Service delivery to citizens not only means the provision of basic amenities, but also talks to the dignity of a nation. Availability of basic services improves the overall quality of life that can be afforded to citizens. It also talks to the millennium development goals which our country as a global citizen has committed to.
Government service delivery continues to feature prominently in the media and in our public sphere in general – marked by heated public debate or scenes of organised protest by disgruntled citizens or ratepayers demanding better delivery of basic services such as water, housing, sanitation or road maintenance at community-based forums.
In many instances, media outlets and public analysts reporting and commenting on service delivery, or lack thereof, refer to general reports generated by my office which provide in-depth analyses of the audit outcomes of all government spheres.
Most of these developments, including the AGSA reports are consistent about the urgent need for credible, accurate and timely information of the status of service delivery expectations.
Departments, municipalities and public entities are required by law to report on how they have performed against planned service delivery targets
All government departments, municipalities and public entities that receive funds for a public purpose are required by law to report on their actual performance against predetermined objectives. I refer to these reports as 'service delivery reports', while the National Treasury refers to them as annual performance reports. Departments, municipalities and public entities have to submit these reports annually for auditing, together with their annual financial statements.
Auditing of service delivery information by the AGSA My office has long pointed out the direct relationship between sound financial management and good service delivery. What my office refers to as audit reports attesting to 'clean administration' goes beyond the balancing of books, revenue collection for services rendered, accounting for assets, or prevention of unauthorised, irregular or fruitless and wasteful expenditure. Admittedly, not looking after the finances does leave less financial resources available for service delivery, but keeping tight financial controls does not by itself guarantee the channeling of funds to areas responsive to the service delivery needs of communities. Proper management of service delivery information takes the process a step further and can be utilised to provide regular assurance to all stakeholders including citizens that indeed the funds are utilised for the predetermined objectives.
My office has since the 2005-06 financial year, in consultation with the National Treasury, gradually phased in audits of service delivery information published by departments, municipalities and the entities they control. We audit and issue to management and those charged with governance at departments and municipalities findings on their published service delivery information. These findings are predominantly pointing to a need for greater improvements, although some auditees, of various sizes and institutional capacity, are getting it right.
Our audits of all three spheres of government continue to reveal that service delivery reports can be more valuable if the following areas can be improved:
We have been constantly advising accounting officers, accounting authorities, audit committees, oversight bodies, local, provincial and national role players and, indeed, responsible national and provincial ministers that service delivery reports need to be upgraded to meet the requirements of legislation and other relevant criteria.
Such quality reports will serve as a tool to engage with the citizenry, demonstrate government's commitment to servicing the needs of communities and its willingness to hold implementing departments and organs of state accountable. This will go a long way towards allaying the concerns and disquiet expressed by the public regarding service delivery.
My office is working closely with, inter alia, the National Treasury, COGTA and the Presidency to accelerate deliberations on how the government can improve the preparation, management and reporting of service delivery information. But the critical and effective shift should come from departments, municipalities and entities that commit to treating and man- aging reporting on service delivery as an important process that is worked into the daily activities of the institution, not just as an event that needs to happen for audit purposes.
Audit messages raised by my office on service delivery reports, will further intensify the public focus on service delivery, as the citizens will legitimately seek to correlate what is being reported with their day-to-day experiences and their level of satisfaction with services rendered. In my engagements with my counterparts in other countries we agree that the issuing of audit messages on financial, compliance and service delivery information needs to promote transparency and accountability, so as to promote robust debate and empower citizens.
The recently released general report on the local government audit outcomes for the 2009-10 financial year paints a picture that needs immediate and decisive government leadership intervention. The 2010-11 audits being finalised for national and provincial government indicate that improvements to the quality of service delivery reports should remain a focus point for responsible ministers, over- sight structures established in provinces and other role players.
The quality of service delivery reports can and must be improved In order to obtain clean audit opinions, service delivery reports will need to be based on verifiable evidence and must satisfy set criteria that include the so-called SMART principles. These principles require information to be specific, measurable, achievable, relevant and timely.
I am encouraged by the level of commitment evident in the interactions that I have had so far with several executive authorities and legislative oversight structures within all government spheres. From our side, we will continue to intensify our engagements with both executive and legislative leaders at national, provincial and local government level. These engagements are proving to be very valuable in facilitating a collective understanding and commitment by the executive and legislators to achieve transparent public sector accountability and thus enhance the credibility of service delivery information.
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Personal history Terence was born on 30 September 1961 in Qumbu, Transkei. He matriculated at Umtata Technical College in 1979. He was awarded a BCom degree by the University of Transkei in 1982 and BCompt (Hons) by the University of South Africa in 1986. He qualified as a chartered accountant in 1990.
Terence gained valuable experience during his work in the private sector which developed his technical competencies as an accountant, external auditor and internal auditor. He also developed solid management and leadership competencies upon which he bases his leadership style.
Terence is married to Nokwanda and has three children, Mphiwa, Fezekile and Kamvalethu.
Career developments Terence started his career as a trainee accountant with KPMG in Umtata in 1983. He left KPMG in 1987 and joined Unilever in Durban as internal auditor and later as an accountant in the Lipton Tea and Soup factory in Pietermaritzburg. He then joined BP Southern Africa (BPSA) in Cape Town in 1991 as senior internal auditor. While with BP, Terence joined BP Botswana in Gaborone as finance manager in 1994. He returned to BPSA in Cape Town as market research manager in 1996.
In May 1997, Terence helped establish and was a partner-in-charge of the auditing firm Gobodo Incorporated in Cape Town where he initiated the formation of Gobodo Corporate Governance Services, an internal audit division which operates nationally with regional offices in Cape Town and Pretoria.
Auditor-General Terence joined the Auditor-General on 1 June 2000 in the capacity of Deputy Auditor-General and Chief Executive Officer. He brought to the organisation a firm commitment to supporting mechanisms for instituting stable governance within government. In December 2006 he was appointed to the position of Auditor-General of the Republic of South Africa. He is the first African to hold the position of Auditor-General in the organisation’s 100-year history.
His contribution to the accounting and auditing profession includes participation in some of the most prestigious professional bodies, such as:
He currently serves in the following capacities:
Terence believes that the vision of the Auditor-General of South Africa, namely “To be recognised by all our stakeholders as a relevant Supreme Audit Institution (SAI) that enhances public sector accountability”, is his biggest motivator. Terence regards this as a powerful vision that should be carried through.
"We operate in a constantly transforming and developing country. To be relevant in such a changing environment, my office is continuously redefining itself to meet challenges presented by change. For example, to make a meaningful impact we had to first acknowledge that public sector auditing is more challenging and different from private sector auditing. Public sector audits go beyond merely expressing an opinion on the financial statements. When we audit the public sector, we also comment on the effectiveness of key management processes and give feedback on compliance with laws and regulations. This qualitative approach enables public sector managers better to understand the financial impact of the identified problems and assists in helping them to prioritise the corrective actions. This is how we add value and help improve public sector financial management and our contribution to service delivery," says Terence.
Terence has committed his office to the continued unearthing and grooming of young chartered accountants and financial managers who will, in turn, use their acquired skills to help boost and continue upgrading the public sector financial management systems.
"South Africa is a rich mine of young, bright and talented youths. It is our task to help unearth and polish this latent talent. Through our trainee accountant scheme we have started that search, and we are going to all corners of the country looking for future auditors and auditors-general who will take over from us and continue helping our country manage its public resources effectively."