Research Outputs (Management Accounting)https://hdl.handle.net/10500/144792024-03-28T18:57:59Z2024-03-28T18:57:59ZApplication of the budgetary metrics and outcomes-based logic model for controlling and monitoring performance in Capricon District MunicipalitySithole, Marilynhttps://hdl.handle.net/10500/289512022-06-09T21:25:20Z2021-12-12T00:00:00ZApplication of the budgetary metrics and outcomes-based logic model for controlling and monitoring performance in Capricon District Municipality
Sithole, Marilyn
This study investigates the application of the budgetary metrics and outcomes-based logic models (OBLM) for monitoring and controlling performance in Capricorn District Municipality from 2014 to 2019. The study is inspired by the fact that most municipalities failed to get clean audits during the study period and were subjected to crippling service delivery strikes by dissatisfied citizens. The study seeks to improve the overall performance of municipalities. The scope of the study covered an investigation of the influence of the New Public Management theory (NPM), the legislation on budgetary metrics and OBLM, the assessment of the municipal financial health, triple bottom line outcomes and management accounting practices. In addition, the suitability of the budgetary metrics and OBLM as management and control tools for CDM are assessed. Secondary data from the municipality and other sources, a qualitative gap analysis, quasi-statistical methods, financial ratios, and content analysis were used as methodological approaches in this study. The results of legislative tools such as NPM and the Public Finance Municipal Act no 1 of 1999 (PFMA) were influential in administration, while the Municipal Finance Management (MFMA) Act (2003) exhibited lower influences. Failure to stick to national governance by CDM led to weak municipal financial health, solvency problems, and poor service delivery as CDM failed to meet the expected triple bottom line outcomes. This is despite the fact that CDM continues to receive clean audits and, in the process, win management control awards. The study results and findings partially explain why there is a gap between clean audits and rising service delivery protests. Poor budgetary discipline, internal controls, recruitment policies, corruption and non-compliance with legislation led to poor performance. The study recommends areas of further research to improve municipal performance by finding better ways to apply the budgetary metric and OBLM and bridge the gap between audit findings and service delivery protests.
2021-12-12T00:00:00ZGlobal assessment of internal audit competence: Does one size fit all?Coetzee, P.Erasmus, L.J.Plant, K.https://hdl.handle.net/10500/198082016-01-19T07:35:40Z2015-01-01T00:00:00ZGlobal assessment of internal audit competence: Does one size fit all?
Coetzee, P.; Erasmus, L.J.; Plant, K.
The Certified Internal Auditor (CIA) programme is the formal globally recognised test of competence for internal auditors. However, the question is raised whether this assessment of competence has kept up with the changing demands of modern internal auditing, taking into account the fact that demands may differ from one country or region to the next. The fact that Australia, the UK & Ireland and South Africa require qualifi cations in addition to those of the CIA programme may be attributed to a need for a different level of competence in comparison with the Rest of the World. The objective of the study was to determine whether differences exist between the respective competency level needs for internal auditors from South Africa, the UK and Ireland, Australia and the Rest of the World. Data from the Institute of Internal Auditors’ (IIA’s) latest global Common Body of Knowledge (CBOK) study was used to determine and statistically analyse the perceived levels of importance of general competencies, technical skills and behavioural skills needed by internal auditors. The results indicated that globally internal auditors have similar perceptions of what competencies are most important for internal auditors, but the levels of importance differ among the regions. South Africa demanded a higher level of competence and aligned closely with the UK and Ireland, which could explain why South Africa now needs a customised competency assessment. Australia consistently indicated different perceptions of the levels of importance of competencies, which could explain Australia’s need for a country-specifi c internal audit competency assessment. Hence one size may not fi t all.
2015-01-01T00:00:00ZThe allocation of overheads in the construction industry in southern Africa: traditional costing or activity based costing?van der Poll, Huibrecht Margarethahttps://hdl.handle.net/10500/195752022-06-10T12:19:29Z2015-03-01T00:00:00ZThe allocation of overheads in the construction industry in southern Africa: traditional costing or activity based costing?
van der Poll, Huibrecht Margaretha
Recent literature suggests that many companies are moving
away from traditional costing (TC) systems in favour of activity
based costing (ABC) systems which provide more accurate cost
information among other benefits. The literature also reports
low assimilation and abandonment of the ABC system by the
companies which had adopted it owing to several weaknesses
of the ABC system. These conflicting findings of high adoption
of the ABC system on one hand and low assimilation on the
other hand, formed the basis of this paper. The paper sought to
clarify the applicability of the ABC system to the construction
industry in Southern Africa. It tests whether or not the ABC
system is a viable alternative to the TC systems.
METHODOLOGY:
A literature survey and primary data obtained from two
questionnaires; one addressed to construction companies and
the other to the consultants, were used. The sample of the
respondents was obtained from the register of contractors and
construction industry companies. The researcher sent the links
to the Lime survey by email to all the respondents.
FINDINGS:
According to the respondents the use of traditional costing (TC)
systems produces distorted project cost results while the ABC
system produces more accurate project cost results when used
in the construction industry. However, contractors had not fully
adopted the ABC system but used TC systems despite
producing distorted project costs.
VALUE OF THE RESEARCH:
Contrary to the widely held view that TC systems have no place
in modern management accounting, this research found that
TC systems are still popular in the construction industry in
Southern Africa, and that users of TC systems were generally
satisfied with their system’s performance. However, this finding
has implications in the light of the current view that TC systems
are dysfunctional. The study revealed the benefits of TC
systems reported by their users, such as the fact that they
produce accurate costs, are simple to use, and allow real time
reporting. TC systems may have been improved by computer
systems to the point where they are able to provide reliable
cost data and efficient reporting. This study has furthermore
established that continued calls by advocates of the ABC
system to implement this system because of its ability to
provide more accurate product costs than TC systems may be
misplaced and may not in fact increase the assimilation
of ABC.
2015-03-01T00:00:00ZFacilitating a greener environment through Management Accountingvan der Poll, Huibrecht Margarethahttps://hdl.handle.net/10500/195732015-10-19T01:08:40Z2015-01-01T00:00:00ZFacilitating a greener environment through Management Accounting
van der Poll, Huibrecht Margaretha
Worldwide natural resources such as coal and water are becoming scarcer each year. Individuals as well as companies need to use natural resources sparingly and responsibly, and decrease waste production. It is not only about the usage of resources, but also about the waste that occurs as a result thereof. Management accounting improves decision-making as it communicates decision-relevant insight and analysis to every decision-maker in a company, focussing on their social and environmental duties. The annual statements on the websites of the Top 10 South African companies in 2014 were analysed and compared to 2012, 2008, and 2003. A „Word cloud‟ was created for each year based on sixteen key words to determine whether awareness grew with regard to for instance sustainability and the environment. This paper is conceptual and exploratory in nature as it highlights the demand on natural resources as well as the steps that can be taken to minimise the impact on natural resources. Companies seem to become more aware of what they do to the environment and would like to take action where ever they can in order to be acceptable to investors. In the early 1980s companies did what is referred to as call “green washing” to comply with legalities. However it seems that this has now changed to a true awareness and “green” companies are becoming more and more competitive due to their truly environmentally friendly activities. In order to assist companies to become even more aware of waste and their environmental responsibility, they may need to be made more aware of the use of management accounting tools such as Activity Based Costing (ABC) and Material Flow Cost Accounting (MFCA) simultaneously.
2015-01-01T00:00:00Z