Parliament, Wednesday, 27 November 2024 – The Standing Committee on Public Accounts (SCOPA) has noted and is pleased with the overall improvement in audit outcomes between the 2018/19 financial and the 2023/24 financial years.
There were 93 clean audits in the 2018/19 financial year and 142 clean audits in the 2023/2024 financial year translating into an improvement of 49 clean audits. The 142 auditees who received clean audits managed R266,28 billion of the R2,07 trillion expenditure budget in national and provincial governments, meaning nearly most of the audited entities did not secure a clean audit.
The improved audit outcomes demonstrate that the audited entities that are improving are able to provide the Auditor-General (AG) with accurate and verifiable information upon which to base the conclusions and the entities are able to meet their objectives while managing their finances effectively.
In the 2023/24 audit, 139 auditees improved their outcomes and 50 regressed showing an overall net improvement of 24%.
The committee remains concerned with several trends that the AG has highlighted which include but are not limited to:
- many entities' inability to produce credible statements on their own, without assistance from the AG,
- failure to hold non-doers and non-performers accountable in terms of internal disciplinary action and law enforcement action,
- poor leadership and leadership instability,
- overpayment on procurement of goods and services,
- poor infrastructure project management,
- weaknesses in the Information and Communication Technology environment in particular in the State Information Technology Agency,
- and financial commitments that exceed budget allocation.
It is the committee’s conclusion that there remains systematic weaknesses that hinder performance against objectives, financial management, prevention of corruption and fraud, and cost efficiency.
SCOPA remains concerned with the 38 audits that were outstanding by 15 September 2024 as these raise concerns on governance and pose a risk on service delivery.
The committee will further engage with the AG to attain further details on the highest risk areas at provincial and national level. SCOPA expresses its appreciation to the AG staff for their work, support and dedication to the committee and Parliament.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF SCOPA, MR SONGEZO ZIBI.
For media enquiries or interviews with the Chairperson, please contact the committee's media officer:
Name: Ms Faith Ndenze
Parliamentary Communication Services
Cell: 081 377 0686
Email: fndenze@parliament.gov.za
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