1. The development and use of KNI’s in South Africa and the role of the Auditor-General in auditing KNI’s INTOSAI WG ON KNI - 6 TH MEETING 22 - 24 APRIL 2013 Presented by Tini Laubscher

2. 2 The AGSA mission The Auditor-General of South Africa has a constitutional mandate and, as the Supreme Audit Institution (SAI) of South Africa, it exists to strengthen our country’s democracy by enabling oversight, accountability and governance in the public sector through auditing, thereby building public confidence.

3. 3 Topics for discussion Development and use of KNI’s in SA Overview of developments in SA: 2001 to 2013 The way forward Role of the Auditor-General in auditing KNI’s Audit mandate and strategy Audit results to date

4. 4 South African government context

5. 5 Evolution of KNI’s in South Africa 2000 – 2008: Development of KNI’s closely linked to planning and budgeting A bottom-up approach 2009 – 2013: Cabinet approved 12 national outcomes to guide overall development of KNI’s A top-down approach

6. 6 Development and use of KNI’s in SA 1. Development of standard budget performance programmes for concurrent functions like Education and Health 2. Treasury introduced steering committees for all national and provincial departments to agree on performance indicators for budget programmes 3. The indicator development process was challenging and still is due to lack of adequate performance information gathering systems 4. However departments agree on a core set of indicators and strive to improve the data used for reporting purposes 2000 - 2008

7. OUTCOMES OUTPUTS INPUTS ACTIVITIES Previous focus New focus What we use to do the work What we do What we produce or deliver What we wish to achieve 2009: SA Government changed to an outcomes approach

8. 8 SA Government’s 12 National Outcomes 1.Quality basic education* 2.A long and healthy life for all South Africans* 3.All people in South Africa are and feel safe 4.Decent employment through inclusive economic growth 5.Skilled and capable workforce to support an inclusive growth path* 6.An efficient, competitive and responsive economic infrastructure network 7.Vibrant, equitable, sustainable rural communities contributing towards food security for all* 8.Sustainable human settlements and improved quality of household life* 9.Responsive, accountable, effective and efficient Local Government system* 10.Protect and enhance our environmental assets and natural resources* 11.Create a better South Africa, a better Africa and a better world 12.An efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship * Concurrent functions, outcomes coordinated by national and provincial departments and ministers

9. 9 Example: Health outcome indicators

10. 10 Development and use of KNI’s in SA – way forward National development plan (until 2030) Medium strategic framework (2019/2024/2029) Detail (key) indicators and plans

11. 11 Role of the Auditor-General in auditing KNI’s

12. 12 Audits performed by AGSA Annual mandatory audits Audit of financial statements Audit of performance reports (Reports on key indicators) Audit of compliance with laws and regulations Discretionary audits Performance audits

13. An audit report must reflect an opinion or conclusion relating to the performance of the auditee against predetermined objectives Sections 20(2)(c) and 28(1)(c) of the Public Audit Act (PAA) Applicable to all spheres of government Legislative requirement – audit of performance reports

14. All relevant laws and regulations Framework for the managing of programme performance information Framework for strategic and annual performance plans (issued by the National Treasury) Framework for the managing of programme performance information Framework for strategic and annual performance plans (issued by the National Treasury) Circulars and guidance issued by the National Treasury regarding the planning, management, monitoring and reporting of performance information The following represents the performance management and reporting framework against which the performance information should be managed and reported. Auditors use principles and requirements from framework as a basis for the audit. Performance management and reporting framework Refer to annual AG Directive

15. Main criteria Sub-criteriaSub-criteria Existence Timeliness Presentation Measurability Relevance Consistency Validity Accuracy Completeness Compliance with regulatory requirements UsefulnessUsefulness ReliabilityReliability Audit criteria

16. 16 Auditing the planning, budgeting and reporting cycle

17. 17 PFMA 2011-12 Findings on predetermined objectives Auditees with PDO findings Auditees with no PDO findings

18. 18 For further reference 12 National outcomes and national development plan: http://www.thepresidency- dpme.gov.za/dpmewebsite/Page.aspx?Id=171 http://www.poa.gov.za/Pages/HomePage.aspx Performance management frameworks: http://www.treasury.gov.za/publications/guidelines/default.aspx Auditor-General audit reports: http://www.agsa.co.za/audit-reports/National.aspx http://www.agsa.co.za/audit-reports/Provincial.aspx

19. THANK YOU