An Assessment of Control Systems in Asset Management at the Middledrift Department of Correctional Services, Eastern Cape Province
- Authors: Dobela,Yola Colleen
- Date: 2019
- Subjects: Asset management accounts
- Language: English
- Type: Thesis , Masters , MPA
- Identifier: http://hdl.handle.net/10353/13337 , vital:39635
- Description: The aim of this study is to assess control systems in asset management at the Middledrift Department of Correctional Services. It seeks to establish how control systems are used as asset management tools for financial reporting and for compliance with financial management prescripts as prescribed by the Auditor-General. The specific objectives of the study are to assess the nature of control systems used in asset management at the Middledrift Department of Correctional Services; to establish the extent to which financial reporting control systems comply with financial management regulations prescribed by the Auditor-General; and to establish the mechanisms, processes, and procedures that are in place at the Middledrift Department of Correctional Services for compliance with financial management regulations in asset management This study is motivated by the repetition of qualified audit reports on asset management the Middledrift Department of Correctional services keeps on receiving over the years. The study is therefore, significant in that it seeks to address how the Middledrift Department of Correctional Services can best address issues of complying fully with financial management regulations in asset management, so as to ensure that issues highlighted in the Auditor-General’s report do not recur. This study adopted a qualitative research methodology. Data was collected by means of interviews, focus-group discussions, observations and official documents. In-depth interviews were conducted with the head of the correctional centre, head of supply chain management and four employees within the supply chain management section. Focus group interviews were conducted in three groups. The first and second group consisted of 5 asset controllers each and the third group consisted of 5 sub-asset controllers. The researcher observed how assets are verified in the Middledrift Department of Correctional Services, and observed the process of asset reconciliation between Basic Accounting System and Logistical Information System. The sample for this study consisted of 21 respondents (n=21)comprising of the following respondents: the head of correctional centre, head of supply chain management, four employees within the supply chain management section, 10 asset controllers and five sub-asset controllers. The respondents were selected using purposive/judgemental sampling. Data obtained through transcribed in-depth interviews, focus group discussions was transcribed verbatim. The transcribed data as well as data from observations were analysed using opencoding. Emerging codes and patterns were clustered into themes the data was compared within the categories to establish connections in the meanings as well as variations. The results of the ii study suggests that control systems used in asset management at the Middledrift Department of Correctional Services are far from satisfactory. Results reveal lack of adequate training on asset management for officials. The results further indicate that there is a communication barrier between asset controllers and supply chain management officials, which is a challenge for the Middledrift Department of Correctional Services. The researcher recommends that inhouse trainings and workshops on asset management should be provided to ensure that officials in all sections of the department are capacitated on what asset management is all about and that they acquire more knowledge, skills and capacity on how to effectively manage assets of the department. The study also recommends, the need for a directorate for asset management, so that there is a unit dedicated to managing the assets of the department. The study further recommends that communication between officials in the supply chain management unit and asset controllers in the department has to be consistent and strengthened since many processes surrounding asset management rely on the cooperation of multiple officials. This study contributes public administration practise in that it adds to knowledge that can assist public officials to adopt effective and appropriate control systems and procedures in managing public sector assets, to ensure that assets are managed and utilised in the most effective and economical way. The study also identifies gaps in control systems in asset management, thereby providing a basis for further research by other researchers. The study is therefore a significant contribution to theory and practice, it provides guidelines to the public sector and specifically public officials at the Middledrift Department of Correctional Services on ways to improve control systems in asset management.
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- Date Issued: 2019
The efficiency of budgeting for procurement of movable non-current assets in the absence of sound asset management
- Authors: Mtayisi, Nobuntu Rebecca
- Date: 2017
- Subjects: Assets (Accounting) -- Management , Asset management accounts , Budget
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: http://hdl.handle.net/10948/19651 , vital:28923
- Description: Movable non-current assets are physical and mobile assets that a municipality uses to provide services to the community directly or indirectly. Therefore, effective movable non-current asset management is necessary to ensure that these assets provide value to both the municipality and the community. This study seeks to determine whether poor asset management negatively affects capital budgeting for procurement of movable non-current assets. Mbhashe Local Municipality, a Category B municipality in the Eastern Cape Province was selected for the study. A desktop research method was utilised for this study. The analysis of secondary data includes policy documents (such as National Treasury asset management guidelines and Mbhashe budgeting policy), books, journals, internet data, newspapers and research documents in order to determine asset management guidelines and budgeting theories by noteworthy scholars. Auditor General South Africa (AGSA) and State of Local Government Finance reports were also analysed to establish the current practice and impact of the role of the municipal management in its finances as well as budget spending patterns at Mbhashe Local Municipality. The results of the study revealed that Mbhashe Local Municipality’s non-compliance with asset management and budgeting policies and procedures throughout the period of the study negatively affected their capital budgeting decisions. The consequences of instability in leadership and lack of approved movable non-current asset management policy resulted in partial asset information, incorrect recording and accounting systems for assets and unauthorised disposal of strategic movable non-current assets. Although, an approved budget policy existed at Mbhashe Local Municipality, the budgetary information was unrealistic because of negligence such as: lack of public participation, consultation and alignment of the Integrated Development Plan (IDP) with the municipality’s objectives. This resulted in habitual under-spending of capital assets compared to the capital budget throughout the period of the study.
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- Date Issued: 2017