stRATEGic PLAN · 2018-08-13 · Strategic Plan 2018 - 2021 Page 4 1.0 FOREWORD For Supreme Audit...

STRATEGIC PLAN FY 2018 – 2021

(Revised July 2018)

Office of the Auditor General Republic of Fiji

Excellence in Public Sector Auditing

STRATEGIC PLANFY 2018 - 2021

Office of the Auditor General Republic of Fiji


(Revised July 2018)

Strategic Plan 2018 - 2021 Page 2

Contents

1.0 FOREWORD ................................................................................................................................. 4

2.0 LEGAL AND PROFESSIONAL FRAMEWORK ................................................................................ 6

2.1 Legal Framework ..................................................................................................................... 6

2.2 Professional Framework ......................................................................................................... 6

3.0 OUR VISION, MISSION AND VALUES ........................................................................................... 7

3.1 Our Vision ...................................................................................................................................... 7

3.2 Our Mission ................................................................................................................................... 7

3.3 Our Values ..................................................................................................................................... 7

4.0 ORGANISATION STRUCTURE ...................................................................................................... 8

5.0 OUR OPERATING ENVIRONMENT ................................................................................................ 9

5.1 External Influencing Factors .......................................................................................................... 9

5.2 Internal Influencing Factors .......................................................................................................... 9

6.0 LINKAGES TO THE 5-YEAR & 20 YEAR NATIONAL DEVELOPMENT PLAN ................................. 10

7.0 STRATEGIC FOCUS ................................................................................................................... 10

7.1 Strategic Theme 1: Value Adding Audit Service .......................................................................... 10

7.2 Strategic Theme 2: International Standards and best practices ................................................. 10

7.3 Strategic Theme 3: Conducive/Ideal work place ........................................................................ 10

8.0 STRATEGIC OBJECTIVES .......................................................................................................... 10

8.1 Strategic Theme 1: Value Adding Audit Service .................................................................... 10

8.1.1 Improve audit service delivery ...................................................................................... 10

8.1.2 Create more visibility for OAG ...................................................................................... 12

8.2 Strategic Theme 2: International standards and best practices ........................................... 16

8.2.1 Reduce Operational Cost .............................................................................................. 16

8.2.2 Improve Audit turnaround time ................................................................................... 16

8.2.3 Fully realize the returns on investment on TeamMate software ................................. 16

8.2.4 Improve quality of audit processes ............................................................................... 16

8.2.5 Move towards full autonomy – OAG to have the functional and organizational

independence required to accomplish its task ............................................................................. 16

8.2.6 Improve OAG participation and contribution in International Forums ........................ 17

8.2.7 Modern and Responsive Corporate Service ................................................................. 17

8.3 Strategic Theme 3: Conducive/Ideal work place .................................................................. 17

8.3.1 Implement open and transparent performance management system (PMS) ............. 17

8.3.2 Provide opportunities for training and professional development .............................. 18


9.0 RISK ANALYSIS ......................................................................................................................... 19

10.0 ACTION PLAN ............................................................................................................................ 21

10.1 Strategic Theme 1: Value Adding Audit Service .................................................................... 21

10.2 Strategic Theme 2: International standards and best practices ....................................... 23

10.3 Strategic Theme 3: Conducive/Ideal work place .................................................................. 25

11.0 MONITORING & EVALUATION .................................................................................................... 27

12.0 FINANCIAL PROJECTION ........................................................................................................... 28


1.0 FOREWORD

For Supreme Audit Institutions such as Office of the Auditor General (OAG) to remain relevant, it should adapt to ever changing expectations of its stakeholders1 and align work processes and outputs to meet these expectations. The OAG Strategic Plan for FY 2018 – FY 2021 sets out the platform for OAG to progress from an external audit service provider in the public sector to an institution which delivers efficient and timely audit services which are value-adding and relevant to its stakeholders. To achieve this, the plan focusses on the following key components which contribute to the successful operation of any organization:

Customer o Awareness - Role of OAG and how it is carried out o Customer feedback considered for continuous improvement o Customer Advisory Services

People o Professional development and training o Performance Management Systems o Work-life balance o Staff benefits

Processes o International Standards on Auditing o International Standards for Supreme Audit Institutions o AFROSAI – E Financial Audit Manual o Corporate Services o Quality Assurance & Research o Follow-up audits o IT Audits

Systems o Upgraded automated Audit Management Software – TeamMate o Use of Audit Command Language (ACL) software for data analytics o Bio-metric system for attendance management

1 Citizens, Parliament and Others


The plan also recognizes that threats, weaknesses and risks which would be encountered during the planning period. The challenge for OAG Management and staffs is to convert these into strengths and opportunities and put into place treatment plans to mitigate risks. The plan also includes action plans and resource allocations which would allow for achievement of the strategic

goals. However, it is essential that the implementation is properly monitored, evaluated and strategies and action

plans are revised when required. More importantly every OAG employee should take ownership of the plan and

live the vision and mission on a daily basis.

Ajay Nand AUDITOR GENERAL


2.0 LEGAL AND PROFESSIONAL FRAMEWORK

2.1 Legal Framework

The Office of the Auditor General (OAG) is established under section 151 of the Constitution of the Republic of Fiji. Section 152 requires that at least once every year the Auditor General must inspect, audit and report to Parliament on the public accounts of the State, the control of public money and public property of the State; and on all transactions with or concerning public money or public property of the State. The Audit Act 1969 further specifies the powers of the Auditor General to audit the whole of government financial statements and the reports of all entities of government. It also empowers the Auditor General to conduct performance audit of government entities to assure Parliament that the entities are achieving their objectives effectively and doing so economically and in compliance with all relevant legislation. The Audit Act 1969 also extends the scope of audits to include those that are specified under the Public Enterprise Act 2005, comprising Government Commercial Companies (GCCs) and Commercial Statutory Authorities (CSAs); and agencies specified as Off-budget State Entities (OBSEs) in the Financial Management Act 2004 and Financial Management (Amendment) Act 2016.

The Environment Management Act 2005 requires the Auditor General to conduct a sustainable development assurance audit on natural resources managed by ministries, departments, authorities or local authorities.

2.2 Professional Framework

The audit practices of the Office of the Auditor General are aligned with the International

Standards on Auditing and International Standard for Supreme Audit Institutions (ISSAI)

issued by International Organization of Supreme Audit Institutions (INTOSAI). These

standards guide the OAG in the conduct of its professional work.

The Office of the Auditor General has adopted the AFROSAI-E Financial Audit through Pacific Association for Supreme Audit Institutions (PASAI) with effect from 1 August 2017 to guide staff in field audit work. The audit manual will be constantly reviewed to take into account any changes that may impact developments in auditing practices.


3.0 OUR VISION, MISSION AND VALUES

3.1 Our Vision


3.2 Our Mission

To provide world class, independent and objective value adding services To provide a working environment that allows our people to excel

3.3 Our Values

Impartiality, objectivity and fairness in our reports Due diligence and 3Es in all facets of our auditing which encompasses reducing costs of

inputs (economy), the right effort allocation (efficiency) and to achieve the goals (effectiveness).

Continuously align all processes and procedures to international best practices. Utmost of honesty and integrity displayed by our people.


4.0 ORGANISATION STRUCTURE


5.0 OUR OPERATING ENVIRONMENT

Critical to delivering the OAG’s purpose is anticipating and responding to changes occurring in an evolving operating environment. This section sets out the nature of the operating environment that can affect the OAG’s operations and influence the focus of audits and related services. The OAG is working towards improving its service delivery and organizational capacity with its available resources. Within the next three years, we expect the public sector to continue to experience structural reforms and utilize technology to improve service delivery and communication across all sectors, including with the public at large. We also anticipate that focus will be on areas of infrastructure and transportation, renewable energy, agriculture, information and communication technology (ICT), health and education. Social, economic, and environmental changes throughout the world continue to reshape Fiji’s environment and, influence our response as an Office in dealing with these changes.

5.1 External Influencing Factors

The OAG need to remain attentive to the external environmental factors that the Government faces, including the state of the national economy, and the social and political environment. The composition of the Parliament, and the direction and priorities that it sets, shapes and defines the environment in which the public sector functions.

Economic constraints, more challenges for service delivery and the ongoing implementation of the Government’s agenda in the public sector requires constant change. These changes in the government machinery have an impact on the establishing of new entities and the restructuring of current ones. New policies also result in the restructure of services. These factors have a direct impact on the delivery of the Auditor-General’s mandate.

5.2 Internal Influencing Factors

To maintain its credibility the OAG must meet or exceed those standards of performance that it measures

other public sector entities against. Changes occurring in the public sector mean that OAG must increase

the skills, knowledge and experience of its staff. OAG’s focus will be on the training and development of

staff, and continuously improving the quality of audit services. In order to work efficiently and effectively,

in line with ISSAI’s and best practice - the structure, system, methods and most importantly the

environment in OAG must be conducive for its greatest assets, its staff to exceed expectations.

Keeping abreast with latest technology advancements, while also safeguarding data remains an ongoing

challenge for the OAG. We must also be vigilant in keeping ourselves up to date with global and national

changes in the auditing profession. More active engagements and raising awareness of our role with all

our stakeholders, will also be a key focus area. Effectively leveraging these relationships will support our

mission to provide quality audit services.

These internal and external environmental factors influence the continuing improvement of the OAG‘s

business processes, and the development of its Annual Work Plan. This strategic plan is designed to

reflect the OAG’s action plan and key performance indicators for the 2018-2021 period. It will also inform


the Parliament, government entities and the public of the planned audit coverage for the public sector

over this period.

6.0 LINKAGES TO THE 5-YEAR & 20 YEAR NATIONAL DEVELOPMENT PLAN

Following Government launching its 20 Year National Development Plan (NDP) and a 5 Year Development Plan in November 2017 with a vision of “Transforming Fiji”, the Office is also aligning its strategic directions and initiatives along with Government’s plan. Government’s Development Plan specifically outlined the role of the Office to evaluate whether there was efficient, effective and accountable delivery of agency outputs. This role are part of the delivery of audit services as provided in Section 10.0.

7.0 STRATEGIC FOCUS

7.1 Strategic Theme 1: Value Adding Audit Service

To deliver value adding audit service to our customers by focusing on addressing customer concerns, better understanding our customers, providing expert advice, creating awareness of our roles to our customers and delivering high quality and timely audit reports. This theme frames our commitment to provide world class, independent and objective value adding audit services.

7.2 Strategic Theme 2: International Standards and best practices

To align our systems and processes to international standards & best practices that will allow OAG to

excel in public sector auditing.

Our professional framework is aimed at enhancing audit quality and timeliness.

7.3 Strategic Theme 3: Conducive/Ideal work place

To create an environment in which our people are not only remunerated in line with the market but provided opportunities for training and professional development that will allow them to excel. The planned initiatives will ensure that our workforce are highly skilled, motivated and healthy.

8.0 STRATEGIC OBJECTIVES


8.1.1 Improve audit service delivery

Strategic objectives in audit service delivery is aimed to begin with improving turnaround time for audit reports. This can begin with early submission of financial accounts for audit. Delivering value added services may be crucial as this will enable public sector to implement audit recommendations and improve reporting standards.


The findings and recommendations resulting from the audit work must be promptly reported to the clients, discussed and accepted recommendations need to be followed up to ascertain whether appropriate action has been taken. The recommendation provided by OAG would be an effective tool for process improvements. Additionally, the risks resulting from inaction are recognised and accepted. As a result of identifying and sharing best practices, building strategic relationship with clients with effective and transparent regulation of public sector audit will be an added advantage. Regular follow up of audit recommendations and reporting will ensure that recommendations are tracked to implementation. OAG believes that value can only be added through our audits when recommendations made in audit reports are implemented on a timely manner. Reporting on follow-up audits will allow Parliament to understand the clients which are improving their systems, processes and controls and those which are taking little or no action. This approach will also eliminate repeat audit findings. We will provide training and development opportunities as the key element of achieving and maintaining professional standards with the implementation of Audit training Manuals – AFROSAI E FAM. Management will be responsible for ensuring that staff receive appropriate training and practical experience necessary for them to carry out high level overview of the financial statements effectively. Professional development and training will be a continuous process and records of training attended and achievements will be maintained. Certification of training achievements will be obtained where appropriate. The training will be regularly co-ordinated. Supporting capacity building will up-skill staff in the areas of priority, which will enhance staffs knowledge and result in timely completion of audits and high quality outputs. The Office will also harness technology to improve the audit reporting practice. The automated Audit Management Software (TeamMate) used by OAG, allows for efficient management of audits. Current advances in technology will allow auditors to carry out their audits using data analytics, electronic systems that is efficient and value adding in terms of presenting audit findings to clients. The newly established IT audit which will provide IT audit services with a view to provide quality outputs to its customers using (Audit Command Language) ACL software. OAG will also be placing a lot of emphasis on quality assurance. A team has been established whose sole task is to ensure that the reports produced by the Office is of high quality and standard. OAG is now looking to provide value adding audit services which means that OAG will provide advice to its customers on areas such as controls , preparation of financial statements using international accounting standards and capacity building of accounting personnel, to name a few.

https://www.google.com.au/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiEtPfJ_-bVAhVHyrwKHZasArgQjRwIBw&url=https://fijisun.com.fj/2017/07/13/page/2/&psig=AFQjCNGyhQKvR8QAHJSZdLm8T4Nz584H9Q&ust=1503359169420621


8.1.2 Create more visibility for OAG

The strategic objective is to create more visibility

on ‘who we are’, ‘what we do’, ‘what roles do we

play’ and ‘how do we do it’. In the process to

create awareness, the OAG aims to differentiate

and emphasize on clarifying the following:

Who We Are? OAG continues to exist under section 151(1) of the constitution of the Republic of Fiji.

What We Do?

OAG provide independent assurance to Parliament and the public at large that public sector entities have used public funds for the purposes they have been appropriated and in accordance with legislations, financial management rules and regulations.


In addition, specific functions of the Auditor- General are defined in the Financial Management Act 2004 and Audit Amendment Act (2005). The Financial Management Act 2004 requires the Auditor General to audit the financial statements and annual appropriation statement of whole of government and annual financial

statement of each government entity including all budget and non-budget entities.

The Audit Amendment Act 2005 empowers the Auditor General to conduct performance audits to determine the efficiency and effectiveness of government programmes, all or part of a government entity or issues that affect the whole public sector. The Environment Management Act 2005 requires the Auditor General to conduct and report environmental audits of government ministries, department, statutory authorities and local authorities responsible for the management of any natural resources.

What roles do OAG play?

Section 152 requires that at least once every year the Auditor General must inspect, audit and report to Parliament on the public accounts of the State, the control of public money and public property of the State; and on all transactions with or concerning public money or public property of the State. Other visibility measures are to achieve high reporting standard, develop an interactive and user-friendly website, expanding our services to other locations in the country and advocating on our role and services through a structured awareness program. To achieve full organizational and functional independence required by the Constitution, OAG plans to move towards full autonomy by 2021. This means OAG will develop and implement the required policies and procedures, obtain the required systems for accounting and related functions, acquire and manage office accommodation and purchase and dispose motor vehicles in accordance with the requirements of OAG policies. Therefore OAG anticipate more budgetary funding to meet the operational costs which are currently borne by Ministry of Economy. In addition to the above, the Audit Act 1969 which was last amended in 2006 will be revised and aligned to international best practices.


Gather evidence and develop work

papers

Audit work papers

File

Storage

Frequent review of evidence gathered

for consistency with audit objectives

Present preliminary audit findings at

fieldwork exit meeting

Begin drafting audit report

Provide information

to OAG

Constant communication between auditor

and auditee

Provide additional

information if necessary

NO

YES

Finalize report

Draft report of audit findings and recommendations

Revise Report?

Quality review of work papers and draft report by

audit supervisor

Computer Storage

Provide additional


Review comments from Auditee

Submit draft report to auditee and set up formal exit conference

Planning Work

Review and comment on draft

report exit meeting

Field Work Audit Report

Develop and submit written

response within 14 days

Issue Final Report

Revise and Finalize report

Issue final Audit Report

Pre Audit Meeting

Meet with OAG to discuss audit

Provide information

to OAG

Identify audit objectives, issues

and scope

Develop Audit Program

Begin Field Work

Obtaining an understanding of auditee mission

activities and organization

Receive Audit

Report

Auditee

Receive Auditor General’s Report

Parliament

(May request for briefing from

Auditor General or

representative)

Standing Committee for Public Accounts

OAG Auditee OAG Auditee Auditee OAG OAG

Draft Financial

Statements

How We Do Financial Audit?

Quality Control checklist

Quality Control checklist

Quality Control

checklist


Gather evidence and develop work

papers

Audit work papers

File

Storage

Frequent review of evidence gathered

for consistency with audit objectives

Begin drafting audit report

Provide information

to OAG

Constant communication

between auditor and auditee

NO

YES Finalize report

Draft report of audit findings and

recommendations

Revise Report?

Quality review of work papers and draft report by

audit supervisor

Computer Storage

Provide additional


Review comments from Auditee

Submit draft report to auditee and set up formal exit conference

Develop and submit written

response within 14 days

Exit Meeting with OAG to discuss

report

Revise and Finalize report

Issue final Audit

Report Pre Audit Meeting

Meet with OAG to begin

preliminary investigation

Provide information

to OAG

Identify audit objectives, scope

and Lines of Enquiry (LOE)

Entry meeting

with the auditee

staff and discuss

the Client Service

Plan (CSP)

Obtaining an understanding

of auditee mission

activities and organization

Receive Audit Report

Auditee

Receive Auditor

General’s Report

Parliament

(May request for briefing

from Auditor General)

Standing Committee for Public Accounts

OAG Auditee OAG Auditee Auditee OAG OAG

Selection of Topic

Scoping paper

Topics approved by Auditor

General

Begin preliminary surveys

Field Work Audit Report Issue Final Report Preliminary Survey Scoping

Audit Plan

Develop audit criteria and Audit

Design Matrix (ADM)

Begin Field Work

How We Do Performance Audit?


8.2 Strategic Theme 2: International standards and best practices

Our relevance and strength as a Supreme Audit Institution, will depend on how well we anticipate, prepare for, and respond to the changes around us. In the next three years, we intend to improve our auditing methodology to international standards and adopt best practices. This will be achieved through the following strategic objectives.

8.2.1 Reduce Operational Cost

Reducing the operational cost of the OAG is an effective principle for increasing operation efficiency. This

also provides an additional benefit to the Office by eliminating waste and maximizing funds on priority

areas identified by Executive Management.

Some of the operational costs that can be reduced include telephone charges, overseas/local travel

costs, motor vehicle running expenses, electricity charges, printing and stationery expenses.

8.2.2 Improve Audit turnaround time

Our focus on strengthening the public sector will see us do our core business more effectively and

efficiently. OAG will continuously improve audit turnaround time so that value through audits can be

added to public sector entities in the least possible time.

8.2.3 Fully realize the returns on investment on TeamMate software

In 2013, OAG made significant investment in an automated audit management system. The software has five modules with one module utilized to date. The strategic intent is to use all modules and generate returns on the investment through less time spent by staffs in audits and achieving a paperless environment.

8.2.4 Improve quality of audit processes

OAG can improve the quality of audit processes by ensuring that sufficient resources are allocated to audits and work of subordinates are regularly supervised to ensure that the OAG audit methodologies are consistently applied.

8.2.5 Move towards full autonomy – OAG to have the functional and organizational

independence required to accomplish its task

By 2021, OAG plan to achieve full functional and organizational independence required by the

Constitution.


In addition to the above, the Audit Act 1969 will be revised and aligned to international best practises and

also being accommodating to facilitate the development of required policies and procedures to achieve

functional and organizational independence.

Therefore OAG anticipates the support of Government for provision of more budgetary funding to achieve this initiative.

8.2.6 Improve OAG participation and contribution in International Forums

This objective will strengthen the relationship between OAG and the International stakeholders and also create awareness on the role of the Fiji OAG. OAG will be hosting and participating in both the Working Group on IT Audits meeting in 2019 and the Commonwealth Auditor General’s Conference in 2020. The Office also intends to fully participate in other INTOSAI working group activities to support the broader development and understanding of auditing practices.

8.2.7 Modern and Responsive Corporate Service

With the changing dynamics, the Office would continue to promote a modern and responsive corporate service with a view to enhance practices in business management that add value to the audit products and services.


8.3.1 Implement open and transparent performance management system (PMS)

The OAG has a transparent and open form of communication which addresses the staff need for proper flow of communication and message. It is a decentralised planning environment where opinion and contributions are considered.


Moving forward, the staff job assessment and satisfaction level will be rated through the performance management system. Through open and transparent performance management system, OAG will ensure the designed assessment process will monitor analyse, evaluate, and will therefore report progress towards achieving the set objectives. The OAG will improve staff engagement by empowering and equipping staff with the relevant skills, tools and knowledge to carry out tasks e.g. project audits. Hence the implementation of fair performance management system and maintaining transparent and honest communication with staffs would be measured as employer of first choice. It may further attract interest by external candidates. This strategic objective is aimed at performance measurement through performance planning, ongoing, effective communication, performance appraisal, diagnosis & coaching. Hence, the fundamental goal of performance management is to promote and improve effectiveness. It is a continuous process where Head of departments and staff work together to plan, monitor and review work objectives or goals and its overall contribution to the OAG. Some of the benefits of implementing open and transparent performance management system are improved productivity, low staff turnover and happy employees. Improve Work-Life balance

Work–life balance refers to balance between work and personal responsibilities. Work-life balance can promote creativity, out-of-the-box thinking, employee loyalty, high level of productivity and reduction in the number of staff going on sick leave as a result of being overworked. At OAG, work life balanced can be achieved by learning to prioritize, setting personal rules, take regular breaks and time management.

OAG plans to ensure that team building policy

encourages and promotes the work life balance

which will improve staff working relationship and

leading lead to healthy and physically fit workforce.

8.3.2 Provide opportunities for training and professional development

To ensure that there is continuous improvement in the delivery of quality and timely audit products and services, knowledge and skills development is vital to the health of OAG.


The benefits of training and professional development for OAG staff are:

Increased job satisfaction and morale among employees; Increased employee motivation; Increased efficiencies in processes; Increased capacity to adopt new technologies and methodology; Increased innovation in strategies and products; Reduced employee turnover; and Risk Management like harassment, diversity training

9.0 RISK ANALYSIS

The OAG is also faced with significant risk and should also take respective steps to manage these risks.

Effective management of risks is important in its decision making to successfully achieve its vision

through the OAG’s mission.

The OAG’s strategic risks listed in the table below, are also categorised to its three strategic themes:

Strategic Themes Risks Likelihood of

occurrence* Risk Level

Mitigating Measures

1. Value Adding Audit Services

OAG recommendations and findings do not add value entities performance and accountability

Possible Medium Fully trained staff

Quality control & assurance processes

Significant reduction in non-payroll OAG budget

Possible Medium Planned reduction in operating costs

Backlogs of audits Possible Medium Group targets set for updating of audits

Unprofessional or unethical behaviour of staff

Possible Medium Promotion of OAG Values and Code of Ethics

OAG legislation not aligned to international best practises

Possible Medium Revision of current Audit Act planned

Operational risk: Slow turnaround time of audits

Possible

Medium

Implementation of Performance Management System

Business Continuity Risk Likely High Development and implementation of Business Continuity Plans

Data recovery risk Likely High Development and implementation of Data Recovery Plans

Information security risk: Loss of confidential client information

Possible Medium Staff to be reminded periodically to comply with Code of Ethics

Develop and implement IT and physical security plans.

2. International Standards and Best Practice

OAG structures, systems policies and procedures are not aligned to international best practises

Possible Medium Implement Twinning Program/self-assessment action plans on timely basis.


Strategic Themes Risks Likelihood of occurrence*

Risk Level

Mitigating Measures

3. Conducive/ Ideal Workplace

OHS issues at clients’ premises Possible Medium Officers are well versed with the OHS policies and procedures

Loss of key staffs Possible Medium Implementation of succession planning practises

The OAG manages its risks by using the qualitative analysis matrix above. The OAG is working towards

developing a Risk Management Policy to:

document the process of identifying, analysing and evaluating risks, including office risk response strategies;

determine risk management responsibilities; establish formal risk monitoring and review processes, to: ensure identified controls and mitigation strategies remain effective and efficient; incorporate successes and failures from lessons learned from risk events into risk response

strategies; take into account organisational changes and the impact on existing or emerging risks, including

their controls and treatments; review and update the risk management policy framework and risk register annually.


10.0 ACTION PLAN


Strategic Result: Quality & timely audit services delivered

Strategic Objectives Strategic Initiatives Strategic Indicators Responsibility FY18/19 FY19/20 FY20/21

Improve audit service delivery

All mandated audits are fully updated

All accounts submitted are audited - Backlogged account - Current Mandated Accounts

Percentage of audit opinion issued within statutory deadline

Percentage of audit memorandum issued to agencies within established timeframe

Average audited clients ratings

(Score 1 – 4)

Approved Performance, Compliance Audit topics & Special Audits are audited

Directors

80% 80%

80%

80%

Rating > 3

80%

90% 90%

85%

85%

Rating > 3

85%

100% 100%

90%

90%

Rating > 3

95%

Value-adding external audit services provided to customers

Percentage of client that acknowledge the value added OAG services

Directors 60% 70% 80%

Implementation of OAG audit recommendations

Percentage of audit recommendation agreed to by clients

Directors

80% 85% 90%



Maximize on funding provided by government

Percentage of budget utilized MCS/Executive Management

95% 95% 95%

Improve visibility for OAG

Create awareness of the roles and responsibilities of OAG to Citizens Improve access to audit services Engage more with customers

Opening of Western Office; Media release; Increased number of hits on website; and Outreach and Citizen engagement program

MCS

Corporate

MCS/Executive Management

Operational by Dec 18

Increased by 10% compared to last FY

80% of action plan implemented


85% of

action plan implemented


90% of action plan

implemented


10.2 Strategic Theme 2: International standards and best practices

Strategic Result: Efficient and effective systems and processes

Strategic Objectives Strategic Initiatives

Strategic Indicators Responsibility FY18/19 FY19/20 FY20/21

Reduce Operational Costs Move towards paperless environment and promote Green initiative

Reduction in purchase of papers and toners; Efficient server system; and Development of EDMS.

Manager Corporate Services (MCS)/ Executive Management

Cost reduced by 10%

80% of action planned implemented

Cost reduced by 10%

80% of action planned

implemented

Cost reduced by 10%


Improve audit turnaround time

Complete audits as per Annual Audit Work Plan

Complete 3 days before agreed timeline Improved rating in CSQ ( Score of 1 to 4 )

Directors < 3 days

Rating > 3

< 3 days

Rating > 3

< 3 days

Rating > 3

Fully realize the returns on investment on TeamMate software

Full benefits of Teammate derived

i) Use of all modules ii) Reduction in Audit hours

Directors

90% of action planned

implemented


Improve quality of audit and corporate processes

Implementation and full functioning of Quality Assurance Unit

Percentage of QA reviews of financial statements finding no material departures from professional and regulatory standards

Directors 95%

95%

95%




Percentage of external/peer review and to determine whether there is no material departures from professional and regulatory standards

70% 80%

90%

Move towards full autonomy-OAG to have the functional and organisational independence required to accomplish its task

Review of the Audit Act Procure independent Financial Management and IT Systems

Amended Audit Act Separate bank account/payroll software system

MCS/ Executive Management MCS/ Executive Management


Software acquired and implemented by December 2018


100% full implementation

Improve OAG participation and contribution in international forums

To host and participate in International Meetings & Conferences

Preparation and host WGIT Preparation and host Commonwealth AG Meeting (CAG) Attendance and Participation in INTOSAI working group activities

Executive Management /MCS AG/DAG/Directors

Hosting of WGITA meeting in April/May 2019 Meeting action plan developed and 80% of action plan implemented

80% of WG meeting participation

CAG Meeting action plan fully implemented 85% of WG meetings participation

90% of meetings participation

Modern & responsive Corporate Service

Modern Office processes

Development and Implementation of HR Framework/IT Infrastructure

MCS


85% of action

plan implemented

95% of action plan

implemented




Revised Office policies and instructions Positive staff feedback on corporate support services Provide a safe and healthy workplace environment


Strategic Result: i) Skilled, motivated, productive and healthy workforce

ii) Recognized as an employer of first choice


Implement open and transparent performance management system

Effective workforce management and succession planning Building effective staff capabilities

Effective & efficient recruitment Achieving of OAG Training Plan

MCS MCS/Executive Management

80% of action

plan implemented

80% of action

plan implemented

80% of action

plan implemented



Improve work-life balance

Proactively develop a positive work culture Supporting peer capacity building

Improved rating on Medical check on a 6 monthly basis Implementation of OAG Team Building Policy

Corporate/Directors

80% of staff have improved

rating

90% implementation

of Team Building Policy


rating

95% implementation



rating

100% implementation


Provide opportunities for training and professional development

Comprehensive Training Plan

Implementation of OAG Competency Matrix for each occupational level

Corporate/Directors 2 Trainings per staff

2 Training per staff

2 Training per staff


11.0 MONITORING & EVALUATION OAG Corporate Services team would responsible for monitoring and evaluation of the implementation of the Strategic Plan and reporting to Management Committee initially on a quarterly basis and on a six-monthly basis from 2018/2019.


12.0 FINANCIAL PROJECTION

The Office with its strategic objective to reduce top operational costs by 10% every year but utilise those

savings towards more capacity building/training program for our Staff and have strategic initiative to

maximise funding by 95% provided by Government over these financial years.

$547,559

$442,300 $467,800

$494,900 $544,390

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2016/2017 2017/2018 2018/2019 2019/2020 2020/2021

Re

ven

ue

Financial Year

Revenue Actuals and Projections from 2016-2021


The total Operating Expenses is forecasted to increase in financial year 2017-2018 and projected to

increase in financial year 2018-2019.

The notable factors that will drive increase in operating expenses are staffs salaries and the plans to

open a new OAG office in Western Division as part of its awareness and visibility on its role and mandate.

The Office will also host international events that include the INTOSAI Working Group on IT Audits and

Commonwealth Auditors General Conference in 2019 and 2020, respectively. In addition, OAG will also

meet the costs of office accommodation, acquisition of accounting and HR software and licence fees,

and vehicle replacement from its budget appropriated by Parliament. These costs are currently met by

Ministry of Economy.

$3,819,800

$4,612,843 $5,074,127

$5,581,540 $5,832,709

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

2016/2017 2017/2018 2018/2019 2019/2020 2020/2021

Op

era

tin

g Ex

pe

nd

itu

re

Financial Year

Operating Expenditure Actuals and Projections from 2016-2021

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