2.10.The SAI of Portugal – strengthening controls in state owned enterprises

2 – SUPREME AUDIT INSTITUTIONS’ INPUT INTO POLICY FORMULATION – 77

Box 2.8. The SAI of South Africa - budget and strategic plan review (continued)

 In assessing the measurability of targets, AGSA asks: Is the planned target specific? Is the planned target measurable? Is the planned target time-bound?

 In determining the relevance of objectives, AGSA interviews relevant senior managers/officials to determine how indicator/measurement relates logically and directly to an aspect of the institutions mandate, and the realisation of strategic goals and objectives. The following questions are used as the basis of the discussion: Why are the predetermined objective and indicators important? How are the indicators/targets used to manage service delivery? AGSA then provides a conclusion.

Criteria used

Country laws, entity objectives, other: monetary policy (of the South African Reserve Bank and performance and monitoring unit in the presidency)

Resources

The review process and presentation to the portfolio committees utilise approximately 1% of total resources.

Outcomes

The output is a presentation to parliamentary and provincial legislature portfolio committees on the departments’ budgetary preparation. The presentations synthesise findings from prior year audits, the latest interim audit findings, the departments’ financial accountability record, internal controls, and delivery on service objectives. While AGSA does not set the performance criteria, part of this work includes making recommendations on whether established criteria are specific, relevant, measurable, reliable and linked to timelines.

Good practices used

The presentations empower the portfolio committee members by making them aware of financial, capacity, delivery and other shortcomings in departments. It provides an independent assessment of the budget preparation and compliance with recommendations.

Lessons learned

The success of AGSA’s initiative and AGSA’s indirect involvement in budgetary planning has led to portfolio committees expecting work that exceeds what AGSA is able to provide with existing resources. Sources: OECD Survey of Peer Supreme Audit Institutions.

SUPREME AUDIT INSTITUTIONS AND GOOD GOVERNANCE: OVERSIGHT, INSIGHT AND FORESIGHT © OECD 2016