The Gauteng Provincial Government has noted the Auditor-General’s report on the audit outcomes for the financial year 2008/09.
The Auditor-General reported that there had generally been an improvement in the audit opinions of the Gauteng provincial departments during the financial year 2008/09 as compared to the 2004-05 financial year. The improvements can be attributed to implantation of measures by departments to address concerns raised by the Auditor-General in previous financial years.
Government is happy with the reported improvements and particularly with the actions taken by departments and public entities to address the concerns of the Auditor-General on the financial management systems and controls.
Government is however concerned that a number of departments have regressed from their previous unqualified opinions to qualified audit opinions and, in the case of the department of health, a disclaimer. Public entities performed poorly, with three entities receiving disclaimers and eight receiving qualified opinions.
Government has noted the Auditor-General’s recommendations and is committed to act on them to improve the financial management of departments and public entities. Everything will be done towards achieving clean audits for all departments and public entities in the medium term.
The Executive Council had already decided at its meeting on 23 September that tough measures would be implemented to improve financial management systems and internal controls within the Gauteng Provincial Government.
A new culture of financial management including proper planning and risk management will be entrenched in all departments and public entities. All heads of department and public entities will have to ensure that their departments and entities have effective, efficient and transparent systems for financial and risk management and internal control. Steps will also be taken to ensure that all senior managers understand their responsibilities in relation to financial management and compliance with the Public Finance Management Act and other related law and regulations.
The Gauteng Provincial Treasury will monitor spending against priorities through robust monthly budget monitoring sessions with departments and public entities. Treasury will report deviations as well as over and under expenditure to the Executive Council and where necessary the Executive Council will take appropriate corrective measures.
Members of the Executive Council (MECs) will play a more active role in monitoring the implementation of measure to improve financial management in departments and public entities. Heads of department and public entities will be held liable for failure to implement measures to improve systems for financial management.
For inquiries contact:
Thabo Masebe
Cell: 082 410 8087
Issued by: Office of the Premier, Gauteng Provincial Government
22 October 2009
