Performance Auditing and Auditing of Performance Information

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Performance Auditing and Auditing of Performance
Information

• Audit Committee
• 28 March 2008

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Outline

• Why measure performance?
• Performance Information Framework
• Purpose
• GWME system
• Key concepts
• Improving performance information
• Progress to date (example)
• Reporting and auditing of performance information
• Next steps
• Parliaments role

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Why measure performance

• Performance information is important to
• help identify and address underperformance/lack
  of service delivery in government programmes
• measure value-for-money (economy, effectiveness,
  efficiency and equity)
• improve linkage between strategic planning,
  budgeting, implementation and reporting
• facilitate developing indicators of national,
  provincial, local government and entities
• improve accountability and oversight of
  legislatures
• reward good performance
• What gets measured gets done

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Performance Information Framework

• The framework builds on previous reforms not
  new
• The purpose of the Framework for Managing
  Performance Information is to provide guidance
  on
• Integrated structures, systems, and processes
  required for performance information
• Roles and responsibilities for performance
  information Presidency and Premiers office,
  National Provincial treasuries, Public Service
  and Administration, Provincial and Local
  Government
• Promoting accountability and transparency by
  providing Parliament, provincial legislatures,
  municipal councils with timely, accessible and
  accurate performance information
• Publishing performance information
• Standardising terminology on performance
  information

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Components of GWME system

• The Framework for Managing Performance
  Information provides guidance on Programme
  Performance Information which is part of the
  Government-wide Monitoring and Evaluation System
  (GWME)

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Performance Information Framework concepts
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Improving performance information

• Technical Assistance Unit (TAU) training and
  sector support
• Lessons learned from piloting in selected
  departments
• DCS, DWAF, SAPS, DPW, DPSA
• SAMDI training programmes and curriculum
  development (aligned to FMPPI)
• Treasury guidelines and training sessions
• Reporting formats for budget submissions and ENE
  guidelines, training and formats
• Specific sector reports and expenditure reviews
• Alignment with PFMA (amendments)

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Progress to date

• Objectives and measures in 2008 ENE
• Measurable, strategic intent and intervention
• Prominently featured
• Performance Indicators in ENE
• Trendable format (numbers only) mirrors
  financial reporting
• Selected public entities included
• Performance indicators increasingly used for
  evaluating new MTEF budget bids
• Provincial quarterly reporting data

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(No Transcript)
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Reporting and auditing

• FMPPI developed in consultation with Auditor
  General
• Phasing in auditing of performance information
  2009/10, to audit the integrity of systems and
  processes to generate performance indicators
• AG may do performance audits
• Regular engagement with AG on auditing concerns
• Treasurys interest in integrity and performance
  audit issues (4 Es) can be described as one of
  monitoring and evaluation, rather than auditing

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Next steps

• Continued improvement in programme design linked
  to strategic plan, budget and output delivery
• Allocating resources in line with planned
  programme achievements increasingly
• Implement non-financial reporting for departments
  and public entities
• Based on provincial model
• Expand data of trendable performance indicators
• Identify most relevant performance indicators
  (alignment with development indicators
  Presidency)
• Further enhancement of measurable objectives
• Developing indicators for local government (DPLG)

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Parliaments role in using performance indicators

• Joint Budget Committee report on MTEF
  Recommends reports to include non-financial
  information and realistic key performance
  indicators
• Accountability for results
• Holding individuals accountable in terms of
  performance agreements
• Monitoring of results to feed into
  recommendations in respect of MTEF allocations
• Investigate failure to achieve targets
• Scrutinise departments and public entities
• Recommend improvements to reporting formats

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QAThank you