LEVERAGING ON ICT TO ENHANCE ACCOUNTABILITY IN PUBLIC...

LEVERAGING ON ICT TO

ENHANCE ACCOUNTABILITY IN

PUBLIC FINANCIAL MANAGEMENT

Promoting Accountability in the Public Sector

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OUTLINE

• INTRODUCTION

• LEVERAGING ON ICT

• CHALLENGES

• WAY FORWARD

• CONCLUSION

3 August, 2015 Promoting Accountability in the Public

Sector 2

1.0 MANDATE OF OFFICE OF THE

AUDITOR GENERAL

• Article 229 of the Constitution gives the

Auditor-General the mandate to audit and

report to parliament on the accounts of any

entity that is funded from public funds.

• Article 229(6)of the Constitution requires the

Auditor-General to confirm whether or not

public money has been applied lawfully and in

an effective way.

3 August, 2015


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1.2 OAG ASSURANCE FRAMEWORK


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1.3 PILLARS OF ACCOUNTABILITY

1. Certification of Accounts - to assure on fiscal

accountability.

2. Continuous audit presence- to give assurance on

managerial accountability. This pillar ensure that the

Office becomes proactive, preventive and deterrent

to fraud, corruption and irregularities.

3. Service Delivery to Kenyans – through carrying out

resource management assessment

(performance/programme evaluation audit).This

Pillar intends to respond to economy, efficiency

and effectiveness with which the resources are

utilized. 3 August, 2015


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1.4 Strategic Goals

Goal 1: To enhance quality and timeliness of audit reports

Goal 2:To promote and support good governance and

accountability in the public sector

Goal 3:To promote delivery of quality services to the public

and effective and sustainable management of resources

Goal 4: To transform the organization for efficient and

effective delivery of audit services

Goal 5: To enhance ICT capacity and systems for efficient

operations


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PRINCIPLE OF

‘tracing every shilling to the ground ’

• Every citizen must feel the impact of the

shilling/dollar (s)he entrusts in the government.

• My office therefore endeavours to trace every

coin up to where it hits the ground and by

leveraging in ICT my office is working on

producing short and sharp reports for easy

reads and we hope this will have a big impact.

3 August, 2015


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2.0 LEVERAGING ON ICT

• OAG is aware that leveraging on ICT is a key

area in enhancing Accountability in Public

Financial Management. Goal 5: “To enhance

ICT capacity and systems for efficient

operations” is responding to this need. In

particular, this goal is geared towards achieving

the following four objectives: enhance ICT governance ; enhance ICT audit capacity and

capability; establish an effective management

information system (MIS). 3 August, 2015


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2.1 PILLAR TRAINING STRATEGY

• OAG has endeavored to invest on ICT by

building on both institutional capacity in terms

of Infrastructure and personnel. Efforts are

also made towards equipping all auditors with

both IT and Auditing methodology skills.

• The modernization strategy has concentrated

in these two critical thematic areas and include

a third namely Change management.


Sector 9

TRAINING STRATEGY


Sector 10

OAG modernization Pillars

Information and Communications Technology

ICT SkillsChange

Management

Audit methodology and

Audit Skills

Development

ICT SYSTEMS IN PUBLIC SECTOR

• IFMIS – in National & County Governments

• IPPD for Payroll

• Simba System at KRA

• SAP at KPA

• others


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2.2 IT AUDIT TOOLS

• Audit Vault & Business Intelligence (BI)

• Audit Documentation software – Audit Flow

• Data mining and analytics - ACL


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Audit Vault and Business Intelligence

Some of the capabilities of the audit vault & BI include:

• Database activity monitoring over the network.

• Capability to block unauthorized database activity.

• Centralized and continuous data security auditing

across the enterprise.

• Detailed data analysis that can be used for e-

discovery purposes.

• Customized reports.


Sector 13

Electronic working papers The Office is also in the process of implementing

Audit Flow Documentation Software, (developed by

AFROSAI-E) that will enable it:-

• Deliver high quality audit work through consistent

execution of the audit methodology.

• Perform the audits and issue the audit reports

more efficiently.

• Document results & issues consistently.

• Monitor and improve performance.


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2.3 IT Audit Directorate

• Charged with carrying out IT Systems Audits

that includes auditing:-

– IT Governance

– IT Controls (physical and logical)

– Application Controls

– IT Security Controls

– IT Operations Controls e.t.c

• Implementation of Audit Documentation

Software (Audit Flow) and Use of Analysis tools

(ACL) to analyze financial statements and

payrolls. 3 August, 2015 15

3.0 CHALLENGES

• Information Security

• Should we have one system running IT Systems in

the whole country?

• If we go for different systems, then what kind of

integration should we implement?

• Lack of enough IT Audit staff and their retention

• With the glowing economy (in trillions) that depends

on IT Systems, how do we implement good IT

Governance and Information Systems Security

Governance?


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4.0 GOING FORWARD

• Leveraging on ICT to enhance our capacity

and capability to conduct smart audits is a

MUST.

• The office aim at:

– Advising the government bodies on the need to

automate its operations.

– Increasing the level of IT expertise in the OAG.

– Acquire relevant audit tools.

• This will help provide timely audit reports and

therefore resonating with “the shilling hitting the

ground.” 3 August, 2015 Promoting Accountability in the Public

Sector 17

5.0 CONCLUSION

• In order to trace every shilling to the ground,

we need to carry out smart audits as we

leverage on ICT going forward.


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THANK YOU

FOR YOUR ATTENTION


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