Inadequate review of statements lashed
AUDITOR-GENERAL Kimi Makwetu has lashed out at the management of the Arts and Culture Department for not taking steps to adequately review annual statements submitted for auditing purposes.
This came after Makwetu could not obtain sufficient audit evidence for achievement of the number of social cohesion platforms organised and supported by the department in 2017-18.
“The management did not perform adequate review of the annual statements submitted for audit purposes, as the annual performance report contained material misstatements which were not corrected,” Makwetu said.
The department had, in its annual report, said that 10 social platforms were planned, but 22 were ultimately conducted, including at the Vuwani unrest, where social cohesion advocates were deployed at short notice.
But Makwetu said there was no evidence that social cohesion advocates were appointed and/or approved.
“I was unable to verify whether the platforms created and/or supported were conducted by appointed social cohesion advocates. I was unable to confirm the reported achievement by alternative means,” he said.
Makwetu made the same finding on community arts projects financially supported by the department, as well as artists placed in schools.
“This information should be considered in the context of the material findings on the usefulness and reliability of the reported performance information,” he said.
The department claimed to have supported 150 community arts projects, but supporting documents proved only 85.
Makwetu also found the management did not implement adequate controls to prevent and detect non-compliance with laws, and which resulted in R12.3million of irregular expenditure, as well as R32.5m of fruitless and wasteful expenditure.
Makwetu said goods and services valued above R500 000 were procured without inviting competitive bids.
“Deviations were approved by the accounting officer, even though it was not impractical to invite competitive bids. Invitations for competitive bidding were not always advertised for a required minimum period, as required by Treasury regulations.”
He also said disciplinary steps were not taken against some of the officials who had incurred or permitted irregular and fruitless and wasteful expenditure.
Director-general Vusumuzi Mkhize said the irregular expenditure had been reduced from R41.9m.
“There was significant reduction in irregular expenditure due to improvement of internal controls in the procurement section of the department,” Mkhize said.
He also said nine officials were hauled before disciplinary hearings for incurring irregular, fruitless and wasteful expenditure. “A total of R129000 will be recovered from officials or companies who caused it.”
Mkhize blamed the R32.5m in fruitless and wasteful expenditure on arrears paid for rent of unoccupied buildings and interest on late payment of invoices.