COURT OF AUDITORS

2/12/2013- Cour des comptes-ALGERIE 1

© OCDE

Init

iati

ve c

on

join

te d

e l

’OC

DE

et

de

l’U

nio

n e

uro

pé

en

ne

,

fin

an

cée p

rin

cip

ale

men

t p

ar

l’U

E

TRUST IN GOVERNMENT

4TH NETWORKING SEMINAR

Paris, 02-03 December 2013

FISCAL TRANSPARENCY: A REINFORCING FACTOR FOR TRUST IN GOVERNMENT

« The role of the Algerian Court of Auditors in the draft budgetary regulation bill »

By

Mr OMAR DEBBAKH President of the Regional Audit Chamber of Blida

Court of Auditors Algeria

2/12/2013- Cour des

comptes-ALGERIE 3 Cour des comptes -Algérie

2/12/2013- Cour des

comptes-ALGERIE 4

2/12/2013- Cour des comptes-

ALGERIE 5

What about Algeria?

Like many countries, Algeria is going through deep changes in every

area, generating greater and greater expectations which are difficult to

satisfy due to the global financial situation and its disastrous impact on

national economy.

In this context, the Court of Auditors, as a supreme audit institution,

has a major role in this search for transparency, through the annual

report it presents to the President of the Republic and the report on

the draft budgetary regulation bill (D.B.R.B.), further developed into

INTOSAI control standards for the part relating to the accountability

and transparency requirement in its work.

2/12/2013- Cour des

comptes-ALGERIE 6

1. Definition:

- according to the article 05 of the organic law 84-17 of July 7 1984 relating to the budget laws, the B.R.B. is the act by which the implementation of a budget law and, where required, complementary or modifying budget laws pertaining to each fiscal year, are accounted for ».

2. Legal basis:

Art.160 of the Constitution,

Art. 02,05,68,76,77 and 78 of the Organic Budget Law,

Art.18 of the amended and completed ruling 95-20 of July 1995 relating

to the Court of Auditors.

The budgetary regulation bill : An ex post control mechanism of budget implementation

Note d’accord (NC 13 + NC14)

Administrative

account

Yearly and

monthly

accounting

Management account

CGAF + management account

CGAF

Draft BRB

Framework for designing the BRB

Draft BRB + explanatory

report+ annexes

LRB passed

BRB blueprint+

explanatory report

+ annexes +

evaluation report Evaluation report

2/12/2013- Cour des comptes-

ALGERIE 7

2/12/2013- Cour des comptes-

ALGERIE 8

This report from the Court of Auditors is drafted by the

reporter in charge of DBRB, assisted since 2012 by a group

of ten high judges representing every trial chamber (except CDBF).

It is made of sector-specific memos examining the

ministerial department management conditions resulting from the audits

carried out, after being the subject of an adversarial

procedure with the interested managers.

After several readings, it is adopted by the CPR, then

passed on to the government for adoption before being

submitted to the Parliament.

Thus, recommendations are submitted to these managers, in order for

them to make governance improvements.

3. The evaluation report

2/12/2013- Cour des comptes-

ALGERIE 9

4.Publication

This report is not meant to be published; a summary only is

attached to the annual report, which can be published.

The President of the Republic takes the decision whether to publish the

annual report.

It is passed on to all the country’s elected representatives (PNA and

Senate), in annex to the draft regulation bill,

These representatives request the Court of Auditors to participate in the

debates surrounding this presentation and the audition of the concerned

ministers.

Medias information

the essential information is made public.

2/12/2013- Cour des

comptes-ALGERIE 10

BUDGET TRANSPARENCY IN ALGERIA :

Algeria had to wait for 31 years (since 1981) for the budgetary

regulation bill for fiscal year 2008 to be presented and adopted in

2011.

The budgetary regulation bill is introduced in the fiscal year N-3;

The Parliament has regained a “new” prerogative in 2011;

The BRB, and above all the Court of Auditors evaluation report,

have led to : a resurgence of the debate on budget

transparency and special treasury accounts or, to use a colloquial

expression, “slush funds”, exceeding 100 CAS ,

an issue related to budget transparency that de facto asks

the question of funds allocation and traceability.

A. EVIDENCES :

2/12/2013- Cour des comptes-

ALGERIE 11

B. RECENT DEVELOPMENTS:

The return of BRBs is a sign of the Algerian government’s will to increase

budget transparency. Through the BRB introduction,

the citizen is targeted through the members of parliament.

Important and new official channels of information are created for greater

transparency:

Local level: citizen participation in the new Communal code, national

conferences of local communities, ex ante financial audit spread to

municipalities,…

National level: updated websites for every ministry, CNES (National Economic

and Social Council), national statistics office, widespread ICT, Algerian

universities beginning to teach budget management, communications from

the Bank of Algeria, mandatory publicity for public procurements, special

treasury accounts reorganised andreduced, reform of the public finances

legal and regulatory framework…).

The reinforcement of audit institutions prerogatives guarantees this improvement

2/12/2013- Cour des comptes-

ALGERIE 12

C. The Court of Auditors: potential factor for budget transparency

has begun, for the last years, to produce reports on

various public policies (health, education, housing,

computerisation, literacy, subsidies, taxation, public

debt etc.) leading to differing reactions from persons

subject to trials.

The current numerous legal constraints for

independently publishing its work for the public

hinders greatly the ordinary citizen from

admitting its usefulness.

Realities:

2/12/2013- Cour des comptes-

ALGERIE 13

Challenges:

Legally provided for, consultation of the Court of Auditors by the executive and

legislative power has been limited, for the time being, to its participation to the

DBRB through its evaluation report, as stated previously.

Assistance not requested by the executive, or by the parliament,

Obstacles:

Public finances reform not yet completed,

DBRB introduced for fiscal year N-3 instead of N-1 ,

Evaluation report passed on to National People’s Assembly through the

government,

inability to publish itself the evaluation report and the annual report or its

reports summaries,

weak communication with specialised audience and the general public.

For two years, the Court of Auditors has been trying to review the methodology

previously used in preparing the report, for greater efficiency and transparency

and with the purpose of serving the interests of the citizen, to whom the

government must be accountable for every penny spent

2/12/2013- Cour des comptes-

ALGERIE 14

Finally, every step undertaken by the Court of Auditors towards greater public finances transparency is related to and dependant on a demonstrated political commitment and on the nation’s elected representatives who are truly in charge of controlling voted budgets

.

2/12/2013- Cour des comptes-

ALGERIE 15

Thank you for your attention

شكرا