to two Free State Adult Basic Education and Training Centres
22 June 2006
Bloemfontein - The Auditor-General (AG) today tabled its findings of a
special audit investigation into alleged payment irregularities made to adult
basic education and training (ABET) centres in the Free State Department of
Education.
The AG's special investigation arose from the request by the head of the
Free State Department of Education to extend a previous special audit
investigation on adult basic education and training and investigate the
following allegations:
* collusion in the salary section of the department that might have led to
fraudulent ABET claims being paid during the 2004-2005 financial year at the
Vulamehlo and Kopano 2 Public Adult Learner Centres (PALCs)
* false ABET claims submitted for hours not worked.
The primary objectives of the AG's investigation were to:
(a) investigate possible irregular activities and transactions that took
place regarding ABET claims submitted to the department
(b) verify expenditure incurred against accounting records and supporting
documentation
(c) confirm the actual establishment at the different centres.
During the investigation, which covered the period 1 April 2004 to 31 March
2005, the AG used documentation and other information supplied by the
department, as well as the information obtained from the interviews conducted
with internal and external role players. The AG's investigative efforts were
limited to the legal and legitimate acquisition and collection of admissible
evidence.
An overview of ABET processes was compiled by the AG through consultation
and scrutiny of the Free State Department of Education's Manual for the
Administration of Adult Education, which sets out all the conditions for the
running of PALCs.
When compared to the overview, the AG's report found the following
irregularities:
* The integrity of time registers at the two PALCs was questionable since
registers were kept by educators instead of programme supervisors. In 89 claims
made at Vulamehlo PALC (amounting to R162 011) and 30 claims at Kopano 2
(amounting to R56 701), the time registers were not attached to the submitted
claim forms making it impossible to check the validly of these claims. Further,
it was found that the programme supervisors did not correctly control the ABET
claims to ensure that only correct and authentic claims were paid.
* Learner validity and numbers could not be confirmed as admission registers
for 2004-05 were unavailable. It was also found that the educator to learner
ratio of 1:20 was not correctly maintained since the number of learners did not
justify the number of educators appointed.
* It was not possible to determine the number of educators appointed, since the
PALCs did not keep complete personnel files and/or employment contracts.
Educator claims were paid without there being appointment contracts in
place.
* The required copies of the educators' claim forms were not kept at the PALC,
the district office and the finance section of the Department of Education,
making it difficult to reconcile payments with claims. Notwithstanding the lack
of supporting documentation at these sections, payments were still authorised
and processed on the electronic personnel and salary system (PERSAL).
* Programme supervisors' claims forms could not be supplied for payments made.
In addition, claims were submitted for holiday periods and over weekends when
no classes were presented. The report also found instances where double claims
were submitted and paid out at both PALCs.
"The primary responsibility for the prevention and detection of fraud and
error rests with both those charged with the governance and the management of
the Free State Department of Education. Its management, with the oversight of
those charged with governance, need to set the proper tone, create and maintain
a culture of honesty and high ethics, and establish appropriate controls to
prevent and detect fraud and error within the entity."
"It is hoped that this report will assist the department to improve the
financial and administrative management of its PALCs," said Free State Business
Executive Ben van Niekerk.
The AG's management letter was discussed with the Head of Department (HOD
and his delegates on 15 July 2005 and they were afforded the opportunity to
confirm the factual correctness of the findings, give inputs and take possible
corrective steps. Although no formal letter has been received from the
department, the AG noted that the Directorate of Special Operations (Scorpions)
has been requested to assist the department further.
Enquiries:
Ben van Niekerk
Tel: (051) 400 7601
Cell: 082 457 8141
E-mail: ben.van.niekerk@agsa.co.za
Issued by: Auditor-General of South Africa
22 June 2006
Source: Auditor-General of South Africa (http://www.agsa.co.za)
