Part III Assessing resources In undertaking a performance audit, an auditor typically reports on the following three factors: 1. Economy: Can the programme be run at less expense? 2. Efficiency: Are maximum outputs being achieved from minimum inputs? 3. Effectiveness: Is the programme delivering its intended results, assessed by measuring programme performance indicators against actual results? Thus auditors’ reports are an important source of secondary information about resource expenditure that may be used to hold the Government to account through ESCR monitoring. Nevertheless, there are a number of challenges that might affect how useful official audit reports are in ESCR monitoring. Findings from audit reports are frequently not released, or parliament does not receive them, or they are written in technical jargon and are not easy to understand. In these situations, NHRIs might prioritize actions to engage more actively with official audits, such as: • Publicizing the findings from official audit reports; for example, in press releases and radio talk shows • Recommending special audits on government projects that have been identified as suffering from financial irregularities • Participating as an advisor or member of an official audit team undertaking performance audits. Finally, as discussed further below, NHRIs might consider conducting independent audits, either of the procurement process or of the impact of spending. 12.5. MONITORING PROCUREMENT Governments spend significant public resources on procurement. These expenditures are critical to enabling them to deliver goods and services to citizens. However, they are also extremely vulnerable to corruption. It is therefore important to understand the procurement process. When a line ministry or government agency needs to purchase goods or services for which it will incur a significant expenditure, the following stages are typically involved: the pre-bidding process; the bidding process; issuing a purchase order; inspecting the goods or services procured; and documenting the accounts payable. Documents that are typically maintained by the government agency to record procurement transactions include: • Specifications document setting out the technical guidelines of the procurement process, as well as the details and approximate cost of the good or service required • Bid documents from potential vendors • Purchase orders confirming the quantity and specifications of the goods or services required • Inspection reports, which record any discrepancies between what was ordered and what was delivered • Accounts payable, which record invoices paid. It might not always be possible, or necessary, to monitor procurement when evaluating resource expenditure. However, if particular concerns have been raised that money is being “leaked” – for example, through corruption – obtaining and reviewing these documents can be an important tool to use in evaluating expenditure. Analysing procurement documents and practices can also be important to determine what proportion of government contracts are going to women- or minority-owned enterprises. Chapter 12: Auditing public spending | 123