Performance audits in the Maltese public sector : methodology and effectiveness

Abstract

Purpose: This study describes the methodology used by the performance auditors during the performance audit cycle, and investigates the efficiency and effectiveness of performance audits in the Maltese public sector. Design: Research was conducted using semi-structured interviews with: three officials of the National Audit Office (NAO); eight government departments as auditees; three members of the Public Accounts Committee (PAC); the permanent secretary of the Ministry of Finance, Economy and Investment (MFEI), and the Director General of the Internal Audit and Investigations Department (IAID). Findings: Starting with the strategic plan, in order to identify potential audit areas, the NAO auditors proceed with the preliminary study, and the entry meeting. The draft audit report is sent to the permanent secretary, since the NAO does not have a surprise policy. Before the publication of the performance audit report, an exit meeting is held, in order to discuss any disagreements of the auditees. The members of the PAC will follow, by selecting a number of performance audit reports to be discussed during the PAC reviews, at their own discretion. The NAO may also conduct a follow-up audit. The performance audit report is regarded as positively useful by the auditees. However, more needs to be done to increase the receptiveness of the auditees in implementing the recommendations suggested in the report. Conclusion: There is still room for improvement when it comes to performance auditing, even though the work done by the NAO to date, has improved the efficiency and the effectiveness in the public sector. Value: Further improvement in performance auditing would bring about more value for money in the public sector.