WGEI Newsletter Issue No. 1 – August 2015

The content of this newsletter

Introductions

  • Welcome from WGEI Chair
  • WGEI website re-launch

Need to know

  • The Extractive Industries value chain: possible audit topics
  • What is transfer pricing, and why should SAIs care about it?
  • SAIs and the audit of Extractive Industries

Trainings and events

  • The 2nd WGEI meeting to be held in Oslo 21-23 September
  • Seven African SAIs gather for regional EI training

Members in action

  • Netherlands Court of Audit reviews spending of gas field revenues
  • Coordinated EI audit in OLACE

 

Introductions

Welcome from WGEI Chair!
As Chair of the INTOSAI Working Group on Audit of Extractive Industries, I am very pleased to present to you the first WGEI newsletter. We aim to send you monthly updates with news about the activities of WGEI, recent sector audits around the world, trainings and events as well as feature articles on topics of particular relevance. We hope you will find the newsletter an interesting read. Please feel free to share your feedback with the WGEI Secretariat. Note that our newsletter, as our website, is dependent on contributions from group members. Please be in touch if you have news, articles or relevant updates you think can be shared on the WGEI website, or if you can write an  article for the next newsletter. Contributions can be emailed to the WGEI secretariat: wgei@oag.go.ug
by John F. S. Muwanga Auditor General of Uganda and Chair of INTOSAI Working Group on Audit of Extractive Industries

WGEI website re-launch
The WGEI website was launched after the first WGEI meeting in Kampala in August 2014, but has recently received a facelift and a number of new resources. Check out the website and review a number of audit reports from around the world on http://www.wgei.org/

 

Need to know

The Extractive Industries value chain: Possible Audit Topics
Supreme Audit Institutions (SAIs) can play a role in ensuring that countries reap maximum benefits from the EI sector and keep negative effects to a minimum. The type of audit to be carried out will depend on the competency level at SAI, their audit mandate, access to relevant data, the maturity of government institutions and the lifespan of extractive industries in the country. This presents a selection of possible risks and audit topics to be considered within the different phases of the EI value chain, and give examples of recent EI sector audits from around the world.
By Trygve Christiansen, OAG Norway
Read the Article Here

What is transfer pricing, and why should SAIs care about it?
An estimated 60 % of world trade is transactions between branches and subsidiaries of multinational enterprises (MNE). The way prices are set for these transactions (transfer prices) can greatly influence the overall taxes paid by the enterprise, as costs are shifted to high tax jurisdictions, and profits move to jurisdiction with less or no profit tax. This article explains what is meant by transfer pricing, and why it should be high on the agenda of SAIS looking to audit the extractive industries.
By August Schneider and Anders Pilskog, OAG Norway
Read the Article Here

SAIs and the audit of Extractive Industries
Read the Chair’s article on the role of SAIs in the Extractive Industries in the International Journal of Government auditing

 

Trainings and events

The 2nd WGEI meeting to be held in Oslo 21-23 September
The Chair has the pleasure to invite all WGEI members and observers for the 2nd annual meeting of the WGEI. The meeting will be hosted by SAI Norway in Oslo, Norway from 21st – 23rd September 2015. To sign up or read more, visit the meeting webpage on the wgei website: http://www.wgei.org/wgei-activities/2nd-wgei-meeting/

Seven African SAIs gather for regional EI training
With the assistance of the GIZ Academy for International Co-operation, SAI representatives from Ghana, Kenya, Malawi, Mozambique, Tanzania, Uganda and Zambia gathered in Germany I June to exchange experience and build competence in audit of the extractive industries. Colleagues from SAI Brazil, SAI Estonia and the EITI secretariat in Oslo also contributed to the event, which will see a follow-up training in Uganda in September. The results of the workshops will be shared with the WGEI in a discussion paper.
By Sandy Richter, GIZ
Read the Article Here

 

Members in action – featured audits and colleagues

Netherlands Court of Audit Reviews Spending of Gas Field Revenues
The Netherlands Court of Audit has investigated how much money has been earned from the Groningen natural gas field since 1960 and what it has been spent on. The report concluded that the precise use of natural gas revenues cannot be identified. NCA has also drawn up three scenarios of how the Netherlands could use natural gas revenues in the future.
Read more here: http://www.courtofaudit.nl/english/Publications/

Coordinated EI Audit in OLACEFs
Cooperative audits have been carried out in INTOSAI with different objectives and methodologies. In most cases, they are tools to study and analyze policies of regional and international interest. More recently, the cooperative audits have also been used as part of a strategy for capacity development. Under the Organisation of Latin America and Caribbean Supreme Audit Institu¬tions (Olacefs), the SAIs of Brazil, Colombia and Peru jointly investigated oversight of public revenues from the oil and natural gas exploration and production.
By the Federal Court of Accounts (Tribunal de Contas da União) Brazil, Chair OLACEFS
Read the Article Here

No Comments Yet.

Leave a comment

You must be Logged in to post a comment.