The information technology governance disclosures of state-owned entities

M.Com. (Computer Audting)Abstract: Most organisations are now dependent on the use of information technology for their business operations and this has brought about an increase in information technology related spending. For most organisations with this excessive spend on information technology, there are also many unsuccessful information technology projects leading to fruitless expenditure. There is a need for organisations to implement information technology governance effectively. Effective information technology governance will result in beneficial information technology spend and consequently the reduction of unnecessary costs and overruns, and exploitation of information technology to enhance an organisation’s strategy. Information technology governance disclosures in an integrated report are important; they are an effective way for an organisation to communicate to stakeholders how they have implemented information technology governance. Globally state-owned entities (SOEs) contribute 20% to investments. Therefore these entities play a vital part to the South African economy; and thereby making public accountability for money spend by these entities particularly important. SOEs entities also use information technology extensively in their operations, just like their counterparts in the private sector. Information technology governance is therefore of utmost importance in the public sector as well. This study sought to investigate whether listed SOEs have adequately disclosed information technology governance in their integrated reports. This was achieved through a content analysis of the information technology governance disclosures contained in the SOEs’ integrated reports and compared to the principles contained in the King codes. The majority of SOEs do provide some disclosures regarding information technology governance; however, most of these disclosures are not sufficiently detailed. The integrated report disclosures reveal that only one SOE has fully complied with the King III code. Therefore, SOEs have a long way to go in terms of information technology governance disclosure requirements..