The Department of Labour (DoL) is on the march towards a sustained post-2014 clean audit outcome when it posted an unqualified audit opinion for the third year in succession, the Office of the Auditor-General (AG) told Parliament’s Portfolio Committee on Labour in Cape Town.
Department of Labour (DoL) Director-General Nkosinathi Nhleko concurred with the AG office that it was not impossible to achieve and sustain a clean audit outcomes in the department including its public entities. Nhleko said the Department of Labour had made strides to deal with compliance issues and delivery matters. Nhleko said the supply chain management concerns have also been reduced drastically.
“We have consistently made interventions like training and tightening controls in the financial management arena. However, some of our interventions, such as in the predetermined objectives, have not yielded results, but we are working hard to deal with such areas of concern,” Nhleko said.
The department and its public entities, will this week be presenting their 2011/12 annual reports for the period ending 31 March 2013 in Parliament. The DoL family of institutions that will be making presentations on their annual reports include: the Unemployment Insurance Fund (UIF), the Compensation Fund (CF), Sheltered Employment Factories (SEF), Commission for Conciliation Mediation and Arbitration (CCMA), Productivity SA and the National Economic Development and Labour Council (NEDLAC).
The AG office said sustained clean audit outcomes were not impossible to achieve. The AG, however, expressed concerns on the lack of monitoring and evaluation from leadership. It further highlighted the lack of accountability and consequences when wrong doing was uncovered.
“The findings that we have raised are not new. We have also tabled recommendations and everybody is aware of. It is possible to achieve clean audit outcomes. We need to go back to the basics to achieve targets.
“We need to focus on the root cause of problematic areas. There is movement, but it is slow. There are quick fixes that can be achieved so as to enable the department to plan appropriately and achieve the much needed service delivery” the AG said.
In terms of the performance by individual entities, the UIF was once again a shining star with no material findings as it delivered yet another unqualified audit.
The CF posted a disclaimer audit opinion with concerns raised by AG in areas such as insufficient information, no proper accounting journals of revenue and debtors and lack of compliance with supply chain management prescripts.
The SEF received a qualified audit opinion with concerns raised on stock and finished goods management. The AG also expressed concern on non-compliance with supply chain management issues.
The Commission for Conciliation Mediation and Arbitration also delivered an unqualified audit. It was cautioned to tighten its financial management and compliance with regulations.
Productivity SA also posted an unqualified opinion. The AG said the entity needs to strengthen compliance with laws and regulations.
Meanwhile, the National Economic Development and Labour Council received an unqualified audit opinion. NEDLAC was showered with praise on the strides it had made, however needed to address performance objectives.
Enquiries:
Page Boikanyo
Departmental Spokesman
Cell: 082 809 3195
