OAG Strategic Plan 2009-2014 Page 1 TABLE OF CONTENTS FOREWORD... 2 ACRONYMS... 3 EXECUTIVE SUMMARY... 4 1. INTRODUCTION AND BACKGROUND... 6 1.1 Introduction... 6 1.2 The reasons for the Strategic Plan... 6 1.3 Strategic planning methodology... 6 1.4 Major achievements... 6 2. SITUATIONAL ANALYSIS... 7 2.1 Strategic issues... 7 2.2 Stakeholder analysis... 8 3. STRATEGIC CORE/FOUNDATION... 10 3.1 The Mandate... 10 3.2 The Vision... 10 3.3 The Mission... 10 3.4 The Core Values... 10 4. STRATEGIC THEMES AND OBJECTIVES... 11 4.1 Strategic themes... 11 4.2 Strategic objectives linked to strategic themes... 12 4.3 The Strategy Map... 13 5. BALANCED SCORECARD... 14 6. CRITICAL SUCCESS FACTORS... 14 6.1 Financing for implementing the Strategic Plan... 14 6.2 Re-alignment and staffing... 14 6.3 Timely financial and performance audit reports... 14 6.4 Client and stakeholders co-operation... 14 6.5 Implementation of audit recommendations... 15 ANNEX... 16 Annex A: SWOT ANALYSIS... 16 A.1 Internal environmental scan... 16 SWOT Analysis - Weaknesses... 16 A. 2 External snvironmental scan... 17 SWOT analysis - Opportunities... 17 SWOT analysis - Threats... 17 A.3 Reference documents... 17
Page 2 OAG Strategic Plan 2009-2014 FOREWORD To meet the objectives of NDP3; Ministries and Agencies have developed five year strategic plans. Good governance, transparency, accountability and efficient management of public resources contribute to economic development and provide assurance to tax payers, financial and performance auditing therefore play a key role in achieving these objectives. The National Assembly and National Council Public Accounts Committees expect from the Office of the Auditor-General to periodically produce reliable, transparent and objective financial and performance audit reports that are in compliance with the laws of the country and International Auditing standards. To carry out this noble task, audit staff have to be equipped with professional knowledge hence funds should be invested in training and capacity building. JUNIAS ETUNA KANDJEKE Good communication, teamwork, motivation, and staff development will make the Office of the Auditor-General a professional and reliable Supreme Audit Institution in the country. However, all the challenges can be overcome through good planning, efficient use of allocated resources and support from our stakeholders. A RTICLE 127 of the Constitution of Namibia mandates the Auditor-General to audit State Revenue funds and to perform all other functions assigned to him/ her by the Government or by Act of Parliament and shall report annually to the National Assembly thereon. Tasked with providing independent audit services to the Government offices, ministries, agencies, parastatals, regional councils, municipalities, towns, village councils, settlement areas and other statutory bodies, the Office of the Auditor-General has developed its own five year strategic plan to tackle and address national, regional and international challenges.... JUNIAS ETUNA KANDJEKE AUDITOR-GENERAL This is being done in line with the development of the country which is currently guided by Vision 2030 and is being coordinated through five year National Development Plans (NDPs) Namibia is currently implementing its third National Development Plan, NDP3 as part of the road to be a prosperous industrialized nation by the year 2030, developed by her own human resources, in peace, harmony and political stability.
OAG Strategic Plan 2009-2014 Page 3 Acronyms ACC AG ALAN ARC AFROSAI- E BSM CAATs DAG EU HRIMS IDEA IFMS IFTC IT ITMS ICT INTOSAI ISA MoF MICT NDP OAG O/M/A OPM PAAB PAC PMS SADC SADCOSAI SADCOPAC SAI SMP SWOT Anti-Corruption Commission Auditor-General Association of Local Authorities in Namibia Association of Regional Councils African Organisation of English-speaking Supreme Audit Institutions Balance Scorecard Methodology Computer Aided Auditing Tools Deputy Auditor-General European Union Human Resource Information Management System Interactive Data Extraction and Analyses Integrated Financial Management System Internal Functional Training Committee Information Technology Information Technology Management System Information and Communication Technology International Organization of Supreme Audit Institutions International Standards of Auditing Ministry of Finance Ministry of Information, Communication and Technology National Development Plan Office of the Auditor-General Offices, Ministries and Agencies Office of the Prime Minister Public Accountants and Auditors Board Personnel Advisory Committee Performance Management System Southern African Development Community Southern African Development Community Organisation of Supreme Audit Institutions Southern African Development Community Organisation of Public Accounts Committee Supreme Audit Institution Strategy Mapping Process Strengths, Weaknesses, Opportunities and Threats
OAG Strategic Plan 2009-2014 Page 4 EXECUTIVE SUMMARY The development of the OAG Strategic Plan has been guided by the Office of the Prime Minister (OPM) Strategic Planning framework and was achieved through consultative and participatory process starting from the scoping process that compiled a SWOT Analysis to the workshops that developed the Strategic Foundation and the Balanced Scorecard. The draft Strategic Plan was presented to external stakeholders during a Stakeholders Conference held on 18 August 2008 in Windhoek, which allowed the finalization of the Strategic Plan. Situational Analysis Strategic Issues - The strategic planning session held in Windhoek during August 2007 identified communication, support services, human resources, auditing, independence of the OAG, quality assurance, decentralization, and management and leadership as the strategic issues confronting the OAG. Stakeholder Analysis - The external stakeholders of the OAG include; the public at large, audit clients (O/M/A, local authorities, regional councils and statutory bodies), parliamentary Public Accounts Committees, media, donors, international partners (INTOSAI, AFROSAI-E, SADCOPAC, among others), specialized watchdog agencies, service suppliers/creditors and the OPM. The OAG also has internal stakeholders that are primarily made up of staff within administration, auditors, and the management (including the Auditor-General (AG)). Strategic Core/Foundation In line with Vision 2030, the OAG has developed the strategic foundation for its long-term strategic interventions as follows: The Mandate The Auditor-General has the mandate to audit O/M/As, regional councils, local authorities, funds as well as legally assigned statutory bodies and report thereon to the National Assembly. The Vision The vision of the Office of the Auditor-General is to be an independent, professional supreme audit institution that produces quality and timely reports resulting in the best use of public resources. The Mission The Office of the Auditor-General is committed to providing independent and credible audit services for legally assigned public and other institutions based on international standards of auditing through quality reporting to the National Assembly and general public resulting in increased accountability and transparency
OAG Strategic Plan 2009-2014 Page 5 The Core Values OAG Balanced Scorecard perspectives The OAG is to be guided in its engagement of stakeholders and provision of service to its customers by the core values of confidentiality, transparency, impartiality and objectivity, integrity, professionalism, and accountability. Strategic Themes and linked Objectives The corporate scorecard brings together in matrix strategic themes with their linked objectives and articulates measures, targets, strategic initiatives, responsible units and resource estimates. In summary: BSC perspective 5-year financial projection (in N$) The following themes were decided upon as the areas targeted for strategic interventions to measure both the contribution and performance of the Office in the medium-term. Capacity Building - The strategic objectives for the capacity building theme encompasses the following: Ensure optimal skills and competencies Attain effective management and leadership capabilities Enhance performance of the OAG Create a conducive working environment Ensure responsive organizational structure Customer/Stakeholder 2,682,000.00 Financial 10,891,000.00 Internal Processes 120,752,000.00 Learning and Growth 36,908,775.00 Total 171, 233,775.00 Customer/Stakeholder Under this perspective, the corporate scorecard should address customer satisfaction and image of the OAG. Key initiatives envisaged include customer care training and a promotion and marketing campaign. Integrate ICT into OAG operations. Regulatory Framework - The strategic objectives for achieving tangible results in terms of regulatory framework include enhancing the independence of the OAG and ensuring compliance with International Auditing Standards. Financial The financial perspective should focus on improving revenue from services, whereby at the same time reducing audit costs. The expansion of the staff establishment is the main initiative for accomplishing this objective where reducing outsourcing of the audits to the private sector is foreseen. Operational Efficiency - The strategic objectives for addressing operational efficiency and challenges. This includes achieving customer satisfaction, enhancing internal communication, enhancing the image of the OAG, improving revenue services, enhancing advisory services to clients, improving quality of audit services, improving support services, and reducing audit costs. Internal Process The internal processes at which the OAG wants to excel covers the areas of independence of the OAG, compliance with international standards, quality audit services, advisory services to clients, internal communication and support services. Key strategic initiatives envisaged include performance and financial audits, strengthening support services, meeting INTOSAI/AFROSAI-E standards, quality assurance and the implementation of a communication strategy. Learning and Growth This perspective emphasizes the need for the OAG to prioritize skills and competencies including leadership and management skills coupled with a conducive work environment, organizational performance, and ICT capabilities. This has to be accompanied by requisite organizational alignment that makes the OAG responsive to the performance demands of the 5-year strategic plan. Critical success factors The factors that are considered critical in terms of the OAG achieving its set targets over the next 5 years include, financing for implementing the strategic plan, realignment and staffing, timely financial and performance audit reports, client and stakeholder cooperation and implementation of audit recommendations by clients.
Page 6 OAG Strategic Plan 2009-2014 1. INTRODUCTION AND BACKGROUND 1.3 Strategic planning methodology 1.1 Introduction The OAG is an agency established through an Act as per the directives of the Article 127 (1) of the Namibian Constitution. The State Finance Act, 1991 (Act 31 of 1991) and various other legal instruments such as the Regional Councils Act, 1992 (Act 22 of 1992) and Local Authorities Act, 1992 (Act 23 of 1992) as amended, mandates the AG to audit O/M/As and other legally assigned statutory bodies and to report to the National Assembly (NA) in terms of their use of public funds. The AG is further expected in terms of the State Finance Act, Section 26(1)(b)(iv) to investigate and report on the economy, efficiency and effectiveness of the use of the State s resources. It is as part of its endeavor to execute its mandate in accordance with current public service reform initiatives; hence the OAG has embarked on a due process as guided by the OPM to develop this strategic plan. This strategic plan commences with a section that details the current environment within which the OAG is operating, i.e. an analysis of both the internal and external factors, including an analysis of the stakeholders and their expectations. The section summarizes the key outcome of the situational analysis which are the strategic issues currently constraining the work of the OAG. In the section that follows, a strategic foundation is outlined detailing high-level vision and mission statements and the accompanying core values underlying the work of the OAG. The last two sections of this plan are dedicated to outlining the strategic themes and linked objectives illustrated with a strategy map by measuring the performance of the balanced scorecard, the targets to be reached and the strategic initiatives aimed at closing the existing performance gap respectively. The scorecard for the OAG is then concluded with allocating responsibility to units and an indication of resource implications for the strategic actions and programmes that will be the focus of interventions over five years. This strategic plan is a result of a planning process that was both consultative and participatory. The planning process started with consultation meetings held at the OAG by the OPM to inform senior officials of the planned high-level interventions in terms of the introduction of a Performance Management System (PMS) that has as its basis the strategic planning. The consultations were used to agree upon the planning process, a situational analysis exercise e.g. SWOT, for the entire OAG and to plan towards the commencement of the strategic planning workshops. A situational analysis spearheaded by the Division of General Services in the OAG tasked each directorate and division to carry out a SWOT analysis. Subsequently, the SWOT analyses of all directorates were compiled into a single report. At the first strategic planning workshop held in Windhoek at the end of July to early August 2007, each directorate presented its SWOT analysis. That strategic planning workshop deliberated on a single institutional SWOT (See Annex A) which formed the basis for isolating strategic issues for the OAG. The strategic planning workshop facilitated to ensure maximum participation by the participants, came up with strategic issues for the OAG such as its vision, mission and core values. The discussions on the strategic foundation were preceded by mandate clarification as well as the identification of key stakeholders for the OAG. Based on the strategic issues and in line with the draft mandate, vision and mission, the participants developed the strategic themes around which strategic interventions for the next 5 years will be focused. Around the strategic themes, the workshop developed linked strategic objectives which through the Strategy Mapping Process (SMP) established the causal link between the different objectives spanning the four perspectives of the Balance Scorecard Methodology (BSM). Subsequent workshops were held in August and September 2007 to finalize the Balance Scorecard for the strategic plan of the OAG. 1.2 The reason for the strategic plan The long-term development goals and the vision of the country are contained in Vision 2030 and will be reflected in the short-term by the current process that is consolidating NDP 3. This strategic plan represents a systematic response of the OAG aimed at contributing towards achieving Vision 2030. Therefore the OAG is positioning itself to become a responsive, efficient and effective institution that can through targeted service provision contribute to a public sector that is accountable, transparent and professional in its provision of auditing services. The strategic plan forms the basis of the broader public service reform initiative in Namibia, putting emphasis on public sector performance and assisting the OAG in contributing towards the achievement of the Vision 2030 in the long-term, while laying a firm foundation during the NDP 3 period. 1.4 Major achievements The following activities have marked milestones achieved by the OAG in the execution of its mandate: INTOSAI Standards Committee The OAG actively participated in the INTOSAI Standards Committee meetings, a process that has greatly enhanced quality of the audit work in accordance with international standards. Drafting of the new AG legislation The OAG has a drafted legislation which will become a significant step towards the independence of this important agency. Once approved, the legislation will result in the establishment of the AG s office as an independent legal entity that is not regulated by the State Finance Act.
OAG Strategic Plan 2009-2014 Page 7 Use of Information Technology The OAG is increasingly using Computer Aided Auditing Tools (CAATs) in the execution of its work to further enhancing consistency and reduce the time to complete audits. In this regard, the use of Interactive Data Extraction and Analysis (IDEA), has gained prominence as an essential tool for advancing the quality of audit services in the OAG. 2. SITUATIONAL ANALYSIS The OAG undertook an in-house SWOT analysis for the different directorates and divisions under the guidance of the OPM. The presentation and the discussion of SWOT (refer to Annex A for details) provided the basis for the planning sessions held at the July and August 2007 workshops which identified strategic issues and challenges for the long-term planning purposes. 2.1 Strategic issues The strategic issues and challenges identified during the workshops are as follows: Communication IT SELF-ASSESMENT Strengthened relationship with the Parliamentary Standing Committees on Public Accounts The OAG has also succeeded in strengthening its relationship with the Parliamentary Standing Committees on Public Accounts, which has given prominence to the audit opinions as well as the recommendations of the AG on public spending and performance issues. The absence of proper internal communication through formalized processes and platforms creates challenges for coordinating programmes and activities within the OAG. Furthermore, the need to enhance the image of the OAG through the engagement of public relations staff as well as the effective utilization of the OAG website is seen as strategic. Communication also needs to be improved with other service rendering agencies such as OPM, Ministry of Information, Communication and Technology (MICT) and Ministry of Finance (MOF) in order to provide an enabling environment for the execution of the audit mandate. Support services The planning workshop put emphasis on the need for internal support services to become more reliable and enabling the OAG to become more professional in financial and performance audit services. Human resources WORKSHOP FOR PAC MEMBERS There is a need for focused efforts to achieve professional qualification and certification. Specific shortcomings exist in terms of electronic working papers; forensic auditing and the need to keep up with latest International Standards of Auditing (ISA). An organizational structure review is also needed to streamline operations around quality assurance, research and development and training. The introduction of a performance management system and exploration of strategies for career and professional development of the staff members are lacking. Human Resource (HR) strategies need to recognize the impact of HIV/AIDS in order to reduce the negative impact it has on its service provision. Auditing Efficiency and effectiveness related to both financial and performance audits need to be critically addressed. For achieving credibility, regional and international recognition participation in the peer reviews and the use of electronic working papers is foreseen. Specific peer review opportunities
Page 8 OAG Strategic Plan 2009-2014 exist that need to be exploited to improve the work of the OAG through external peer review. 2.2 Stakeholder analysis Independence of OAG The independence of the OAG is seen as central to entrenching the role and function of a reputable agency and this is not the case. This can only be achieved through an Audit Act for the OAG. An Audit Act will eventually lead to financial and administrative independence in line with international best practice which is a regulatory framework that should empower the OAG to develop model policies. It will also provide for an oversight mechanism for OAG s operations and programmes through the Parliament. The independence of the OAG enhances the image as an impartial agency championing public sector accountability and transparency. Quality assurance The OAG sees compliance with international standards and conformity with best practices as important approaches for its auditing and reporting core function. This is currently not fully achieved. This is also important in the light of dynamic developments in the area of international standards and practices for supreme audit institutions. It therefore seeks to ensure organizational arrangements in terms of structure, the appropriate staffing of such a unit, the attainment of professional qualifications and certification as key approaches in this regard. Decentralisation The centralisation of functions and capacity in the OAG has negative implications for the rendering of a timeous service to its audit clients and for reducing cost related to auditing and reporting significantly. In line with government s Decentralisation Policy of 1997 and for strategic reasons of offering growth opportunities for its staff members and management, the OAG perceives decentralisation as a necessary approach of improving its service provision. Proximity to clients, especially at sub-national government level is also seen as an important part of bringing the service closer to the clients. The planning session having discussed the main stakeholders and their expectations from the OAG agreed upon the following expectations for external and internal stakeholders: External Stakeholders: This represents stakeholders that are either directly rendered with services or are having expectations that need to be met by the OAG: Public at large (students, tax-payers, etc): The general public expects timeous, easy to understand, accurate and accessible reports from the OAG. They also want increased awareness about the OAG. There is an expectation from the public to be informed on the use of public resources for its intended purpose and the most economic, efficient and effective way. In this respect, the public expects reliable, transparent and objective audit reports that are easily accessible and affordable. Audit clients (O/M/As, Local Authorities, Regional Councils, Statutory Bodies): In general, audit clients expect timeous audits and reporting. It is expected of the OAG to be objective and transparent, in its conduct of audit debriefings. There are further expectations in terms of the professional conduct and confidentiality in the handling of their financial affairs, with audit opinion on financial statements that results in prudent management. The audit clients also expect guidance, advice and feedback through relevant recommendations. Finally, audit clients expect customer orientation from the OAG, while some expect their capacity to be increased through training. Media: The media expects transparency from the OAG, while awaiting regular press releases. Donors (investors): Donors generally want to see accountability for funds donated and that stipulations in the agreements are met (through audited financial statements). They also want to see the capacity of the OAG enhanced with visible improvement in the standards of reporting, accountability and transparency. Management and leadership The need for skilled and competent management that exhibits consistency in terms of delegation and provision of strategic leadership is viewed as important and needs improvement. In this regard, participatory approaches in management, exposure to best practices in management and leadership will be needed. Specific focus is also needed to enforce the code of conduct among staff members. Parliament (National Assembly and National Council Standing Committees on Public Accounts): It is expected from the OAG to produce timeous, reliable, transparent and objective financial and performance audit reports that are in compliance with laws. There is also an expectation that sufficient, relevant, and reliable evidence be available to support the reports. The Parliamentary Standing Committees on Public Accounts expect assistance from the OAG in drafting questions during deliberations, when compiling their report to Parliament and when conducting hearings.
OAG Strategic Plan 2009-2014 Page 9 environment that is conducive, in terms of improved remuneration, support and good labour relations. Auditors: They expect efficient and effective support services in transport, training, S&T, stationery, IT software and hardware, back-up of information and that audit staff should share information on clients. OPENING OF PARLIAMENT International partners (INTOSAI, AFROSAI-E, SADCOPAC, etc): There is a general expectation from the network of supreme audit institutions in terms of compliance with audit standards to achieve uniform reporting. Also, the OAG is expected to participate in international events of partners and in training opportunities. The OAG is expected to meet its membership obligations through regularly paying membership contributions. There is an expectation that the OAG participate in mutual peer review activities, while striving to implement best practices and approaches in the field. International partners who also subscribe to set industry standards expect that the OAG produce reliable, accurate, timely, transparent and objective audit reports. The OAG is further expected to practice good governance. Specialized watchdog agencies, e.g. ACC, Ombudsman: These agencies expect the cooperation from the OAG as well as complementary reporting on corrupt practices exposed through the process of auditing and reporting on audit clients. PERFORMANCE AUDIT STAFF AT WORK Management (including AG): Expects that the audit staff generate quality reports on time with sufficient evidence. In this regard, the management would like to see the involvement, cooperation and commitment of all staff. Efficient and effective administrative service reports delivery is a priority. Service suppliers/creditors: They expect timeous payment for services rendered to the OAG. Private auditing firms engaged want clear terms of reference as well as transparent and fair procurement practices. Office of the Prime Minister: They expect cooperation, information and compliance with Public Service Rules and Regulations. Internal stakeholders: The OAG also has internal stakeholders that are primarily made up of staff within the organization. They comprise of the following: MANAGEMENT MEETING Administration: This department which forms the core of support services rendered to audit functions expects co-operation from audit staff and general management (i.e. circulars, assessment reports, etc). They further expect early indications of budgetary support requirements, IT needs, transport needs, traveling details and training needs. This department also expects improved and effective communication that enhances information sharing and respect. They also expect a work
Page 10 OAG Strategic Plan 2009-2014 3. STRATEGIC CORE/FOUNDATION 3.4 The Core Values The Strategic Planning session held in Windhoek identified that strategic issues and challenges facing the OAG and in line with the Vision 2030 developed the strategic foundation for its long-term strategic interventions as follows: The OAG will be guided in its engagement of stakeholders and provision of service to its customers by the core values articulated below: 3.1 The Mandate Confidentiality Implying that the staff members and the OAG are treating audit client information confidentially preventing unauthorized access that could prejudice its clientele in any way. The Auditor-General has the mandate to audit offices, ministries, and agencies (O/M/As) regional councils, local authorities, funds and legally assigned statutory bodies and report thereon to the national assembly. Transparency Implying that OAG would be open in terms of its operations, activities and programmes. Furthermore, the OAG will be transparent in its use of public resources and donor funds. In addition, it will compile and provide access to financial and narrative information on regular intervals. The mandate of the Auditor - General is derived from Article 127 of the Namibian Constitution, with powers and functions that are further elaborated in the State Finance Act, 1991 (Act 31 of 1991) (as amended). Impartiality and objectivity Implies that staff members of the OAG will observe and maintain objectivity and impartiality in all dealings with their clients. Professional reporting and advice should be based on impartial considerations of all facts that are important to the assignment. Integrity This involves doing what is right, both morally and legally at all times. Staff members of the OAG will put the interest of stakeholders and clients ahead of their own, and desist from unduly compromising the image and reputation of the Office. 3.2 The Vision The vision of Office of the Auditor-General is to be an independent, professional supreme audit institution that produces quality and timely reports resulting in the best use of public resources. Professionalism It implies that both the OAG and its professionals will exhibit the highest standards of professionalism in their engagement of the clients and or stakeholders. In this respect, staff members of the OAG will strive to achieve reporting standards at par with international best practice and standards. Accountability The OAG will strive to comply with legal requirements prescribed for its accountability to audit clients, the Parliamentary Standing Committees on Public Accounts and the use of appropriate avenues, processes and procedures that enable it to be accountable to its varied stakeholders. 3.3 The Mission The Office of the Auditor-General is committed to providing independent and credible audit services for legally assigned public and other institutions based on international standards of auditing through quality reporting to the national assembly and general public resulting in increased account-
OAG Strategic Plan 2009-2014 11 4. STRATEGIC THEMES AND OBJECTIVES 4.1.2 Regulatory framework The participants of the strategic planning session held in August 2007, decided on the following strategic themes as areas targeted for strategic interventions to measure both the contribution and performance of the OAG in the medium-term. 4.1 Strategic themes 4.1.1 Capacity building The strategic theme focuses on the achievement of the independence for the OAG in line with international best practices. This should enable the AG to exercise its watchdog function without the due political influence and administrative dependency on the Executive arm of Government. It is also under this theme that the institutionalization of the parliamentary oversight on the activities of the OAG is envisaged. A central instrument for achieving this is the enactment of an own Audit Act, a legal instrument that will enable the OAG to achieve control over recruitment, conditions of service, auditing and reporting which will enhance its credibility as a watchdog. 4.1.3 Operational efficiency INTERNAL FUNCTIONAL TRAINING This strategic theme recognizes the current situation with regard to the available skills and competencies within the OAG. Nonetheless, challenges are faced because of a lack of both professional qualifications and multidiscipline staff that is required to perform specialized audit activities. The need for strategic approaches in dealing with capacity challenges, i.e. an HR Plan and PMS are essential for charting career and professional development for the staff. Efforts will be required to improve staff retention in this regard. Another key focus of this strategic area is the management and leadership capacity, which is generally viewed as inadequate in terms of support, guidance and direction. The strategic theme recognizes the need for the review of the organizational structure to cater for quality assurance, research and development as well as training. This ensures that these structures are adequately staffed. Towards this end, opportunities are seen as abound for professional development (linked to professional allowances), such as exchange programmes, AFROSAI-E activities, etc, attachment to private audit firms and other SAI s, as well as PAAB training and eventual certification of audit staff. Efforts are needed to stem the possible loss of qualified staff, to address safety and security (potential for bribes from clients, as well as personal threats) concerns and to generally improve employment conditions. Furthermore, the OAG through this strategic theme emphasizes the need for addressing its physical infrastructure needs, exemplified by the inadequacy of its current rental office space. The acquisition of its own and suitable office space is part of creating institutional capacity and achieving its own identity consistent with international best practice. Current rental office space limits accessibility, and presents security challenges for staff. It is a theme that provides the necessary focus on quality service provision for the OAG, focusing on its core service of auditing and reporting and the need for streamlining support services. The need to achieve uniformity in reporting through manuals, regular updates and training on ISAs is envisaged. A key challenge in this regard is the delayed assessment reports, which impacts on the value attached to the reports and their usefulness. A further hindrance to operational efficiency is related to poor communication both internally and externally. This impacts on coordination and information sharing within the OAG, while it negatively impacts the image of the OAG to its external stakeholders. Attention is given to the important role played by support services such as IT and administration, while the need to optimize revenue from services and the reduction in input cost is also emphasized. SECRETARIES AT WORK
Page 12 OAG Strategic Plan 2009-2014 4.2 Strategic objectives linked to strategic themes Regulatory framework Enhance the independence of OAG. The objectives for each strategic theme are indicated below: Ensure compliance with ISAs. Capacity Building Ensure optimal skills and competencies. Attain effective management and leadership capabilities. Enhance performance of OAG. Create a conducive working environment. Ensure responsive organizational structure. Integrate ICT into OAG operations. The strategic theme emphasizes the need for targeted approaches to develop skills and competencies at levels within the organization, including management and leadership capabilities. The achievement of a conducive environment and the need to align the organizational structure to deal with areas such as quality assurance, training and research and development is also emphasized. The theme further advocates for the introduction of PMS to drive performance. In addition, the theme is an expression of a need for own office accommodation as part of the broader strategy to create a conducive working environment within the OAG. The regulatory framework strategic theme is at the heart of OAG s drive to prepare for attaining greater independence within its operations. The preparatory work is focused on drafting a separate legislation for the OAG to enhance independence. Furthermore the OAG should develope best practice operational policies that will sustain operations into the foreseeable future. Operational efficiency Achieve customer satisfaction. Enhance internal communication. Enhance image of OAG. Improve revenue from services. Enhance advisory services to clients. Improve quality of audit services. Improve support services. AG AND DAG AT LAUNCH OF AUDIT MANUAL (2004) CAREER DAY AT POLYTECHNIC Reduce audit costs. The operational efficiency theme is focused on streamlining audit services towards achieving acceptable levels of customer and stakeholder satisfaction. Focus is given to enhancing communication both internally and externally, improving support services and focusing on improving revenue from services rendered to clients.
Page 13 4.3 OAG Strategic Plan 2009-2014 The Strategy Map
Page 14 OAG Strategic Plan 2009-2014 5. OAG BALANCED SCORECARD For the scorecard, participants were able to link the strategic objectives using the strategy mapping process across the four business perspectives of customer/stakeholder, financial, internal processes and learning and growth. 5.1 Customer/Stakeholders perspective In this perspective, strategic objectives are focusing on achieving greater or increased customer satisfaction through enhanced service delivery, while the focus is also on changing the image of the OAG to stakeholders and clients for the better. Therefore the importance of the OAG s pronouncements on accountability of the public sector and its prudent use of entrusted resources are of utmost importance. 5.2 Financial perspective The financial perspective for the OAG emphasizes the need to improve revenue from services, which is part of the long-term vision of the Office to explore sustainability. In addition, the OAG also focuses on the reduction of its audit costs through the achievement of greater efficiency in its main areas of service provision. 5.3 Internal processes perspective The internal process perspective provides the emphasis for integrating the PMS to drive organizational and individual performance. This is to be complemented by achieving and maintaining a conducive working environment and the alignment of the organizational structure. A major part of the organizations vision includes the enhancement of the independence of the OAG, while at the same time ensuring compliance with ISAs. Other internal perspective issues concern the acquisition of a suitable office infrastructure, the improvement of quality of service delivery and the improving of internal communication. 5.4 Learning and growth perspective The learning and growth perspective for the OAG is aimed at optimizing skills and competencies as a basis for strengthening its institutional capacity to respond to service demands of stakeholders and clients. Augmented by realizing a responsive organizational structure and the integration of ICT into the OAG operations. All of this should collaboratively contribute towards an enhanced performance of the OAG. 6. CRITICAL SUCCESS FACTORS 6.1 Financing for implementing the Strategic Plan The Strategic Plan of the OAG requires the expending of about N$ 172 million on implementation over the next five years. It is against this background that it is quite essential that the requisite levels of funding are achieved to ensure availability of financial resources towards implementation. Financing or the availability of adequate financial resources in this context is considered a major determinant in the successful implementation of the Strategic Plan. 6.2 Re-alignment and staffing Another success factor is the timely re-alignment of the organization in terms of attaining the necessary organizational arrangements (restructuring) to accommodate functions that are envisaged in the Strategic Plan. The Strategic Plan foresees the reduction in outsourcing of audits over the five-year period, a scenario, which will only be possible with the achievement of the appropriate levels of professional staffing at the OAG, especially with audit personnel. Complementary skills across the organization will be essential as foreseen through the strategic objective of optimal skills and competencies. 6.3 Timely financial and performance audit reports Apart from the general backlog that exists in terms of producing financial and performance audit reports, the success of the OAG will mostly be measured against the timely advises that it renders on the best use of public resources. As such timely generation of financial and performance audit reports for a high percentage of designated public institutions by the OAG is quite critical. Towards this end the Strategic Plan envisages the introduction of efficiencies through the use of ICT to achieve reasonable coverage of the public sector institutions covered by its mandate, with timely advice to effect responsible and accountable utilization of public resources. 6.4 Client and stakeholders co-operation The co-operation of the OAG clients in terms of following the guidelines provided and rendering the needed support by availing the information required for the audits is essential. Failure in this area also has serious consequences in terms of the timely generation of audits reports. A number of important stakeholders with supportive functions have an impact on the success of the OAG s operations. Therefore, the Standing Committees on Public Accounts of the National Assembly and the National Council are essential in ensuring that public officials (especially accounting officers) are made to account properly for how public resources are expended. Stakeholder co-operation in terms of representative bodies such as Association of Local Authorities in Namibia (ALAN) Association of Regional Councils (ARC) etc, becomes pro-active partners in the implementation of the OAG s outreach which could make a significant impact on increased client awareness towards improved co-operation. The achievement of the objectives in some of the areas outlined below or the realization of the factors as necessary pre-conditions indicated below are important for the successful implementation of the Strategic Plan.
Page 15 6.5 OAG Strategic P;an 2009-2014 Implementation of audit recommendations The vision statement reflects the desired impact of the watchdog function performed by the OAG. The achievement of the best use of public resources as a vision may not become a reality. if audit recommendations are not implemented by accounting officers or enforced by relevant structures. This could jeopardize the image of the OAG and render its work less effective. H.E. PRESIDENT POHAMBA UNVEILING THE OAG LOGO(2008) SADCOSAI CONFERENCE SWAKOPMUND (2004) PRESIDENT POHAMBA WITH OAG STAFF OAG STAFF AND A VISITING DELEGATION FROM THE AUDITOR-GENERAL CHINA (2009) OAG SOCCER TEAM
Page 16 OAG Strategic P;an 2009-2014 ANNEX A: SWOT ANALYSIS A.1 Internal environmental scan SWOT analysis Strengths The strengths identified by the strategic planning workshop include: Human resources (Staff) Competent, qualified, computer literate, skilled and experienced, responsible and creative, committed, good teamwork and report writing skills. HR policy in place (Public Service Act). Recruitment policy in place (working well). Ability to fill vacancies. Training workshops for auditors. Contribute to pool of AFROSAI-E trainers. Regulatory framework and independence Constitution ensures stability in appointment of the AG and his independence. Duties, powers and reporting are clearly defined in State Finance Act. Mandate is included in several acts, e.g. Local Authorities Act, and other statutory bodies acts. Regulations, policies and guidelines (e.g. training policy). Relative independence of the OAG The audit scope is determined by the AG, while there is also access to information for reporting with limited political interference. Relationship with stakeholders The OAG has well-functioning relations with both houses of Parliament. Administrative & IT The IT infrastructure in the OAG is reliable, while also strict financial discipline is observed. The OAG is also running its own fleet. There is also access to CAATs (i.e. IFMS, IDEA, Internet, etc). SWOT analysis Weaknesses assessment reports. The general inexperience of staff, i.e. with a lack such as of knowledge of IFMS also plays a major role. IFTC constraints, the difficulty of new trainees to be absorbed once the training cycle has commenced delays the acquisition of essential on -the-job skills. Also the current lack of exploring capacity building, i.e. outsourcing and private auditors is hampering the operations of the OAG. Management and leadership The lack of management support is considered a serious weakness. Other issues include inconsistency in applying office policies and the general inadequacy of leadership and direction. Management systems seem not to be in place (e.g. time recording); also unequal work distribution is experienced. Due to a lack of internal enforcement, Code of Conduct is not taken by heart by all staff, while the Office is also not positioned to deal with potential fraud and theft instances. Communication The office is experiencing poor communication internally and also with its external stakeholders. This is fueled by the lack of a formal policy, i.e. hierarchy not formalized and followed and dissemination of information not done formally. Human resources In terms of human resources, there is a great lack of professional qualification, while the office needs multi-skilled staff. The absence of a HR Plan as well as a performance management system also affects staff development and a performance. This has the consequence of a lack of career and professional development as well as succession planning. Another threat is the challenge experienced in terms of retaining qualified staff. Lack of training also affects effectiveness such as: Training opportunities within public service not being communicated internally, funds not available for training, training policy not consistent with IFTC, and training needs not properly identified, communicated or relevant. Specific capacity constraints exist, i.e. for forensic auditing and implementing electronic working papers. In addition, in-house capacity is limited for applying latest auditing standards towards complying with international standards. Lack of resources The inadequacy of resources affects the ability of the OAG to obtain suitable office space, adequate training facilities, laptops, storage, vehicles, lockable cabinets. This also affects the ability to achieve some type of proximity (decentralization) to the clients. Organizational structure The inadequacy of the organizational structure in terms of meeting its quality assurance and research and development needs is limited. This also applies to the Training Division. The weaknesses identified by the strategic planning workshop include: Independence of the OAG The challenges posed by the relative dependence of the OAG on the executive branch of government for its resource needs influencing the ability of the organization to turn around current high staff turnover, inadequate organizational structures, uncompetitive salaries, etc. It also has a further impact, as there is currently no parliamentary oversight on the OAG activities caused by the lack of an Audit Act. Auditing The lack of a performance audit manual affects the efficiency of the OAG in this area of work. Also, the lack of regular update and training on audit standards for staff also inhibits audit services. A key weakness in the OAG is the delays experienced with
Page 17 OAG Strategic P;an 2009-2014 A. 2:External environmental scan SWOT analysis Opportunities The opportunities identified by the strategic planning workshop include: Donors and partnerships - Donors (financial assistance) from EU, INTOSAI training on ISAs. Staff development programmes There are also opportunities for professional development of the existing staff complement and in addition, link it to professional allowances. Also, there is existing exchange programmes (i.e. through AFROSAI-E, regional training within SADC, etc) that staff members can participate in. This also includes training opportunities. Further opportunities for staff development exist in terms of attachment to private audit firms and SAIs in the region and abroad. The PAAB training also offers opportunities for the certification of audit staff as well as the training of accounting staff. Independence of OAG Opportunities are further foreseen for the development and implementation of an audit act for the OAG. This is seen as a necessary condition for unlocking other opportunities, i.e. attachment with private firms and other SAIs. Information Technology The advancement of IT within the auditing profession, e.g. electronic working papers, wireless connections, etc., offers opportunities for integrating ICT into the operations of the OAG. There are also opportunities for updating the OAG website and utilize benefits offered by Internet-based operations. Peer reviews There are periodic opportunities for conducting assessments on the work of other SAIs, while opportunities also exist through peer reviews by other SAIs to improve work of the OAG through external peer reviews. Information technology The organization s current inability to keep up with the latest audit technology, as well as regular power failures at the current office infrastructure poses a potential threat. External agencies roles Organization such as the OPM which are not able to fulfill their role in terms of enforcement of disciplinary measures also presents a potential threat with managing human resources within the organization. HIV/AIDS The pandemic and its impact on staff also presents a threat in terms of absenteeism from and productivity at work. A.3: Reference documents Audit Report on the Accounts of the OAG, financial year ended December 2005, Republic of Namibia. Institutional Strengthening Framework for Supreme Audit Institutions. OAG Medium Term Plan, 19 February 2007, Annex 3. Programme of Action for the OAG, Extended Project Phase 2006. Mid-term Review Findings and Recommendations, NDP 2. PEMP Data 2004/5-2009/10 Vote 4 OAG. State Finance Act, 1991 (Act 31 of 1991). Relationship with external stakeholders Opportunities for lobbying with relevant stakeholders such as with the Public Accounts Committee, other audit bodies and PAAB exists. SWOT analysis Threats The threats identified by the strategic planning workshop include: Dependence of the OAG The dependence of the OAG in terms of determining budgetary resources for its operations, e.g. for recruitment, building, vehicles, etc. The OAG does not have the ability to offer market-related salaries/remunerations. This is currently affected through OPM. Relationship with stakeholders/clients Lack of co-operation from many line ministries and other clients and the resultant late submission of information by stakeholders, influences the timely delivery of reports by the AG. The non-availability of data from auditees, such as capacity constraints on the side of clients to deliver quality data also affects the work of the OAG. Human resources The growing staff turnover and less than ideal employment conditions also constitute threats to the operations of the OAG. Safety and security The situation presented by the current office accommodation is not ideal in terms of providing a safe and secure working environment for staff. Isolated instances of personal threats to staff have also been encountered. Potential for bribes from clients The clients perception of threats posed by audits to their institutional and personal reputation provides for potential bribing of staff members.