Another two clean audits for E Cape

The number of provincial government departments and state entities receiving clean audits in the Eastern Cape has grown by two.

The newcomers to the club of clean audits are the department of rural development and agrarian reform and the provincial liquor board.

This brings the Eastern Cape’s tally of those who obtained unqualified audit outcomes with no findings to 10.

This was according to the results of the 2016-17 audit results announced by provincial auditor-general (AG) Sithembele Pieters this week.

In the previous financial year, 2015-16, the provincial AG found that only eight of 25 government departments and state parastatals managed to obtain outright clean audits.

Since 2015-16, these eight entities have received whistle-clean audits: the department of safety and liaison, the treasury, the East London Industrial Development Zone, the gambling and betting board, the parks and tourism agency, the provincial arts and culture council, the rural development agency and the socio-economic consultative council.

This was all revealed by Pieters in a report tabled to the Bhisho legislature’s standing committee on public accounts this week.

In welcoming the two new financially clean audit achievers, Pieters said: “We are encouraged by the improved accountability and good governance displayed by the rural development and agrarian reform department and the Eastern Cape liquor board, and the sustained good governance and accountability displayed by the eight other auditees – which includes provincial treasury – that sustained their clean audit outcomes achieved in the previous year,” the AG said.

However, 10 provincial government departments and four state entities are not there yet.

They obtained unqualified audit opinions, albeit with numerous findings, which prevented them from getting outright clean audits.

The number of those with unqualified audit opinions with findings stood at 16 in 2015-16.

Dunce in the latest audit was the provincial education department, which was the only provincial auditee to obtain a qualified audit opinion with findings – the worst audit outcome in the province in the 2016-17 period.

The education department achieved the same outcome in 2015-16.

Of those that did not make the grade, the AG said: “In contrast, the control environment of those departments and entities that did not achieve clean audit status remained at the same concerning levels as reported on in the previous year.

“Basic daily, weekly and monthly disciplines around financial and performance management were still not in place.

“Controls in the information technology (IT) environment remain concerning and only improved slightly from the previous year.”

According to the AG, good governance enhanced accountability through the processes of decision- making and implementation.

Detailed audit reports will be made public when various provincial departments present their latest annual reports at the Bhisho legislature between October 10-12.

Rural development and agrarian reform MEC Mlibo Qoboshiyane said he was “pleased” with the clean audit outcomes of both his department and the Eastern Cape rural development agency.

“All the employees of the department and the entity played a significant part,” he said. —

asandan@dispatch.co.za