'W Cape financial dept has two blemished reports'
By Tarryn Le Chat
13 October 2006
Western Cape Premier Ebrahim Rasool says that, according to the auditor-general’s report, four entities in local government have received blemished reports but no detection of fraud, maladministration or corruption was found.
Rasool, joined by MEC for Finance Lynne Brown, yesterday discussed the report on the Annual Financial Statements of the Western Cape provincial government for the 2005/2006 financial year.
The two departments with blemished reports are the Department of Community Safety that received a qualified report and the Education Department that had a disclaimer.
The Community Safety report had the following problems:
· Lease commitments – personnel leave not properly kept, time and dates not accounted for
· Have more stringent rules and criteria
The education department received a disclaimer (adverse opinion related to neglect with the prescribed accounting framework and the management of non-current and current assets).
In explaining why the education department received a disclaimer, the auditor-general said these two categories applied:
· Inconsistencies in the system
· Unsatisfactory housing allowances specifically regarding the public entity of the housing development fund
Rasool went on to say that financial governance is one of the eight pillars in government. At present the Western Cape is on a level 3 standard. The auditor-general and provincial government would like to reach level 4, which is the highest level obtainable by provincial government in finances.
“Treasury will analyse all the auditor-general has put forth and Human Resources will eliminate all these weaknesses where no control is kept over staff members in certain areas”, said Rasool.
Brown said that treasury would unpack systematic problems and how to handle certain situations, such as, a supply chain management field.
Rasool added that provincial government is set to improving the financial governance as one of the eight strategic priorities towards promoting iKapa Elihlumayo (a growing Cape).
13 October 2006
Western Cape Premier Ebrahim Rasool says that, according to the auditor-general’s report, four entities in local government have received blemished reports but no detection of fraud, maladministration or corruption was found.
Rasool, joined by MEC for Finance Lynne Brown, yesterday discussed the report on the Annual Financial Statements of the Western Cape provincial government for the 2005/2006 financial year.
The two departments with blemished reports are the Department of Community Safety that received a qualified report and the Education Department that had a disclaimer.
The Community Safety report had the following problems:
· Lease commitments – personnel leave not properly kept, time and dates not accounted for
· Have more stringent rules and criteria
The education department received a disclaimer (adverse opinion related to neglect with the prescribed accounting framework and the management of non-current and current assets).
In explaining why the education department received a disclaimer, the auditor-general said these two categories applied:
· Inconsistencies in the system
· Unsatisfactory housing allowances specifically regarding the public entity of the housing development fund
Rasool went on to say that financial governance is one of the eight pillars in government. At present the Western Cape is on a level 3 standard. The auditor-general and provincial government would like to reach level 4, which is the highest level obtainable by provincial government in finances.
“Treasury will analyse all the auditor-general has put forth and Human Resources will eliminate all these weaknesses where no control is kept over staff members in certain areas”, said Rasool.
Brown said that treasury would unpack systematic problems and how to handle certain situations, such as, a supply chain management field.
Rasool added that provincial government is set to improving the financial governance as one of the eight strategic priorities towards promoting iKapa Elihlumayo (a growing Cape).
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