File
The Eastern Cape Provincial Government says audit outcomes presented by the Auditor-General show a significant improvement from five clean audits in the 2018/2019 financial year, to 15 during the period under review.
Bhisho says the Auditor-General, Tsakani Maluleke, presented the audit outcomes during a virtual meeting on Tuesday.
In a statement, Bhisho said according to the AG’s report, the 2022/23 audit outcomes indicate substantial improvement in the quality of financial statements.
Spokesperson, Khuselwa Rantjie, said 20 of the audited public institutions achieved unqualified audit opinions, with 15 achieving clean audit opinions, being unqualified with no findings, whilst five received unqualified audit opinions, but with findings.
"Notably, the Office of the Premier improved from the unqualified with findings status to clean, joining Provincial Treasury, Cooperative Governance and Traditional Affairs, Economic Development, Environmental Affairs and Tourism, Department of Rural Development and Agrarian Reform, Provincial Legislature, Community Safety as well as Sports, Recreation, Arts and Culture," she said.
Rantjie said the Departments of Human Settlements, Social Development, and Public Works and Infrastructure have maintained the unqualified audit opinion they attained during the previous auditing period.
However, she said the big three departments, namely, Health, Education, and Transport, received "qualified audit opinions with findings. They remain a cause for concern within the provincial administration, including the Eastern Cape Rural Development Agency (ECRDA) whose audit outcomes have regressed."
Rantjie said the Provincial Government has noted areas that require attention, especially in key service delivery portfolios and state-owned enterprises.
"The province has assured its commitment to support and action AG’s recommendations towards building capable, accountable, and responsive institutions to deliver on its mandate," she said.
But, in her findings the Auditor General noted that, despite recommendations last time around, transgressions are still taking place even though SCOPA has also been following up, making recommendations, and asking for evidence of consequence management.
"The level of irregular expenditure incurred is slowly decreasing, however, the pace of dealing with prior year UIFW is slow. There is insufficient monitoring of infrastructure projects and there is evidence of poor contract and project management, Maluleke noted.
She said the Provincial Treasury is currently evaluating the audit improvement plans that have been developed.
However, despite the interventions by the Treasury and Office of the Premier, in the past cycle, the three departments still have qualified opinions.
"The internal audit and audit committees have not had an impact as recommendations were not implemented timeously," she said.
"In addition to the normal SCOPA hearings, the committee had separate hearings with the internal audit and audit committees of Education, Health, and Transport to establish their effectiveness and determine if the departments’ leadership are taking the internal audit and audit committee reports and findings seriously."
