Value for money audit of the Restoration Directorate Contract process

Abstract

PURPOSE: This study aims to analyse the contract process of the Restoration Directorate and thereby evaluating whether the contract process is achieving value for money by assessing the implementation of the Three E’s being: economy, efficiency and effectiveness. This study also aims to establish the role of local auditors in executing audits within governmental entities. DESIGN: In order to address the research objectives, a qualitative approach was employed for this study. Data was attained by the execution of eleven semistructured interviews held with personnel from three governmental entities being: the Restoration Directorate, the National Audit Office and the Internal Audit and Investigations Department. FINDINGS: This study demonstrates that all the stages of the Restoration Directorate’s contract process strive to achieve value for money. Generally, economy is being achieved by selecting contracts not only on the basis of the lowest price but also on the quality of works. Efforts are being made to achieve the pillar of efficiency by implementing various control mechanisms such as frequent monitoring of the restoration works. However, efficiency can be enhanced by recruiting additional personnel and investing in additional training. The pillar of effectiveness is generally achieved by the Restoration Directorate since usually the predetermined objectives of the restoration works are attained. The National Audit Office and the Internal Audit and Investigations Department are both responsible for overseeing the way the public funds are being expended hence contributing to accountability and transparency. CONCLUSION: The Restoration Directorate aims to achieve value for money by employing various measures but there is still room for improvement particularly in the adjudication and execution phases. Moreover the National Audit Office needs to perform additional value for money audits within governmental institutions like the Restoration Directorate so as to provide assurance that tax money is being economically, efficiently and effectively spent. VALUE: By suggesting possible areas of improvements, this study aims to aid the Restoration Directorate to enhance the value for money of its contract process whilst also contributing to public sector auditing research.