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). 

Our team has extensive experience in both the Audit of Predetermined Objectives (AoPO) and Performance Audit and Evaluations. We understand the fundamental differences between these two offerings, thereby ensuring that clients are provided with a customised solution that meets their specific needs. We have an experienced multi-disciplinary team that will not only ensure 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. This tailored solution will enable government to enhance its execution of its mandate, resulting in improved service delivery and value for money that will ultimately benefit the lives of citizens. 

Our Performance Audit and Evaluations value offering includes focusing on Business Process Analysis, Re-engineering and Improvement with a view to facilitating change for improvement. 

At Deloitte we understand that the journey towards sustainable Clean Audits and effective reporting of government performance against predetermined objectives (conformance) is an important one, albeit post facto. However, focus should not entirely be diverted from the overall mandate of government and the public sector – that is, to improve the lives of citizens through efficient, economical and effective service delivery. An increased focus on performance monitoring and evaluation of service delivery (performance) during the performance cycle of an institution, thereby ensuring that value-for-money is obtained, is essential to improving the level of service delivery of government.