A RESPONSE RENDERED BY HON V MWALE, PAC CHAIRPERSON, ZAMBIA

MPUMALANGA, SOUTH AFRICA, 5 SEPTEMBER, 2012

DEVELOPING MEASURABLE OBJECTIVES IN PERFORMANCE AUDITING

Performance Auditing in Zambia

The History of formal Performance Auditing in public institutions in Zambia can be traced back to 2004 when the Public Finance Act was passed giving the Auditor-General explicit mandate to carry out Performance Audits.

The Public Finance Act of 2004 clearly states that the Auditor General shall carry out performance and other specialized audits as he or she may consider necessary.

Performance Auditing in ZambiaSince 2004, the Auditor-General in Zambia has undertaken a number of Performance Audits. Some of the reports conducted by the office included among others:

1.Provision of Water in Zambia-20052.Cattle Restocking-2006-20073.Road Rehabilitation and Reconstruction-2007/84.Solid Waste Management in Zambia-2007-2008

Performance Auditing in Zambia5. Industrial Waste Management-20086. Medical Waste Management-20087. Forfeiture and Disposal of Assets(2009)8. Management & Storage of Grain(2009)9. Pre-Disaster Management in Zambia

(2009/2010) Implementation of Gender Mainstreaming Activities (2009-2010); and

11. Management of National Museums(2010-2011)

Several others are in the process of being concluded.

Handling of Performance Audit Reports in the Zambian ParliamentDue to the heavy workload of the

Public Accounts Committee, an administrative decision has been taken to refer the performance audit reports to relevant Portfolio Committees.

The PAC, however, keeps all the matters arising from these report in view in the course of their work.

Importance of Performance AuditsPerformance auditing has the objective of

improving public sector administration andaccountability by adding value through an effective programme of performance audit.

Performance auditing offers considerable scope for adding real value to public administration. It also aims to ensure that individuals and agencies managing public resources remain accountable for their actions.

Importance of Performance Audits

A performance audit assesses whether an agency is meeting its aims effectively, using its resources economically and efficiently, and complying with legislation. It can cover all or part of an agency’s activities, or the activities of a number of agencies.

Performance audits offer independent assurance to Parliament and the community that public money has been spent wisely and that the results meet Parliament’s expectations.

Developing Measurable Objectives

To be effective the , performance auditors must have:

A clear understanding of the objectives and priorities of any area subject to be audited; and

an understanding of audit policies and procedures of conducting the audits in accordance with international auditing standards (e.g planning and audit methodology)

Developing Measurable Objectives

In short, Auditors should ensure that objectives are carefully considered and clearly stated to the extent of being measured. They must be defined in a way that will allow the audit team at the end of the audit to conclude against each of the objectives. Effort should be directed toward answering the questions raised in the objectives.

Why Clear & Measurable ObjectivesIf objectives of the performance audit are clear and measurable, it makes the work of auditors easier so as to prepare precise audit reports to the public.

Follow-up on the Committee’s recommendations can be more focussed.

Conclusion

Auditors must endeavour to consistently identify the right programmes to audit and state their objectives clearly. Otherwise they will develop mediocre objectives whose outcomes will not be useful to both Parliament and other stakeholders.

ConclusionTo get the best from performance audits, efforts must

be intensified to build the capacity of performance auditors and indeed parliamentarian so as to perfect the oversight skills in this relatively new area.

the impact of the various audits performed resulted in some instances changes in management structure, improved project implementation among others.

I thank You

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I THANK YOU