Challenges in reporting on predetermined objectives to the Auditor-General: The case of Limpopo provincial departments

Melvin Diedericks

doi:10.4102/td.v13i1.386

Abstract

Limpopo provincial departments like all other South African government departments are required to report on performance against predetermined objectives in terms of Section 40 of the Public Finance Management Act 1 of 1999, read in conjunction with Section 5.1.1 of the Treasury Regulations. The purpose of this article is to report on a study that was undertaken to establish the challenges faced by the Limpopo provincial departments in reporting on performance against predetermined objectives to the Auditor-General (AG). Reporting on predetermined objectives has been a challenge over the past financial years and this is evident in the AG’s reports, in which Limpopo provincial departments continued to receive qualified audit reports. The literature review carried out for purposes of this study revealed that performance management is fundamental to enhancing organisational performance. A qualitative research design was used to collect and analyse data. Key findings of the study included that management should prioritise strategic planning, performance reporting, monitoring and evaluation to enable it to be in a position to make a determination as to whether what was planned by the department was actually realised. It is also of paramount importance that performance reporting is highly prioritised at strategic, tactical and operational management meetings to ensure more effective and efficient organisational performance.

Highlights

According to the National Treasury (2007a:1), performance information indicates how well an institution meets its aims and objectives, and which policies and processes are functioning effectively and contribute towards the achievement of organisational goals and objectives
The fact that this study was contextual in nature and that it was aimed at arriving at an in-depth description and understanding of the challenges in reporting predetermined objectives to the AG meant a qualitative research approach was appropriate
The study was motivated by reports of the AG that showed a lack of improvement in terms of the audit outcomes for predetermined objectives

Summary

Introduction

According to the National Treasury (2007a:1), performance information indicates how well an institution meets its aims and objectives, and which policies and processes are functioning effectively and contribute towards the achievement of organisational goals and objectives. Performance information is the key to effective management, including planning, budgeting and implementation, monitoring and reporting. The most valuable reason for measuring performance is that what gets measured gets done (Osborne & Gaebler 1992). This implies that ‘if you do not measure results, you cannot tell success from failure; if you cannot see success, you cannot reward it; if you cannot reward success, you are probably rewarding failure; if you cannot see success, you cannot learn from it; if you cannot recognise failure, you cannot correct it; and if you cannot demonstrate results, you cannot win public support’ (Halachmi 2002:65, 2005:503-504; Osborne & Gaebler 1992). In other words, measuring performance has an impact on factors such as performance recognition, managing and correcting poor performance, as well as continuous organisational improvement

Objectives

Methods

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Discussion

Conclusion