performance info in the public sector Flashcards
public sector organizations
funded wholly or partly by the government (means tax payers)
includes hospitals, schools, unis, police, transport, etc
who want this info
govt and other stakeholders
organisations should aim to demonstrate that public monies allocated to them are being used effectively,
targets being met
appt decisions being made on long term planning
If a public sector organisation is not performing well
funding may be cut and its management may be replaced; in extreme situations the organisation may even be shut down.
measuring performance info
target KPIs will be established as a performance objective and the organisation’s performance against the target KPIs will be measured.
effective performance measures should be
measurable: clearly defined and unambigous.
relevant: addresses a valid concern
issues related to measurability
sometimes difficult if performance objective is subjective in nature. for eg. customer satisfaction
-also the data to generate accurate performance info
difference between audit of performance info and performance auditing
1- Audit of performance information is concerned with the audit of reported performance information against predetermined objectives.
we have to report on credibility, usefulness and accuracy of reported performance
2- Performance auditing is related to the evaluation of how the public sector body is utilising resources and often focuses on determining how the public sector body is achieving 3 Es. AKA VFM auditing
is performance info req by law?
in some jurisdictions, its required by law for auditors to report on Performance info in public sector
if not required by law, then auditor may be required to do a separate engagement
how will audit be like
-knowledge of the PMs
-evaluate systems and controls
-understand the rationale behind measures being reported
-consider relevance and suitabiliyu
audit procedures for performance info audit
-Tests of controls on the systems used to generate performance information
-Performing analytical review to evaluate trends and gauge the consistency of the information
-Discussion with management and other relevant individuals, for example those responsible for the reporting process
-Review of minutes of meetings where performance information has been discussed
-Confirmation of performance information to source documentation; this may be performed on a sample basis
-Recalculation of quantitative performance information measures
reporting on performance information
-no specific format or wording by international regulations
-there may be country specific requirements
-Generally, the auditor will provide a conclusion on whether the public sector entity has achieved its objectives as shown by the reported performance information and concludes on the information itself.
-may be a reasonable assurance conclusion
-type of conclusion given will be agreed with the organisation
-auditor’s conclusion may be reported in integrated report
*when auditing a public entity, auditor has to audit two heads
audit of FS: normal audit
audit of performance information: means to audit and verify the claims of management in relation to its performance against KPIs
*difference between performance audit and audit of performance info
performance audit: expert is hired to audit performance of company. they audit and report performance against agreed KPIs, no mgmnt claims
performance info audit:
management makes claims of performance
procedures to verify claims and perform procedures
*characteristics of a good KPI
-useful/ relevant
-measurable: objective, quantifiable
-existence: system in existence to measure it
