Assessing the impact of audit committee effectiveness on service delivery: a case of the city of Matlosana local municipality

Abstract

This research focuses on dissecting the disconnect between the technical efficiency of the audit committee and the ongoing failures in service delivery of the City of Matlosana local municipality. Encapsulated in an audit committee within the local municipality, the internal control framework structures and responsibilities of the audit committee would drive an expectation of improved accountability; however, the municipality is in a downward spiral concerning the quality of service delivery provided and the municipality's audit outcomes. The principal research question is, "What is the relationship between the effectiveness of the audit committee and the service delivery?" To answer the research question, a qualitative document analysis technique within an interpretivist framework was used to analyse a series of documents. These documents included annual reports, reports of the Auditor General, charters of the audit committee, service delivery performance reports, and other documents covering the financial years 2022/2023 and 2023/2024. The study identifies an anomaly in governance logic in that while the municipality had an audit committee that exhibited the governance attributes of independence, the appropriate attributes of membership, and the diligence of a working committee, the municipality had a worsening profile of audit outcomes, dropping from unqualified to qualified, had a recurrence of a Material Irregularity pertaining to a service delivery project; and failed to achieve the Basic Service Delivery & Infrastructure service delivery targets to 41%. The study asserts that the effectiveness of audit committees, inasmuch as it may be argued to be a necessary condition, is not a sufficient condition for the improvement of service delivery.Within the broader municipal governance system, the potential of the audit committee is neutralised because of the lack of alignment of oversight and service delivery and the systemic non-implementation of the committee recommendations by the Executive and Council. Therefore, the study recommends: the appointment of the audit committee and institutionalisation of an annual service delivery-focused work plan, the audit committee having its powers formally increased to include the ability to institute discharge of consequences, and the commencement of appropriate training to target the imbalances. These recommendations will enable the lived experiences of structural governance to be positive and service delivery to be improved.