26 May 2018


THE OFFICIAL BOKONE BOPHIRIMA GOVERNMENT NEWSPAPER

FEED MEC outlines support to audit outcomes improvement 

by: Kelepile Mokaila   date: 11 May 2018

Finance, Economy and Enterprise Development MEC, Wendy Nelson, says her department will continue to support departments, municipalities and public entities towards the improvement of Audit outcomes.

Nelson said the MFMA supported plan would focus on monthly monitoring of internal controls, implementation of Post Audit Action Plan (PAAP) and review of interim financial statements in preparation for quality financial statements supported by the audit files.

“We will continue to support municipalities with effective contract management to improve the supply chain management and audit outcomes. By implementating contract management we seek to improve accountability and effective planning regarding asset maintenance and replacement, as well as optimising revenue and service delivery,” she said, when tabling her department’s R484 million budget to enable it to achieve its annual performance targets.

Apart from the current initiatives to improve accountability and audit outcomes through the Office of the Accountant General, the department will continue to strengthen a combined assurance review on interim financial statements, risk management, financial and performance reporting, IT governance and compliance systems. Central to these interventions will be key control and compliance frameworks to be implemented henceforth.

“We will continue to support municipalities with effective contract management to improve supply chain management and audit outcomes. By implementating contract management we seek to improve accountability and effective planning with respect to asset maintenance and replacement, as well as optimising revenue and service delivery,” she added.

MEC Nelson said to address lack of appropriate skills and capacity challenges, skills gap analysis has been concluded and an appropriate targeted training to build capacity and skills in the Chief Financial Officers units will be rolled out in the new financial year. This, she said, is considered a catalyst to improve audit outcomes. 

She said in view of infrastructure under-spending during the past financial year by departments, various oversight and monitoring initiatives will be strengthened. To achieve this, the department will continue to engage all provincial departments on a quarterly basis with special attention to expenditure management reviews.

Furthermore, Nelson told the Legislature that provincial departments and municipalities are already in the process of implementing the Infrastructure Development Improvement Plans (IDIP’s) as part of the initiatives to improve the planning and delivery of infrastructure in the province. 

In an effort to increase the provincial revenue envelope by 5%, the department will implement and monitor the revised revenue enhancement strategy.