Gauteng News

Gauteng Government achieves clean audits

Thembisa Shologu

Premier David Makhura says there has been irrefutable evidence of sustained improvements in governance, administration and financial management shown by the Gauteng Provincial Government (GPG) over the past three years.

Delivering the Audit outcomes of the GPG and its entities for the 2016/2017 financial year at the Sunnyside Park Hotel in Johannesburg on Wednesday, Premier Makhura this was reflected in the score for the Management Performance Assessment Tool (MPAT) having increased from 3.0 in 2015 to 3.2 in 2016, against a maximum score of 4. 

“The improvements were the result of a range of interventions coordinated by the Office of the Premier. Twenty two Gauteng Provincial Government departments and entities achieved clean audits in the 2016/17 financial year.

“Over the last three years, we have moved from 56% to 65% clean audits with all other departments and entities achieving unqualified audits.

“The Gauteng Provincial Government continues to make steady progress in improving financial management, eliminating wasteful expenditure and ensuring that public funds are used to deliver services to citizens,” said Makhura.

He said he would not be satisfied until the province reached that level of absolute compliance which is 4, revealing that his target for next year was 75%.

“I remain concerned about the high levels of accruals at the end of the past financial year. These negatively impact on the budgets of the current year.

“I am also concerned that we have not eliminated irregular expenditure and I will once again call the MECs and HODs from affected Departments to account to me and advise me of the consequence management measures they are putting in place.

Even though the GPG has achieved unqualified audits, Makhura said he was concerned about the high levels of accruals in the past financial year and some departments not being able to eliminate irregular expenditure.

“One of the departments that has sustained its improved audit outcomes for two consecutive years is the Department of Health. However this is also the department most affected by accruals and irregular expenditure.

“Accordingly, a cabinet committee comprising of the MEC for Health,Gwen Ramakgopa, MEC for COGTA and Human Settlements Paul Mashatile and MEC for Finance Barbara Creecy has been established. This committee has developed a financial rescue plan for the department.  This plan aims to stabilise the finances of the department so that it continues to discharge its responsibility to deliver health care to our citizens,” he said.

The Premier said this intervention focuses amongst other things, on expenditure management, revenue generation, human resource management and governance.