rti, mumbai / day 1 / slide 1.2.2 audit of sustainable development (cond) what is sustainable...

RTI, MUMBAI / DAY 1 / Slide 1.2.2

Audit of Sustainable Development (Cond)

What is Sustainable Development?



“It is development that meets the needs of the present without compromising the ability of future generations to meet their own needs” – Brundtland’s Commission 1987.

Earth Summit – The United Nations Conference on Environment and Development (UNCED) – 1992 – Inspired by Brundtland’s Commission.

This concept brought in 2002 in Johannesburg, South Africa Summit.



Sustainable development recognises the need for a balance or trade off between economics, social progress and the environment

Government’s concern for Sustainable Development

Policy tools at their disposal to influence sustainable Development

SAI to audit the policy tools with care as interference in policy poses risk



Tax policies of Government to be in alignment with sustainable development

Mismatch between allocation of funds for Environmental programs and other programs in budget to be focussed-commented

Effects of Environmental impact to be assessed by Government and measures introduced to mitigate or abate them

SAI to audit the measures with policy objectives and achievement.



Scope of Audit of Sustainable Development will depend upon the mandate of the SAI Some have mandate while others have

limited mandates such as financial, compliance etc.

Some have pre audit Mandate or budget audit

Audit of Sustainable development based on SAI’s Auditing Standards-To be used at national level audit, regional level audit and program level audit



Agenda 21 provides for formulation of Environmental strategy

Strategy comprises-frame work, co-ordination, monitoring and reporting progress

Pollution prevention or control, integration of development and environment protection

SAI to audit the strategy for result orientation



Scope-Audit of Environmental strategies At National level-split up at local level for

local level implementation should spell out objectives, policies Strategy to be split into targets/time tables Should have a good information system for

public awareness



Sustainable Development-targets/indicators Strategy to have targets Indicators are means to measure the targets

towards sustainable development Should be based on proper understanding and

what needs to be done in a particular area Both targets/indicators to be real/reliable



Audit of Targets Should cover key areas, in alignment with

International comitments Should be based on clear, scientific

understanding of the underlying problems Should be related to measurable achievement Measurement to be realistic, authentic and

reliable



Audit of indicators Should have relevance to policy Should be easy to interpret Should be measurable If not measurable in clear terms-not useful



SAI to verify the target with achievement SAI to inquire whether the target has

deadline If so, whether it is met or likely to be met In case of shortfall reasons to be

provided/highlighted To highlight the consequences of not

achieving the target



Environmental Management System (EMS) EMS integrates Environmental issues to the

Management International Standards -ISO 14001 Provides for Environmental policy Assessment of Environmental aspects/impacts Processing/planning Checking/Corrective/preventive actions



Review of the Management system by the organizations’ top management to ensure continuity



EMS Audit Focuses on the extent of the use of EMS the accredit ion to the International Institutes

which certify the extent of application of systems the extent to which the environmental issues are

related to departmental planning



Reporting: SAIs to verify whether the sustainable

Development Reporting is effective and qualitative

Reporting to have timeliness, accuracy and relevance

Accountability to be identified for reporting Report to include review of targets/achievement



Reporting (Cond.) Report to include implementation of the

program based on lessons learned.



Audit of sustainable Development at program level

Sustainable Development Strategy need to be co-related at program level down below

Audit of program level implementation of sustainable development is also performance Audit

Due to the complex nature of the implementation of a program various issues will be involved in the program level implementation.



Due to involvement of multiple issues in a program such as water issue, air issue, biodiversity issue at a stretched scenario SAI to scope the audit accordingly.

SAIs need to seek the help of other statutory auditors for this.

SAIs to induct SMEs (Subject Matter Experts) for effectively conducting the audit.



SAI will have to keep in mind the concept of sustainable development

SAIs to strike a trade off between economic, environmental and social objectives of the program.

SAIs to establish whether the links between economic, environmental and social issue are amenable to analysis.



Whether it has got expertise to address this as otherwise the audit will be construed as questioning the policy.



Trade offs between economic and environmental and social issues are struck through :

EIA (Environmental impact Assessment) - a way to assess what the results of a policy, plan or action will have on the environment.

Social cost benefit analysis - a formalised way of comparison of cost and benefits



Multiple Accounts Analysis-a method of incorporating social and environmental considerations into planning



Sustainable Reference values-Scientifically determined and generally accepted values which set absolute assets to environmental, economic and social outcomes

Best available techniques not Entailing Excessive Cost (BATNEEC) -A physical process or technique which does most to limit emissions of pollutants to one medium without entailing excessive cost



Best practicable Environmental option-A process where the least damaging or most beneficial environmental option is identified.



Building Capacity within SAI The six steps- Clarify Mandate Develop strategy Build capacity and expertise Conduct Audits Learn from experience Have an impact



SAI to verify the existing audit Mandate and ensure that for sustainable development audit also Mandate is there

Method of Audit is performance audit SAI to structure its audit depending on the nature

of program some program on one organisation some program on range of organisations



Conducting audit Audit to look for

Responsibility centre Availability of documents for planning including

milestones, performance measures,goals/results Expertise to discharge the charged responsibility Harmony among the various organizations carrying

out Sustainable Development work Accountability Centres, reporting style,results



Targets-results Decision making



SAIs to share experience across the border Regional groups to be set up Common training program for audit

personnel creation of data base for Sustainable

Development audit Report to be published timely


Strategy for Future Environmental Audit

Build Environmental Awareness Prepare Environmental Guidelines Introduce Environmental Issues in

Some Auditing Conduct Environment Auditing

Audit MandateIdentify key players Hold talks and lectures

External factors/compaign

Conduct coursesOn EA


Proposal of a specific Environmental Auditing

• Evaluate Major Environmental Issues• Propose Environment Audit Title• Understanding the business• Justification for selection

– Impact– Audit Coverage– Visibility– Materiality– Significant– Risk– Auditability

• Set the Audit Objective• Establish Lines of Audit Inquiries• Identify Audit Criteria• Identify Opportunities and challenges

rti, mumbai / day 1 / slide 1.2.2 audit of sustainable development (cond) what is sustainable...

Documents

mumbai day

sustainable developmentwill

sustainable developmentshould

sustainable developmentsai

integration of development

development unced

national level audit

regional level audit