Mixed audits for E Cape entities
Light at end of SA, T’kei and C’kei merger tunnel
THE handling of the public purse across government departments in the Eastern Cape remains a cause for concern as only the provincial legislature and department of safety and liaison passed audits with flying colours.
The two departments received clean audit outcomes for 2014-15, with the only other public entities to achieve such results being the Eastern Cape Gambling and Betting Board and Eastern Cape Socio-Consultative Council (ECSCC).
The office of the premier (OTP), provincial treasury and cooperative governance and traditional affairs (Cogta) – which received clean audits for 2013-14 – regressed to unqualified reports with findings.
Auditor-general Kimi Makwethu, during the tabling of those reports, sang the praises of the Phumulo Masualle-led OTP, Cogta and treasury and challenged other departments to step up their game.
“As the only remaining oversight department without an unqualified audit outcome with no findings, we challenge the provincial legislature to learn from the best practices of these departments and strive towards this important milestone,” Makwetu had said.
The legislature heeded the call and upped its game. Deputy speaker Bulelwa Tunyiswa said: “We are humbled to have kept the promise of ensuring that the legislature attains a clean audit yet again. This means that we are doing things right and our machinery is well oiled.”
However, there is good news – for the first time since the merger of the erstwhile Ciskei, Transkei and former South African administrations, the province has no disclaimer – the worst audit finding.
A disclaimer opinion means there are so few supporting documents the AG is unable to form an opinion.
Finance MEC Sakhumzi Somyo said the fact that not a single public entity received a disclaimer, although some departments had regressed, was remarkable progress.
“To us this is a significant achievement. We have come a long way. The task of amalgamating three administrations with various challenges relating to document management has not been easy.
“Our patience has finally paid off. Let us be even more resolute to stay out of the red.”
The OTP, treasury and Cogta joined the departments of rural development and agrarian reform; human settlements; social development; economic development, environmental affairs and tourism; transport; sports, recreation, arts and culture; the EC Rural Development Agency; ELIDZ; EC Parks and Tourism Agency and the East Cape Arts and Culture Council, which all received unqualified audit outcomes with findings.
These entities passed the critical test of fair presentation of financial statements but failed to address internal control deficiencies.
On the borderline are the provincial departments of health; education; roads and public works; the Eastern Cape Development Corporation and Mayibuye Transport Corporation, which all received qualified audit opinions.
This means they could not account for all the financial effects of transactions and activities they conducted as some financial statements were unreliable in certain areas.
Somyo warned those “who are contributing to keep us in the red”.
“Things have to improve. The premier has signed off delegations to all MECs which stipulate what has to be done to ensure management on the staffing side starting with HODs. MECs have now formally been given responsibility to manage HODs on their own,” said Somyo.