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TCU’S CONTRIBUTION TO GOVERNANCE AND DEVELOPMPENT BRAZIL INSTITUTE Wilson Center Minister João Augusto Ribeiro Nardes President of TCU May 6, 2014. SUMMARY THE STATE AS A PROMOTER OF DEVELOPMENT GOVERNANCE TCU GUIDELINES FOR IMPROVEMENT OF GOVERNANCE
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TCU’S CONTRIBUTION TO GOVERNANCE AND DEVELOPMPENT BRAZIL INSTITUTE Wilson Center Minister João Augusto Ribeiro Nardes Presidentof TCU May 6, 2014
SUMMARY • THE STATE AS A PROMOTER OF DEVELOPMENT • GOVERNANCE • TCU GUIDELINES FOR IMPROVEMENT OF GOVERNANCE • GOOD PRACTICES IN GOVERNANCE 2013 • MAIN PROJECTS DEVELOPED IN 2013 • CONCLUSION
THE STATE IS A STRONG PROMOTOER OF DEVELOPMENT Brazil2013 Governmentexpenditureanddebtrollover GDP R$ 4.8 trillion Howmuchthe country produced Federal Budget R$ 2.48 trillion (budgeted in2013) R$ 2.0 trillion (executed in 2013) Source: OFSS 2013 and IBGE States (R$ 430 bi) andMunicipalities (R$ 350 bi) spent R$ 780 billion(Source: IBGE – data from 2011)
PublicExpenditurebyGovernmentFunction Dados provisórios de 2013 Executed Budget: 2.0 trillion R$ 1.056 bi AllOthersExpenses R$ 988 billion Special Charges Refinancing: R$ 577 bi Transfer: R$ 193 bi Interest rates and charges: R$ 142 bi Others: R$ 76 bi TOTAL: R$ 988 bi Source: OFSS 2013 and IBGE
FISCAL RESPONSIBILITIY MONETARY STABILITY CHALLENGES FOR DENVELOPMENT MORE PRODUCTIVITY MORE NATIONAL DEVELOPMENT Better policies in theareasofhealth, education, security, urbanmobility, etc. atthe federal, stateand municipal levels GOVERNANCE EDUCATION RESEARCH AND INNOVATION INFRASTRUCTURE SOCIAL AND REGIONAL INCLUSION RATIONALIZATION OF PUBLIC EXPENDITURE FEDERATIVE COORDINATION POLITICAL AND TAX REFORM DEMOCRACY
GOVERNANCE – THE AGENCY’S PROBLEM The agency’s(agent) problem (publicandprivate) Delegates Self-interest Self-interest Agent Principal Executes Informationasymmetry Conflictofinterest
THE AGENCY’S PROBLEM The develomentoftheoriesongovernanceaimsatfindingbetteranswerstothefollowingquestion: Howto maximize thelikelyhoodthatthebehavior (actions) ofthe Agent (top managers) isdirectedtomeettheinterestsofthe Principal andnothisowninterestsorthoseofanother?
CONCEPT OF GOVERNANCE • Publicgovernanceisthecapacitythatgovernmentshaveofassessing, directing, andmonitoringthe management ofseveralpublic policies put in placetomeettheneedsofthepopulation,byusing a set ofappropriateinstrumentsand tools. • Achievinggoodgovernancerequiresstrongleadership, a safe strategyandeffectiveoversightoftheactionsofvarious managers thatcomprise a particular government. Fonte: Referencial de Governança - TCU
GOVERNANCE PRACTICES • Institutional Planning (mission, objectives, indicators, targetsandallocationofresources) • Strategiccommittees(Business, HR, IT etc.) • Personnelexcellenceanddecentralization • Risk Management, InternalControlsandInternalAudit • Publicationofplans, portfolios andresults • Evaluationof individual andinstitutional performance • GovernmentOversight • LegislativeBranchwiththe help ofthecourtsofaccounts • Social Control (participationofcitizensandorganizedsociety)
RELATIONSHIP BETWEEN GOVERNANCE AND MANAGEMENT Fonte: Referencial de Governança - TCU
VIDEO ON GOVERNANCE Nowwewillwatch a videoongovernanceavailableonthe TCU FacebookpageandonYoutube.
TCU STRATEGIC PLAN 2011-2015 VISION Tobeknown as aninstitutionofexcellence in oversightand in theimprovementofPublicAdministration. MISSION OverseePublicAdministration in ordertocontributeto its improvement in thebenefitofsociety.
MAIN GUIDELINES FOR PERFORMANCE • GreaterspecializationoftheCourtbyfunctionofgovernment (health, education, environment, etc.); • Improvementofmanagement andpubliccorporategovernance, withoutleavingasideevaluationoflegalityandcomplianceoftheadministrativeacts; • Performance ofcoordinatedaudits; • Closertieswithinternationalorganizations.
EVOLUTION OF TCU STRUCTURE (COORDINATION AND SPECIALIZATION)
TOPICS SERVICES THAT ARE ESSENTIAL TO THE STATE AuditDepartments in theStates: Midwestand South Regions
TOPICS – SOCIAL AREA AuditDepartments in theStates: NortheastRegion
TOPICS - NATIONAL DEVELOPMENT AuditDepartments in theStates: North Region
TOPICS – INFRASTRUCTURE AuditDepartments in theStates: SoutheastRegion
Cosocial (12) Coinfra (11) Coestado (11) Codesenvolvimento (11) GENERAL COORDINATION OFFICES
BASIC GUIDE ON GOVERNANCE • Documentthatgathersand organizes goodpractices in publicgovernance • ApplicabletoPublicAdministrationInstitutionsandEntities. • Ifobserved, thepracticescontained in theReferenceGuidecanenhancethequalityandeffectivenessofpublic policies andservicesdeliveredtocitizens.
ASSESS Prior Assessment – scenariosandenvironments in theStrategicPlan Continuingassessment – Public Dialogues and Meetings withCongressmen, Governmentauthorities, Business community, Press andmembersofOrganizedSociety. • MainrelatedGovernanceReferenceGuidepractices • Toestablishanddisseminate communication channelsand consulta-tionwithstakeholders; • ToassessthelevelofsatisfactionwiththestrategiesandactionsoftheorganizationandassesstheCourt’spublicimageandtrustworthiness; • Toestablishanobjectiveand professional relationshipwiththe media andotherinstitutions; • Toensurethatourstrategiesandactionscatertothestakeholders in a balancedway.
DIRECT SpecializationandCreationofCoordination Offices Choiceofleaders for ouradministration GovernmentOversightPlanandAuditPlanallignedwithStrategicPlanguidelines, Gettingclosertointernationalinstitutionsandtothe INTOSAI Congress (INCOSAI) • MainrelatedGovernancepractices • Toestablishand formalize theorganization’sstrategy. • Toestablishcoherentobjectivesthat are allignedwithallorganizationsinvolved in theimplementationofthestrategysothattheexpectedresultsmaybeachieved. • Toestablisha management [andstructure] modelthatfavorstheallignmentofoperationswiththestrategyandthatenablesverificationoftheachievementofbenefits, results, objectives, andtargets.
MONITOR Meeting of Top Managers (nationaland regional), Meetings ofthePresidencywithAuditDepartmentsandinternal Meetings ofthe General Secretariats • MainrelatedGovernancepractices • To monitor theadministrationoftheorganization, especiallytheachievementofinstitutionalgoalsandbehaviorof top management members. • Toberesponsible for establishing policies andguidelinestomanagetheorganizationand for achievingexpectedresultsvis-a-vistheinternalgovernancestructures. • To monitor andassessexecutionofthestrategy, themainoperationalindicatorsandtheoutcomesoftheorganization.
CONCLUSION • In ordertoincrease its productivityandconsolidateitself as oneofthe world leaders in termsofdevelopment, Brazilhastoestablish a greatpacttostrengthenpublicgovernance. • GovernmentOversight plays anessential role, atthe federal, stateand municipal levels,as a promoter ofpublicgovernace in favor ofdevelopment, withoutforgetingoversightoflegalityandcomplianceandthefightagainstcorruption.