The Gauteng Provincial Government has committed itself to address the audit findings of the 2011/12 financial year, adding that this is important to achieving clean audit opinions by 2014.
This was done during the Auditor-General’s Public Financial Management Act (PFMA) roadshow to share the 2011/2012 provincial audit outcomes and discuss possible solutions. The roadshow is taking place at the Gauteng Legislature today and is attended by Auditor-General Mr Terence Nombembe and Members of the Provincial Legislature including Premier Nomvula Mokonyane.
In the year under review, a total of 11 departments with the exception of the Gauteng Department of Health achieved unqualified audit opinions. Also seven entities received clean audit opinions. This indicates that the provincial government sustained its performance, which augurs well for achieving clean audit outcomes by 2014 in line with the targets of Operation Clean Audit.
“All departments have developed action-plans to attend to the issues raised by the Auditor-General. They are implementing key controls in specific areas. All MEC’s have signed letters of commitments towards clean audit,” Gauteng Finance MEC Mandla Nkomfe said.
Amongst other plans that have been developed, the provincial government will improve efficiency on human resource management and reduce the carbon footprint of the provincial government. This will be done through automating processes to verify employees in particular in our biggest departments against approved organisational structures. This will ensure that employees are paid for the work that they have done and avoid over expenditure. There has been a significant progress regarding the approval of structures by the National Department of Public Service and Administration.
The provincial government is also rolling out the Automated Termination System to effectively manage employee exist and avoid unnecessary employee debts. “We are confident that this and other measures that we are implementing as a matter of urgency will ensure that all departments efficiently manage the human capital and maximise production,” MEC Nkomfe explained.
On performance against predetermined objectives the province will ensure that targets are specific and measurable. Work has already started to address this. To this end, all departments have received training on how to structure performance indicators and ensure that these are measurable and smart. This training was facilitated by the Office of the Auditor-General.
Also as part of the process to address measurable objectives, departments were granted an opportunity to review their performance indicators as contain in their 2012/13 Annual Performance Plans and submit these by end of October. This has been done.
The Gauteng Provincial Treasury (DPT) will from now on review non-financial information in department’s and the consolidated annual reports even before the start of the audit process. This is to ascertain that departments report correctly against predetermined objectives.
“Annual Performance Plans should not be design for compliance with the laws and regulations only but they should also be implementable. Departments and entities should make sure that the target given in the APP is what is reported on,” he said.
Over and above this, GPT will implement the following:
- Training and development of staff in the Offices of Chief Financial Officers;
- Auditing interim financial statements;
- Monthly monitoring of expenditure against budget to assist departments in anticipating unauthorised expenditure and putting measures to prevent same.
“Compliance with laws and regulation is a must. Non-compliance leads to unauthorised and fruitless expenditure. There is also a need to enhance procurement and contract management,” MEC Nkomfe said.
Therefore non-financial personnel in the provincial government should be inducted on how to implement policies and laws governing financial processes and their impact on audit outcomes. Furthermore internal auditors and risk management units should help the entities in terms of compliance and should continuously monitor the departments’ key internal controls.
Enquiries:
John Sukazi
Tel: 011 355 2161
Cell: 083 772 4885
E-mail: john.sukazi@gauteng.gov.za
