'Encouraging improvement' in Eastern Cape Province audit outcomes

OCTOBER 13, 2016

The Auditor-General (AG) Mr Kimi Makwetu, on Wednesday reported an encouraging improvement in the audit results of the Eastern Cape Province.

Tabling his report on Provincial Government Audit Outcomes for the 2015/16 financial year at the Provincial Legislature, the AG revealed that they are encouraged by the trend that is emerging in the province. He said the number of provincial departments and entities with improved Audit Outcomes has significantly increased.

Two departments and six entities have obtained Clean Audit Reports for the 2015/16 financial year. “We are also seeing a significant reduction of those with Qualified Audit Outcomes with only one department still lagging behind”, the AG revealed.

According to the report, the province has obtained 8 Unqualified Audit Outcomes with no findings.  Recipients of Clean Audits who scooped Clean Audit Outcomes Awards include the department of Safety and Liaison, Eastern Cape and Gambling Board, Eastern Cape and Socio Economic Consultative Council, Provincial Treasury, East London Industrial Development Zone, Eastern Cape Parks and Tourism Agency, Eastern Cape Provincial Arts and Culture Council as well as Eastern Cape Development Agency.

The AG also noted that all the departments in the province have received an Unqualified Audit Opinion with the exception of Education. He commended the leadership of the province for having driven the performance of the province to this level. “The province has always been associated with disclaimers and adverse opinions and we have not had this for three years in a row”, he said. 

Mr Makwetu applauded the Premier, Mr Phumulo Masualle and the Speaker of the Legislature, Ms Noxolo Kiviet, for their focused attention and decisive leadership throughout the Audit period. He also commended the visible role that the Provincial Treasury has played to achieve a good Audit Outcome. 

The report also revealed the following:

  • The quality of financial statements submitted for audit has improved progressively over the past three years.
  • 60% of financial statements submitted in 2013/14 contained material misstatements compared to only 32% in 2015/16.
  • Governance in the province was said to have improved in line with the improvement in Audit Outcomes. 
  • Irregular expenditure was reported to have decreased over the three years.

The Honourable Premier expressed delight at the provinces’ Audit Outcomes saying: “It is encouraging to note that many of the commitments made in the last financial year were met. The efforts that have been put towards the clean administration are begging to bear fruits. Just as we acknowledge the progress made we are aware that it brings with it more responsibilities and we are prepared to work harder to ensure that we sustain these and improve on the Audit Outcomes”.

The Deputy Speaker also welcomed the Audit Outcomes. She said, “we really appreciate the work done so far but it is clear that there is more work to be done. These outcomes are an indication that our province is well on track towards achieving its goal of realising 100% Clean Audits’’, she added. Provincial government departments and entities also tabled their 2015/16 Annual Reports for consideration by the House.  The reports captured progress made, targets achieved and challenges faced during the financial year.

The following reports were tabled:

  • Premier’s Office
  • Provincial Legislature
  • Health
  • - Social Development
  • - Roads & Public Works