Analysing the financial internal controls that promote accountability in the Kwazulu-Natal Office of the Premier : a case study approach

[摘要] The advent of new financial reforms has demanded greater accountability from public organizations, expecting financial role players to fully account for entrusted resources in an environment of sound financial management. Critical to fulfilling this function, is the implementation of efficient, effective and economical internal controls to promote accountability, which provides reasonable assurance of the legitimacy of government actions. Inadequate financial internal controls in the Office of the Premier, KwaZulu-Natal, remain a serious challenge, arising from negative audit findings, which culminated in the suspension of financial delegations from senior financial role players. Accordingly, there was a dire need to interrogate current financial internal controls, in order to determine lapses in internal controls resulting in non-compliance with financial prescripts and poor accountability. This research study therefore sought to analyse the extent to which the current financial controls are effective, efficient and economical and the consequent influence thereof on financial accountability.The study adopted a qualitative research approach, utilizing the case study method, which was deemed most appropriate to meet the objectives of this study. A total of fifteen research respondents constituted the sample, comprising of three cohorts, namely, Office of the Premier senior management, financial support to accounting officers and external experts. Two primary methods to collect data were employed, namely, a review of the relevant literature and semi-structured interviews guided by an interview schedule. Respondents were engaged on questions relating to the successes, challenges and possible interventions pertaining to financial internal controls. The data was thereafter thematically analysed and subsequently synthesized in five salient themes, namely, control environment, risk management, control activities, communication and information and monitoring and evaluation.The study revealed that Office of the Premier had made substantial strides in strengthening prior internal control deficiencies. This was evidenced by the positive commitment by senior management, alignment of organisation structures, identification and assessment of risks and potential fraud, deployment of essential internal controls, strong internal and external reporting structures, and regular monitoring of business processes. However, emanating from the data, lapses in internal controls were evident, particularly with respect to accountability. Recommendations in the areas of staff accountability for internal control, extension of risk assessment strategy, strengthening internal communication and with internal audit, implementation of talent management strategy to address inadequate staff capacity and financial competency, enforcement of supply chain management controls and regular evaluation of internal controls, are proposed. These suggestions are aimed at narrowing the identified gaps and further strengthening the internal controls and accountability at the Office of the Premier, KwaZulu-Natal

[发布机构] North-West University