Transcript Key Indicator System

Organisation for Economic
Co-operation and Development
Second World Forum on Statistics,
Knowledge and Policy
“Measuring and Fostering the
Performance of Governments”
Arturo González de Aragón, C.P.A., Auditor General
Superior Audit Office of Mexico
Istanbul, Turkey
June 28, 2007
1
Introduction
Valuable opportunity to debate
Meeting in Palermo, Italy (2004)

“Making Governments Accountable”
Heads of the Supreme Audit Institutions (SAIs)
of the People’s Republic of China, India and
Japan, and a representative from the New York
Times

Performance assessment system
Universally accepted key indicators
2
Governmental Accountability
Modern supreme auditing = performance analysis
and goals & objectives fulfilment assessment
Criteria

Efficacy

Efficiency

Economy
Accurate and precise indicators to assess
governmental management
3
Supreme Audit Institutions and
Indicators
Supreme Audit Institutions 
performance assessment systems
foster
Lack or insufficiency of indicators
Search for techniques and resources to
conduct revisions and support observations
External references  natural option
4
INTOSAI (1)
International Organization of Supreme Audit
Institutions (1953)

186 member countries

Increase of technical capabilities

Experience and information exchange

Performance audits
Performance Assessment System
5
INTOSAI (2)
Institutional effort to define criteria and a legal
framework to carry out performance audits
XIX INTOSAI Congress


Debate on a Performance Assessment
System based on Universally Accepted
Key Indicators
Mexico City, November 2007
6
Indicator Systems
Key Indicator System

Essential tool for SAIs

Definition of vulnerable national areas


Adequate public policies design strategy to
address national issues
Better public resources allocation
7
Indicators Nature
Identification of their nature

Quantitative

Qualitative
Quantitative data – objective indicators – hard
data

Information expressed in figures

Standardization
Qualitative
perception

data
–
subjective
indicators
–
Thorough description of events, situations,
behaviours, ideological positions, etc.
8
Key Indicator System
Quantitative and qualitative data weighting
1. Public policies design
2. Measurement and improvement of
governmental performance
3. Transparency and sound governmental
practices
4. Current situation and future trends
5. Risk areas and improvement opportunities
6. Corrective and preventive measures to ensure
attainment of foreseen goals and objectives
9
International Benchmarking
Supra-national key indicators
Comparative assessment

“Millennium Development Goals”
48 indicators
Structural indicators of the European Union

Six strategic areas (economy, employment,
research, economic reform, social issues
and environment)
10
Key Indicators System and SAIs
Three “E’s”
performance

Efficacy

Efficiency

Economy
to
measure
governmental
Three “C’s” to measure citizenry satisfaction

Quality of the good or service

Competence of the actors

Client - citizen satisfaction
11
Superior Audit Office (SAO) of Mexico’s
Proposal (1)
We cannot improve what we cannot measure
Performance Assessment System – universally accepted
key indicators.
PREMISES:



FIRST: Public policies design  indicator system 
short- and long-term goals and objectives
SECOND: Comparison between similar public policies
 best practices  gap detection  improvement
programs
THIRD: Best practices  objectives and goals 
maximum outcome yielding at minimum cost 
efficiency and efficacy  outcome attainment
12
TASKS
SAO’s Proposal (2)
1. INTOSAI – OECD – Sound governmental
practices
2. Best practices

Continuous improvement - Excellence

Process re-engineering
3. Supreme Audit Institutions

Outcome-focused audits

Virtuous circle
Sound practices
Governance
13
SAO’s Proposal (3)
Systematization of available indicators
PoliticalAdministrative
Three
societal
levels
Economy
Society
14
Political-Administrative
• sound regulatory framework
• guarantees
• civic liberties
• governmental capacity
• governance
• citizenry participation
PoliticalAdministrative
Indicators:
• public order
• legal assurance
• governmental capacity
• governance
15
Economy
• life-quality
• efficient resources allocation
• technological progress
• employment
• fair sharing of produced goods
• environment
Economy
Indicators:
•GDP
•Per capita Income
•Public Debt
•Investments
•Public expenditure
•life quality
•competitiveness
•technological
progress
•macroeconomic
stability
•employment
•markets
•trade
16
Society
• nutrition
• education
• health
• housing
• poverty line
• culture
Society
Indicators:
• illiteracy and education years
• healthy life years
• infectious diseases uprooting
• housing for all families
• adequate nourishment
• cultural patrimony sharing:
books, magazines, radio,
television, theaters, telephone
• information access
17
Existing indicators
Organization for Economic Co-operation and Development
(OECD)
United Nations Organization (UNO)


World Health Organization (WHO)
United Nations Educational,
Organization (UNESCO)
Scientific
and
Cultural
World Trade Organization (WTO)
World Bank (WB)
International Monetary Fund (IMF)
International Transparency (IT)
Agencies

rating

non-governmental for development

national
18
Conclusions (1)
Universally accepted key indicator system:

SAIs  public policies design

Risk areas. Improvement opportunities

Governmental performance

Critical outcomes vision

Rational public resources allocation

Transparency and accountability
19
Conclusions (2)
Key indicator
agreement
systems
Universal
nature

performance assessment

consensual
governmental
Domestic indicators  national planning
systems design; policies; regional and
sectorial plans; short, mid- and long-term
programs, and annual budgets
20
Conclusions (3)
Public accountability
Accountability


not a gracious concession
legal, ethical and moral duty
21
Democracy is the system in which
subjects rule, those who rule are always
ruled, and where rulers and subjects
both belong to the one and same
society.
22
Mr. Arturo González de Aragón, C.P.A.
Auditor General
Superior Audit Office of Mexico
23