First Meeting of the Steering CommitteeFirst Meeting of the Steering CommitteeKnowledge Sharing CommitteeKnowledge Sharing Committee

INTOSAI Strategic Goal 3INTOSAI Strategic Goal 3

New Delhi, IndiaNew Delhi, IndiaMarch 5-6, 2009March 5-6, 2009

Information on theInformation on the

INTOSAI INTOSAI

Public Debt Working GroupPublic Debt Working Group

Background InformationBackground Information

Strong interest in public debt matters shown by members of Strong interest in public debt matters shown by members of INTOSAI during the XIII INCOSAI (Berlin, Germany, 1989).INTOSAI during the XIII INCOSAI (Berlin, Germany, 1989).

INTOSAI Governing Board -at its 35th meeting (October 1991)- INTOSAI Governing Board -at its 35th meeting (October 1991)- authorized the PDWG’s creation with the following purpose:authorized the PDWG’s creation with the following purpose:

"To publish guidelines and other informational "To publish guidelines and other informational materials to be used by Supreme Audit Institutions materials to be used by Supreme Audit Institutions

to encourage the proper reporting and to encourage the proper reporting and sound public debt management"sound public debt management"

ObjectivesObjectives

The The Public Debt WorkingPublic Debt Working Group’sGroup’s objectives are: objectives are:

To prepare and publish guidelines and other materials to be used by To prepare and publish guidelines and other materials to be used by SAIs in order to encourage the proper reporting and sound SAIs in order to encourage the proper reporting and sound management of public debt;management of public debt;

To identify key issues for the development of responsibilities and To identify key issues for the development of responsibilities and procedures for auditing and evaluating public debt commitments;procedures for auditing and evaluating public debt commitments;

To prepare papers examining matters on public debt definition, To prepare papers examining matters on public debt definition, reporting and assessment;reporting and assessment;

To exchange knowledge with other institutions dealing with public To exchange knowledge with other institutions dealing with public debt issues;debt issues;

To promote the preparation of studies and papers related to the To promote the preparation of studies and papers related to the Working Group’s mandate.Working Group’s mandate.

Strategic Plan 2007-2012Strategic Plan 2007-2012

In accordance with the INTOSAI Strategic Plan 2005-2010In accordance with the INTOSAI Strategic Plan 2005-2010

Aimed at supporting the increasing demands and expectations faced Aimed at supporting the increasing demands and expectations faced by the SAI community when auditing public debt issues and by the SAI community when auditing public debt issues and influencing debt management practices.influencing debt management practices.

Guidance for the Guidance for the PDWGPDWG activities in the years ahead. activities in the years ahead.

Lists a series of activities that should be undertaken in order to Lists a series of activities that should be undertaken in order to become the “champion” of public debt auditing issues and promote become the “champion” of public debt auditing issues and promote sound debt management practices for the supreme audit institutions sound debt management practices for the supreme audit institutions (SAIs) community during the 2007–12 period.(SAIs) community during the 2007–12 period.

Contains the Contains the PDWG’sPDWG’s Mission Statement, Vision Statement, and two Mission Statement, Vision Statement, and two strategic goals supporting the mission and vision statements:strategic goals supporting the mission and vision statements:

CCapacity building and enhancing SAI expertise, and apacity building and enhancing SAI expertise, and

SStrengthening the Working Group’s capabilities and measuring its trengthening the Working Group’s capabilities and measuring its impact. impact.

MembershipMembership

17 SAI members17 SAI members Mexico (Chair), Argentina, Austria, Brazil, Bulgaria, Canada, Fiji, Gabon, Mexico (Chair), Argentina, Austria, Brazil, Bulgaria, Canada, Fiji, Gabon,

Korea, Lithuania, Portugal, Russian Federation, Sweden, Ukraine, Korea, Lithuania, Portugal, Russian Federation, Sweden, Ukraine, United Kingdom, United States of America, and Zambia.United Kingdom, United States of America, and Zambia.

5 observer SAIs:5 observer SAIs: Chile, Egypt, Finland, Jordan, and Yemen.Chile, Egypt, Finland, Jordan, and Yemen.

INTOSAI Development Initiative.INTOSAI Development Initiative.

Chair Information:Chair Information:

Mr. Arturo González de Aragón, C.P.A.Mr. Arturo González de Aragón, C.P.A.Auditor Superior de la FederaciónAuditor Superior de la Federación

Auditor General of MexicoAuditor General of Mexicointosaipdc@intosaipdc.org.mxintosaipdc@intosaipdc.org.mx

www.intosaipdc.org.mxwww.intosaipdc.org.mx

ProductsProducts

Guidance on the Reporting of Public DebtGuidance on the Reporting of Public Debt

Guidance for Planning and Conducting an Audit of Internal Controls of Guidance for Planning and Conducting an Audit of Internal Controls of Public Debt Public Debt (ISSAI 5410)(ISSAI 5410)

Public Debt Management and Fiscal Vulnerability: Potential Roles for SAIs Public Debt Management and Fiscal Vulnerability: Potential Roles for SAIs (ISSAI 5420)(ISSAI 5420)

Guidance on Definition and Disclosure of Public Debt Guidance on Definition and Disclosure of Public Debt (ISSAI 5421)(ISSAI 5421)

An Exercise of Reference Terms to Carry Out Performance Audit of Public An Exercise of Reference Terms to Carry Out Performance Audit of Public Debt Debt (ISSAI 5422)(ISSAI 5422)

Fiscal Exposures: Implications for Debt Management and the Role for SAIs Fiscal Exposures: Implications for Debt Management and the Role for SAIs (ISSAI 5430)(ISSAI 5430)

Guidance for Conducting a Public Debt Audit - The Use of Substantive Guidance for Conducting a Public Debt Audit - The Use of Substantive Tests in Financial Audits Tests in Financial Audits (ISSAI 5440)(ISSAI 5440)

Other publications, such as guidelines, case studies, paradigmatic audits, speeches, reports and Other publications, such as guidelines, case studies, paradigmatic audits, speeches, reports and surveys are posted on the PDWG Website surveys are posted on the PDWG Website www.intosaipdc.org.mxwww.intosaipdc.org.mx

Current ActivitiesCurrent Activities

Annual working meetingsAnnual working meetings Last meeting: Last meeting: Nadi, FijiNadi, Fiji July 24-25, 2008July 24-25, 2008 Upcoming:Upcoming: UkraineUkraine 20092009

YemenYemen 20102010Lithuania Lithuania 20112011

Member’s analysis and feedback to enhance the PDWG’s Strategic Member’s analysis and feedback to enhance the PDWG’s Strategic Plan so as to include the recommendations on Public Debt of the Plan so as to include the recommendations on Public Debt of the XIX INCOSAIXIX INCOSAI

Development of a database with experts on Public Debt Auditing for Development of a database with experts on Public Debt Auditing for the IDI to design and carry out activities on capacity building within the IDI to design and carry out activities on capacity building within the INTOSAI. the INTOSAI.

Participation with IDI and UNCTAD for the implementation of the Participation with IDI and UNCTAD for the implementation of the Trans-regional Capacity Building Program for Audit of Public Debt Trans-regional Capacity Building Program for Audit of Public Debt Management. Management. PDWG’s initiative to offer this program to ARABOSAI communityPDWG’s initiative to offer this program to ARABOSAI community

Current ActivitiesCurrent Activities

Investigation Themes under developmentInvestigation Themes under development Public Debt IndicatorsPublic Debt Indicators Public Debt Management OfficePublic Debt Management Office Contingent DebtContingent Debt Impact of financial crises on public debtImpact of financial crises on public debt Public bidding and adjudication for the recruitment of agents, Public bidding and adjudication for the recruitment of agents,

bond and stock brokersbond and stock brokers Assessment of human resources employed in debt contractingAssessment of human resources employed in debt contracting Risk assessment and reduction of probable effects on debt Risk assessment and reduction of probable effects on debt

structurestructure Evaluation of information systems related to public debt Evaluation of information systems related to public debt

managementmanagement Extraordinary income analysis and its use to ameliorate external Extraordinary income analysis and its use to ameliorate external

public debtpublic debt Adequacy of regulatory framework: of the financial services Adequacy of regulatory framework: of the financial services

sector: impact on contingent liabilities and public debtsector: impact on contingent liabilities and public debt

Further InformationFurther Information

Website: Website: www.intosaipdc.org.mxwww.intosaipdc.org.mx

For further information, please For further information, please contact the PDWG Secretariat: contact the PDWG Secretariat:

intosaipdc@intosaipdc.org.mxintosaipdc@intosaipdc.org.mx

bfuentes@asf.gob.mxbfuentes@asf.gob.mx