XVI INCOSAI: MONTEVIDEO, NOVEMBER 1998

REPORT BY THE WORKING GROUP ON THE AUDIT OF PRIVATISATION

1. The Working Group was set up in 1993 with the following terms of reference:
  • to identify and examine problems confronting SAIs in the audit of privatisation;
  • to exchange information on the range of experience within the Working Group’s membership in resolving these problems, having regard to relevant work in INTOSAI regions; and
  • to facilitate the provision of information on this subject to INTOSAI members.
2. The widespread interest in the subject is reflected in the fact that, with 23 members, the Group is currently the largest of all INTOSAI’s Committees and Groups. Meeting once a year in different locations, and conducting work in between meetings through correspondence, the Group have also drawn extensively on the outcome of a number of discussions, seminars, and meetings in INTOSAI regions.
Privatisation Audit Guidelines
3. The Group’s principal output to date is the guidelines on the audit of privatisations. These 40 guidelines highlight key audit issues relating to the main types of sale - trade sales, management buy-outs, mass privatisations, auctions and flotations, together with the skills needed by the SAI to examine and report on them. Circulated in draft for comment to INTOSAI members in all the INTOSAI languages in stages from December 1997, the guidelines drew observations from some 40 SAIs, including suggestions which the Working Group took into account in finalising the text of the guidelines at their June 1998 meeting in Jerusalem.
4. The Group recommend the adoption of these guidelines by XVI INCOSAI.
Information Exchanges Between SAIs
5. Closely linked to the preparation of the guidelines has been the development of ways to facilitate the exchange of information on completed privatisation audits between SAIs. As well as having up to date guidelines, SAIs want to be able to find out about audits that have taken place, reports that have been produced, and lessons that have been learned. They want to know who to contact in SAIs that are active in carrying out privatisation audits.
6. The Group have recently taken two further steps towards assisting such contacts. First, they have set up a website on the Internet setting out membership details, papers produced, agenda for forthcoming meetings, and proceedings of these meetings, and liaison officer details in each SAI member of the Group. The website, which will be updated at least twice a year, can be accessed at the following address:

http://www.open.gov.uk/nao/intosai/home.htm.
7. Second, the INTOSAI EDP Committee kindly included, in their recent questionnaire to all INTOSAI members, questions to enable a Directory of Privatisation Audit to be established, including details of completed privatisation audits and the name of a liaison officer for each SAI. Some 40 members have so far provided such details. The Working Group have made this information available to all INTOSAI members on the website, enabling them to follow up queries on particular aspects with the SAIs concerned. The Group will also provide a hard copy for delegates to XVI INCOSAI. The Group will update the Directory when further members have provided their details.

 

   June 1998