The audit of predetermined objectives in the North West Province Department of Health

Abstract

Auditing in the government sector has been amplified to effectively include verification of information. Auditing is no longer limited to evaluation of financial operations but now includes the Auditing of Predetermined Objectives (AoPO) with a key focus on "value for money." Audits currently ensure that activities and programmes are carried out with an effective, efficient economic budget that is of a good standard . Auditing promotes good governance and sound financial management of limited public resources. Even though the NWDoH complies with submissions of the Annual Performance Plans (APP) and Annual Reports as prescribed by the PFMA, the department failed to obtain a clean audit opinion under the AoPO. The current study explores the failure of the NWDoH in achieving a clean audit opinion under the AoPO. In order to explore the problem qualitative and quantitative methods were used. Data from 50 officials was analysed and interpreted through graphs and tables using Statistical Package for Social Sciences (SPSS version 23). It emerged in the current study that some officials were unfamiliar with SMART targets as well as the AoPO and its importance. Other determining factors were the deployment of acting officials within senior positions, as well as unprecedented political influence within the department. Differences between APP and AR were not explained and this led to non-achievement of set objectives. Lastly, officials within the finance section of the department deployed to the first phase (defining, collection , reporting and utilizing of the performance information) were found to be young and inexperienced . The study therefore recommends effective measures be put in place so that the NWDH complies with PFMA.