Article

Governance, Risk & Regulatory

Performance Auditing and Business Process Reviews

Legislation requires government institutions to report on actual performance against predetermined objectives. This has created an increased focus on compliance while citizens expect a greater focus on the evaluation of service delivery to ensure value-for-money

Performance Auditing and Business Process Reviews

While it is crucial for government to be able to report credibly on its actual performance against predetermined objectives, the expectations of its stakeholders are increasing exponentially. Key stakeholders – including citizens – expect that government obtains “value for money” when spending taxpayer’s money in the pursuit of delivering services. Citizens further expect that the necessary management measures are implemented to ensure that resources (including goods and services) are procured economically (at the right time, the right place, the right quality and quantity, at the lowest price) and utilised efficiently (using the existing resources to achieve more or utilising less resources to achieve the same objective) and effectively (achieving the desired objective), thereby contributing towards enhanced service delivery. 

Legislation requires government institutions to report on actual performance against predetermined objectives. The Auditor-General of South Africa (AGSA) is mandated to audit these reports on an annual basis. This has created an increased focus on compliance (government institutions striving to achieve Clean Audits) while citizens expect a greater focus on the evaluation of service delivery to ensure value-for-money (in terms of economy, efficiency and effectiveness). Furthermore, there is currently confusion within the public sector between the Audit of Predetermined Objectives performed by the AGSA (conformance) and Performance Audit and Evaluations that focus on value-for-money (performance). 

The Audit of Predetermined Objectives (AoPO) and Performance Audit and Evaluations aim to ensure that that organisations are provided with customised solutions that meets their specific needs. It also ensures that systemic challenges experienced are diagnosed comprehensively, thereby ensuring that our recommendations are relevant, specific and practical to implement, but also demonstrate the effects of the issues identified. Tailored solutions will enable government to enhance its execution of its mandate, resulting in improved service delivery and value for money ultimately benefiting the lives of citizens.

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