Do you know what information the public wants and how to report it?
The public is one of the key users of government information. They provide resources to, and receive services from, government and they need information to be able to hold government accountable. The Accounting Standards Board (Board) undertook research to identify the type of information the public needs and the way in which information should be reported to them. Specifically, the research set out to understand whether the information currently reported in financial statements meets the information needs of the public. If not, the Board wanted to understand what information the public needs, how they want it reported to them, and whether additional reporting requirements should be developed for entities to report information specifically to the public.
Although the research was conducted in 2018, some of the areas identified will be relevant when reporting on how resources are being deployed to respond to the COVID-19 pandemic. The public will be particularly interested to know how these resources are being spent and whether they will achieve the set objectives.
For purposes of the research, “the public” was defined as those individuals and businesses (or those who represent their interests) that provide resources such as taxes, levies and other fees to, and/or receive services from, government, and that have an interest in the work done by government with the aim of holding government accountable. The public includes, for example, taxpayers (individuals and businesses), indigent service recipients, and the media. Civil society organisations were also consulted as part of the project as they represent the public’s interests.
The results of the research deal with the following: What does the public want to know and from who do they want to know it? What are the characteristics of the information the public wants? What information is already available and is it useful? What can be done by entities to better report information to the public? The Board has published the results of the research in a Research Paper on Reporting Information to the Public to assist entities to better report information to the public. Entities are encouraged to consider what they report, and how they can better package and communicate currently reported information, to meet the public’s needs.
What does the public want to know and from who do they want to know it?
The purpose of the research was to understand the public’s information needs. Stakeholders were asked what type of information they need to hold public sector entities accountable and make decisions. There was a clear indication that the public needs the following type of information:
| What do they need? | Why do they need it? |
|---|
| Information that links the budget, financial statements and performance information. | To “follow the money” so that they can understand how money was spent and what was achieved. | Information related to service delivery, especially on the provision of basic services (such as water and sanitation, healthcare, education, housing, and safety and security).
Information on the cost of free basic services and how they are funded. | To understand where there are service delivery failures, reasons for those failures, and how they will be addressed.
The effect that free basic services, if not sufficiently funded, could have on the provision of future services to all members of the public. | | Information on capital expenditure, including the maintenance of assets used to deliver services such as infrastructure assets. | To understand entities’ ability to continue providing services with their assets in future, and to identify potential service interruptions where entities maintain older assets instead of replacing them.
To assess the progress on capital projects and to understand reasons for delays and over- / under-spending, as well as how these will be managed. | | Information on financial viability, including forward-looking information. | To understand whether entities can service their debt and their ability to attract new investment.
To know if entities can continue to provide services in future and the cost at which those services can be provided. |
As can be seen from the type of information the public needs, it relates to services delivered by all levels of government. Certain groups who represent the interests of the public and communicate information to the public, such as civil society organisations and the media, can use and interpret information from all levels of government. However, the public can best hold entities accountable at a local government level, per ward and for specific projects. As the information needs of the public mature, they will be increasingly interested in receiving information from national and provincial government. What are the characteristics of the information the public wants?
For the public to be able to locate and use information, it should be communicated to them in a certain way. The most notable characteristics of how information should be reported are that information should be: Although it may not be possible for entities to meet all the public’s needs, they should try to find a balance with the way in which they communicate information.
What information is already available and is it useful?
Public sector entities may question why the public does not have the information they need, because entities already report information on various platforms to the public. The research asked this question and found that the response was that it is hard for the public to use the information that is currently available.
There are two main reasons for this: Simple and concise, so that information is understandable.
Most members of the public do not have the skills and level of education necessary to use information in financial statements, or the wider annual report and integrated report. Therefore, information should be reported to them in a simple and concise way. To make information more understandable, it should be accompanied by simple explanations and should tell the public a story of how an entity has performed. It will further assist the public to understand information if it is presented in an interesting way, e.g. by using graphics, graphs and charts, and animations. Provided across multiple platforms and free of charge, so that information is accessible.
Entities should carefully consider mechanisms they use to report information so that it is accessible to the public. The best way to reach the public is for entities to use a combination of platforms, e.g. websites, radio and television, face-to-face engagements, etc. Information should also be available free of charge and in a manageable format, e.g. a 2-page document that can be downloaded easily. Timely and regular, so that information is relevant.
The public needs more in-year information, as audited annual information is historical and is provided too late for the public to take action. Reliable, so that information is trustworthy.
The public needs information they can trust. This means entities should report quality information that is clear, accurate, unbiased, balanced and objective. For this reason, the public prefers audited information. Although it may not be possible for entities to meet all the public’s needs, they should try to find a balance with the way in which they communicate information.
What information is already available and is it useful?
Public sector entities may question why the public does not have the information they need, because entities already report information on various platforms to the public. The research asked this question and found that the response was that it is hard for the public to use the information that is currently available. There are two main reasons for this: It is not the right type of information
See the section on “What does the public want to know and from who do they want to know it?” Most of the information available: Is too aggregated. Does not tell a story of what an entity has done and does not have context. Is inaccessible to the public as it requires an internet connection and data to download. Is no longer relevant as it is historical information from the financial statements or annual report. Challenges prevent the public from accessing and using information
The challenges identified in the current environment include, for example:
What can be done to improve reporting to the public?
The Board assessed the results of the research to determine the next steps of the project. The Board specifically took note of the following: Entities currently report different types of information across many platforms to the public. There are wide-ranging legislative requirements for entities to report different types of information to oversight structures and the public. The reliability of information currently reported by entities is low, as evidenced by poor audit outcomes. Based on these observations, the Board decided not to introduce specific reporting requirements for entities to report information to the public. Instead, entities should consider what they report, and how they can better package and communicate currently reported information to meet the public’s needs.
The Board noted that a further benefit of publishing the research is that it will assist the public to know about the platforms that entities use to report information.
The Board agreed to revisit this project at a future date and will add it to the list of potential projects to consult on in its next programme consultation for 2024 to 2026. How to access the Research Paper?
Access the Research Paper by following this link: (https://www.asb.co.za/wp-content/uploads/2019/12/Research-Paper-on-Reporting-Information-to-the-Public.pdf). |
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