Underspending slammed

Health Department hauled over coals on record keeping and information systems

AUDITOR-GENERAL Kimi Makwetu has made a damning finding against the national Health Department for “materially underspending” R82 million on the national health insurance (NHI).

The department disclosed in its annual financial statements for 2017– 2018 that R82 193 000 was underspent on the health information systems component for NHI.

“I did not raise any material findings on the usefulness and reliability of the reported performance information for this programme,” Makwetu said.

The department said it allocated R166m for information systems but spent only R83.8m.

It blamed delay in infrastructure projects due to technical compliance complexity, delays in awarding projects to contractors and contractual issues with some contractors.

While the department recorded zero in irregular expenditure, there was R1.085m in fruitless and wasteful expenditure.

Makwetu said the department did not have sufficient monitoring controls to ensure adherence to internal policies and procedures.

“Oversight by leadership needs to be improved in the areas where reporting of performance information is dependent on controls and information originating from information systems.”

During the audit Makwetu found internal control weaknesses with accurate and complete recording of immovable assets and commitments.

“The implementation of adequate controls that will prevent and detect material misstatements remains a challenge for senior management …

“This resulted in the correction of material misstatements in the financial statements relating to commitments and immovable assets.”

The AG noted concerns with proper record keeping and controls in the infrastructure and pathology unit.

Makwetu also said he did not find evidence to back achievements reported by the department.

The department recorded 100% achievement for food tests completed within the turnaround time at 20.85%.

“However, the supporting evidence provided did not agree with the reported achievement and indicated an achievement of 21%.”

He made a similar finding on achievement for the target of backlog blood alcohol tests.

Makwetu could not get enough appropriate audit evidence for compliance with national core standards assessment at targeted 43 hospitals.

“I was unable to determine whether any adjustments were required to the achievement of 37 hospitals.”

Makwetu also said the target of 42 clinics and community health centres constructed or revitalised could not be verified.