Tribunal de Contas de Portugal

1Tribunal de Contas de Portugal

Electronic rendering of accounts

EUROSAI CongressJune 17th, 2014, The Hague

Work session

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AIM

Tribunal de Contas de Portugal


I. Aim addressed:

An opportunity to explore how SAIs can be innovative through IT instruments to cope with the environment changes in which they audit and influence positively the auditees activity

Can we use innovative assessment methods and technics? Improve technical quality; Help clarification and compliance with requirements.

Can we increase the efficiency and effectiveness of the audit work? New instruments to audit risks identification

Can we do more and better with less?

Can we get our message across? (and influence positively our auditees) Focus on savings and efficiency gains .

"To help the nation spend wisely", NAO UK"Helping the State and the Society to better spend", TdC PT

This statement embodies the mission of SAI’s:

II. Our approach will try to focus on:

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AGENDA



I. Introductory stage to define the problem that we want to solve, as well the information needed to brainstorm solutions

II. Brainstorming:

Use of SWOT (strengths, weaknesses, opportunities, threats) analysis method for devising the strategy, position and direction on problem solving

Refine of the ideas into actions/initiatives/plans to achieve under the six categories provided by TAM framework (Team Action Management, Albert Humphrey)

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INTRODUCTION



Can the accounts be electronic? (avoid paper-based)

Can the accounts be rendered electronically?

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CONTEXT



The control of the accounts of public entitiesPlay a key role for SAIs (explicit and statutory, given by Act) in the accountability cycle for public sector finances

• Entities of the Public Administrative Sector (includes central government departments)

• Entities of the Public Business Sector

• Entities of the Private Sector that spend public money

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CONTEXT



The control of the accounts of public entitiesClearly integrated in the mission of Tribunal de Contas de Portugal: rules on the accounts that must be submitted to TCP by Act

• Affects a universe of around 7500 entities

Distribution of target entities

PAS - Health (1%)

PAS - Central Administration (10%)

PAS - Science, Education, Culture and Sports (12%)

Local Administration (70%)

Public Business Sector (6%)

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CONTEXT



Current economic and social environments (create pressure over SAIs to provide more and better services)

Current Business

EnvironmentSAI

Governance

Risk

Compliance

Quality management

The SAI towards governance, risk, compliance, quality management

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CONTEXT



This pressure can have internal and/or external origins (in the end: an effort to service and result improvement)

• Evolution in the citizen attitude: from customers towards public owners, to whom public authorities must provide timely satisfaction

Growing interest of citizens by public money spend and public assets and liabilities

management

Citizens want to know about the effectiveness, efficiency and legality of public policies and

budget programs execution

What do citizens expect from SAIs?

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CONTEXT



This pressure can have internal and/or external origins (in the end: an effort to service and result improvement)

• Dynamic regulatory environment• Complex business models: the emergence of e-governance, e-

procurement, electronic service delivery, that, when impaired with the exponential grow of information in a myriad of formats, increase the risk of losing evidence

• The SAI staff need better access to more information, as well as more flexible ways to share it

• Managers expect to receive summary information, able to withstand the strategic and operational decision-making

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CONTEXT



The problem, and the challengeThe current situation (a "tradition" that dates back to the Middle Age: Casa dos Contos, 1389)

• Complex and time consuming process in reception, archiving and access (availability) of the public accounts, as well their supporting documents.

• Analysis and assessments experience long delays motivated by failures in filling properly the documents (an average of 30 days).

• Lower integrity in the global preservation of the records, especially when combined with the so-called “secondary documents” (already produced on digital media).

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CONTEXT



The problem, and the challengeThe current situation (a "tradition" that dates back to the Middle Age: Casa dos Contos, 1389)

• Increased pressure on space usage: each year the archive holds and cares around 7500 new physical accounts. Since the preservation plans for this type of records defines retention periods of 5 years, we can estimate a density of 2650 linear meters.

• Greater difficulty by the auditee to follow the work of the SAI.

• Shipping and return/destruction costs of the records, associated with the geography.

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CONTEXT



So,

"Tradition is a challenge to innovation" Álvaro Siza Vieira, Kenneth Frampton, Professione Poetica, 1986

Can we explore together ideas on a new sustainable model for service delivery, that can significantly improve customer experience and outcomes, at the same or reduced cost?

Documents

Tribunal de Contas de Portugal