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Our Vision
To enhance public sector transparency and accountability and fight
corruption by delivering excellence in audit services
Our Purpose
Under the Westminster System of government, Parliament is supreme. All
authority for governmental activity ultimately stems from Parliament.
Public sector organizations are therefore accountable to Parliament for
their use of the public resources and powers that it has conferred on
them.
The Auditor General plays a crucial role in the framework of public
accountability under the Westminster System. The Auditor General serves as
the external auditor of Government with a duty to report independently and
directly to Parliament on the results of audit examinations performed,
ensuring government transparency and accountability to the public through
the Parliament.
In essence the Auditor General exists as a constitutional safeguard to
maintain the financial integrity of the Solomon Island’s parliamentary
system of government.
Our Key Stakeholders
The Office of the Auditor General’s (OAG) primary client and key
stakeholder is the National Parliament and the community through
Parliament. As well, the Provincial Governments and various State Owned
Enterprises and Statutory Bodies as auditees are also key stakeholders.
The OAG also contributes to a broader national accountability to donor
agencies such as the Asian Development Bank, AusAID, European Union,
International Monetary Fund, Japanese International Cooperation Agency,
NZAID, United Nations, World Bank and to regional partners participating
in and donating to the nation through the Regional Assistance Mission to
Solomon Islands (RAMSI) and other international and bilateral arrangement,
for the resources being invested in the country through this mission.
Our Staff
The OAG comprises around 35 professional and administrative staff
including RAMSI Audit Advisors who are responsible to the Auditor General
of the Solomon Islands. Staff in the main have
as a base qualification a Diploma in Finance and Administration from the
Solomon Islands College of Higher Education and are encouraged to advance
their studies through University studies and professional accounting
institutions.
History and Current Developments Within the OAG
At independence in 1978 the OAG had a staff of around 28 officers and the
roles and duties of the Auditor General were largely spelt out in two
pieces of legislation, the Constitution and the Public Finance and Audit
Act 1978. Following self government the Office functioned reasonably well
for ten years after which time the auditing machine started to fall apart
through an avalanche of staff departures to the private sector and public
sector agencies due to their marketability.
During the following period of some ten years there was a rapid decline in
the quality and standard of OAG due to staff losses and reduced resources
culminating in an ineffectual office with no reports being prepared or
presented to Parliament for almost twenty years. The few effective audits
performed were undertaken by the private sector on behalf of the Auditor
General. This resulted in a grossly ineffective OAG which by 2003 and the
arrival of RAMSI had a staff of three persons.
The absence of an effective audit function within government over such a
protracted period of time led to an unchecked and ultimately disastrous
breakdown in public accountability - an environment typified by poor
financial management practices and weak controls, which have resulted in
significant losses in revenue and an environment conducive to fraud and
corruption.
Since the recommencement of audit activity following the inception of the
RAMSI institutional capacity building program, the foundations have been
laid for the path to recovery, with significant early progress being made
towards realising the strategic outcome of reinstating the OAG as an
effective supreme audit institution.
Successful recruitment programs were undertaken in 2005, 2006 and 2007,
which have secured a contingent of local staff with sound basic skills.
Under the capacity building program, these individuals are being nurtured
and developed to become the future of the organization.
To assist in the capacity building processes, the OAG has recruited
expatriate audit specialist advisers to develop the strategic direction of
OAG and formulate and conduct training programs, mentor the new local
recruits and build their skills base by providing practical on the job
training and experience and supplement resources with a view to clearing
the backlog of audit work.
During the last two years some 14 Reports on the results of audits and
investigations have been finalised and tabled in the Solomon Islands
Parliament. These reports identify the significant shortcomings in the
Ministries in the last five years and show a blue print for the future
direction for these Ministries.
In 2006 and 2007 the Public Accounts Committee of the Solomon Islands
Parliament reviewed the Auditor General’s Reports to the Parliament
and provided its Report on the seven specific Audit Reports reviewed. In
addition the Auditor General as Secretary to the Public Accounts Committee
convened hearings into the Solomon Islands draft Estimates of Expenditure
for the Appropriations and Supplementary Appropriations for 2006, 2007 and
2008
and the Committee produced its Report on these hearings for consideration
of the Parliament.
2007 witnessed a significant achievement in the catch up on the financial
reporting backlog wherein the Solomon Islands Government National Accounts
were certified for the years 1998 to 2003 and the outcome of these six
years audits were included in a Report to the Parliament tabled in August
2007. Further, the audits of the National Accounts for the three years
2004-2006 were finalised in July 2008.
Similarly, following OAG involvement with the Provincial Government
Financial Management Improvement Program, a most encouraging initiative of
AusAID, all outstanding accounts of the nine provinces were recently
reported upon by the Auditor–General representing a major step forward in
the catch up process. A similar initiative in the State Owned Enterprises
(SOE) arena will enable a major improvement in the SOE sector.
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