Establishment of Government Audit Committee - Accountability is a process |15 September 2014

Like democracy, accountability is a process. The process of public sector accountability and transparency in Seychelles has seen significant improvements in the past couple of years.

Chief among them are a set of modern legislations and new structures put in place by the government, backed by international and multilateral development partners in accordance with the international best practices. Some structural changes are showing positive results already.  However, it will take time to attain certain objectives, such as, prudence use of resources, fiscal discipline, economic sustainability, quality financial information, reporting on performance and better monitoring.

It is in the context of strengthening the public accountability process that the Minister of Finance, Trade and Investment appointed the Government Audit Committee (Committee) under the provisions of Public Finance Management Act, 2012.

The committee comprises six members, five drawn from the private sector and a chairman from the public sector. The committee asserts a high level of independence by requiring that most members, including the chairman, are independent from the operations of government business. It is also expected to demonstrate a high level of ethical standards, such as integrity, confidentiality, objectivity and neutrality.

The committee serves all ministries, departments, offices, agencies, funds and foundations and public enterprises (commonly known as public bodies).
The committee is an advisory oversight body with a broad mandate to ensure:

•    prudent use of resources,
•    safeguard of assets of the State,
•    operation of adequate and effective financial systems and control processes,
•    improvement in accountability and transparency through effective risk management mechanisms in the conduct of government business.
The committee operates within the framework outlined in its Charter and Public Finance Management Regulations published by the Minister of Finance under S.I.57 of 2014. The committee is required, among other duties, to:
•    approve internal audit charters of all public bodies,
•    assist public bodies in the development of efficient internal audit plans,
•    ensure implementation of international internal audit practices for the Republic; and
•    monitor the settlement of internal and external audit observations relating to public bodies.

It does not displace or change the management accountability arrangements within entities but enhance the existing governance framework, risk management practices, control environment and compliance by providing independent assurance and advice. It will also provide a strategic direction to and support and validate the internal audit function across public bodies.

The committee shall follow international best practices to regulate its functioning and disseminate relevant practices among public bodies for strengthening governance, accountability and transparency. It reports to the minister responsible for finance.

To achieve its objectives, the committee will work closely with key stakeholders including the Office of the Auditor General, Internal Audit Division of the Ministry of Finance, Trade and Investment, Accounting Officers (principal secretaries and chief executive officers) and boards and audit committees of public enterprises.
 
The committee recently signed a memorandum of understanding (MoU) with the office of the Auditor General for sharing of relevant information. Under the MoU, the Office of the Auditor General will provide the committee the audit management letters and certified financial statements of public bodies for review and timely follow up action in the settlement of external audit recommendations.  

Contributed by the Government Audit Committee