PROPOSED TITLE OF THE RESEARCH:

THE NEED AND IMPORTANCE OF VALUE FOR MONEY AUDITS IN ENHANCING

GOVERNMENT PERFORMANCE AT PSC IN HARARE

SUBMITTED IN PARTIAL FULLFILMENT OF THE BACHELOR OF COMMERCE IN

ACCOUNTING (HONOURS) DEGREE.
1.0 Introduction

This proposal looks at an introduction to the research which seeks to evaluate the importance of
value for money audit in enhancing public sector performance to be done at Ministry of Higher and
Tertiary Education, Innovation, Science and Technology Development in Harare. It covers the
background of the study, statement of the problem, research objectives together with the research
questions. Significance of the study, delimitations as well as limitations are also examined with the
intention to indicate the feasibility of the research.

1.1 Background of the study

Kandasamy (as cited in Chezue, 2013) traces the establishment of VFMA to demand by elected
two representatives for information on efficiency and effectiveness of public expenditure in USA,
Canada and other European countries in the mid 1970’s; resulting to its introduction in Canada in
1977 after the Wilson committee (1975) review of the Auditor General office in Canada and
subsequent endorsement in 1978 for all levels of government. The General Accounting Office
(GAO) in the federal institutions of the USA began to set a foundation for VFM auditing in early
1970’s, and Sweden became the first European country to adopt VFM through its national audit
bureau in 1970. In the British Commonwealth, Canada adopted first in 1977 followed by New
Zealand and Australia in 1975 and 1979 respectively; while in the UK it was in 1983 and 1984
upon creation of the Audit Commission (AC) for England and Wales along with the National Audit
Office (NAO), with the labor government manifesto emphasizing VFM auditing since 1997 upon
dethroning the conservatives (Alwardat&Benamraoui, 2014).

Scholars such as (Kristin, 2013; Bawole& Ibrahim, 2015; Eze, 2015; Sarmento, 2010; Gideon &
Tawanda, 2012; Nath, 2011) have projected contradictory findings on the effect of VFMA. Padua
and Van Vuuran (2012) citing Leeuw, state that empirical evidence on effects and side - effects of
VFMA is limited. Thus, Eze (2015) advocate for extensive research in practice and utility of
VFMA through regular review work. Manaf (2010), offers that there is much to be studied on
VFMA as a social construct of a particular context. Dahanayake (2013) asserts that influences and
changes of economic, social and political environment need to inform the public sector audit
framing.

In Ghana, a survey study was done by Elkana, (2018) to examine effect of value for money
auditing in public accountability. The researcher employed the purposive sampling technique of
thirty-two (32) internal auditors in Ghana’s national treasury. They found that the economy value,
efficiency value and effectiveness value have positive impact on public sector accountability. In a
similar study in Nigeria, Ebonyi State to be precise, Nkwagu and Nwamgbebu (2019), they aimed
to ascertain the effects of value for money auditing on Local Government Service Delivery. The
researchers adopted a survey research design to sample the opinions of one hundred and thirty-six
staff of account and audit departments. They employed multiple regression as inferential statistics
of the study and found that economic and effectiveness principle has no significant effect on
Ebonyi state local government service delivery. However, efficiency principle has a positive
relationship with Ebonyi state local government service delivery.

In Imo State, Nigeria, Okoye, Ugochukwu, and Ukwuoma (2020) examined the impact of litigation
services on budget implementation. The population of the study consisted of 53 (21 staff of
Economic and Financial Crimes Commission (EFCC) and Independent Corrupt Practices and other
Related Offences Commission (ICPC) and 32 accounting officers in Public Complaints
Commission, Corporate Affairs Commission, Federal Character Commission, Consumer Protection
Council and National Human Rights Commission in Imo State) were selected for the study. The
researcher employed the Pearson Product Moment correlation analysis to test the degree of
impact/relationship at 0.05 level of significance, and found that business valuation, revenue
analysis and documentary evidence have an impact on budget implementation in Imo State. They
further found that business valuation has no significant impact on budget implementation, while
revenue analysis and documentary evidence has significant impact on budget implementation in
Imo State.

A framework for evaluating government performance for public service delivery or good public
governance is essential for such accountability to be successful. Moreover, over the past decades,
public sector performance has been at the forefront of the public management debate. Along with
the advent of New Performance Management (NPM) reforms and more recent economic and
budgetary crises, the government has been under constant pressure around the world to deliver
good governance in the quest of greater efficiency and effectiveness, as well as to restore voters'
faith in government institutions (Raudla, Taro, Agu &Dougla, 2015). Many countries' Supreme
Audit Institutions (SAIs) which is regarded as Office of the Auditor-General in Zimbabwe has
adopted the practice of value for money audit also known as performance audit in response to the
emergence of performance movements. The adoption of value for money audit in the public sector,
as Tudor (2007) pointed out, is one of the most significant new additions to the audit's conventional
duty. This new type of audit arose primarily in response to the public and Parliament desire for
greater information on the "3E" (Economy, Efficiency and Effectiveness) in the use of resources by
public managers operating. Establishing a decent public sector practice based on the 3E’s principle
has been one of the Organization’s for Economic Co-operation and Development (OECD)
countries' NPM doctrine's recommended practices.

The concept of Value For Money (VFM) audit in Zimbabwe became very prominent because of the
economic depression experienced since the 1980s. Government’s emphasis shifted from
expenditure control towards value for money as the need for effective utilization of economic
resources became imminent (Eze & Ibrahim, 2015).Despite efforts of the Zimbabwe government to
give good governance and strengthen public service delivery and adoption of International Public
Sector Accounting Standards (IPSAS), the public sector criticism still persist. Because of ongoing
failures in governance, corruption, and poor resource management, good governance in public
sector has become an issue in Zimbabwe. Furthermore, Zimbabweans continue to feel that the
public sector is affected by spiteful and cruel individuals, which has eroded public confidence in
government.

1.2 Statement of the problem

In the new dispensation in Zimbabwe, there is emphasis on performance of pubic entities through
effective management, exposing corruption and efficiency in developmental efficiency. This is well
supported by value for money audits. However, the Public service Commission has seen a
significant decline in performance through slow progress in developmental initiatives in public
universities, mismanagement of funds and corruption scandals in Higher and Tertiary institutions in
Harare. Thus a probe into the effectiveness of the value for money audits at Public service
Commission is necessary.

1.3 Objective of the study

The broad objective of this study is:

  To examine the role of value for money auditing in the attainment of government
objectives in Zimbabwe.
 To ascertain the effects of value for money audit in the government cost saving objective.
 To investigate the impact of value for money audit on the quality of projects executed by
the government.
 To evaluate stakeholders' perceptions on the impact of value for money audit on good
public governance.

1.4 Research questions

The research seeks to provide answers to the following questions

 What is the role of value for money auditing in the attainment of government objectives in
Zimbabwe?
 What are the effects of value for money audit in the government cost saving objective?
 What are the impacts of value for money audit on the quality of projects executed by the
government?
 What are the stakeholders' perceptions on the impact of value for money audit on good
public governance?

1.5 Significance of the Study

To Public Service Commission

The research seeks to establish the importance of value for money audit of Public service
Commission in Zimbabwe. This will act as a way of assessing these firm`s efficiency on the use of
public resource and the results will be adopted by private sector firms owners in crafting strategies
to cushion their firms from abuse of resources.

To the Zimbabwe Open University

The results of this research will deliver literature for reference and review by other researchers who
might want to carry out research studies on a similar area. Also the findings of this research will
assist in the academia field by giving a balanced insight of policy direction on the value for money
audit and use of public resources by public sector firms.

To the Researcher

This study will be of great significance to the researcher and policy makers in Public service
Commission in that by establishing the relationship between value for money audit and the use of
public resource, these firms will assess their performance.

1.6 Assumptions

The research will be based on the following assumptions:

 Secondary data relevant to the research shall be accessed.

 The findings can be generalized to the other Public service Commission in Zimbabwe.
 Most of respondents will co-operate and reply the questionnaires sent to them.
 The current public sector administration system will remain the sane

1.7 Definition of Terms

Economy - Acquisition of resources in appropriate quality and quantity, at minimum cost.

Efficiency - Maximum output for any given set of inputs or the minimum inputs for any given
quantity and quality of goods and services provided.

Effectiveness - Extent to which any activity achieves the intended results, which can be either
quantitative or qualitative.

Auditing - an examination of the accounts of a charity or business, activity, etc. that is not
organized to make a profit, in order to check that it is providing value, in relation to the amount of
money being put into it:

Value for money - is a term used to assess whether or not an organisation has obtained the
maximum benefit from the goods and services it both acquires and provides, within the resources
available to it.
Auditing - is defined as the on-site verification activity, such as inspection or examination, of a
process or quality system, to ensure compliance to requirements. An audit can apply to an entire
organization or might be specific to a function, process, or production step.

1.8 Justification

Generally the office of the AG is endowed with constitutional independence. In the result public
institutions are suffering from romantic loss or unaccountable public funds without any arrest,
prosecution and or recovery. The public sector institutions’ public funds are open to abuse as well
as the office of AG. The issue of value for money audit in these institutions has been largely left
unpacked by several academics and researchers.

1.9 Delimitations

The research will be carried out with an aim of setting the record straight on whether or not the
notion of value for money audit is not over stretched. All the factors that influence value for money
(VFM) in the public sector financial management will be investigated. The research will be done
only in Harare and will cover the period 2019 to 2023

1.10. Limitations

During the research, several problems will be encountered including lack of cooperation, limited
time and financial constraints. This will delayed the smooth flow of the research Some respondents
could not be reached due to transport problems therefore the research remained concentrated in
Harare as the capital city of Zimbabwe where most public institutions are located. Due to the
sensitivity of the research requirements in soliciting quality information, most of the respondents
might be in fear of participating, however the researcher will conduct a campaign session to instill
confidence that respondents’ views would be treated with confidentiality.

1.11 Proposed methodology

The researcher will use two approaches which are deduction and induction. The deductive
approach is described as the development from general to particular. It comprises the development
of an idea, or hypotheses from existing theory, which can then be tested through the collection of
data. With the inductive approach it is vice versa, the first step is to collect data from participants
and analyse that data (Buterfield, 2016) the researcher will adopt the deductive approach.
According to Saunders, Lewis & Thornhill, (2016) deduction owes much to what we would think
of as scientific research as it involves the development of a theory that is then subjected to a
rigorous test through a series of propositions.

As such, it is the dominant research approach in the natural sciences, where laws present the basis
of explanation, allow the anticipation of phenomena, predict their occurrence and therefore permit
them to be controlled.

1.11.2 Research Design

The researcher will use a descriptive research design to conduct the study because authors like
(Murungi and Kayigamba, 2015) who conducted similar studies with this one made use of the
descriptive research design. The researcher also will make use of a research design to avoid
disorganised data. The research design is the blue print for fulfilling objectives and answering
questions. Selecting a design may be complicated by the availability of a large variety of methods,
techniques, procedures, protocols and sampling plans (Cooper and Schindler, 2008). In this study,
the researcher will opt for a descriptive research design. In fact, Research design is the general
plan of how the researcher will go about answering questions (Saunders, M., Lewis, p., &
Thornhill, A., 2016). According to Greener (2008) research design is a grand plan for approaching
a research topic.

1.11.3 Research Choice

The researcher will utilise the research onion. The choices outlined in the research onion include
the mono method, the multi-method and the mixed method. The names of these choices suggest,
the mono-method means using one research approach for the study, either a single quantitative or
qualitative data collection technique with the corresponding analysis procedure. While in the multi-
method, a wider selection of either quantitative or qualitative methods is used. The mixed method
combines both qualitative and quantitative data collection techniques (Saunders, M., Lewis, p., &
Thornhill, A., 2016). This study will use the mono – method, qualitative data collection using a
questionnaire.

1.11.4 Research strategy

 A research strategy can be defined as a plan of how a researcher will go about answering the
research questions. It is the methodological link between the philosophy and subsequent choice of
methods to collect and analyse data (Lincolin, 2011).

As the label already suggests, the researchers can use one strategy or more within the research
design to answer the research questions (Butterfields, 2016).The appropriate research strategy has
to be selected based on the research questions and objectives, the extent of existing knowledge on
the subject area to be researched, the amount of time and resources available, and the philosophical
underpinnings of the researcher (Saunders, M., Lewis, p., & Thornhill, A., 2016).

1.11.5 Research Design

The researcher will also use the

because the findings of the study are likely to be non-numerical, as it involved the respondents’
views and opinions about the variables understudy which are Value for money audit. Descriptive
research Design will also enable the researcher to gather information using questionnaires, which
in turn aided the researcher to study responses and analyse the data. According to (Rubin,
Robertson and Kiluin, 2016), descriptive research design will attempt to collect information in a
systematic manner which allows for description and explanation of beliefs, values and behaviour of
people. The main advantage of using the descriptive research design is that the researcher does not
have control of the variables.

1.11.6 Proposed Data Collection Techniques

Data collection refers to the collection of data repeatedly over an extended period of time, and is
typically used where an important factor for the research is examining change and development
over time. The selected time horizon is not dependent on a specific research approach or
methodology. (Buterfield, 2016). The empirical part of this study will be conducted at ministry of
higher and tertiary education. The empirical evidence for this study was gathered by using primary
and secondary data. Secondary data means the information that already exists, whereas primary
data is original data, new data collected for the purpose of the specific research (Buterfield, 2016).
The data collection in this research is done by use of structured questionnaires and interviews.
Questionnaires and interviews will be used as they are considered to be the most suitable data
collection methods taking into account the subject of the study, available time, resources and the
information requirements.
The questionnaire is the main method of primary data collection to be used in this study. A
questionnaire is a series of written questions that are given to respondents in order to obtain and
elicit statistical information that is not available in documented record about a given topic. This is
according to (Saunders, M., Lewis, p., & Thornhill, A., 2016).

A list of versatile questions will be given to the respondents allowing the collection of both
subjective and objective data with open and closed format questions.

Kothari (2004), stated that a questionnaire is a method of collecting data using carefully laid down
questions for which each respondent is asked to respond. (Cooper and Schindler, 2008) Defined a
self-administered questionnaire as one in which the respondent fills in the questionnaire. The
researcher made use of the research objectives to come up with the questionnaire that could help in
achieving the objectives of this study. The questionnaire will be divided into three sections.

Questionnaires are one of the most widely used means of collecting data, distributed to the
potential respondents by post, e-mail, as an online questionnaire, or face-to-face by hand, that
provide an efficient way of collecting answers from a large sample, because each respondent is
asked to reply to the same set of questions.(Buterfield, 2016). The questionnaires were distributed
face to face by hand to participants and these were very useful since the research objectives centred
on analysing and establishing whether value for money auditis is important The researcher will
make use structured questionnaires. (Buterfield, 2016) In this study the questionnaires will be
considered to be useful to obtain evidence from the 100 respondents providing a convenient way to
gather information in a consistent and comparable way. (Buterfield, 2016).

1.11.7 Likert Scale

The researcher will use the Likert scale. A Likert scale is an orderly scale from which respondents
choose the option that best supports their opinion.(Likert, 1932) It can be used to measure
someone’s attitude by measuring the extent to which they agree or disagree with a particular
question or statement (Bissonnette, 2004). I will use the Likert scale because of the advantages
associated with it.

1.11.8 Population
Saunders, Lewis & Thornhill, (2016), pointed out that a population is a full set of cases from which
a sample is taken. Sekaram (2003), highlighted that target population is a set of elements larger or
different from the population sampled and to which a researcher can generalise conclusions from
their study. The target population is useful because it acted as a guideline from which a sample was
drawn to come up with a manageable sample size.

My population will consist of 100 respondents from the Public service Commission in Harare,
Zimbabwe.

1.11.9 Sample Size

My sample size will be 50 respondents because (Holloway and Wheeler S., 2002), asserted that
sample size does not influence the importance or quality of the study and noted that there are no
guidelines in determining sample size in qualitative research. Qualitative researchers do not
normally know the number of people in the research beforehand. The sample may change in size
and type during research. Sampling goes on until saturation has been achieved, namely no new
information is generated (Holloway and Wheeler S., 2020). Thus the researcher will make use of
samples because using samples required fewer resources and the samples provided the needed
information quickly and are more accurate.

According to (Field A., 2015), a sample is a smaller collection of units from a population that is
used to determine the truth about that population. According to (Mugo F.W, 2020), sampling is the
act or process of selecting an appropriate sample, or a representative part of the population for the
purpose of determining parameters or characteristics of the whole population.

The sample size will comprise of 50 respondents from the AG`s office and other stakeholders. This
sample constitutes approximately 50% of the target population, which is more than the minimum
10% required in order to enhance reliability.

As the selection of respondents will be highly important for quality results of the study, efforts will
be made to locate the most appropriate people to issue with questionnaire. The researcher will use
stratified random sampling technique to ensure proper representation of the population. The
researcher will use the present grade as the strata and within audit firms auditors will be classified
according to their levels.

1.11.10 Sampling Techniques

(Saunders, M., Lewis, p., & Thornhill, A., 2016) Postulated that sampling techniques can be
divided into two types that is probability (representative sampling) and non-probability
(judgemental sampling). According to (Kumar R., 2011), probability sampling is when each
element of the population has fixed probabilistic chances of being part of the sample. (Cooper and
Schindler, 2008), asserted that non-probability sampling is when members are selected from the
population in some non-random manner.

The researcher will use Stratified Sampling. Stratified random sampling is the modification of
random sampling in which we divided the target population into two or more relevant and
significant strata based on one or a number of subsets. A random sample will be drawn from each
of the strata. These will be drawn from the company using a simple random sampling technique
where the researcher a method of name picking from a hat. This will help the researcher save time
and ensure fair distribution of the questionnaires for data collection. Simple random sampling will
be then used to identify respondents from the AG`s office. Cards will be placed in a hat for each
audit firm with numbers representing the grades. One card would be picked at random with
replacement and recorded until they reached the number of the required grades level. This method
is preferred because it gives all the observations equal chances of being selected. It also save time
as there will be no complicated procedures to be followed.

1.12 Literature review

1.12.1 Value for Money Audit

The term value for money audit (VFM) could also be referred to as performance audit or
management audit. According to Eze and Ibrahim (2015), value for money audit is the degree to
which funds are expended economically and efficiently and the extent to which the related
programmes are effective in meeting their objectives. In the words of Tonade and Adesanawo
(2017), VFM audit is a terminology used for the evaluation of the extent to which optimal use is
made of an organization “resources. Owolabi and Ogunode (2020) defined VFM a as a mechanism
for assessing how governments‟ uses finance in its custody to judiciously implement programs,
policies and projects for the betterment of the citizenry at a cost that is economical and efficient. In
line with this study, the definition of Owolabi and Ogunode (2020) would be adopted.

This importance of value for money audit in the public cannot be overemphasized. It provide
needed assurance that public funds have been judiciously, economically and efficiently used for the
original purpose intended as set out in a government’s program, policy or budget (Owolabi
&Ogunode, 2020). Ogungbade, et al (2021) asserted that VFM audit is not limited to the public
sector; it is immensely relevant in the private and quasi sector because it can help position internal
auditors to exceed stakeholders' expectations. Value for money audit is guided by three principles,
name economy, efficiency and effectiveness. These principles or components are very vital to
attaining the goal of value for money audit.

Nwangbebu et al (2019) echoed that the economy principle or component of value for money audit
shows the nexus that exists between costs and input resources. it simply refers to the acquisition of
inputs of a given standard and quality at the lowest possible costs. This therefore implies spending
less per time. Doing this will demand the prudent use of resources in such a way that time, efforts
and money is saved.

1.13 Ethical considerations

Ethics in research aims to ensure that no one suffers adverse consequences because of the research
(Cooper and Schindler 2018). In order to protect the rights of the participants in the surveys three
guidelines set out by Cooper and Schindler (2018) were followed:

(i) The reason and benefits of the proposed study will be explained to the participants;

(ii) The rights of the participants will be explained and clarified. Privacy of participants
were protected; and

(iii) Informed consent will be obtained from each participant prior to the survey by fully
disclosing the survey details before requesting permission to continue with the survey.

1.14 Proposed work plan

The researcherwill followthefollowing work plan in order to complete the research ontime;
TASK WK1 WK2 WK3 WK4 WK5 WK6 WK7
Chapter One
 Chapter Two

Chapter Three

Data GatheringandAnalysis

ChapterFour

ChapterFive

Editingand Submission

Proposed budget in USD $

In order to effectively carry out the research, the researcher will operate using the following
budget:
REQUIREMENT AMOUNT
Transport 30
Food 50
Stationery 20
Printing 30
HiddenExpenses 20
TOTAL 150

1.15 Summary

Zimbabwe has a vibrant public sector. Organizations in the Zimbabwean public sector contribute
immensely to the Zimbabwean economy. However, the sector experiences high rates of abuse of
public funds. Several reasons have been identified and given for the high rate of abuse. This
research aims to establish whether the application of VFA will help reduce abuse of public funds
in the public sector in Zimbabwe
References

Abubakar, A., Saidin, S. Z., &Ahmi, A. (2016). Performance management antecedents and
public sector organizational performance: data screening and preliminary analysis.
International Journal of Academic Research in Business and Social Sciences, 7(9), 19-31.

Alwardat, Y. A., Benamraoui, A., &Rieple, A. (2015). Value for money and audit practice in
the UK public sector. International Journal of Auditing, 19(3), 206-217.

Baker, J., Dross, E., Shah, V. &Polastro, R. (2013). Study: How to define and measure value
for money in the Humanitarian Sector. Swedish International Development Cooperation
Agency: SIDA

Barr, J., & Christie, A. (2014). Better value for money: an organising framework for
management and measurement of VFM indicators.

Eze, N. M., & Ibrahim, M. M. (2015). Value for money audit: a veritable tool for expenditure
management. International Journal of Financial Research, 15(2), 165-194.

George, D., & Mallery, P. (2003). SPSS for windows step by step: A simple guide and
reference. Boston: Allyn& Bacon.

Gheorghiu, A. 2012. Performance auditing - a complex concept. Hyperion International

Journal of Econophysics and New Economy, 159-176.

Gildenhuis, C. E., & Rensburg, J. O. (2017). The fourth E of performance auditing. Southern
African Journal of Accountability and Auditing Research, 19, 117-127.

Glendinning, R. (2007). The concept of value for money. International Journal of Public
Sector Management, 1(1), 42-50.

Hove: ITAD Brazilian Court of Audit. (2010). Performance audit manual. Brazil: Brazilian
Court of Audit.
Ihendinihu, J. U. (2009). Use of value for money audit as a control measure for government
expenditure on projects and programmes in Zimbabwe. Journal of Finance, Banking and
Investment, 3(1), 173-189.

International Conference of Supreme Audit Institutional (INCONSAI). (1986). General

Statement of Supreme Audit of Public Enterprises and Audit Quality. Sydney: AGPS,