Economic Governance and Management 530. With regard to internal control of accounting operations, the institutional mechanism is located in three main bodies: heads of internal control, the internal auditor general, and heads of audit units. 531. The government attached little importance to the internal control of expenditures for a long time. The PEFA Report emphasised this. However, the government has tried to improve the regulatory framework since 2004 and has adopted organisational measures to improve the efficiency of the control system. 532. The government established the Internal Control Framework in December 2000. It controls all public service accounting operations. However, it was only in 2005 that audit rules and a charter for auditors were introduced to strengthen and guide control operations. The PEFA Report, however, stresses that the preparation of reports and accounting operations were based on administrative and economic classifications that were in place prior to the introduction of the MTEF and, therefore, do not analyse results. It was therefore necessary to review the methodologies and manuals to adapt them to the PBA and to develop programmes for training staff in these new tools. 533. 534. 208 Chapter 4 This led to the appointment of an internal auditor general and the establishment of internal audit committees for the different ministries in 2006. These measures have helped to strengthen the capacity of public accountants to adapt the operations to the new budgeting approach. They were also able to monitor internal audit operations better in order to comply with international rules and practices. With the establishment of these internal audit committees, the audit units regularly forward the reports, which are submitted to them, to the head of the Internal Audit Framework and the MOFEE. These reports should also be made available to the external audit director at his or her request. 535. However, public accountants do not regularly implement the recommendations made in these reports. 536. The information that the CRM gathered shows that internal control is hampered by the inadequate resources provided for doing audits, incompetent auditors and the absence of procedural rules that comply with international standards. The PEFA Report made recommendations for improving the efficiency of internal audits. They included adopting a strategic internal audit plan that covers all Chapter 4 Economic Governance and Management ministries, developing a procedural manual for auditors that conforms to international standards, and developing a comprehensive and consolidated annual report. 537. External control relies mainly on Parliament and the NAO. The CSAR only describes the role of the director of audit briefly. It does not analyse how he or she exercises his or her autonomy or the quality of the reports he or she prepares or how he or she follows up on these reports. The director of audit enjoys very extensive controlling powers over all government operations, decentralised entities and parastatal enterprises. The NAO has a staff of 115 accredited auditors and 75 accountants. To strengthen its operational capacity and improve the quality of its services, the NAO has revised the manual of procedures to bring it in line with the international norms and standards of INTOSAI Audit Standards and IFAC International Audit Standards. It has also developed a strategic plan for improving its performance. 538. The director of audit sends reports to the minister of finance and economic empowerment every year. They are then forwarded to Parliament within prescribed time frames, generally within four months of the public accounts statements. However, Parliament takes time to examine this report before submitting its views. Parliament sometimes implements the recommendations of the director of audit. 539. The minister of finance and economic empowerment, for example, created audit committees in 2006 to analyse the recommendations of internal and external audit reports to ensure that the recommendations are implemented. These recommendations led to a reform of parastatal enterprises being considered. After discussions with stakeholders, the CRM learned that the director of audit has a good reputation for rigour, transparency and efficiency. 540. With regard to the role of the National Assembly in analysing the budget law, prior to its adoption, the CRM identified some weaknesses. These are hampering the efficiency of this institution. Budget estimates were sent to Parliament without the sector MTEFs, which are supposed to guide the analysis, until 2007. Furthermore, the one-month deadline that Parliament has for the analysis is highly inadequate. To enable Parliament to play its role efficiently, it is important to send the sector MTEFs to it in time. This will give the Finance Committee enough time to analyse them, possibly consult citizens on the strategic decisions that will influence their lives, and be able to make relevant recommendations on the budget proposals. 209