challenges and best practice on service delivery · challenges and best practice on service...

Challenges and best practice

on service delivery

Duane van RensburgSpecialist, Audit Research and DevelopmentAuditor-General, South Africa

Service delivery – challenges and best practice

The foundation •Understand the mandate / need

•Define the strategy

•Operationalise strategy in projects

•Information flow / decision-making

•Monitoring / Reporting


The foundation •Understand the mandate / need

•Define the strategy

•Operationalise strategy in projects

•Information flow / decision-making

•Monitoring / Reporting

Good governance principles


Reputation promiseThe Auditor-General has a constitutional mandate and, as the Supreme Audit Institution 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


Good governance defined

• Enhanced service delivery/business goals

• Accurate information

• Financial gains

• Enhanced economic benefits

• Enjoyment of rights by citizens

• Poverty reduction (MDG)

• Improved quality of life

Decision-making with the following consequences:


• Accountability

• Transparency

• Compliance with laws, rules and regulations

• Economy, effectiveness and efficiency

• Consensus orientation

• Participatory

• Responsiveness

• Equity and inclusivity

Decision-making and implementation with the following characteristics:

Good governance defined


The power of measuring results• 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• If you can demonstrate results, you can win public

supportReinventing government – Osborne and Gaebler, 1992


Performance information and accountability

Policy development

Strategic planning

Implementation planning and

budgeting

Implementation

End-year reporting

Oversightby Parliament, provincial legislature or municipal council

INSTITUTIONnational department

provincial departmentmunicipality

state controlled institutionmunicipal entity

Specification of outcomes and outputs

Setting targets and resource allocation

Monitoring and management

Evaluation and adjustment

Identifying desired impacts

Policy development

Strategic planning

Implementation planning and

budgeting

Implementation

End-year reporting

Oversightby Parliament, provincial legislature or municipal council

INSTITUTIONnational department

provincial departmentmunicipality

state controlled institutionmunicipal entity

Specification of outcomes and outputs

Setting targets and resource allocation

Monitoring and management

Evaluation and adjustment

Identifying desired impacts

Implementation and in-year reporting

Operational planning and budgeting

End-year reporting

Strategic planning


Performance information concepts

• IMPACT – what we aim to change• OUTCOMES – what we wish to achieve• OUTPUTS – what we produce or deliver• ACTIVITIES – what we do• INPUTS – what we use to do the work

Manage towards achieving goals

Plan, budget, implement


Performance indicators• Reliable• Well-defined• Verifiable• Cost-effective• Appropriate• Relevant

• Economy• Efficiency• Effectiveness• Equity


Performance targets

• Baseline

• Performance target

• Performance standard


AOPI - StrategyYear Approach Report

2005-06 • Understanding of performance information (PI) environment

• Existence, consistency and format• Compare to source

Deficiencies in man reportEmphasis of matter in audit report

2006-07 • Understanding of internal controls regarding PI

• Document system descriptions• Existence, consistency, format,

compare to source

Deficiencies in man reportAudit report - Other legal and regulatory sections –factual findings

2007-09 Same as above with more substantive procedures

Same as above

2009-10 Audit procedures relevant to providing reasonable assurance

Deficiencies in man reportSeparate audit opinion on PI


AOPI - expectations• Test credibility of performance

information….which is – the feedback on service delivery of a

previous period, and– Input into the planning / budgeting of next

period• Talks to the quality of information for

decision-making / good governance


AOPI – key observationsAt National department level:• 10% not reporting• 12% evidence inconsistent with report• 8% inadequate evidence• 6% misalignment between strategic plan

and report


A new reporting format• Response to the need of users

– Root cause reporting– Creating appropriate context for audit findings– Lifting the bar on reporting in issues of governance

• New requirements set by ISA 260 and 700

• Streamlined, complete general report process

Good governance in government

Start up (1)No proper control framework

Development (2)Proper internal control

framework

Control (3)Focus on compliance and

control

Information (4)Measuring how resources are

used

Managed (5)Use of resources with effective

results

Optimizing (6)Continuos improvement and

learning

Roll-out governance principles by the governance champion

•Creation of strategic management framework

•Readiness evaluation

•Guidance and capacity building

•Effective monitoring of management discipline

ISA 315 principles

•The control environment

•The entity’s risk assessment process

•The information system

•Control activities

•Monitoring of controls

ISA 240, ISA 260R, ISA 700R and other communication and reporting requirements

Maturity model analysis


Control environment • Personal and professional integrity and

ethical values of management and staff, supporting good governance

• Commitment to competence• Tone at the top• Organisational structure• Policies and procedures


Risk assessment

• Risk identification• Risk evaluation• Assessment of risk “appetite”• Develop responses to risks


Information system

• Communication

• Information

• Knowledge sharing


Control activities• Authorisation and approval• Segregation of duties• Control over access to resources and records• Verifications• Reconciliations• Review operating performance• Review of operations, processes and activities• Supervision


Monitoring

• Ongoing monitoring

• Separate evaluations


Provisional analysis• Control environment – 25%• Control activities – 50%• Level of maturity -2, moving to 3• Focus on compliance and control,

not yet at level of how resources are managed and how effective this is done


Reputation promiseThe Auditor-General has a

constitutional mandate and, as the Supreme Audit Institution 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

challenges and best practice on service delivery · challenges and best practice on service...

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