audit outcomes of north west local government
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Audit outcomes of North West local government. 28 May 2013. - PowerPoint PPT PresentationTRANSCRIPT
Audit outcomes of North West
local government
28 May 2013
The Auditor-General of South Africa has
a constitutional mandate and, as the
Supreme Audit Institution (SAI) of South
Africa, it exists to strengthen our
country’s democracy by enabling
oversight, accountability and
governance in the public sector through
auditing, thereby building public
confidence.
Audit outcomes over the past three years
• All audits (including prior year backlogs) have been completed •
Minimal improvement over 2010-11
Unqualified with NO findings
Unqualified with NO findings
Unqualified WITH findingsUnqualified
WITH findingsAdverse/ Disclaimer
WITH findingsAdverse/ Disclaimer
WITH findingsQualified
WITH findingsQualified
WITH findings
Backlog auditsName of municipality Financial year Comment
Dr Ruth Segomotsi Mompati District Municipality
2009/10; 2010/11; 2011/12
Ditsobotla Local Municipality 2010/11; 2011/12
Kagisano Local Municipality 2009/10; 2010/11; 2011/12 In 2011/12 Kagisano and Molopo merged
Molopo Local Municipality 2009/10; 2010/11; 2011/12 In 2011/12 Kagisano and Molopo merged
Kgetlengrivier Local Municipality 2010/11; 2011/12
Lekwa-Teemane Local Municipality 2010/11; 2011/12
Mamusa Local Municipality 2008/09; 2009/10; 2010/11; 2011/12
Moretele Local Municipality 2009/10; 2010/11; 2011/12
Madibeng Local Municipality 2009/10; 2010/11; 2011/12
Unqualified with no findings
Unqualified with
findings
Qualified with
findings
Adverse/ disclaimer
Improved 2 2
Unchanged 3 1 17
Regressed 1 1
Total auditees reported on 0 5 4 18
Movements
2121
44
Movements of the 27 auditees reported on
22
Status of compliance with
laws and regulationsThere are material findings at of the auditees
Auditees with no compliance findings
Auditees with no compliance findings
Auditees with compliance findings
Auditees with compliance findings
100%100%
Quality of annual performance reports
There are material findings on the performance reports of of
the auditees
89%89%
Auditees with no PDO findings
Auditees with no PDO findings
Auditees with PDO findings
Auditees with PDO findings
What are the
areas that should
be focused on?
Supply chain Supply chain managementmanagement
Focus areas to improve audit outcomesQuality of Quality of
performance reportsperformance reportsHuman resource Human resource
managementmanagement
Quality of submitted Quality of submitted financial statementsfinancial statements
Information Information technology (IT) controlstechnology (IT) controls
Financial health Financial health (going concern)(going concern)
With no findingsWith no findings With findingsWith findings
Quality of submitted financial statements
Due to correction of material misstatements during the audit process, of
auditees were able to avoid qualifications.
UnqualifiedUnqualified QualifiedQualified
19%19%
What vital actions
should be taken?
Improving the drivers of key controls will improve
audit outcomes• Slight improvement in Governance
• Leadership and Financial and performance management remains largely unchanged
LeadershipLeadership
2011-12 2010-11
Financial and performance Financial and performance managementmanagement
2011-12 2010-11
GovernancGovernancee
2011-12 2010-11
GoodGood Causing concernCausing concern Intervention requiredIntervention required
XX%
… as will addressing the continuing
pervasive root causesKey positions vacant or key officials lacking appropriate competenciesA major challenge at 26 (96%) of the auditees.
Lack of consequences for poor performance and transgressionsA major challenge at 26 (96%) of the auditees.
Slow response by political leadership in addressing the root causes of poor audit outcomesA major challenge at 26 (96%) of the auditees.
Which key role
players should take
action?
Extensive assurance should be provided by
the key role players
Seni
or m
anag
emen
tSe
nior
man
agem
ent
First level of assuranceManagement/leadershipFirst level of assurance
Management/leadershipSecond level of assurance
Internal independent assurance and oversight
Second level of assuranceInternal independent
assurance and oversight
Third level of assuranceExternal independent
assurance and oversight
Third level of assuranceExternal independent
assurance and oversight
Exte
rnal
aud
itEx
tern
al a
udit
Provides assuranceProvides assurance Provides some assuranceProvides some assurance Provides limited/no assurance
Provides limited/no assurance Not establishedNot established
Mun
icip
al m
anag
erM
unic
ipal
man
ager
May
orM
ayor
Inte
rnal
aud
itIn
tern
al a
udit
Audi
t com
mitt
eeAu
dit c
omm
ittee
Trea
sury
, Loc
al
Gov
ernm
ent D
ept.,
SA
LGA,
Pre
mie
r’s
office
Trea
sury
, Loc
al
Gov
ernm
ent D
ept.,
SA
LGA,
Pre
mie
r’s
office
Mun
icip
al c
ounc
ilM
unic
ipal
cou
ncil
Mun
icip
al p
ublic
ac
coun
ts c
omm
ittee
Mun
icip
al p
ublic
ac
coun
ts c
omm
ittee
Legi
slat
ure
and
portf
olio
com
mitt
eeLe
gisl
atur
e an
d po
rtfol
io c
omm
ittee