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Audit

Integrated Financial and Procurement Audits for Bank Financed Projects - The China Experience

Jingrong He's picture
Supreme Audit Institutions (SAI) for Bank financed projects have carried out financial and procurement audits. In Poland, this initially started more than a decade ago and there have been several other examples over the past years in other countries.

By the end of FY16, China National Audit Office (CNAO), the SAI in China, had successfully completed its third year of integrated financial and procurement audits for 27 Bank financed projects and accounting for 28% of the total active portfolio of China. This is a big leap from only 3 projects in the first year of FY14.

Rome was not built in a day. CNAO has been the external auditor of all Bank-financed projects in China since 1984. It conducts project audits in accordance with the Government Auditing Standards of the P.R. China and the International Standards on Auditing. The Foreign Funds Application Audit Department and the Audit Service Center of CNAO, and the Provincial Audit Institutions conduct audits on Bank financed projects and issue the audit reports in their names. There are about 120-130 financial audit reports submitted to the Bank every year. CNAO's audit reports not only include the auditor's opinion on project financial statements, they also include opinions on procurement compliance as this is an important aspect of the review of the eligibility of expenditures. This procedure is in full compliance with the Audit Law of P. R. China, which requires auditing of authenticity, legality and beneficial results of the budgetary revenues and expenditures or financial revenues and expenditures of public funds. It was under this context that in FY 14, we started piloting the use of CNAO for integrated financial and procurement audits in some Bank-financed projects.

Charging up the Fourth Estate: Communicating about audit

Tako Kobakhidze's picture
I’m back in Kazbegi and writing a blog again - what a nice coincidence! Georgian mountains possess a certain magic: they can help you forget about the office routine, bring out your social side, and enable you to more freely express yourself. Clearly, it was a very smart decision by the State Audit Office of Georgia (SAOG) to choose a location near Mkinvartsveri Mountain for its two-day workshop for media representatives.

With a view to helping journalists – the so-called Fourth Estate – broaden their knowledge in the field of audit, the head of the SAOG together with his colleagues hosted 20 media professionals from leading Georgian outlets, including TV, print and digital – all vital channels of external communication, and essential for ensuring transparency and accountability.

 
 

Bangladesh Local Governance at Work: Learning from the Field

Nilufar Ahmad's picture

The Local Governance Support Project (LGSP) is the centrepiece of a broader program to strengthen accountable forms of local governance across Bangladesh. The LGSP provided matching grants and capacity building support to Union Parishads (UPs), which is the lowest tier of rural local government bodies. The project was initiated in July 2006 and in the final year (FY11), it has covered nearly 97% of the 4500 UPs. Each year the UPs are audited, and those that receive a clean audit received an expanded block grant. The LGSP is the first project of its kind in Bangladesh that supported systemic, country-wide reforms in the system of local governance.