The Federal Court of Accounts - Brazil (TCU), which currently chairs the International Organization of Supreme Audit Institutions (INTOSAI), took part in the launch of a handbook on the contribution of Supreme Audit Institutions (SAIs) to strengthening countries' budgetary credibility through government audits on Wednesday (26/7). The topic concerns Sustainable Development Goal (SDGs) 16.6, which states that countries must “develop effective, accountable, and inclusive institutions at all levels”.

The meeting was promoted by the institutions that coordinated the project, the United Nations Department of Economic and Social Affairs (UNDESA) and the International Budget Partnership (IBP), a civil society organization that brings together budget analysts and experts from 120 countries to improve public budgetary systems.

The president of the TCU and chair of INTOSAI, Minister Bruno Dantas, attended the presentation. Dantas highlighted the role of the Court and the organization in preparing the material. "It is important to emphasize that the development of this document was only possible because of exceptional collaboration. INTOSAI has been actively involved in the development through webinars, surveys, and technical meetings. As an active participant, the TCU has long been at the forefront of promoting accountability and ensuring the proper management of public resources,” he said.

The tool compiled the most important SAI experiences that contribute to each country's budgetary credibility. The TCU's annual analysis of the President of the Republic's accounts is presented as an example of an initiative to promote budget credibility, which is viewed as a starting point for improving the connections between budgetary execution and performance. Among the evaluations, the report of the accounts of the President of the Republic presents the overview of the macroeconomic situation of the country and possible scenarios, as well as verifies that the government has complied with the main fiscal rules, such as the constitutional spending cap and the "golden rule" of indebtedness.

Divided into seven chapters, the handbook explains the importance of budget credibility and sound financial management, clarifies risks at the government level, and gives examples of audits related to the budget and performance of management systems. The document also cites the main auditing standards and tools, describes step by step the practical application, and lists the challenges and lessons learned. In the end, the report's findings are detailed, and recommendations are made so that the audit institutions can strengthen budget credibility through audit and follow-up reports.

Click here to watch the handbook's launch and access the document.

Expected impacts and next steps

Among the benefits expected from using the handbook are promoting a more systematic approach to evaluating budget credibility through government audits and enhancing auditors' capabilities in evaluating budget credibility. Ultimately, the goal is to help strengthen budget credibility in each of the countries.

The next steps include the testing of the handbook, with the involvement of the INTOSAI community in conducting budget credibility audits, and the development of content and training products for auditors.

The budget credibility handbook was prepared by a technical group of experts from several SAIs, including the TCU itself. SAIs from Argentina, Georgia, Indonesia, Morocco, Philippines, Uganda and Zambia also contributed. The work was also supported by the Government Accountability Office (GAO), the SAI of the United States, and the SAIs of Jamaica, South Africa, Spain and France, the Public Expenditure and Financial Accountability (PEFA) and the International Monetary Fund (IMF).

International cooperation

The work is part of a series of actions of the TCU to fulfill the commitments made while leading INTOSAI. The organization seeks to help countries achieve the Sustainable Development Goals (SDGs) of the United Nations (UN). Thus, the Court is involved in several actions with partner institutions to carry out audits related to governance and implementation policies at the most varied levels, whether global, national or regional.

One of the missions of Supreme Audit Institutions is to assist countries in achieving the SDGs. The audit of public accounts and verification of the credibility of budgets are essential for governments to fulfill their commitments to sustainable development.