By Lehlohonolo Lehana.
The Auditor-General of South Africa (AGSA), Tsakani Maluleke, has reported an overall improvement in the national and provincial government audit outcomes in the financial year to end-March 2023 and and over the past four years.
Maluleke told MPs there has been an increase in the number of clean audits.
“Each of the 37 auditees that is very close to obtaining a clean audit only needs to address one finding on either the quality of its financial statements (31 auditees) or on its performance reporting (six auditees).
“For example, the Ithala Development Finance Corporation (in KwaZulu-Natal), the Limpopo Tourism Agency, and 19 auditees in the higher education and training portfolio each only had one finding on material misstatements in its submitted financial statements.
“Some of these auditees have been working towards this goal for many years, and we encourage them to persevere in overcoming the last hurdle. If they manage to do so, we expect to see an increase in the number of clean audits for 2023-24. This will set a strong foundation from which the next administration can build when its term starts in 2024-25.”
Maluleke warned there are still weaknesses in planning and reporting on service delivery, challenges in infrastructure management, and a lack of prudence in spending limited resources, which further pressures government finances.
“There has been a net improvement in audit outcomes (more auditees improved their audit outcomes than regressed) every year over the term of the administration, and the number of clean audits continues to increase.
“Departments, public entities and legislatures with clean audits are characterised by sound financial and performance management disciplines and perform their functions in accordance with applicable legislation.
“The auditees that maintained their clean audit status continue to be an example of what is possible.”
Maluleke says while there is a great trend of improvement in clean audits throughout public institutions, the entity remains concerned about institutions which don’t submit.
She highlighted PRASA, ALEXCO and Taletso TVET colleges as some entities that failed to submit timely financial statements.
Overall, the audit outcomes of both departments and public entities improved and more auditees improved their audit outcomes each year of the administrative term than regressed. In 2022-23, the net improvement was 37 auditees (9%) – the biggest movement over the four-year period. Provincial government showed a net improvement of 44 (27%) and national government a net improvement of 34 (15%), said Maluleke.
Maluleke also highlighted that government wasted R22 billion in the current term due to wasteful expenditure and irregularities, as well as suspected fraud and corruption.
This includes R7.62 billion in wasteful expenditure over the past five years, as well as R14.34 billion in financial losses due to 240 cases of non-compliance, suspected fraud and irregularities, placing an added and unnecessary burden on government finances.
The Auditor-general cited poor payment practices, the government getting no benefits from money spent, unfair procurement processes, neglected maintenance, and poor planning.
This includes R7.62 billion in wasteful expenditure over the past five years, as well as R14.34 billion in financial losses due to 240 cases of non-compliance, suspected fraud and irregularities, placing an added and unnecessary burden on government finances.
The Auditor-general cited poor payment practices, the government getting no benefits from money spent, unfair procurement processes, neglected maintenance, and poor planning.
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