Eastern Cape premier Phumulo Masualle says provincial departments have improved their management of taxpayers’ monies, scoring unqualified audits from the Auditor-General (AG) for the 2015-16 financial year.
Masualle told the Daily Dispatch that 13 of 14 departments received unqualified audit reports, with provincial treasury and safety and liaison receiving clean audits.
A clean audit is the best possible audit outcome with no comments, while an unqualified audit means that although there were no financial misstatements, there may have been performance issues.
A qualified audit opinion suggests that information provided was limited and the department audited did not maintain Public Finance Management Act accounting principles.
Masualle was briefed about the AG’s audit outcomes at the eighth general meeting of the provincial executive council.
According to Masualle the department of health, which has not achieved an unqualified audit opinion in the past 12 years, finally did so this year.
“This notable improvement is being assessed for lessons that can be learnt and applied but we know the department focused much energy on two areas that they had been unqualified on in the previous year – namely irregular expenditure and employee benefits,” Masualle said.
Improvements were also realised at the education department which previously scored a disclaimer but this year achieved a qualified opinion.
The two departments make up 80% of the total budget allocated to the province.
“Both departments have been improving over the years, with health crossing the bridge earlier. Education is expected to receive an unqualified audit in the next two years,” Masualle said.
He said the two departments reflected a level of stability in leadership.
“Governance has improved significantly, with financial stability due to stable structure and reporting especially in health.
“I must say education has reduced its material findings significantly from five to three but the complexity and size of the department means it may take time for this to reflect on the audit outcomes,” he said.
Masualle said of all 11 government entities, six achieved clean audits while the remaining five achieved unqualified audit opinions. Masualle said the entities with clean audits were the Eastern Cape Provincial Arts and Culture Council, Eastern Cape Gambling and Betting Board, Eastern Cape Socio-Economic Consultative Council, East London Industrial Development Zone, Eastern Cape Parks and Tourism Board, and Eastern Cape Rural Development Agency.
The entities with unqualified audits were Eastern Cape Development Corporation, Coega Development Corporation, Mayibuye Transport Corporation, Government Fleet Management Services and the Eastern Cape Liquor Board.
The AG will release the reports publicly next month. — zwangam@dispatch.co.za
Province’s audit ratings improve
Masualle told the Daily Dispatch that 13 of 14 departments received unqualified audit reports, with provincial treasury and safety and liaison receiving clean audits.
A clean audit is the best possible audit outcome with no comments, while an unqualified audit means that although there were no financial misstatements, there may have been performance issues.
A qualified audit opinion suggests that information provided was limited and the department audited did not maintain Public Finance Management Act accounting principles.
Masualle was briefed about the AG’s audit outcomes at the eighth general meeting of the provincial executive council.
According to Masualle the department of health, which has not achieved an unqualified audit opinion in the past 12 years, finally did so this year.
“This notable improvement is being assessed for lessons that can be learnt and applied but we know the department focused much energy on two areas that they had been unqualified on in the previous year – namely irregular expenditure and employee benefits,” Masualle said.
Improvements were also realised at the education department which previously scored a disclaimer but this year achieved a qualified opinion.
The two departments make up 80% of the total budget allocated to the province.
“Both departments have been improving over the years, with health crossing the bridge earlier. Education is expected to receive an unqualified audit in the next two years,” Masualle said.
He said the two departments reflected a level of stability in leadership.
“Governance has improved significantly, with financial stability due to stable structure and reporting especially in health.
“I must say education has reduced its material findings significantly from five to three but the complexity and size of the department means it may take time for this to reflect on the audit outcomes,” he said.
Masualle said of all 11 government entities, six achieved clean audits while the remaining five achieved unqualified audit opinions. Masualle said the entities with clean audits were the Eastern Cape Provincial Arts and Culture Council, Eastern Cape Gambling and Betting Board, Eastern Cape Socio-Economic Consultative Council, East London Industrial Development Zone, Eastern Cape Parks and Tourism Board, and Eastern Cape Rural Development Agency.
The entities with unqualified audits were Eastern Cape Development Corporation, Coega Development Corporation, Mayibuye Transport Corporation, Government Fleet Management Services and the Eastern Cape Liquor Board.
The AG will release the reports publicly next month. — zwangam@dispatch.co.za
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