The tabling of 2009/10 annual reports is an important occasion for assessing the progress we are making in relation to the developmental agenda we set out at the beginning of this political term. This developmental agenda is mainly made-up of the five priorities of education, health, decent jobs, rural development and community safety. Infrastructure development and local government have also been attached as key priorities in the province.
Our mandate, as the Provincial Treasury, of financial governance and accounting services is therefore part of advancing the developmental and transformational mandate of Government.And ensuring compliance with all relevant legislation and regulations is therefore an important tool in this regard.
The Free State Government launched Operation Clean Audit 2014 in October 2009. The Premier andall Accounting Officers signed the Pledge at the launch. For 2009/10 financial year the objectives to which we committed ourselves included the following:
- Provincial departments must have clear trial of financial statement and Portfolio of Evidence.
- Continuous workshops on accounting standards must be conducted with provincial departments and entities so as to progressively reduce issues raised by Auditor General in provincial departments audit reports.
- Hundred percent on-time submission of Annual Financial Statements to the Auditor General by 31 May 2010.
- Ten percent increase in provincial departments complying with risk management, internal control and governance practices.
The main issues that were raised by the Auditor General, Mr Terence Nombembe, as the main concerns regarding the 2008/09 annual financial statements, included:
- Irregular expenditure
- Misstatements
- Assets management
- Leadership
It is therefore a relieving to notice that marked progress is being made in achieving the objectives of Operation Clean Audit 2014.
For 2009/10 we have a clean audit report for one of the provincial departments. We should therefore not only congratulate the Provincial Treasury, but we should also celebrate that the Provincial Treasury is, indeed, leading by example.
The general picture for provincial departments is as follows. We have seven unqualified opinions for the 2009/10 financial year as compared to five unqualified opinions for the 2008/09 financial year. Four qualified opinions and two disclaimers of opinion were expressed in the 2009/10 financial year, compared to seven qualified and no disclaimer of opinions in the 2008/09 financial year.
With regard to public entities, trust funds and trading accounts have deteriorated from one adverse opinion in the 2008/09 financial year to one disclaimer of opinion and one qualified opinion in the 2009/10 financial year. They have, however, improved with regard to the achieving of clean audit reports from 3 in the 2008/09 financial year to 5 in the 2009/10 financial year.
The Provincial Treasury will therefore work with all provincial departments and provincial entities to bring about more improvements to our financial governance and accounting services. Working together we can do more!
I thank you.
Enquiries:
Mojalefa Mphapang
Tel: 051 405 5939
Cell: 083 578 9997
Source: Department of Treasury, Free State Provincial Government
