Theme papers for XXVII Accountants’ General Conference CAPACITY BUILDING IN IAAD Mentor Ms. Ajanta Dayalan, Dy. C&AG Ms. Rita Mitra, ADAI (CR) Authors Roy Mathrani L. V. Sudhir Kumar Ms. Nameeta Prasad Faisal Imam Ms. Atoorva Sinha 44 Theme papers for XXVII Accountants’ General Conference Background 1. This paper has been prepared for the XXVII Accountants’ General Conference 2014. It mainly concentrates on capacity building in IAAD through training and sharing of information by means of a Knowledge Management System. 2. The paper generally talks about capacity building of the IAAD as a whole, with emphasis on the knowledge and skill needs of Group B cadres, the first point of contact with external environment. Also, in view of the quality and potential of newly recruited Auditors, special emphasis has been given in the paper for their capacity building. The paper has attempted to flag all the dominant issues, which run horizontally across training entities in the Department, with special emphasis on RTIs/ RTCs. 3. The functioning of RTIs/ RTCs and their envisaged roles was recently reviewed by the senior management and taking into account the existing concerns and constraints, a roadmap (Annexure A) for strengthening them in the medium term has been drawn up. To implement the roadmap, the Training Wing has come out with an action plan (Annexure B) for all the RTIs/ RTCs along with the milestones. These details have been appropriately integrated within the larger issues discussed in this paper on capacity building in IAAD. Introduction 4. The terms capacity, capability and competence are often used interchangeably and there is overlap between their connotations and definitions. However, in this paper, the expression capacity has been used in a broad sense which subsumes related concepts of capability and competency at different levels of the organisation. The paper has adopted the definition in the INTOSAI draft guidelines on building capacity. 5. INTOSAI Capacity Building Committee in 2007 brought out the Guide to Capacity Building in SAI. It says that SAIs have to continually re-evaluate and reassess how they discharge their responsibilities. They have to ensure that their work consistently meets the highest standards expected of the organisation and that their activities remain relevant to the environment in which they operate. The key elements in any SAI’s strategy are ensuring that it embraces a culture of continual improvement; invests the time and resources needed to develop the capacity it requires, professionally and organisationally, to respond to the challenges that it faces. The Guide is intended to help all SAIs meet this challenge. It describes a process that SAI may use to assess its current state of development and so identify the strategic steps it needs to take to build its capacity in order to become an organisation that is even more effective at meeting its responsibilities. 6. In terms of the Guide, ‘Capacity’ means the skills, knowledge, structures and ways of working that make an organisation effective. Building Capacity means 45 Theme papers for XXVII Accountants’ General Conference developing further each of these, building on existing strengths, and addressing gaps and weaknesses. 7. Capacity building is addressed at various levels viz., at the individual level, team level, office level and the organisation level. Individual Group Enabling environment Office Organisation 8. A programme of capacity building involves the following activities by the SAI:  systematically assessing its current level of capacity, its strengths and weaknesses;  deciding why it is seeking to build capacity and what constraints does it face;  determining what additional capacity it seeks to build, the resources it will need and the outcomes it expects to achieve;  developing a strategy for delivery of this increased capacity, and related outcomes, without interfering with delivery of its remit;  implementing this strategy;  evaluating the impact of the changes and the outcomes achieved; and  sustaining the changes and developing a new strategy to build on what has been achieved. 9. Key steps in the process of capacity building are depicted in the following graphic. 46 Theme papers for XXVII Accountants’ General Conference Stages in Capacity Building Key steps in the process of capacity building 5.Sustain the improvement 4.Learn from experience 3.Implement the strategy 2. Develop strategy to build capacity 1. Assess present capacity & constraints Assessment of Present Capacity and Constraints 10. IA&AD’s manpower profile in 2012-13 is depicted in the following graph. 47 Theme papers for XXVII Accountants’ General Conference Graph 1: IAAD manpower 2012-13 IAAS officers MTS 693 5501 Supervisory Cadre 15356 Audit and Accounts staff 25386 Source: Performance Report SAI India 2012-13 11. As against sanctioned strength of 69,113 only 67.73 per cent staff is presently in position.2 Our officers and staff in Group 'B' & 'C' cadres are well qualified. We have 109 doctorates, 1010 professionally qualified personnel, 4933 post graduates and 27,987 graduates in these cadres. The IA&AS consists of twelve doctorates, 236 professionally qualified3 officers, 302 post graduates and 143 graduates. There are about 34.19 per cent people at different managerial and supervisory levels in IAAD and 54.09 per cent constitute audit and accounts staff. Only 11.72 per cent (MTS) of the total strength works in a purely support function. Training Infrastructure and Institutional set-up 12. SAI India is continually building capacity through internal training and in collaboration with training institutes of other departments. 13. In 1998, the Training standards for IAAD were formulated, laying down the basic principles and quality parameters for training. This document has been the basis of subsequent training policy as reflected in changes in IAAS induction training, career milestone trainings and the recently approved medium term road map (Annexure A) for strengthening IA&AD’s regional training capability. 14. There is a hierarchical set-up for guidance, oversight and monitoring of training activities. We have one National Academy, two International Centers, 12 2Performance Report 2012-13 3Engineers, Doctors, MBA, CA, ICWA, CFE, CIA, CISA etc. 48 Theme papers for XXVII Accountants’ General Conference Regional Training Institutes and Regional Training Centres and in-house training facilities in all field offices. The role of the RTIs/ RTCs has been envisaged as learning and as knowledge centres. As learning centres, they impart training in general and EDP courses to Group B and C staff. They also conduct special courses at the behest of their user offices and Headquarters. Induction training for DRAAOs and SAS preparatory training are also their responsibility. In their capacity as knowledge centres, they are expected to prepare STMs, case studies, courseware/ reading material, practice guides, research papers and conduct seminars, conferences, workshops in their domain area of specialisation. 15. The table below shows the number of personnel trained during 2012-13 in different training institutes of IAAD. Training Institute No. of personnel trained iCISA, Noida4 587 NAAA, Shimla 450 RTIs/ RTCs5 11830 16. RTIs were designated as centres of excellence in 2002, with the objective of establishing an institutional linkage for issues being deliberated upon in working groups, research projects and committees of INTOSAI, ASSOSAI, UN Panel of Auditors. The RTIs/RTCs based on the series of discussions and meetings in 2012, were re-designated6 as ‘Knowledge Centres’. The detailed role of RTIs as knowledge centres has been specified vide Hqrs circular. (Annexure C) This inter alia also specifies the need for developing institutional network with organisations including those outside IAAD to share learning resources, experiences and expertise. 17. The shift was made on the premise that appropriate emphasis needed to be given to assimilation and dissemination of auditing methodologies. The RTIs/ RTCs now focus on knowledge in a designated field of specialisation. The areas of specialisation include both sector specific knowledge and auditing methodologies. (Annexure D).As indicated in this annexure, each RTI/ RTC is under a designated Deputy CAG as knowledge mentor. The medium term roadmap also states that RTIs should have regional ADAI as training mentor. 4 The number of personnel trained in iCISA and NAAA also includes 275 International and other departmental participants. 5 The RTI/RTCs figures do not include induction training and SAS training.. Also, the statistics of ‘in- house’ training conducted by field offices and courses/workshops run by Hqrs is not included here. 6 Headquarters circular No. 273/Trg. Div/20 (vi) 2012 dated 20 August 2012 49 Theme papers for XXVII Accountants’ General Conference 18. 454 General and 274 EDP courses for client offices and 26 All India courses were conducted in RTIs/RTCs for the year 2013-14.Under the above-mentioned courses, the personnel trained in various categories is depicted in the graph below: Graph 2: Personnel trained in RTIs/RTCs Personnel trained in RTIs/ RTCs 8520 8534 8647 4001 3196 2909 122 100 138 2011-12 2012-13 2013-14 Year Group A Group B Group C These figures do not include induction training and SAS training ii. Challenges: 19. The following areas in need of attention are highlighted. 50 Theme papers for XXVII Accountants’ General Conference i. Infrastructural, human resourses and budgetary constraints faced by RTIs/RTCs. ii. There is inadequate direct linkage between training and work performed by the trainees. Just-in-time’ approach i.e., trainings before a particular assignment (as is the case in UN audit) needs more coverage. ‘Just in time’ training takes into account the time between learning something and then being able to apply it. The specific training requirements can either be met in-house by an office or if a group of offices are carrying out a particular exercise, then the training can be arranged by the co-ordinating office. The training centres can play a role in executing the courses at the office level. iii. Workshops in HQrs office have helped to update the knowledge and skills of all concerned stakeholders, particularly for the staff posted in various HQrs Wings who do not seem to get enough opportunities for training. More Workshops need be conducted. iv. There is a need to strenghten the system of dissemination across the department of qualitatively reviewed material. The STMs, case studies and research papers need to be periodically reviewed and updated. v. Nominations for trainings are planned in a top - down approach viz., officers are selected and sent for trainings by HR authority. In this approach, trainees are not given the option of choosing the course to attend, keeping in view its relevance. Hence, identification of trainees can become an exercise in fulfilling training targets in the form of number of officials nominated against available training slots. vi. In the Regional Training Institutes, the training methodology is largely lecture oriented classroom sessions. The application of new methodologies viz., case studies, quizzes, hands on exercises, group activities, panel discussions of experts is limited. vii. Most of our trainings require physical presence at a training center. Reliance on e-learning modes of training is minimal. viii. Incentive for officers to obtain professional qualifications, apart from reimbursement of the cost of examination, is minimal. ix. Audit resources are primarily based on knowledge, skills and expertise acquired over a period of time. It is very important to manage and harness this knowledge and expertise. Multi-disciplinary domain information for audits is usually not available at a single location. x. Limited involvement of professional bodies/ expert organisations. At present, the RTIs/ RTCs largely rely on in-house expertise (core faculties) for imparting training, except in case of special courses. 51 Theme papers for XXVII Accountants’ General Conference xi. Inadequate number of trainings at the auditor level.This is a significant challenge in view of the higher qualification levels of recently recruited Auditors. Thus, the training aspect of the newly recruited Auditors needs special efforts. Presently, there is no standardised training module for induction training of the auditors. xii. The last direct recruitment at AAO level was done in 20087. This is the level at which there is acute shortage and thus balancing training and operational requirements becomes a challenge for the field offices. Even the Departmental candidates mostly coming from A&E stream do not get adequate induction training. The training of AAOs need special attention. xiii. Special audit assignments require competencies that are presently spread over several offices. Avenues must exist to integrate competencies across offices through virtual teams executing special assignments and interacting/sharing their knowledge/experience through various modes. xiv. As we await Standard based Compliance Audit to provide reasonable assurance of examination of all material aspects of the entire audit scope based on scientific sampling therefrom, we would need new skillsets to replace subjective pick-and-choose methods. Also, with increasing computerization, and loss of conventional audit trails, we need to increasingly test check the authenticity of input data by independent verification, auditing around the computer. These skills need to be available to a wider set of staff, not just the IT teams conducting core IT system audits. xv. The present training, knowledge management and capacity building effort is largely English-centric. This is an important area needing attention. In many States, it is the local language version and not the English version of the Audit Report gets prominence in media and the State Legislature. The translation cells need to be strengthened to ensure that intended communication is conveyed correctly. Development of strategy to build capacity 20. Some of the initiatives that can be taken up are discussed below: Upgradation of general and IT infrastructure in RTIs/RTCs 21. In the action plan (Annexure B), an assessment of requirements in respect of each RTI/RTC has been prioritised by the training division. The action plan accords milestones to these priorities, viz., better equipped hostel rooms, better equipped lecture rooms, updated and well catalogued libraries and 7 SSC notification for the last DRAAO (erstwhile DRSOs) examination was issued in 2008 against which candidates joined up to 2010. 52 Theme papers for XXVII Accountants’ General Conference improved and updated digital infrastructures. It also mentions the need to review sanctioned strength including projection of budgetary resources required. (i) Re-orientation of the training approach: 22. Assessing skill gap and competency mapping: Competency mapping is a process of identifying key competencies for a particular position in the organisation. Competency highlights what the employee can do or has the ability to do. Competency mapping will help shift focus from Human Resource to Human Capital required for effective work performance demands.It will facilitate working on competence gaps to improve individual performance through learning & development. 23. Strengthening the Training Need Analysis: Presently most Training Institutes focus on delivery of courses. Adequate resources should be set aside by the training institutes for carrying out need analysis in collaboration with the field offices and functional wings of the headquarters office. This TNA should be based on the functional expertise of the respective training institute.This would facilitate better course design and effective training delivery. Further, the TNA should also be sensitive to areas not directly related to departmental functions, but have a serious bearing on the working environment viz professional ethics, gender sensitisation. 24. Upgraded courseware and periodically updated STMs: For the RTIs to grow in stature as training centres and for optimal utilisation of their resources, it may be necessary to divert certain basic courses to in-house training. This would release resources that could be deployed by RTIs to upgrade training material and courseware. Timing of courses should be generally, as per the convenience of user offices. It is necessary to upgrade and standardise courseware utilised by RTIs through development of Structured Training Modules, which are peer reviewed by the functional wing, training wing and PPG before being used. 25. Option oriented training: Group A and B officers may be allowed to choose some trainings in the calendar. For others, the existing system of nominations may continue. The procedure for taking the option of the individual’s training requirement through APARs as is applied in the case of Group A officers may also be adopted for Group B officers. 26. Use of newer training methodologies:The use of adult learning conducive methodologies viz., case studies, quizzes, hands on exercises, group activities, panel discussions of experts should be encouraged. The training centres must shift from lectures to case studies and group work should be encouraged. On conclusion of the course, the participants may review their key take aways as well offer suggestions and observations. This feedback may be summarised and used as a source for improvement in future courses. 27. E-learning:In addition to the regular class room sessions, e-learning sessions should also be developed by the training institutes. This would provide better 53