Service delivery performance auditing

Transcription

1 Service delivery performance auditing Presentation to the 6 th annual service delivery learning academy Accountability and building confidence Presentation by Tini Laubscher

2 AGSA Reputation promise The Auditor-General has a constitutional mandate and, as the Supreme Audit Institution (SAI) of South Africa, it exists to strengthen our country s democracy by enabling oversight, accountability and governance in the public sector, thereby building public confidence.

3 Impact of good governance Decision-making with the following consequences: Enhanced service delivery/business goals Accurate information Enhanced economic benefits Enjoyment of rights by citizens Poverty reduction Improved quality of life Financial gains Terence Nombembe Auditor-General, South-Africa Accountability for Governance Conference, 2007

4 Good governance characteristics Decision-making and implementation with the following characteristics: Accountability Transparency Compliance with laws, rules and regulations Economy, effectiveness and efficiency Consensus orientation Participatory Responsiveness Equity and inclusivity Terence Nombembe Auditor-General, South-Africa Accountability for Governance Conference, 2007

5 Interdependency EXECUTIVE GOVERNANCE CHAMPION GOVERNANCE ACCOUNTABILITY OVERSIGHT INTERNAL AUDIT EXTERNAL AUDIT Terence Nombembe Auditor-General, South-Africa Accountability for Governance Conference, 2007

6 Key question Does the mandate of the AG speak to the challenges of accountability and service delivery?

7 The mandate Section 20, Public Audit Act, 2004 (Act No. 25 of 2004) (1) The Auditor-General must in respect of each audit referred to in section 11 prepare a report on the audit. (2) An audit report must reflect such opinions and statements as may be required by any legislation applicable to the auditee which is the subject of the audit, but must reflect at least an opinion or conclusion on (a) whether the annual financial statements of the auditee fairly present, in all material respects, the financial position at a specific date and results of its operations and cash flow for the period which ended on that date in accordance with the applicable financial framework and legislation; (b) the auditee s compliance with any applicable legislation relating to financial matters, financial management and other related matters; and (c) the reported information relating to the performance of the auditee against predetermined objectives.

8 The mandate Section 20, Public Audit Act, 2004 (Act No. 25 of 2004) (3) In addition, the Auditor-General may report on whether the auditee s resources were procured economically and utilised efficiently and effectively.

9 Audit model for good governance Essentials of Good Governance Algemene Rekenkamer, The Netherlands December 2005

10 Key question Where do developments such as auditing of performance information (aopi) and the increased emphasis on performance auditing fit in?

11 Performance information and accountability Oversight by Parliament, provincial legislature or municipal council Policy development Identifying desired impacts Evaluation and adjustment Strategic planning Specification of outcomes and outputs End -Year-end year reporting reporting INSTITUTION national department provincial department municipality state controlled institution municipal entity Implementation, planning and budgeting Monitoring and management Implementation Setting targets and resource allocation

12 AG strategy to aopi Year Approach Report Understanding of performance information (PI) environment Existence, consistency and format Compare to source Understanding of internal controls regarding PI Document system descriptions Existence, consistency and format Compare to source Same as above with more focus on systems generating pi Audit procedures relevant to providing reasonable assurance Emphasis of matter in audit report No impact on audit opinion No impact on audit opinion. Report aopi audit findings in audit report other reporting responsibilities section Same as above Separate audit opinion on PI 12

13 Improving the quality of public service delivery has been a consistent theme of government s policy framework and in the transformation of public service institutions since Government is working to enhance performance management at all levels. As an integral part of this initiative, the National Treasury and the Auditor-General have developed a programme performance information framework for strengthening performance management and budgeting across national, provincial and local government. Budget Review National Treasury

14 Categories of performance audits Category 1 VFM audits Auditing of economy and efficiency at a basic level as part of the financial audits Category 2 Performance audits Auditing the three Es for a specific focus area at an auditee Category 3 Transversal performance audits Auditing the three Es for a transversal focus area, relevant to the main objectives of government and linked to service delivery at different auditees, at different tiers of government

15 Certainly it is a reflection of weaknesses in the governance system that the plans to build school infrastructure are unfolding at a much slower pace than envisaged. We need massively to improve the management, organisational, technical and other capacities of government so that it meets its objectives. State of the Nation Address President T. Mbeki

16 Examples of category 1 VFM audits HR management in the public sector Focusing on vacancies, workforce planning, recruitment processes, bursaries, management of leave Supply chain management HIV/Aids Focusing on both health and education programmes

17 Infrastructure development provides an enabling environment for transportation and other key economic activities. The 2007 budget adds R35 billion to capital and infrastructure spending over the medium term Budget Review Minister Trevor Manuel

18 Category 3 performance audits Transversal performance audits on infrastructure: Focus area selected considering quantitative and qualitative criteria Performance audits covering infrastructure to extend over a period of five years Aspects to be audited: Planning, design and tender processes Project implementation and commissioning of infrastructure projects Utilisation and maintenance of existing and newly built infrastructure

19 Thank you