Public Finance Management Act, 1999 (Act No. 1 of 1999)Understanding and Using this ActNational Treasury Guidelines for Annual Reporting3. Criteria For Good Reporting |
The information on performance provided in annual reports must be useful for the purpose of assessing that performance. Ideally, this information should include quantified, compared and verifiable service delivery information. The requirements regarding the quality of information necessary to assess performance are:
| • | Information criteria; and |
| • | Credibility of information |
3.1 Information criteria
Information contained in annual reports must be:
1) Comparable
To be of value for purposes of evaluation, performance data should be compared to:
| a) | the department’s predetermined objectives (intentions) and service standards, which are stated in measurable terms; |
| b) | needs of target populations; |
| c) | the performance of similar organisations; |
| d) | performance during a previous period; or |
| e) | other benchmarks. |
2) Consistent
Performance measures should be consistent from one reporting period to the next, and the information should be prepared on the same basis in order to compare and assess performance adequately.
3) Explained
Each key performance measure should be explained and the methodology outlined, i.e. how the information was obtained, from what data sources, etc. The significance, limitations, reliability and relevance of the measures and indicators should be explained.
4) Analysed
It is important to show that any significant variances have been analysed. The reasons for variances should be examined, analysed and explained. Periodic programme evaluations are therefore important to assess the relationship between anticipated outputs and actual achievements.
5) Range of measures
The information should reflect the key attributes of performance. For example, focussing only on the cost of outputs is not sufficient to describe the quality of performance. If costs are decreasing, what about quality - is that also decreasing? If the quantity or volume of goods and services is staying constant, what about the population the programme is serving?
6) Verifiable
It must be possible for the report user to trace the sources and systems from which information is derived and, if necessary, information should be attested to by an independent third party to ensure its credibility.
7) Objective
Information should be provided in a balanced and objective way by keeping matters in perspective and presenting without bias the positive and the negative in whatever proportion they might present themselves.
8) Relevant
The information should pertain directly to the interests, concerns and expectations of the members of legislatures and other stakeholders.
9) Comprehensive
The information provided should be a concise and complete overview of the activities of the department under review, including the identification of any areas deliberately left out.
10) Understandable
The readers for whom the report is intended should be able to clearly understand the contents of the report, which can be achieved by using terminology and reasoning that is comprehensible to any lay reader - especially when technical matters are discussed.
3.2 Monitoring and evaluation of information
Supplementing reporting with monitoring and evaluation reports by independent bodies can ensure credibility. This will demonstrate to the legislature, citizens and other stakeholders that the information is true, fair and complete.