Audit regression a concern for committee
The Portfolio Committee on Home Affairs is alarmed by audit regression outcomes at the Government Printing Works. The regression is a worrying factor that needs urgent attention from both the management team of the entity and the accountable Department of Home Affairs.
While the Committee acknowledge that the entity received an unqualified audit opinion, it was alarmed about the areas highlighted as areas of concern for the Auditor-General. Of major concern to the Committee is the finding of non-compliance with supply chain management legislation, which can be breeding grounds for corruption.
The Committee urges the management team of the entity to strengthen its monitoring controls and ensure compliance with legislation to enable the entity to return to the clean audit outcomes of previous years.
Regarding the Independent Electoral Commission (IEC), the Committee remains concerned that the institution has made no progress in relation to its audit findings. The Committee is also concerned that the IEC continues to face challenges in relation to the reliability of information in its annual performance report, as highlighted by the Auditor-General.
It is undesirable that an institution of this stature can have over consecutive years no appropriate evidence for 14% of its performance indicators and invalid, inaccurate and incomplete evidence for 29% of these indicators.
Another area of concern to the Committee is the inability of the internal audit function within the institution to do its work. This presents an assurance risk within the institution, which needs urgent attention.
The Committee remains concerned by the increase in irregular expenditure arising from procurement that occurred without compliance to procurement processes within both entities. The Committee urges both entities to tighten its procurement processes and adhere to legislation to prevent this worrying trend from persisting.
Despite this, the Committee is encouraged that both entities have lodged investigations to determine root causes of irregular expenditure and that disciplinary steps were taken where applicable.
The Committee will tomorrow engage the department to assess plans already in place to remedy challenges raised by the Auditor-General.
Media enquiries or interviews with the Chairperson please contact:
Malatswa Molepo
Tel: 021 403 8438
Cell: 081 512 7920
E-mail: mmolepo@parliament.gov.za
