Public Sector

Public Sector

Middel & Partners involvement with public sector assignments started in 2003. Since then we have acquired invaluable knowledge relating to the workings and challenges faced by Government and its structures. Our dedicated teams are located in five of the Provinces, close to the major administrative cities/towns in which Government institutions reside. This is an advantage when cost factors are considered, in order to assist with Government’s cost curbing initiative.

Our Public Sector team specialises in understanding the distinct requirements of the sector. They know how to operate in an environment where policy, legislation and budgetary issues can make delivery of cost-effective services quite demanding. Middel & Partners has the expertise and experience to successfully navigate the challenges unique to the public sector. 

Our Services

Our public sector professionals are dedicated to providing specialised services to all spheres of Government, including:

  • Departments – National and Provincial;
  • Public entities – Schedule 3A, B, C and D;
  • Municipalities and Municipal Entities

Statutory Audit

Middel & Partners have extensive experience in conducting statutory audits. We are specialists at auditing compliance within the Public Finance Management Act (PFMA); Municipal Finance Management Act (MFMA); International Financial Reporting Standards (IFRS); Generally Recognised Accounting Practice (GRAP); and performance audits.

As the ultimate auditing institution, the Auditor General of South Africa is mandated with the task of completing most of the public sector’s statutory audits. In conjunction with private auditing firms the AGSA fulfil their mandate to assess whether the financial statements of the organization are free from material misstatement, has met its objectives, and measures performance against these objectives.

Our statutory audit includes financial audits, performance audits and compliance audits.

Financial Audits

Financial audits focusing on determining whether an entity’s financial information is presented in accordance with an applicable financial reporting framework, which requires an in-depth knowledge of the specific framework applicable to the organization. 

The different spheres of government present their financial information in accordance with the frameworks listed below.  A risk based audit methodology is utilised, in order to focus our audit efforts on significant risk areas and to advise the client accordingly.  The knowledge obtained during the statutory audit of a client will place us in a unique position to offer value-added services, once rotation of the statutory audit occurs. 


Financial Framework


Performance Audits

A focus area for government is whether its structures and entities created is fulfilling their mandate and reaching their objectives.  Achieving objectives by government is an ever-increasing challenge, formulating sound objectives and accurate reporting on these achievements is fundamental to measure its success and areas for improvements.

Performance audits, as part of the statutory audit, require an understanding of the principles of performance management: work planning, on-going feedback, mid-point review, and end of year appraisal.  We conduct exercises to determine whether the strategic plans, budgets and annual performance indicators are “communicating with each other”.  Furthermore, an evaluation is conducted on the organization’s application of the “SMART” principles to individual objectives/goals and the actions taken, the expected performance for each objective/goal and the reporting of the actual achievements.  

The foundation of any organization’s performance is its Performance Management System (PMS).

Performance Audits


Compliance Audits

Focusing on whether the activities of the organization have been conducted in accordance with the applicable authorities.  The subject matter, with regard to compliance, qualitative or quantitative information, must be identifiable and capable of consistent evaluation or measurement against the identified criteria (authorities) such that it can be subjected to procedures for gathering sufficient and appropriate audit evidence to support the audit opinion.

Our extensive knowledge of legislation applicable to the organizations in the public sector ensures that we provide the clients with the relevant advice.  Legislation includes (not extensive list):

  • Public Finance Management Act (PFMA)
  • Municipal Finance Management Act (MFMA)
  • Preferential Procurement Policy Framework Act – (PPPF)
  • Division of Revenue Act (Dora)
  • Municipal Systems Act (MSA)
  • Municipal Structures Act (MSA)
  • Municipal Property Rates Act (MPRA)

Organizations in the public sector have to adhere to legislation to ensure through monitoring that the basic principles of transparency, accountability, stewardship and good governance are followed and brought to action, in order to protect the rights of citizens.



Internal Auditing

We aim to promote the organizational objectives and key considerations from the perspective of the stakeholders.  We map the value drivers to help position the organization for long-term success.

Our assurance function provides an independent and objective opinion to the organization on the control environment, by evaluating its effectiveness in achieving the organization’s objectives.  It objectively examines, evaluates and reports on the adequacy of the control environment as a contribution to the proper, economic, efficient and effective use of resources.


Middel & Partners assists those in the public sector to improve their effectiveness and performance measurement. We help our clients with this challenging task by exploring measurement and its impact on resource allocation, organizational learning, internal processes and internal and external accountability.

We show clients how to use performance measurement to enhance their organization's ability to deliver on its mission; to effectively address complex challenges; to suggest approaches; and to deliver meaningful information to guide organizations.

Challenges and Obstacles to Organizational Performance Management
We assist clients building a performance-based culture; understanding organizational "accountability flow;" implementing a performance management strategy.

Strategic Uses of Organizational Performance Management
We help you to recognizing value and to satisfy expectations; increase productivity; fostering creativity and innovation; improving individual behavior.

Assessing and Responding to Demands for Accountability
We provide you with strategy to balancing external and internal accountability; dealing with the forces that shape the Government/ Parastatal environment.

Aligning Mission and Organizational Performance Management
We link your mission, performance, and impact; understanding what is being measured and what is being delivered.

Tools and Approaches for Organizational Performance Measurement
We implement the tools required to measure performance: Institutionalizing and Sustaining Organizational Performance Management Systems

Our Clients

  • Office of the Auditor General South Africa (AGSA)
  • Gauteng Department of Health
  • Department of Basic Education
  • DBSA
  • IDC

Partners Responsible For This Industry

Michael Rossouw
Coenie Middel
Anton Fourie