Audit outcome trends

In the third year of the current administration, we continue to see an improvement in the audit outcomes in national and provincial government.

The 114 auditees (47 departments and 67 public entities) with a clean audit status represent 19% of the expenditure budget of R1,9 trillion managed by national and provincial government.

Key service delivery departments

The audit outcomes of the key service delivery departments within the health, education, public works and human settlements sectors were poor. These departments are responsible for almost a third of the expenditure budget and play an instrumental role in managing infrastructure and delivering essential services.

Provincial leadership and legislatures should focus on implementing sustainable solutions at provincial departments and public entities to improve the audit outcomes and delivery in the provinces.

EASTERN CAPE

Decisive action by leadership is required for meaningful improvement in audit outcomes

FREE STATE

Lack of leadership tone and effective consequence management to ensure accountability

GAUTENG

Effectively monitor preventative control to continuously improve accountability thus effecting a positively sustainable impact on service delivery.

KWAZULU-NATAL

Leadership must enforce a culture of accountability to realise further improvement.

LIMPOPO

Lack of designed and implementation of sustainable preventative controls for a meaningful positive impact.

MPUMALANGA

Lack of preventative controls requires leadership to set the tone and drive change.

NORTHERN CAPE

Failure of consistent implementation of preventative controls compromises the desired audit outcomes and financial viability.

NORTH WEST

Lack of strong accountability and effective oversight, resulting in negative impact on the service delivery.

WESTERN CAPE

Robust control environment, solid and consistent pattern of good financial governance.

Material irregularities

By 15 October 2021, we were dealing with 121 material irregularities at various stages in the process. We estimate the financial loss of these material irregularities at a staggering R11,9 billion.

These material irregularities emerged in areas that were not complex, but where the basic disciplines and processes were not in place.

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UIFWE

Government cannot afford to lose money because of poor decision-making, neglect or inefficiencies. However, high levels of unauthorised, irregular and fruitless and wasteful expenditure caused government to lose R171,76 billion in 2020-21.