Tag (SQ): Performance Measurement

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Evaluating school KPIs, debating Auditor General report timing, and discussing transparency principles for Supreme Audit Institutions.

a) Ghana Education Service (GES), as part of its mandate, monitors the performance of schools through supervision, collection of data and evaluation of key indicators like learning outcomes, extracurricular activities and absenteeism. The performance of all schools is subject to annual audits, conducted by auditors, which examine schools in terms of a range of metrics determined by GES.

Okoro Primary School is located in Tema Junction, a suburb of Obuasi, which is the capital of Weija-Amanfro District. It is a former industrial zone, which now suffers from high levels of unemployment and crime. Many of its residents are among the poorest 20% of Weija-Amanfro’s population, whose children qualify to receive free school meals from the government.

Attendance levels at Okoro Primary School are poor, and the school has received reports from concerned citizens of school children wearing unkempt uniforms and being in the city centre at times when they should have been at school.

Okoro Primary School is required to report on key performance indicators (KPIs) in areas spanning the breadth of its activities. On the basis of these indicators, GES has recently assessed Okoro Primary School’s performance to be poor.

Okoro Primary School’s KPIs included the following:

Area measured KPI
Academic performance % of pupils in Primary 6 achieving grade “A” in June exams
School attendance Average % of pupils absent from registration at 8:30 am
Participation in sport Number of trophies won by school’s sports teams
Uniform % of pupils whose school uniforms are in line with regulations

Required:
Using the information available:
i) Critically assess each KPI on Okoro Primary School, suggesting possible ways of improving upon any inadequacies you may find.
ii) Recommend alternative KPIs to measure performance in each area.

iii) State audit procedures to provide assurance on the accuracy of each alternative KPIs which you have recommended. (2 marks)

b) Publication of Auditor General’s reports in the media after lodgement with parliament before consideration by the Public Accounts Committee has always generated controversy. Some critics are of the view that the Public Accounts Committee should finish it probes before publication of the report by the Auditor General, as that will allow for mistakes in the report to be corrected.

Required:
Critically examine the above statement.

c) Supreme Audit Institutions (SAIs) are supposed to play a vital role in oversight by promoting transparency, verifying government accounts accuracy and reliability, evaluating spending compliance, assessing such spending’s efficiency and effectiveness, and supporting the fight against corruption.

Required:
According to **_INTOSAI-P 20: Principles of Transparency and Accountability, discuss FOUR principles of transparency and accountability expected of SAIs.

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You're reporting an error for "AAA – L3 – Q4 – Public Sector Audit and KPIs"

Identify strategic issues for Zuri Enterprises' board and explain how the balanced scorecard measures performance.

(a)

(i) Identify strategic issues that should engage the attention of the Board of Directors of Zuri Enterprises.

(ii) Explain how the balanced scorecard can be used to measure performance in Zuri Enterprises.

(b) Discuss measures which shareholders may seek to resolve any agency problems in Zuri Enterprises.

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You're reporting an error for "SCS – L3 – Q27- Strategy, stakeholders and mission"

Describe four perspectives of the Balanced Scorecard for Printworks Ltd.

Case Study: PrintWorks Incorporated
You are the Management Accountant of PrintWorks Incorporated, a local printing and publishing house located in the regional capital of Kumasi. Your CEO has asked you to brief him further on the balanced scorecard approach.

Required:
(a)(i) In a memo to the CEO, describe FOUR perspectives of a balanced scorecard.

(a)(ii) In a memo to the CEO, explain THREE problems usually associated with the use of this approach for strategic management.

(b) Identify and explain THREE of these inherent characteristics and how they facilitate Management by Objectives (MBO).

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You're reporting an error for "SCS – L3 – Q9- Strategy implementation"

Calculate ROI for a new investment project at Kumasi Tech Ltd over three years.

Kumasi Tech Ltd is organised into several investment centres. The annual performance of each investment centre is measured on the basis of ROI. ROI is measured each year as the profit before interest as a percentage of the average investment/average capital employed in the investment centre.
One of the investment centres has achieved a ROI in excess of 35% in each of the past four years. Its managers are considering a new investment project that will have the following cash flows:

Year Cash flow
Beginning of Year 1 (42,000)
1–3 19,000 each year

The initial investment will be in an item of machinery that will have no residual value at the end of Year 3. Assume that depreciation is charged on a straight-line basis.
Required:
(a) Calculate the ROI for the project, each year and on average for the three-year period.

(b) Suggest whether the managers of the investment Centre are likely to invest in the project.

(c) Residual income

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You're reporting an error for "MA – L2 – Q62 – Divisional performance"

Discuss methods and qualities of good performance measurement in management accounting.

PERFORMANCE MANAGEMENT
Methods used in measuring performance
Financial Performance: analyse profitability, liquidity and risk. Financial Indicators include Profit, Revenue, Costs, Share Price and cash flow.
Non-Financial Performance: This can usefully be applied to employees and product/service quality. Non-Financial Indicators may include Quality of Service, Measures of customer satisfaction, Lateness.
Qualities of Good Performance Measurement

A GOOD MEASURE: DESCRIPTION:
Is quantitative The measure can be expressed as an objective value
Is easy to understand The measure conveys at a glance what it is measuring, and how it is derived
Encourages appropriate behaviour The measure is balanced to reward productive behaviour and discourage “game playing”
Is visible The effects of the measure are readily apparent to all involved in the process being measured
Is defined and mutually understood The measure has been defined by and/or agreed to by all key process participants (internally and externally)
Encompasses both outputs and inputs The measure integrates factors from all aspects of the process measured
Measures only what is important The measure focuses on a key performance indicator that is of real value to managing the process
Is multidimensional The measure is properly balanced between utilisation, productivity, and performance, and shows the trade-offs
Uses economies of effort The benefits of the measure outweigh the costs of collection and analysis
Facilitates trust The measure validates the participation among the various parties

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You're reporting an error for "MA – L2 – Q56 – Performance analysis"

Explain benchmarking and its benefits, describe its implementation in a purchasing department, and discuss potential implementation challenges.

AMINU COMPANY

AMINU Company manufactures and distributes generic paper-based products and currently has an annual turnover of GH¢10 million.

At present, the management of AMINU Company are uncertain whether the purchasing department is maximising its potential in terms of purchasing efficiency and effectiveness.

The management are currently considering the introduction of a system of benchmarking to measure the performance of the purchasing department.

Required:

(a) Explain the term ‘benchmarking’ and briefly discuss the potential benefits that can be obtained as a result of undertaking a successful programme of benchmarking.

(b) Describe how a system of benchmarking could be introduced to measure the performance of the purchasing department.

(c) Discuss the problems that the management of AMINU Company might encounter in implementing a system of benchmarking and recommend how such problems should be successfully addressed.

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You're reporting an error for "MA – L2 – Q10 – Performance analysis"

List the four aspects of a balanced scorecard and suggest its application for a football club with performance targets.

4 BALANCED

A balanced scorecard approach may be used to set performance targets and monitor performance.

(a) List the four aspects of performance in a balanced scorecard approach.

(b) Suggest how a professional football club might use a balanced scorecard approach. Indicate what key aspects of performance might be identified and suggest performance targets that a football club might use in a balanced scorecard approach.

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