Internal audit’s evolving performance role: lessons from the South African public sector

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Asogan Moodley ◽  
Barry Ackers ◽  
Elza Odendaal
Keyword(s):  
Public Sector ◽  
Service Delivery ◽  
Performance Management ◽  
South African ◽  
Primary Role ◽  
Internal Auditing ◽  
The South ◽  
Content Type ◽  
Public Sector Performance ◽  
Sector Performance

Purpose The formal adoption of internal auditing within the South African public sector was made compulsory by the Public Finance Management Act, No. 1 of 1999. Despite internal auditing’s primary role of adding value and assisting organisations to accomplish pre-defined strategic objectives, the increasing frequency of service delivery protests in South Africa, suggests that mandatory internal auditing may not have contributed to improving public sector performance and enhancing service delivery, as envisaged. This paper aims to identify the factors preventing internal audits from effectively contributing to improved public sector performance and service delivery. Design/methodology/approach The study adopted a sequential mixed-methods research approach. Firstly, a survey instrument was used to collect empirical data from survey respondents at South African national government departments. Secondly, semi-structured interviews and focus group discussions were held with a purposively selected sample of participants to explore the observations from the first phase. The observations from the first two phases were validated through an analysis of pertinent documents and records. Findings Despite all departments adopting internal auditing, management’s expectations of internal auditing and the services provided by the internal audit function diverged. The results suggest that the emergence of a compliance approach to organisational governance together with poor performance management skills has impaired internal auditing’s ability to effectively contribute to strategic and performance management. Research limitations/implications Despite its South African orientation, as internal auditing is a global association and given that service delivery protests continue to occur in several countries around the world, increases the study’s international relevance. Moreover, the mandate of internal auditing requires it to add value to an organisation irrespective of its geographical location. Originality/value The study contributes to the existing body of knowledge on internal auditing, particularly its adoption and implementation in the South African public sector. In addition to identifying the factors inhibiting effective internal auditing, the study advances a suggested framework for the future of internal auditing.

Contribution of internal auditing to risk management

2016 ◽  
Vol 29 (4) ◽  
pp. 348-364 ◽  
Author(s):  
Philna Coetzee
Keyword(s):  
Risk Management ◽  
Public Sector ◽  
South African ◽  
Audit Committee ◽  
Internal Audit ◽  
Senior Management ◽  
Minor Effect ◽  
Internal Auditing ◽  
The South ◽  
Content Type

Purpose – There is a widening gap between the expectations of internal audit stakeholders and the value the function brings to the table, for example, in the management of the risks threatening an organisation. The purpose of this paper is to investigate the views of chief audit executives (CAEs), the chairs of audit committees and senior management on the contribution of the internal audit functions to risk management in the South African public sector. This contribution is considered in the context of existing risk management structures and the level of coordination between these structures and internal auditing. Design/methodology/approach – The views of heads of internal auditing, chairpersons of the audit committee and the Accounting Officer (similar to the CEO of private sector organisations) of national, provincial and local government organisations were obtained and statistically analysed. Findings – The results indicate that the CAEs have noticeably different views from the other two parties, and that the existence of risk management structures has a minor effect on how the contribution of internal auditing to risk management is perceived. Research limitations/implications – It was decided to not include the views of heads of risk management functions owing to the immaturity of risk management in this sector with in the South African public sector. Practical implications – The results of the study provide internal auditing with information on narrowing the possible gap between the perceptions of senior management and their own perceptions. Senior management could streamline the efforts of these two parties in mitigating the key risk of the organisation. The audit committee, as the independent overseer of internal auditing, will obtain information on whether internal auditing contributes to risk management, and if not, how to address these issues, taking into account the existence (or a lack thereof) of risk management structures. The legislator and regulator of public sector could be influenced to provide clearer guidance or rules in this regard in order to enhance the efficiency and effectiveness of risk management policies and practices. Originality/value – Limited studies have been conducted regarding the coordination of internal auditing and risk management in mitigating the key risks; especially within the public sector domain whether the existence of risk management structures would affect this coordination. Also the views of senior management, as the key stakeholder of internal auditing, on this matter have not yet been solicited.

scholarly journals Management control and public sector performance management

2019 ◽  
Vol 14 (1) ◽  
pp. 158-176 ◽  
Author(s):  
Jan van Helden ◽  
Christoph Reichard
Keyword(s):  
Public Sector ◽  
Performance Management ◽  
Public Management ◽  
Management Control ◽  
Transfer Of Knowledge ◽  
Content Type ◽  
Control Approach ◽  
Starting Point ◽  
Public Sector Performance ◽  
Sector Performance

Purpose The purpose of this paper is to investigate whether and how evolving ideas about management control (MC) emerge in research about public sector performance management (PSPM). Design/methodology/approach This is a literature review on PSPM research through using a set of key terms derived from a review of recent developments in MC. Findings MC research, originating in the management accounting discipline, is largely disconnected from PSPM research as part of public administration and public management disciplines. Overlaps between MC and PSPM research are visible in a cybernetic control approach, control variety and contingency-based reasoning. Both academic communities share an understanding of certain issues, although under diverging labels, especially enabling controls or, in a more general sense, usable performance controls, horizontal controls and control packaging. Specific MC concepts are valuable for future PSPM research, i.e. trust as a complement of performance-based controls in complex settings, and strategy as a variable in contingency-based studies. Research limitations/implications Breaking the boundaries between two currently remote research disciplines, on the one hand, might dismantle “would-be” innovations in one of these disciplines, and, on the other hand, may provide a fertile soil for mutual transfer of knowledge. A limitation of the authors’ review of PSPM research is that it may insufficiently cover research published in the public sector accounting journals, which could be an outlet for MC-inspired PSPM research. Originality/value The paper unravels the “apparent” and “real” differences between MC and PSPM research, and, in doing so, takes the detected “real” differences as a starting point for discussing in what ways PSPM research can benefit from MC achievements.

Current state of public sector performance management in seven selected countries

2012 ◽  
Vol 61 (3) ◽  
pp. 235-271 ◽  
Author(s):  
Mary Lee Rhodes ◽  
Lucia Biondi ◽  
Ricardo Gomes ◽  
Ana I. Melo ◽  
Frank Ohemeng ◽  
...  
Keyword(s):  
Public Sector ◽  
Performance Management ◽  
Customer Service ◽  
Performance Measures ◽  
Future Research ◽  
Political Crisis ◽  
Content Type ◽  
Management Regimes ◽  
Public Sector Performance ◽  
Sector Performance

PurposeThis paper seeks to extend the analysis of performance management regimes by Bouckaert and Halligan to other countries in order to contribute to the developing theory of forms and challenges in public sector performance management.Design/methodology/approachThe state of performance management and the context in which it has evolved is assessed in seven different countries using dimensions drawn from Bouckaert and Halligan's work along with elements from earlier work by Pollitt and Bouckaert. These are summarized in a table and comparisons made to generate additional insights into the factors that influence the shape and speed of public management evolution.FindingsThe paper finds that the Bouckaert and Halligan framework for analyzing public sector performance management is useful, albeit with some modifications. Specifically, it finds that administrative culture is a key factor influencing the speed of reform and that the attitude of elites (politicians and civil servants, in most cases) is also a vital piece of the puzzle that was not included in Bouckaert and Halligan, but did appear in the earlier framework of Pollitt and Bouckaert. It also finds evidence that economic and political crises occurring together accelerate the introduction of integrated performance management systems, but that trust in government does not appear to be a significant factor. Finally, the paper observes that, absent political crisis/commitment, governments will prioritise “external” performance measures such as customer service, participation and transparency objectives over “internal” performance measures such as financial, staff management and whole of government reporting.Originality/valueThe countries studied provide a rare insight into lesser‐known performance management regimes and the use of the Bouckaert and Halligan framework allows for comparisons to earlier (and future) research. The findings will be of interest to scholars in public administration reform and performance management.

Effective performance management of local governments in Khyber Pakhtunkhwa, Pakistan

2019 ◽  
Vol 68 (1) ◽  
pp. 26-45
Author(s):  
Altamash Janjua ◽  
Farrukh Attique ◽  
Adil Raza ◽  
Waqar Akbar
Keyword(s):  
Developing Countries ◽  
Public Sector ◽  
Service Delivery ◽  
Performance Management ◽  
Local Governments ◽  
Positive Impact ◽  
Content Type ◽  
Khyber Pakhtunkhwa ◽  
Effective Performance ◽  
The Impact

Purpose Effective performance management of local governments is essential for efficient service delivery to the citizens. This is especially true for developing countries where performance management of public sector is severely lacking. The purpose of this paper is to discuss a pioneering and effective performance management framework that has been implemented in the province of Khyber Pakhtunkhwa, Pakistan. Design/methodology/approach The paper outlines the design and implementation of the system in light of relevant research work. Latest digital technologies including smartphone applications and social media have been used to make the system effective and responsive to the needs of the citizens and sustainable in the long term. Findings The impact of the system includes a drastic reduction in polio infection cases by 90 percent in the province and the successful completion of one of the biggest afforestation campaigns in the world in recent years. In addition, noteworthy improvements in public health, education and municipal services have also been achieved through this system in a province that has a population of 30.5 m. Research limitations/implications The paper uses field data to highlight the positive impact of the system which has been operational for more than two years now. Practical implications The strong positive impact of the system supports the case for implementation of similar public sector reforms in other developing countries. Social implications The implementation of the system has resulted in significant improvements in social sector service delivery. Originality/value There is very limited literature available on successful performance management reforms in the public sector of the developing world. Therefore, this case study can be a very important resource.

scholarly journals A reflection on the relationship between performance management and training in the South African public service

2017 ◽  
Vol 1 (2) ◽  
Author(s):  
P. Harry Munzhedzi
Keyword(s):  
Service Delivery ◽  
Performance Management ◽  
South African ◽  
Public Service ◽  
Good Governance ◽  
Skills Gap ◽  
The South ◽  
The Public ◽  
The Relationship ◽  
And Training

Orientation: Performance management plays a pivotal role in the realisation of many facets of public administration, including service delivery, good governance and organisational productivity through setting of performance targets and regular assessments of performance. In search of improved quality and productivity in the public service, the South African government introduced several legislative and policy interventions, including but not limited to the Public Service Act, 1994 (Proclamation 103 of 1994), Public Service Regulations of 2001 and the White Paper on Transforming Public Service Delivery of 1997.Research purpose: The main thrust of this conceptual paper was to explore the relationship between performance management and training in the South African public service.Motivation for the study: The lack of sufficient literature on the relationship between performance management and training. To also prove that the two are inseparably linked, meaning that one cannot exist without the other.Research design, approach and method: This article, which is conceptual in nature, reviewed existing literature on performance management and training in the public service extensively so as to arrive at a definitive conclusion.Main findings: The article contends that as much as training underpins the process of performance management, training is also fortified by performance management. Precisely, there cannot be performance management without training and vice versa.Practical/managerial implications: As much as training is imperative in the management of performance in the public service, such training must be need-based and it must be underpinned by performance management through identification of skills gap in the assessment of performance.Contribution: It is proposed that to enhance the knowledge, capacity, effectiveness and efficiency of the public service performance, needs-based training that seeks to close the skills gap, is developed and adequately implemented.

scholarly journals The Relationship between Organization Structures and Performance in the Nigerian Public Sector

2020 ◽  
Vol 4 (2) ◽  
pp. 49-62
Author(s):  
Olanrewaju Yemisi Esther ◽  
Sanni Mubaraq ◽  
Lateef Saheed Ademola ◽  
Aliu Ismaila Daudu
Keyword(s):  
Public Sector ◽  
Service Delivery ◽  
Public Service ◽  
Internal Control ◽  
Organization Structure ◽  
Public Service Delivery ◽  
The Public ◽  
Public Sector Performance ◽  
Sector Performance ◽  
The Relationship

The main purpose of instituting good organizational structure as a parameter for public sector governance control practices is to resolve issues affecting the prudent management of resources to ensure effective public service delivery. However, quality of public service delivery only increased by an aggregate average of 2.4 percent from 2008 to 2017 as a result of poor organization structure. This implies that existence organization structure seems not useful due to the level of decay in public service delivery. Consequently, the present study assesses the relationship between organizational structure tools such communication with stakeholder, accountability and internal control on performance of Nigerian public sector. The study employed the two popular survey research instruments (questionnaire and interview) to collect data concurrently, analyzes separately and merged the results during interpretations. The target population for quantitative analysis is made up of Six (6) from each of the 175 MDAs in Nigeria as at December, 2018 while the study proposed Ten (10) participants for interviews. The quantitative data were analysed using descriptive and inferential statistic. The Partial Least Square Structural Equation Modelling (PLS-SEM) was used to test the hypotheses. The findings of the study from quantitative and qualitative analysis reveal that communication with stakeholder; accountability and internal control are positively and significantly associated with public sector performance. The study concludes that the three constructs proxied for organization structure have positive influence on the public sector performance. Therefore, the study recommends that all the heads of MDAs should lay more emphasis on transparency and accountability in order to be accessible independently by the public, the internal control system of MDAs should be regularly review and updated to achieve the stated public service objective and all MDAs staff should be training regarding the line of communication in public services in order to enhance public sector performance.

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