INTOSAI Task Force Global Financial Crisis -

Challenges for SAIsand the WGPDRoberto José Domínguez MoroSuperior Audit Office of Mexico

INTOSAI Working Group on Public Debt

June 14, 2010

Introduction

The INTOSAI Task Force Global Financial

Crisis - Challenges for SAIs was created as

an institutional response to the auditing

issues stemming from the financial crisis and

the governments’ response to it

Creation

58th Governing Board Meeting (Vienna,

November 2008)

Falls within INTOSAI Strategic Goal 3,

Knowledge Sharing

Chair: United States of America

Membership 25 members so far:

Austria • Canada • Chile • China • Cyprus • Denmark • Estonia • European Court of Auditors • Finland • Hungary • Indonesia • Italy • Japan • Korea (Republic of) • Mexico Morocco • Netherlands • Poland • Russian Federation • Saudi Arabia • Slovakia • Sweden • United Kingdom • United States of America • Venezuela

Purpose To enhance the knowledge base of SAIs

on financial and economic matters related to the crisis

To enhance the exchange of knowledge among SAIs

To help governments and the global community respond to the crisis

To become a source of information and experience

Goals (i)

Draft Goal 1: Develop recommendationsMinimizing the impact of future financial

crises

Draft Goal 2: Develop resourcesSAIs work on global financial crisis,

stimulus initiatives, and their impact

Goals (ii) Draft Goal 3: Develop tools and

methodologies Strengthening SAIs’ monitoring ability

Financial and other regulatory systems

Draft Goal 4: Build strategic relationships with key international organizations Sharing Information on the financial crisisDeveloping key indicators for early warning

systems

Goals (iii)

Draft Goal 5: Develop tools and methodologiesStrengthening SAIs ability

Conducting performance and other audits of macroeconomic measures taken in response to the global financial crisis

Objectives (i)

Lessons learned

Lessons SAIs collectively learned from

past financial crises

Impact on countries

Common problems that countries have

experienced

Objectives (ii)

Genesis and impact of the current crisisPrincipal domestic and foreign factors

causing and/or influencing the impact of the financial crisis

Impacts upon each country’s financial market and economic framework

Impacts upon economic development globally and regionally

Objectives (iii)

Initial government responses to avert or minimize the crisisFiscal stimulusFinancial interventionBroader economic interventionsRegulatory and other changes made to

minimize the risk from financial crisis

Objectives (iv) Reforms, transparency, and accountability

Reforms to mitigate the impact of another financial crisis and needed global regulatory reforms

Role of central banks and other supervisors

Criteria for using public fundsTransparency, accountability and

effectiveness of undertaken measuresLevel of international cooperation

Objectives (v)

Challenges that SAIs faceFactors (legal mandates, human

resources, etc.) influencing SAIs’ abilityImpact on SAIs’ audit operations, fiscal

resources, and legal mandatesMethodologies and tools to strengthen

SAIs’ abilitiesAudit principles for government auditing

Objectives (vi)

Roles of SAIs in monitoring and overseeing financial markets, banking systems, and financial regulatory systems

Role of SAIs in responding to the current crisis

SAIs information that can affect government exit strategies

Objectives (vii) International Organizations & Key National

IndicatorsUN, OECD, World Bank, IMF, International

Labor Organization, Bank of International Settlements, international standard setting bodies

Roles of international organizations and integration of government auditing into national measures

Definition of adequate international benchmarks

Terms of Reference (i)

The Task Force will exist for a period not to exceed 3 years

Expected Products: Archives of SAI work Compilations of best practices and lessons

learned Electronic WIKI products Case studies Training courses

Terms of Reference (ii)

Liaison with other INTOSAI Committees and

Working Groups on intersecting issues:

Knowledge Sharing Committee

Working Group on Public Debt

Working Group on Key National Indicators

Terms of Reference (iii)

Publication and Distribution of DocumentsExposure Drafts and Products

Task Force members comments within 21 calendar days of receiving the draft

May also circulate draft documents to other Task Forces, Working Groups, and the Governing Board prior to exposure to the full membership

Terms of Reference (iv)

Reports to the Governing BoardThe Task Force may participate in the

annual Governing Board meeting Changes to the Task Force terms of

reference, membership, etc. Documents presented to the Governing

Board will be previously circulated within the Task Force

Terms of Reference (v)

Reports to the INTOSAI Congress

The Task Force chair will present a report

to the INCOSAI Results of its activities to date

Expected outcomes and products

Terms of Reference (vi) Creation of three subgroups:

1. Financial crisis causes and lessons learnt

2. Actions for minimizing and avoiding crises2A. Effects of rescue programs on

financial markets2B. Effects of rescue programs on

economy3. Challenges for SAIs

Task Force and the WGPD (i) Concurrence of issues to analyze

Impact of governmental rescue, bail-out and support programs on public debt

Liabilities, sustainability and long-term effects on public debt

Effective auditing of rescue programsDefinition of indicators and early-warning

systemsDevelopment of pertinent information

related to auditing for policy-makers

Task Force and the WGPD (ii)

WGPD Strategic Plan: Maintain an active relationship with the

other regional groups, working groups, standing committees, task forces as well as other institutions dealing with public debt issues Designation of a WGPD member to

undertake liaison responsibilities with the Task Force

Task Force and the WGPD (iii)

WGPD investigations Task Force important input for current

and future investigations Need of WGPD – Task Force coordination

Avoiding duplication of efforts Enriching WGPD products’ contents Exchange of information Cooperation and collaboration on

common issues