performance info in the public sector

Question 1

public sector organizations

Answer 1

funded wholly or partly by the government (means tax payers)

includes hospitals, schools, unis, police, transport, etc

Question 2

who want this info

Answer 2

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

Question 3

If a public sector organisation is not performing well

Answer 3

funding may be cut and its management may be replaced; in extreme situations the organisation may even be shut down.

Question 4

measuring performance info

Answer 4

target KPIs will be established as a performance objective and the organisation’s performance against the target KPIs will be measured.

Question 5

effective performance measures should be

Answer 5

measurable: clearly defined and unambigous.
relevant: addresses a valid concern

Question 6

issues related to measurability

Answer 6

sometimes difficult if performance objective is subjective in nature. for eg. customer satisfaction
-also the data to generate accurate performance info

Question 7

difference between audit of performance info and performance auditing

Answer 7

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

Question 8

is performance info req by law?

Answer 8

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

Question 9

how will audit be like

Answer 9

-knowledge of the PMs
-evaluate systems and controls
-understand the rationale behind measures being reported
-consider relevance and suitabiliyu

Question 10

audit procedures for performance info audit

Answer 10

-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

Question 11

reporting on performance information

Answer 11

-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