The Evolving Role of Supreme Audit Institutions in Addressing Fiscal and Other Key Sustainability Challenges

This speech was given by the Comptroller General before the 20th Public Audit Forum hosted by the Board of Audit of Japan in Tokyo, Japan, on August 24, 2007. On so many fronts in recent years, from new technologies, to capital markets, to public health, the environment, and many other areas, we've seen profound developments. Many of them demonstrate a growing interdependency. And the pace of change and the degree of interdependence are increasing with the passage of time. My talk today is about the foresight role that more supreme audit institutions (SAI) and other key accountability organizations should be undertaking. In addition to our normal oversight and insight functions, SAIs like the U.S. GAO and the Korean BAI can and should educate government leaders about emerging trends and challenges. As independent, professional, fact-based, and nonpartisan organizations, SAIs are uniquely positioned to speak truth to power and help policymakers address key current and emerging challenges in a timely and informed manner. SAIs have credibility, in part, because of their independence. In addition, SAIs should have only one agenda: the public good. When it comes to supreme audit institutions, there's a similar hierarchy. (See attachment.) Envision a pyramid with six levels, each describing a mission. At the bottom is the most basic mission every government SAI should hope to achieve--fighting corruption. It's essential that civil servants be honest and committed to the public good. After all, any government run by corrupt officials isn't going to accomplish much, other than picking the pockets of its own people. The next level in the SAI pyramid is promoting transparency, which helps to facilitate progress on all fronts. The third level is accountability, and I'd include here efforts like traditional audits and compliance reviews. The fourth level is enhancing government economy, efficiency, ethics, equity, and effectiveness. The fifth level is providing policymakers with insight and options to make government work better by refining programs, consolidating redundant efforts, or adopting best practices. The sixth and final level in the pyramid is foresight, a function that more mature and experienced SAIs should consider undertaking: I'm taking about helping policymakers focus on the future.