Clean audits - government doesn't get it

Announcing the 2011-2012 audit results of the national and provincial government‚ Nombembe said that of the 536 entities audited last year‚ only 22% or 117 received clean audit opinions.

This represents a general decline‚ from 152 clean audits in the 2009-2010 financial year and 132 clean audits in 2010-2011.

Last year 297 or 55% of government entities received financially unqualified audit opinions‚ while 14% received qualified audit opinions. Adverse opinions or disclaimers were delivered in 3% of departments‚ while 31 entities‚ or 6%‚ had not submitted sufficient information for the financial statements in time to form any opinion.

Nombembe said his office had identified stagnation and regression in audit opinions where there was no "hands-on leadership" trying to resolve findings from previous years.

He was encouraged by the government's recent pronouncements on improving governance and professionalism within the public service‚ but identified continued problems in supply chain management‚ human resources‚ information technology systems and the accuracy of reporting.

Speaking at the announcement‚ Public Service and Administration Minister Lindiwe Sisulu said the government intended to amend the law in order ensure that directors-general within the public sector were as responsible for the skills in their departments as they were for financial reporting.

Sisulu's department also intends introducing legislation prohibiting public officials doing business with the state.

According to the auditor-general's report‚ in the last financial year contracts worth R438m at 47 entities were awarded to suppliers in which employees of the entity had an interest. Contracts worth R141m at 42 entities were awarded to suppliers in which close family members had an interest‚ up from R136m in 2010-2011.

Findings on unfair and uncompetitive bidding for state contracts were higher at 50% of the entities audited‚ the report notes.