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1. BACKGROUND

1.1 The Workshop

The Office of Auditor General Somalia (OAGS) hosted a three-day meeting and stakeholders’ workshop in Mogadishu, Somali from the 26 to 28 August 2019 at Green of Paradise and Peace 1 Hotel. This was the second year for the annual engagement with key stakeholders, including (a) members of the Budget Finance Committees, (b) the executive branch of the FGS, (c) the media, and (d) civil society organizations. It was preceded by internal performance review of the OAGs both at the federal level and member states. The following Federal Member States participated:- (a) Puntland, (b) Hirshabelle , (c) Galmamdug, and (d) Southwest.

The first 2 days of the workshop was an internal workshop of Auditors General and senior audit staff from the Federal Member States, and senior staff of the Federal Audit Office. On the third day, the Auditor General of the Federal Government presented an annual activity report to stakeholders, namely: the members of the Budget and Finance Committees of parliament, selected representatives of the ministries, departments and agencies of the FGS.

1.2 Focus of the workshop

The theme of the workshop was to impart knowledge and share experiences about the critical roles played by the Offices of Auditors General in the Federal Republic of Somalia. There were discussions about adoption of International Standards for Supreme Audit Institutions (ISSAI) with particular reference to adoption of Compliance Audit Manual (CAM) and Financial Audit Manual (FAM); the importance of strategic planning and its implementation; and building human resources for efficient and effective audits. There were several thematic areas covered during the workshop. Areas covered among others were:- (a) developing human resources for a SAI; (b) business integrity and ethical standards; (c) review of the 3-Year Strategic Plan (2017-2020); (d) share experiences gained in conducting audits in 2019; (e) considered opportunities for greater collaboration between the Federal SAI and OAGs of the FMS; and (f) present a performance report to external stakeholders.

1.3 Outcomes of the workshop

The anticipated outcomes were achieved and were basically three. These were:- (a) increased awareness on the role and performance of the Federal SAI; (b) increased awareness on how to build human resources, and implemetation of strategic plans; (c) how to enhance collaboration and cooperation between Federal SAI and FMS OAGs; and (d) initiate proactive engagement with external stakeholders.

REPORT ON OAGS 2019 ANNUAL ENGAGEMENT

MEETING & STAKEHOLDER WORKSHOP

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2. DAY 1 PROGRAM – 26 AUGUST 2019

2.1 Opening remarks by the Auditor General

In his opening remark, Mr. Mohamed M. Ali, the Auditor General of the Federal Government of Somalia (AG), emphasized the significance of conducting annual workshop with a view to building audit capacity at both levels of the Federal government and Federal Member States. This would enhance close collaborations among and between the Offices of Auditors General. He also stated that the need to fill strategic vacancies in the offices through hiring qualified staff to mentor/train audit cadre so that implementation of International Standards for Supreme Audit Institutions (ISSAI) can progress further, and also have the requisite capacity to audit in computerized environments, in particular the Somali Financial Management Information System (SFMIS). Such capiacity building initiatives and collaboration is cirical because it will promote good governance through contributions to accountability and transparency in the use of public resources, as well as to promote efficient, effective and economic public administration, to make a difference to the lives of our people.

The AGs from States of Puntland, Galmudug, as well as representatives from Southwest and Hirshabelle also spoke about the importance of working together in this new federalism system of governance and appreciated OAGS’s effort of organizing such an event.

2.2 Presentation on Human Resource Management

The first presentation was about HRM/ Public Personnel Administration (PPA) Model in Practice. This was led by an HR Expert, Professor Yusuf Salad. He provided the participants about organizational objectives and environmental influence on human resource development. He then defined what HRM is, why HRM is important, when HRM is needed. It was observed during the discussions that Hirshabelle, which was recently established, has human resource challenges because of very few audit staff. It was further observed Puntland State has relatively more audit staff, and fairly well developed and trained.

2.3 Presentation on Business Integrity and Ethics

This presentation was made by a Senior Legal Expert, Professor William Kosar. This was followed by lively discussions on what ethical standards audit staff are expected to follow. Areas covered were on core values of the OAG, conflict of interest and procedures for such declarations, and observation of professional ethical standards.

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Day one group photo

3. DAY 2 PROGRAM – 27 AUGUST 2019

3.1 Introduction

The primary focus of Day 2 were on the following:- (a) presentation on Strategy Formulation and Implementation, stages of strategic (b) an update on the 3-Year Strategic Plan (2017-2020) for the OAGS, and medium-term plans of the Federal Member States; (b) discussions on audits conducted in 2019 by the OAGS drwaing on experience with adoption of CAM and FAM, and sharing experiences from other Offices of the FMS; and (c) sharing experiences, challenges and opportunities for improvement; and explore opportunities for collaboration and cooperation within the offices of Auditors General.

3.2 Presentation on Strategic Planning

An expert on Strategic Planning (Abdirizaq) presented a paper on strategy formulation and implementation, stages of strategic planning. , and challenges faced in strategic planning and how to overcome some of them.

3.3 Presentation on adoption of ISSAI (CAM & FAM)

The second presentation was made by Senior Audit Expert (Stephen Emasu), an EU long technical advisor to the the OAGS. The presentation covered in brief the International Standards for Supreme Audit Institutions (ISSAI) with focus on adoption of CAM and FAM with effect from audits conducted in 2019. The coverage included 5 entities in the security sector and another 20 entities in non-security sector entities of the FGS. The consolidated compliance audit reports followed standardized reporting framework – the law or practice; observations (or findings); Risks; Recommendations and Management response. The only financial audit being conducted under FAM and an audit opinion is to be issued based on ISSAI.

3.4 Presentation on implementation of Strategic Plan

The Director of Planning and Performance made a short presentation on progress with the implementation of the Strategic Plan of the OAGS, with more focus on agreed activities for the years of 2018 and 2019.

3.5 Presentation on Financial Audit for the year ended 31 December 2018

Finally, the Deputy Director of Central Government also made a short presentation about the financial audit for the year ended 31 December 2018. For the first time, the Accountant General’s Office prepared financial

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statements of the FGS based on Cash Basis IPSAS, and had made three submissions with the last one made August 2018 past the due date. He then shared with the participants’ experiences and challenges learnt in adopting FAM, and highlighted the need to be conversant with International Public Sector Accounting Standards (IPSAS).

4. DAY 3 PROGRAM – 28 AUGUST 2019

4.1 External stakeholders

This was the last day of the workshop and was for the external stakeholders of the OAG. In which representatives from various parts of the government participated. The participants came from: the Office of the Deputy Prime Minister, Members of Parliaments from both Houses (BFC), the Somali Union Religious Chairman of Somalia, Chairman of Independence Commission of Boundaries and Federalism, Chairman of Academic for Science and Arts, General Directors of the Government, Internal Auditors from Government Entities and Banadir Regional Administration, Judiciary, Civil Society, Business Communities, Universities and Media.

4.2 Role of the Office of the Auditor General

This was a panel discussion following a brief presentation by the Auditor General.

The Somali Union Religious Chairman opened the program by speaking about the leadership and responsibilities. He noted that the Office of the Auditor General is technical one and conducts audits of government entities and public funds. Such audits are to ensure, among others, government properties moveable and immovable are safe and used in public interest. He noted that Office of the Auditor General plays a critical role in the prevention of and elimination of corruption and fraud. If this is done professionally, then the country will achieve good development and ensure prosperity for all peoples of Somali. He then praised the Office of Auditor General for the good job it has been doing for the people and country. He urged the Auditor General to have endurance and express his talent in order to overcome every challenges faced and let God be with him.

(Some of the external stakeholders who participated)

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4.3 Presentation by the Auditor General

The AG briefly talked about four main points, namely: (a) the need for qualified and professional audit staff; (b) the current office renovation and re-equipment; (c) adoption of new audit methodology based on ISSAI for both compliance and financial audits; and (d) the new for a new audit law.

He informed the audience about the progress with the new audit bill. The Federal Audit Bill has passed the Lower House of Parliament and now is currently with the Upper House. He expressed hope that the new audit law is based on INTOSAI standards, the internationally recognized standards for supreme audit institutions, and gets presidential approval to become law.

The AG presented to the audience the progress made by the office since the start of current Strategic Plan (SP). He also talked about the new audit methodology, based on ISSAI, which the office has recently adopted.

In lively discussions that followed, there were a number of questions and recommendations from the audience. The questions covered areas of availability of audit reports, involvement of BFC, and audit follow up to ensure audit recommendations are implemented in a timely manner. The AG ably provided answers to the questions and the audience were visibly pleased with the workshop.

The Auditor General (Mohamed Mohamud Ali)

4.4 Closing remarks by the Deputy Prime Minister

Lastly, the Deputy of the Prime Minster of Federal Government of Somalia Mr. Mahdi Mohamed Gulled closed the meeting where he talked about the significance of such a meeting and discussion has the public and provides their comments towards the tasks the OAGS do. He also notified that the office should re-double their efforts to ensure transparency and accountability in government entities.

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The Deputy Pime Minister (Mahdi Mohamed Guled) delivers his closing remarks

5. LESSONS LEARNED

5.1 Start planning early enough

Ensure that ample time is given to the planning for such a meeting in the future. This meeting was planned within more than one month and some of the logistics preparation from OAGS Federal had challenges for example the delay task from the media because of the budget approved.

5.2 Participation of the international community

Among the key stakeholders of the OAGS is the international community. They should be invited and participate as well.

5.3 Video clips

Video clips used on the third day focused on one person. Consider including audit staff are work places, and meetings with staff at audit entities.

6. ACKNOWLEDGEMENT It was agreat opportunity for the Office of the Auditor General to hold such a well organized workshop and meeting for the State Auditors General, government entities, civil socities, universities, business community and media.

We would like to thank the organising team and all staff who facilitated the workshop.

Special thanks go to BFC members, government officials, and the general public who participated. Your questions and feedback will help the OAGS improve on its service delivery towards strengthening transparency and accountability.

Last but not the least, we thank our development partners, namely: the IDI, AFROSAI-E, EU, the World Bank, and the Norwegian Embassy for all their support to the OAG.

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Finally, we thank our LTA advisors: (a) Stephen Emasua for Audit Expert, (b) Professor Bill Kowsar for Legal Advisor and our newly hired advisor (c) Mr. Mohamed Abdi for International and National Coordination for their support. Special thanks to all experts who were called upon and delivered their presentations at the workshop.

(The Auditor General and some orgainsing team)