An analysis of the outcomes of the audit of predetermined objectives in the North-West local government

Abstract

This study performed an analysis of the outcomes of the audit of predetermined objectives for municipalities in the North-West province of South Africa. A qualitative research approach with an inductive approach was used. Data collected from twenty-two municipalities in the North-West province over a period of five years was thematically analyzed. Three themes were identified for this study, and the results revealed that, at an overall level, the performance information reported by the municipalities was neither useful nor reliable and, at times, had material instances of non-compliance. Some findings were prevalent for all three themes identified, which were raised by over half of the municipalities, which is concerning, and all pointed to not having a fully functioning performance management system as the main root cause. The results also revealed common repeat findings in each of the three themes, which indicate that there were insufficient action plans implemented to address the findings raised in the prior year(s). The study recommended that management and those charged with governance should put appropriate measures in place and strengthen their internal control environment to ensure that election promises are appropriately accounted for and repeat findings such as those indicated above do not reoccur in the future. Furthermore, management should work closely with the Auditor-General of South Africa (AGSA), internal audit, and other relevant stakeholders, such as the South African Local Government Association, to ensure that repeat findings do not reoccur in the future by developing appropriate audit action plans that will be continuously monitored and reviewed.