Application of the budgetary metrics and outcomes-based logic model for controlling and monitoring performance in Capricon District Municipality
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Authors
Sithole, Marilyn
Issue Date
2021-12-12
Type
Dissertation
Language
en
Keywords
Budgetary metrics , Outcomes-based logic model , Triple bottom line outcomes , Management and Sustainability Control , Legislation , New Public Management , Management accounting practices , Financial health , Root cause analysis , Service delivery
Alternative Title
Abstract
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.