Tribunal de Contas da União
Letter from the Chair of INTOSAI - September 2024
International institutions, regardless of their size, are mainly funded by contributions and public funds from member countries. Since these resources come from national budgets, supreme audit institutions (SAIs) play a crucial role in ensuring good governance, fiscal responsibility, efficient management, and transparency.
António Guterres, Secretary-General of the United Nations (UN), emphasizes that global challenges require appropriate responses. In our interconnected world, organizations like the UN, the World Bank, and the International Monetary Fund are vital in addressing issues like poverty, public health, and climate change. For these organizations to fulfill their mission effectively and responsibly, the role of SAIs is indispensable.
These institutions, responsible for overseeing the management of public resources in their countries, extend their role beyond national borders by auditing international organizations. They ensure that global funds are managed with integrity, efficiency, and transparency, aligned with the established objectives. Their role is essential for global governance enhancing public trust and improving responses to global crises.
The Lima Declaration acknowledged the crucial role of Supreme Audit Institutions (SAIs) in overseeing supranational organizations whose spending is financed by member countries' contributions. These audits adhere to the same principles that govern SAIs within national settings, but they are tailored to fit the specific circumstances of each international organization.
A prime example of this global role is the United Nations Board of Auditors, established in 1946, to audit the UN and its Funds and Programs. Consisting of three members from different Member States' SAIs, elected by the General Assembly for six-year terms, the Board is responsible for auditing financial operations, compliance, and the efficiency of accounting and financial procedures and internal controls, ensuring efficient management of the UN and its entities. They adhere to international auditing standards and other accepted norms, promoting transparency and accountability.
The Board has used various SAIs as external auditors since its beginning. Starting with SAI Ukraine (1947-1948), followed by SAI Sweden (1947-1949), and SAI Canada (1947-1956 and 1968-1980). These institutions were chosen for their expertise in public auditing to guarantee impartiality and adherence to international standards.
The Brazilian Federal Court of Accounts (TCU) was elected to join the Board starting in July 2024, along SAIs of France and China. TCU has already conducted two on-site audits: one at the United Nations Interim Administration Mission in Kosovo (UNMIK) in Pristina, and another at the United Nations Peacekeeping Force in Cyprus (UNFICYP), as well as an audit at the United Nations Interim Force in Lebanon (UNIFIL).
International involvement greatly benefits SAIs. The multicultural environment fosters the continuous improvement of auditing practices, equipping auditors to handle complex issues and promoting a global perspective. SAI Germany (Bundesrechnungshof) is a great example, with its Board experience leading to technological innovations, specialized training, and the creation of multidisciplinary teams.
Working with the UN Board of Auditors helps INTOSAI extend its global reach. TCU’s leadership role in INTOSAI and its participation on the Board strengthens its global voice, elevating INTOSAI’s credibility and visibility, solidifying INTOSAI as an essential force in promoting good auditing and public governance practices.
SAIs play a crucial role in enhancing global governance, benefiting both international organizations and the institutions themselves by enhancing technical capacity, increasing prestige, and broadening influence. These topics were thoroughly discussed at the International Audit Congress hosted by SAI Chile in September, which preceded TCU on the UN Board of Auditors.
INTOSAI is committed to promoting the role of SAIs within international organizations, recognizing their expertise and independence in overseeing public resources. By working together, we can expand our global influence, strengthen integrity and transparency, and disseminate good auditing and public governance practices worldwide.