Scopa scrutinises Gauteng departments’ annual reports
Standing Committee for Public Accounts in Gauteng had a breakaway session with the auditor-general to scrutinise Gauteng departments’ annual reports for the last financial year. The committee was briefed by the auditor-general on the audit outcomes of the Gauteng provincial departments (GPG) with regard to annual financial performance reports.
The committee is satisfied with the audit outcomes of seven departments, namely: Office of the Premier, Gauteng Provincial Legislature, department of social development, Cogta, department of e-Government, Gauteng treasury and the department of economic development, and 10 entities, namely: the Gauteng Tourism Authority, Gauteng Gambling Board, Gauteng Housing Fund, Gauteng Film Commission, Gautrain Management Agency, Dinokeng Trading Entity, Gauteng Partnership Fund, the Cradle of Humankind, Gauteng Partnership Fund and Gauteng Infrastructure Financing, which managed to sustain and improve their financial performance by obtaining clean audits in their 2015/16 annual reports.
The clean audits departments and entities were found by the auditor-general to have produced quality financial and performance reporting that was free of material misstatements.
However, though eight Departments (Health, Education, Human Settlements Affairs, Roads and Transport, Community Safety, Agriculture and Rural Development, Infrastructure Development and Sports, Arts, Culture and Recreation and five entities (Gauteng Enterprise Propeller, g-Fleet, cost Recovery Trading Entity, Medical Supplies Depot and Gauteng Growth and Development) obtained unqualified audit opinions, Scopa is concerned with the lack of improvement in the audit outcomes of some of these Departments and entities, as they received findings on matters such as predetermined objectives and compliance with legislation.
Other areas of concern for the standing committee cited by the auditor-general were procurement without competitive bidding and non-compliance with procurement process requirements by various Departments.
Scopa further noted an increase in irregular expenditure incurred by various Departments amounting to R6.5-billion and accruals due to commitments towards housing and educational projects.
The standing committee has resolved to take a tougher stance on irregular expenditure and will pay attention to investigations as well as implementation of consequence management by the Departments.
Hearings
Scopa has also resolved to send questions and convene hearings with all the departments and entities that received unqualified audits with material findings. The first hearings will be convened with departments falling under social cluster such as health, education and sports, arts, culture and recreation; economic cluster such as entities under the Economic Development Department, Agriculture and Rural Development and Infrastructure Departments comprising Human Settlement Affairs, Roads and Transport and Infrastructure Development.
The annual report process will conclude when the standing committee tables the report in the legislature before the end of the 2nd term.
Generally Scopa would like to commend the departments for the overall improvement in their audit outcomes and initiatives by the department of treasury in providing support to accounting officers and intervening in key areas to improve and maintain the clean audit outcomes.