Knowledge Sharing Builds Capacity: The Saudi Center for Financial Review and Performance Control

Author: Fahad Al-Herbi

The Kingdom of Saudi Arabia’s supreme oversight bodies enjoy complete independence in performing their duties, despite certain challenges they may face, such as overlapping powers and conflicting roles between multiple entities, a lack of specialized information technology (IT) skills to keep pace with the monitoring of electronic technologies and digital currencies, or forensic experts to detect complex financial manipulation such as money laundering, as well as a lack of specialists in project management or infrastructure engineers to determine the minimum and optimal use of iron, asphalt, and others related to construction, implementation, and design. 

Bureaucracy and resistance to change and development within the system also weakens transparency, leading to arbitrary decisions and an unfair distribution of job and financial incentives. This could expose auditors to temptations or pressures that lead to frustration and frequent resignations, affecting the quality of outputs and task follow-up. 

Among the difficulties facing auditors are the high expectations of some affected parties, which may exceed the capabilities of the audit bodies, or the perception of oversight as an adversary or threat, rather than a tool for reform and improvement. Therefore, it has become important to study the risks associated with internal governance so that the agency has clear standards for transparency, professionalism, and integrity.

The Government of the Kingdom of Saudi Arabia has given the General Court of Audit (GCA) great importance as the highest financial and accounting oversight body in the Kingdom, as reflected in legislation, independence, capacity building, and continuous modernization of its system in line with international best practices, digital and technical development, and international cooperation. The GCA, as a result, has become one of the most important and most advanced oversight bodies in the region, in line with Vision 2030, which focuses on transparency and public financial governance. It has been granted broad powers to audit the final accounts of government agencies and state-owned companies, the number of which will increase when the privatization system is fully implemented.

The GCA launched several internal platforms, such as:

• The “Wathiqa” to store all royal decrees, regulations, legislation, rules, and circulars for reference, 
• The “Himma and Saqal” platform for training, development, education, follow-up, and recording innovations, 
• The “Soun” platform to preserve the professional and intellectual rights and benefits of auditors, 
• The ‘Shamel’ platform to follow up on audit work and apply regulations electronically, and, 
• The “Aref” platform to provide professional and intellectual support to auditors.  

The Saudi Center for Financial Review and Performance Control was established as a national center for capacity building and competency development in the field of accounting and public auditing, supporting enrollment in postgraduate studies and professional qualification (such as CPA, CIA, and SOCPA certifications). The Bureau has opened up avenues for international and regional cooperation by hosting and chairing meetings of the supreme financial and accounting oversight bodies (ARABOSAI, INTOSAI) to actively participate in the exchange of experiences and international standards. It works on the principle of transparency and promotes integrity, preparing its annual report and submitting it directly to the Custodian of the Two Holy Mosques to contribute to the protection of public funds.

The Center seeks to achieve complete digital transformation and rely on technology by analyzing big data to quickly examine transactions and track financial operations in real time through automated systems connected. 

Using the government databases to highlight indicators of fairness in budgets and ensure that financial resources are distributed fairly and cannot be manipulated, the Center is tasked with:

• Detecting errors in the awarding of certain important contracts, 
• Within contracts, identifying shortcomings and weaknesses in the implementation of clauses, or duplication and repetition to ensuring efficiency and quality of performance, 
• Reviewing accounts and the regularity of payment orders, 
• Auditing consulting contracts, and identifying the departments requesting them, 
• Reviewing the added value and benefits of such consultations, and 
• Ensuring that all certificates of completion and outputs are received and approved.
• Examining and reviewing the accounts, systems, and regulations of companies owned by the state, 
• Supporting the Public Investment Fund in implementing its investment strategies and governance mechanisms, and following up on the collection of delayed or suspended investment returns. 
• Studying financial corruption issues professionally and wisely.
• Preparing comprehensive financial and administrative reports explaining the cause and effects of violations. These reports are supported with the competition and procurement system, its executive regulations, orders, and legislation. The Center presents the results to decision-makers to ensure that work is done to address the deficiencies, and that lessons learned are understood to ensure that they are not repeated.

The independence of the higher financial control and accounting bodies is a means of ensuring integrity, transparency, and protection of public funds, and presents a pragmatic way to open up prospects for regulatory bodies to be more effective. Interconnectedness between departments, effective communication, distribution of tasks according to capabilities, transfer of information, and participatory auditing involving multiple backgrounds and experiences reduces bias, increases creativity, and serves as a scientific and practical source for the birth of new ideas that make accounting and auditing a strategic tool for reform and development.