Cape Town – The Auditor-General, Tsakani Maluleke, has reported an overall improvement in the national and provincial government audit outcomes.
Presenting the 2022-23 general report for national and provincial departments, entities, and legislatures in Parliament on Wednesday, Maluleke said that the outcomes indicate a general improvement over the course of the current administration, now in its fourth year.
However, she highlighted weaknesses in planning, monitoring, and reporting on service delivery, challenges in infrastructure management, and fiscal pressure due to imprudent spending.
“Over the administration’s term, we have seen some encouraging signs of improvement in the ability of national and provincial government to transparently report on their finances and performance, and to comply with key legislation.
“However, those auditees with the greatest impact on the lives of South Africans and on government finances, which we refer to as ‘high-impact auditees’, are lagging behind on financial and performance management disciplines. This is placing further pressure on government finances,” Maluleke said.
[WATCH] Auditor General Tsakani Maluleke is tabling national and provincial audit outcomes for the 2022/2023 financial year. She says the number of clean audits increased by 35%. #Newzroom405 pic.twitter.com/4SgM1MdDo3
— Newzroom Afrika (@Newzroom405) November 29, 2023
While there’s improvement in transparent reporting and compliance with legislation, high-impact auditees responsible for 85% of the expenditure budget lag in financial and performance management, stressing government finances.
“Overall, the audit outcomes of both departments and public entities improved and more auditees improved their audit outcomes each year of the administrative term than regressed. In 2022-23, the net improvement was 37 auditees (9%) – the biggest movement over the four-year period. Provincial government showed a net improvement of 44 (27%) and national government a net improvement of 34 (15%),” she said.
Clean audits increased, with 35% achieving this status, managing 16% of the budget.
Auditees with unqualified opinions and findings managed 39% of the budget, said Maluleke.
She commended auditees retaining clean audit status and those close to achieving it, encouraging perseverance.
The number of auditees with disclaimed opinions decreased, but adverse opinions increased due to some entities transitioning from disclaimed to adverse opinions, she said.
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Compiled by Betha Madhomu
