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
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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.
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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.
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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.
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TRAINING STRATEGY
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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.
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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
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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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