaviours, sanction • Potential less cooperation from the audited entities, considering the powers of enforcement • Fear of sanction • Hidden information • Longeraudits and other control activities • Need to go deeper • More clear evidence 11

12. ISSAI 12 - PRINCIPLE 6: Communicating effectively with stakeholders Discussing improvements with society The Court organised, during one year, a seminar cycle to discuss with several actors, internal but mainly external, the jurisdictional powers and how can they be improved, modernised, to address society needs in the XXI century. 12

13. Main results The main messages resulting from the interaction with society were the following 13

14. Main results The main messages resulting from the interaction with society were the following 14

15. Envisagingthe future As you heard, the Court of Auditors of Portugal aims at rethinking the design and legal framework of our mandate, organisation and functioning related to the jurisdictional powers. Whilst engaging in this sensitive task, it is of the utmost importance to refer to a benchmark, mainly an international recognised standard, such as the project in progress towards anINTOSAI pronouncementontheFundamental principles of jurisdictional activities of SAIs . 15

16. OBRIGADA 16