The development and use of KNI’s in South Africa and the role of the Auditor-General in auditing KNI’s

INTOSAI WG ON KNI - 6TH MEETING22 - 24 APRIL 2013

Presented by Tini Laubscher

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The AGSA mission

The Auditor-General of South Africa has a constitutional mandate and, as the Supreme Audit Institution (SAI) of South Africa, it exists to strengthen our country’s democracy by enabling oversight, accountability and governance in the public sector through auditing, thereby building public confidence.

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Topics for discussion

Development and use of KNI’s in SA

• Overview of developments in SA: 2001 to 2013

• The way forward

Role of the Auditor-General in auditing KNI’s• Audit mandate and strategy • Audit results to date

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South African government context

National

Provincial

Local (municipalities)

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Evolution of KNI’s in South Africa

2000 – 2008: Development of KNI’s closely linked to planning and budgetingA bottom-up approach

2009 – 2013:Cabinet approved 12 national outcomes to guide overall development of KNI’sA top-down approach

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Development and use of KNI’s in SA

1. Development of standard budget performance programmes for concurrent functions like Education and Health

3. The indicator development process was challenging and still is due to lack of adequate performance information gathering systems

4. However departments agree on a core set of indicators and strive to improve the data used for reporting purposes

2000 - 2008

OUTCOMES

OUTPUTS

INPUTS

ACTIVITIESPreviousfocus

Newfocus

What we use to do the work

What we do

What we produce or deliver

What we wish to achieve

2009: SA Government changed to an outcomes approach

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SA Government’s 12 National Outcomes

1. Quality basic education*

2. A long and healthy life for all South Africans*

3. All people in South Africa are and feel safe

4. Decent employment through inclusive economic growth

5. Skilled and capable workforce to support an inclusive growth path*

6. An efficient, competitive and responsive economic infrastructure network

7. Vibrant, equitable, sustainable rural communities contributing towards food security for all*

8. Sustainable human settlements and improved quality of household life*

9. Responsive, accountable, effective and efficient Local Government system*

10. Protect and enhance our environmental assets and natural resources*

11. Create a better South Africa, a better Africa and a better world

12. An efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship

* Concurrent functions, outcomes coordinated by national and provincial departments and ministers

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Example: Health outcome indicators

Indicator 2009 level 2014 targetLife expectancy at birth 56.5 years 58.5 yearsLife expectancy at birth for males 54.0 years 56.0 yearsLife expectancy at birth for females 59.0 years 61.0 yearsInfant mortality rate (IMR) 40 per 1 000 live births 36 per 1 000 live birthsUnder-5 mortality rate 56 per 1 000 live births 50 per 1 000 live birthsMaternal mortality ratio 310 per 100 000 live births 270 per 100 000 live birthsPrevention of mother-to-child transmission (PMTCT) rate of HIV less than 2 months of age 3.50% Less than 2%Antiretroviral treatment (ART) coverage 1.1 million 2.5 million

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Development and use of KNI’s in SA – way forward

National development plan (until 2030)

Medium strategic framework (2019/2024/2029)

Detail (key) indicators and plans

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Role of the Auditor-General in auditing KNI’s

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Audits performed by AGSA

Annual mandatory audits

• Audit of financial statements• Audit of performance reports (Reports on key indicators)• Audit of compliance with laws and regulations

Discretionary audits

• Performance audits

An audit report must reflect an opinion or conclusion relating to the performance of the

auditee against predetermined objectives

Sections 20(2)(c) and 28(1)(c) of the Public Audit Act (PAA)

Applicable to all spheres of government

Legislative requirement – audit of performance reports

All relevant laws and regulations

Framework for the managing of programme performance informationFramework for strategic and annual performance plans

(issued by the National Treasury)

Circulars and guidance issued by the National Treasury regarding the planning, management, monitoring and reporting of performance

information

The following represents the performance management and reporting framework against which the performance information should be managed and reported. Auditors use principles and requirements from framework as a basis for the audit.

Performance management and reporting framework

Refer to annual AG Directive

Main criteria Sub-criteria

Existence

Timeliness

Presentation

Measurability

Relevance

Consistency

Validity

Accuracy

Completeness

Compliance with regulatory requirements

Usefulness

Reliability

Audit criteria

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Auditing the planning, budgeting and reporting cycle

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PFMA 2011-12 Findings on predetermined objectives

Auditees with PDO findings

Auditees with no PDO findings

54%

61%

46%

39%

2010-11

2011-12All auditees

Improvement, 71 (14%)

Unchanged with findings,

142 (29%)

RRegression, 50 (10%)

Unchanged with no

findings,232 (47%)

Movement in number of auditees with findings on PDO

Information not submitted in time

6 (1%)

No annual performance report

9 (2%)

[4 (1%)]

Usefulness148 (30%)

[145 (29%)]

Reliability111 (22%)

[124 (25%)]

Total auditees with no findings302 (61%)

[269 (54%)]

Nature of PDO findings

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For further reference

12 National outcomes and national development plan:

http://www.thepresidency-dpme.gov.za/dpmewebsite/Page.aspx?Id=171

http://www.poa.gov.za/Pages/HomePage.aspx

Performance management frameworks:

http://www.treasury.gov.za/publications/guidelines/default.aspx

Auditor-General audit reports:

http://www.agsa.co.za/audit-reports/National.aspx

http://www.agsa.co.za/audit-reports/Provincial.aspx

THANK YOU