Water and Sanitation and holds engagement session with Auditor-General

10 Sep 2019

Auditor-General capacitates Portfolio Committee on Human Settlements, Water and Sanitation

Today 10 September 2019, the Office of the Auditor-General (AG) engaged with the Portfolio Committee on Human Settlements, Water and Sanitation. The engagement was aimed at informing and capacitating the Portfolio Committee members about the role and mandate of the A-G and keeping with the National Treasury prescripts. 

The session was also used to highlight the audit outcomes of previous financial years for the DWS.

The A-G opened the proceedings by outlining the different outcomes of the audit and these include the following:

  • Clean audit outcomes
  • Financial unqualified opinion with findings
  • Financial qualified opinion with findings
  • Adverse opinion with findings and
  • Disclaimed opinion with findings.
     

The issue of payment of suppliers within the prescribed 30 day period was stressed and emphasized. It was further emphised that the Accounting Officers must submit the annual report and annual financial statements for tabling in Parliament or relevant legislatures.

During the capacity building the A-G also highlighted DWS audit outcomes for 2017/18 as outlined below:

  1. DWS had an overdraft of R119 million and unauthorized expenditure of R526 million during the year ended 31 March 2018
  2. Expenditure incurred in contravention of key legislation with goods delivered but prescribed processes not followed
  3. Five water boards disclosed fruitless and wasteful expenditure relating to late payment of invoices, resulting in interest and penalties
  4. Generally the internal controls of the department need to be improved


The Portfolio Committee members asked about the role of the A-G in assisting the departments with adverse findings to reach improved financial performances.  As part of the A-G’s recommendations, DWS management is requested to provide quarterly reports as feedback on status of key controls, especially around project management or payments on key projects implemented by implementing agents.

The Portfolio Committee thanked the Office of the A-G for the information. The Members indicated that they would like to see the department taking consequence management measures against transgressors of the Public Finance Management Act (PFMA) in its employ.

It is envisaged that closer cooperation between the DWS, the Office of the A-G and National Treasury will result in better financial controls and outcomes for the DWS, which will impact positively on the delivery of basic services to the people of South Africa.

“Water is Life, Sanitation is Dignity”

More information:
Sputnik Ratau, Spokesperson for the Department of Water and Sanitation 
Cell: 082 874 2942

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