Increasing accountability is a key element in a wide variety of governance reforms, from national level, public sector restructuring, to anti corruption campaigns and to centralise service delivery at local levels. (Van Wyk, 2002:311). Financial accountability has a major effect on performance issues, and these two combined have implications on democratic accountability. It is obviously a fact that when public officials become accountable, this will have a positive effect on service delivery. The introduction of the Public Finance Management Act (PFMA) 1999 (Act 1 of 1999) as amended by Act 29 of 1999 adopts an approach to financial management, which emphasises the need for accountability of results by focusing on output and responsibility rather than the rule driven approach of the previous Exchequer Acts. One quickly realises that the PFMA aims to regulate financial management at both National and Provincial levels of government. It directs attention at revenue, expenditure, assets and liabilities and aims to see that these are managed efficiently and effectively. Public finance accountability is increasingly becoming important in the public sector. One means of effecting accountability is through auditing. For this reason the Office of the Auditor -General through the Constitution of the Republic of South Africa 1996 (Act 108 of 1996 section 216 (1)) was established to facilitate effective accountability through auditing. The Office of the Auditor -General’s role is by no means minor, for it plays a major role in curbing corruption and acts as a ‘watchdog’ of the nation over public funds. Amidst high mismanagement and misuse of public resources, as well as corruption, especially in developing countries, the major question one asks is how effective the Auditor -General can be in ensuring effective public financial management and accountability within state departments so as to improve service delivery.

A research report submitted to the Wits Business School, University of the Witwatersrand, in partial fulfilment of the requirements for the degree of Master of Management in Finance and Investment, 2016 / This research investigated the application of capital budgeting and risk analysis techniques and their effect on company performance in the South African mining industry. Studies internationally and locally have reported an improved application of capital budgeting techniques— away from the naïve, non-discounted cash flow techniques of the Payback Period (PBP) to the more appropriate discounted cash flow methods of Net Present Value (NPV) and Internal Rate of Return (IRR). In a survey distributed to the Finance Managers, Officers and Directors of mining companies in South Africa, we confirmed the increased sophistication in capital budgeting— the results suggest that 83.3% prefer NPV, 61.5% always use IRR and only 58.3% use PBP. On the other hand, and in contrast to capital budgeting, risk analysis is still comparatively naïve; with sensitivity analysis being the dominant technique used in the mining industry. The sophisticated methods of scenario testing and real option analysis (ROV) are rarely employed. An empirical analysis on the effects of capital budgeting and risk analysis on company performance has yielded results in contradiction with the theory of capital budgeting. The finding of the study is a negative and/or insignificant relation of capital budgeting and risk analysis sophistication to company performance as measured by return of assets (ROA). Although this finding is counterintuitive and contradicts theory, it is, however, consistent with international studies of this nature. / XL2018

The objective of this research was to evaluate the district office budgeting process of the Department of Education, Port Elizabeth District, in terms of the Batho Pele principles. The aim of district offices is to satisfy the most basic education needs of people in their respective areas of jurisdiction. Improving service delivery is one of government’s eight priorities as set out in the White Paper on the transformation of the Public Service (South African Government, 1995: 4). The initiative to improve service delivery is called Batho Pele. The main research question to be addressed by this research is: Does the Department of Education experience any problems with its budgeting process to address service delivery? Through a literature survey and empirical study, various conclusions were reached and recommendations made. The bulk of education expenditure takes place within education districts but the controlling, forecasting and budgeting of expenditure takes place at the Provincial Head Office. Most high schools surveyed experience problems with the current funding policy of the Department of Education. The relative poverty of the community around the school impacts negatively on the parent’s ability to support the school. iv The budgeting process of the Department of Education should follow a bottom-up approach to budgeting. Therefore, the district office budget should be informed by the needs of the school and the provincial budget be informed by the district office budget. The management and administrative capacity at the district office need to be developed to ensure effective budgeting.

The first research objective of this dissertation is an empirical study of the capital budgeting process to determine what capital budgeting evaluation techniques are used by firms in the Nelson Mandela Metropole. The second research objective of this dissertation is how the size of the firm impacts on the type of capital budgeting evaluation techniques used. The size of the firm is measured by magnitude of turnover, assets and the number of employees.

Since Ricardo's nineteenth-century suggestion that the mean's of financing government spending is irrelevant, theoretical debate concerning the burden of government debt has been vigorous / Thesis (M.Econ.)-University of KwaZulu-Natal, Pietermaritzburg, 2006.

These adjustments applied to most ministries. However variation in the coefficient was introduced in ministries where different adjustments were deemed appropriate. For example, in the Education and Training ministry, expenditure on personnel was increased by 2% in each of Programs 2 to 6, and held constant in Program 7. / Part 2; Section 2

Local government is at the forefront of engagement between the government and South Africa’s people, delivering basic services to communities. Following the transition to a democratic government in 1994, the country was demarcated in a manner that provides complete coverage by local government. Annually, managing the administration of service delivery implementation at local government level costs the country many billions. Much of the revenue used by local government in providing services is derived from income from sale of basic services and property rates, augmented by allocations from national and provincial government, equitably shared amongst municipalities. Local government has autonomy in its operations, but is strictly governed by a collection of cascading legislation, introduced to protect the interests of the people. The primary objective of the research was to investigate the efficacy of budget expenditure in local government, in particular the City of Cape Town as a metropolitan municipality. With an annual budget approaching R30 billion, the aim was to establish how the budget was determined and allocated to the service menu provided by the City, and to investigate whether better methods of allocating expenditure could be developed. A mixed research methodology was followed, relying on quantitative methods for analysing survey data statistically, while providing for detailed qualitative methods in interviewing and studying the specific case in detail. The theoretical perspective most suited to this research was found to be that of pragmatism, for its flexibility of interpretation, practicality and space for multiple perspectives. A constructivist epistemology was adopted to provide for the interplay between object and subject in constructing meaning. This research focused on examination of applicable legislation, secondary data in reports, and statistical analysis of opinion surveys of municipal officials involved in budgeting at different levels and interviews with key stakeholders. The findings indicate that budget allocation can be improved upon in a number of ways, despite complying with a myriad of restrictive and onerous regulations applicable to local government. It was found that the administration is fragmented in its operations and that the structure of necessity favours isolated service delivery rather than integration. Further, that compliance impacts negatively on time spent in planning and pursuit of strategic intent to the extent that Reporting often becomes a more important deliverable than basic services. The size of the City hinders common understanding, and introducing any change in political vision requires particular attention.

The treatise analyses the issues around budgets and examines budget expenditure control procedures. The research method selected has been formulated from the research onion process (Saunders, Lewis and Thornhill 2009). This methodology first identifies the research approach, research strategy, timelines and data collection methods. As part of the research process, a quantitative approach has been taken and a survey was carried out in relation to the collection of quantitative data for the purposes of the treatise research. The final analysis of the survey results is reflected in the conclusion of the research findings. Budget expenditure control procedures provide a company with a method of control for managing actual spending against the budget. Most companies have a refined practice of budget preparation, and in the larger companies, these are implemented across all departments and carried out by respective managers. Once the budget is in place, it is the responsibility of the managers to ensure that those having expenditure authorisation adhere to it. If control procedures are well managed, this allows for improved efficiency in operations and can lead to benefits in budget performance. Control procedures that are inefficient and poorly managed will inhibit budget objectives being achieved. The control procedures for budget expenditure can be formulated and applied to optimise budget performance and to control budget variance. Formal budget expenditure control procedures, as part of a company’s budget strategy, can provide managers with an effective business tool that improves current budget spending control procedures. This will then result in the identification of potential efficiency gains and improve budget performance.

Thesis (D. Tech.) - Central University of Technology, Free State, 2005 / The primary objective of this research has been to undertake a critical investigation of the application of the budget process and the achievement of budget objectives in the Free State Provincial Government. The emphasis has been specifically on the planning and control functions of management. The justification for the research is the continuous demand for unlimited public services and the limited availability of the state‟s financial resources. The undertaking proceeded from the hypothetical viewpoint that a budget is designed to assure that public resources are spent according to the preferences of the taxpayer and the legislature. A budget promotes consistency in the process of resource allocation, and its implementation should be enforced by constant evaluation and monitoring. The research includes the following aspects: - The problems encountered by the Free State Provincial Government in its endeavors to optimize the effectiveness and efficiency of the implementation of the budget. - The fundamental principles of budget management in general, and in particular various types of budget and budget management techniques. - The evaluation of budgets as a basis for reporting on performance and the importance of such performance reports. The research methodology followed relies both on a survey of relevant literature and on empirical data. The former consists of a discussion regarding the extent to which the present budget system promotes effective and efficient budget control management and the achievement of budget objectives. As part of the empirical research an “ex post facto” analysis was undertaken of external audit reports and appropriation accounts over a period of fourteen years. In addition the fishbone or root-cause analysis approach was followed to identify core symptoms. The theoretical and empirical research yielded the following results: - The partial disturbance of the input/output relationship means that performance cannot be measured against profit as in the private sector. To compensate for this deficiency management should focus on financial statements and on audit and performance reports to measure performance. - Management needs to have an unimpeded access to budget information on the financial management system right from the beginning of each new financial year. - Estimates of expenditure (projections) should be captured on a monthly basis in the financial management system. With the implementation of the Medium Term Expenditure Framework, budget projections must be regarded as compulsory. - Press reports and reports of the Auditor-General indicated that shortcomings relating to audit committees still exist both on national and provincial levels. This deficiency has a negative effect on the effectiveness of the internal audit function. - An annual percentage deviation in various departments between voted amounts and expenditure was substantial. In some instances the deviation - Losses should be monitored constantly, and management should be aware of the impact of losses and claims on financial resources. Their prevention should be part of each department‟s financial strategy. - Budget manipulation reduces the budget‟s effectiveness and efficiency as a means of performance measurement. The first possible solution to solve the problems associated with the budget is privatization of the service or function. The second possibility is the implementation of a quality control program. Its objective would be to reverse poor performance. To be successful, the quality control program should rely on clear accountabilities, effective partnerships and devoted leadership. A third recommendation might be the implementation of a quality assurance and quality control division for each department. The first component would gather all the necessary documentation to assure quality while the second would monitor effective application. The first requirement in measuring performance will be the motivation of all staff to be committed to the improvement of service delivery. The second challenge will be to train them accordingly. The third challenge will be the development of a performance report procedure for each department. A further recommendation is the analysis and reduction of underspending. Finally, accounting officers must implement effective and transparent processes of financial and risk management. Broadly viewed, the integration of budget and strategic planning initiatives of the National Treasury are a slow process that cannot be implemented overnight. National departments and provinces are, however, requested by National Treasury to improve on the outputs and the development of robust output performance measures and service delivery indicators. This viewpoint supports the proposed budget-management model aimed at effective objective achievement or sustainable development of the Free State. In future the budget management process could be based on this model to improve service delivery.

Thesis (MTech (Business Administration))--Cape Peninsula University of Technology, 2017. / Budgets are inevitable strategic tools used in the planning of the effective delivery by any organisation. In a sense budgets become the financial interpretation of work, services or products to be produced or services to be delivered by the organisation. In the same vein, government departments have plans and programmes to be implemented, and these programmes are quantified in the form of budgets. The budgeting processes are determined by the strategic imperatives and the type of leadership in an organisation, thereby differing from organisation to organisation. The traditional approach in government budgeting is that the activities to be undertaken start as political decisions which will be cascaded down to the different departments. Though the different department units construct their own budgets, the ultimate budget comes top down more than it comes top up. This research aims to identify the extent of the involvement of budget managers in the budget development process and the possible limiting factors if any. The study goes further to try to understand why there is always a seeming perpetual difference between budgets and deliveries at the end of every year. This empirical research focussed on the ‘budget practitioners’ in the particular department under study with emphasis on how they operate. Questionnaires were used to collect data which was analysed using Excel Spreadsheet and the findings were interpreted. The findings imply a need for extensive training as well as empowerment of the budget practitioners to be able to create congruence between budgets, budgeting processes, project implementation and envisage delivery to the citizens.