Agency theory has helped to provide decision support mechanism in the area of performance measurement in line with the theory of governance, which highlights the way in which a government chooses to carry out its activities. Bevir (2011) and Carrington, DeBuse, and Lee (2008) argue that various theories of governance accommodate that social conflicts are resolved by a sovereign from an accountability perspective as guided by the new public management theory. This necessitates assurance from those who are governing to the governed through stewardship. Internal control system assists in this area of governance in tandem with the new public management (NPM). Maesschalck (2004) explains that NPM is based on the merit principle, neutral, competent administrators and sound financial management.
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