Honourable Speaker,
The tabling of annual reports of department and provincial public entities today concludes the accounting cycle of the 2012/13 financial year. The annual reports and annual financial statements provide a comprehensive overview of the work of the Free State provincial government during the financial year under review.
We are pleased to have achieved the following audit outcomes for the 2012/13 financial year;
Clean audit status has been retained by the Department of the Premier and the Provincial Treasury whilst the Department of Sport, Arts, Culture and Recreation and the Fleet Management Trading Entity join the ranks of these two leading departments. The Nature Conservation Trust Fund and the Housing Fund also retained their clean audit status.
Eight financially unqualified outcomes were achieved, namely;
- Agriculture and Rural Development
- Cooperative Governance & Traditional Affairs
- Education
- Police, Roads and Transport
- Social Development
- Free State Gambling and Liquor Authority
- Free State Legislature
- Central Medical Trading Account
Five qualified audit opinions were received by;
- Economic Development, Tourism & Environmental
- Health
- Human Settlements
- Public Works
- Free State Development Corporation
A significantly positive outcome is the fact that not one Department or Public Entity in the Free State achieved a disclaimer or adverse audit opinion.
We are particularly pleased with the audit outcomes of the following Departments and entities;
We have identified the matters that need to be attended to by the Free State Legislature and the Free State Tourism Authority that resulted in the regression of their respective audit outcomes.
The audit of the Provincial Revenue Fund has commenced upon the conclusion of all other audits of departments and public entities and we have every reason to believe that the Provincial Revenue Fund will maintain its clean audit outcome.
The progress in our audit outcomes does not mean that we have achieved the goals that we set for ourselves. Matters that continue to require the attention of the executive authority and accounting officers include the following;
- Prevention and follow-up of unauthorised, irregular and fruitless and wasteful expenditure.
- Management of procurement and contracts.
- Human Resource Management
- Revenue Management
- Transfers and Conditional Grants as well as
- Strategic Planning and Performance Management
Honourable Speaker, in consultation with the National Treasury, the Office of the Auditor-General and the State Law Advisors, the Provincial Treasury have advised in favour of the delay of the tabling of the annual reports of the Department of Human Settlements and the Department of Agriculture and Rural Development today. The annual reports of these two departments will be tabled before the end of the month in order to ensure compliance with legislative prescripts. The required explanation to be tabled in this regard has been provided to the Table Staff and the Speaker.
- Department of Sport, Arts, Culture and Recreation and the Fleet Management Trading Entity which improved to an unqualified opinion with no findings, i.e. the “clean audit status”,
- Department of Police, Roads and Transport and the Free State Gambling and Liquor Authority that improved from a qualified audit opinion to an unqualified audit opinion;
- The Free State Development Corporation which improved from a disclaimer audit outcome to a qualification.
Allow me to express the appreciation of Provincial Treasury to the Premier and respective executive authorities, accounting officers, chief financial officers and all officials who have worked with commitment and dedication to ensure that the Free State provincial government continues to make progress in achieving an improved financial management environment.
Honourable Speaker, I therefore propose that the annual reports and audited financial statements of the provincial departments and public entities tabled today, be referred to the Committee on Public Accounts, Office of the Premier and Legislature and the relevant Portfolio Committees respectively.
