"State Fiscal and Financial Disciplines Act, 2018: Role of SAI - - PowerPoint PPT Presentation

"State Fiscal and Financial Disciplines Act, 2018: Role of SAI Thailand in Strengthening Public Debt Management"

Pitikhun Nilthanom, Head of International Development Division Orapan Limriantong, Auditor, Professional Level State Audit Office of the Kingdom of Thailand

Presentation Outline

• State Fiscal and Financial Disciplines Act (SFDA), 2018 at a

Glance

• Role of SAI Thailand in Strengthening Public Debt Management
• Challenges and Way Forward

SFDA at a Glance

link to Organic Act

• n State Audit

2018 Holistic Approach

• f PFM

According to Constitution of the Kingdom

• f Thailand

2017

SFDA: Rationale & Expected Results

Required by Constitution No Legislation in Place Fiscal Innovation Lack of Comprehensive Fiscal Situations

SFDA: Structure

Chapter 1 General Provisions Chapter 2 Fiscal & Financial Policies

Chapter 3 Fiscal & Financial Disciplines

• Revenue, Expenditure
• Acquisition of Assets & Public Asset Management
• Creation of Public Debts and Administration of Public Debt
• Non-Budgetary Funds & Revolving Funds
• Local Finance

Chapter 4 Accounting, Reporting & Auditing

Chapter 5

State Audit

Source: Excerpt from Recent Development of the Thai Budgeting System by Mutita Somana, Budget Bureau

SFDA: Public Debt Management

 As pillar of National of Integrity System (NIS), SAO play a key role in promoting transparency, accountability and disciplinary in Public Financial Management (PFM) in accordance with:

• 1. Constitution;
• 2. State Fiscal and Financial Disciplines Act (SFDA);
• 3. Organic Act on State Audit (OASA).

Role of SAI Thailand in Strengthening Public Debt Management: Overview

Role of SAI Thailand in Strengthening Public Debt Management: Legal Framework

Constitution Section 240 “The State Audit Commission (SAC) shall have the duties and powers as follows: (5) to order an administrative penalty in the case of a violation of the law on financial and fiscal discipline of the State (SFDA Law). The proceedings under paragraph one shall be in accordance with the Organic Act on State Audit (OASA Law).”

Role of SAI Thailand in Strengthening Public Debt Management: Legal Framework (Contd.)

SFDA Section 80

“The State audit shall be conducted on the basis of integrity, circumspection, transparency, fairness and courageousness and without bias and shall be in compliance with the principles of good governance, in accordance with the organic law on State audit (OASA Law). In the case of breach of State fiscal and financial disciplines as provided in this Act, the infliction of administrative penalties shall be in accordance with the organic law on State audit (OASA Law).”

Role of SAI Thailand in Strengthening Public Debt Management: Legal Framework (Contd.)

OASA SAC has power to impose administrative penalties to; 1) Head of Audited agencies who absent to comply with recommendations without reasonable cause (In case that damage

• ccurred to the agency).
• 2) Officials intentionally violate SFDA Law.

Role of SAI Thailand in Strengthening Public Debt Management: Legal Framework (Contd.)

Role of SAI Thailand in PFM

Organic Act

• n State

Audit State Fiscal and Financial Disciplines Act Constitution

Role of SAI Thailand in Strengthening Public Debt Management: Auditing Process (SFDA Sec. 75)

Ministry of Finance (MoF) Prepare State Fiscal Report State Audit Office (SAO) Complete a Audit Report Ministry of Finance (MOF) Cabinet Parliament

Role of SAI Thailand in Strengthening Public Debt Management: Auditing Process (In the case of breach of SFDA)

Ministry of Finance (MoF) Prepare State Fiscal Report State Audit Office Complete a Audit Report Auditor- General (AG) State Audit Commission (SAC) Audited Agency Supreme Administrative Court

Sanction : Administrative Penalties (OASA Chapter 7 (Financial and Fiscal Discipline))

• 1) Head of Audited

agencies who absent to comply with recommendations without reasonable cause (In case that damage occurred to the agency).

• 2) Officials

intentionally violate SFDA Law

SAC exercises “Quasi-Judicial Power” to impose Administrative Penalties to

Administrative Penalties Remit Punishment Publicly Condemn Administrative Fine

Sanction : Administrative Penalties (Contd.) (OASA Sec. 98)

Sanction : Administrative Penalties (Contd.) (OASA Sec. 103)

• Can be made within

90 Days

Appeal

Supreme Administrative Court

Challenges &Way Forward

Strengthen NIS & PFM using Financial and Fiscal Discipline Measures Increase Cost of Corruption Institutional Capacity Development Increased Organizational System Capacity Development is underway Professional Staff Capacity Development is needed and in progress; e.g. Training Play a key role to enhance transparency, accountability and discipline in PFM Add Value and Benefit to Citizens (ISSAI 12) & Contribute to SDGs

THANK YOU

 For more info please visit;  https://cdc.parliament.go.th/draftconstitution2/download/article/article_2 0180829093502.pdf - Constitution of the Kingdom of Thailand 2017  http://www.krisdika.go.th/wps/wcm/connect/4dc30b804739164c93dbfbe9 2e48054f/STATE+FISCAL+AND+FINANCIAL+DISCIPLINES+ACT%2C+B.E.+2561+ %282018%29.pdf?MOD=AJPERES&CACHEID=4dc30b804739164c93dbfbe92 e48054f – State Fiscal and Financial Disciplines Act 2018  Please contact: pitikhun_n@oag.go.th, pitikhunnilthanom@gmail.com, "Orapan L" <orapan_l@oag.go.th>