Gauteng welcomes 22 clean audits

Thursday, August 24, 2017

Gauteng Premier David Makhura has welcomed the clean audits that were reported by several provincial departments, adding that the province is determined to achieve 100% clean audits.

A total of 22 provincial government departments and entities achieved clean audits in the 2016/17 financial year.

In the last three years, the province has moved from 56% to 65% clean audits with all other departments and entities achieving unqualified audits.

“The Gauteng Provincial Government continues to make steady progress in improving financial management, eliminating wasteful expenditure and ensuring that public funds are used to deliver services to citizens.

“We welcome these results and we are encouraged that all Gauteng Departments have achieved unqualified audits. However, we remain in pursuit of our goal of achieving 100% clean audits,” said Premier Makhura.

Two new entities namely the Gauteng Enterprise Propeller and the Greater Newtown Development Company achieved clean audits.

The Office of the Premier, the Provincial Legislature, the Provincial Treasury, Social Development Economic Development; and E-Government were the seven departments that achieved clean audits.

A clean audit indicates the auditor’s endorsement of the accuracy ad adequacy of the disclosed information and of the department’s financial picture as presented with no matters of emphasis.

Meanwhile, a total of eight departments achieved unqualified opinions including the Departments of Education, Community Safety, Health, Human Settlements and Infrastructure Development.

An unqualified opinion indicates the auditor’s endorsement of the accuracy and adequacy of the disclosed information and of the department’s financial picture as presented.

The Department of Health has sustained its improved audit outcomes for two consecutive years. However, the Premier expressed concern that the department is most affected by accruals and irregular expenditure.

Department of Health interventions

To this a Cabinet committee comprising of Health MEC Gwen Ramokgopa, Cooperative Governance and Traditional Affairs (COGTA) and Human Settlements MEC Paul Mashatile and MEC for Finance Barbara Creecy has been established.

The Committee has developed a financial rescue plan for the department with the aim of stabilising the finances of the department.

“This intervention focuses amongst other things, on expenditure management, revenue generation, human resource e management and governance. It should however be noted that a dislocation exists between the burden of disease and patient in migration; and the base line allocation to the department by National Treasury. This means the funding for the department remains fundamentally inadequate.

Public entities

Meanwhile, 15 public entities have achieved clean audits including the Gauteng Film Commission, Gautrain Management Agency and the Constitutional Hill Precinct.

Four public entities including the Gauteng Liquor Board and the Gauteng Housing Fund achieved unqualified audit opinions.

Irregular expenditure

Premier Makhura expressed concern at the high levels of accruals at the end of the past financial year.

“These negatively impact on the budgets of the current year. I am also concerned that we have not eliminated irregular expenditure and I will once again call the MECs and HODs from affected departments to account to me and advise me of the consequence management measures they are putting in place,” he said.

In addition, the provincial government will conduct monthly reviews of departments.

 “We will continue to work closely with departments to ensure compliance by conducting extensive monthly reviews, quarterly and annual financial statements and addressing recurring adverse audit findings,” said the Premier. –

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