News24

More departments get qualified audits

2012-01-26 21:28

Johannesburg - There has been an alarming rise in the percentage of national government departments receiving qualified audits, a survey has shown.

The trend among municipal and provincial departments was the other way around, according to a study published by the SA Institute of Race Relations this week.

"Over the last decade, the proportion of national departments receiving qualified audits has increased from 19% to 34%," said researcher Georgina Alexander.

"In 2001, 81% of provincial departments received qualified audits [and] by 2009/10 this had fallen to 12%."

Qualified audits received by municipal departments decreased substantially from 75% to 39% over the same period. These qualified audits included qualified, adverse, and disclaimer opinions.

Alexander explained that these may be made by the auditor general in cases where accounting records were insufficient, where incorrect accounting methods were applied, or there were inadequate disclosures.

In 2009, the co-operative governance and traditional affairs department launched "operation clean audit", which aimed to eliminate disclaimer or adverse audit opinions by 2011 and qualified audits by 2014.

"While it seems that municipal and provincial departments are on the right track to achieving the goal set by operation clean audit, the ball seems to have been dropped by national departments," Alexander said.

Comments
  • Sharon - 2012-01-26 21:34

    Maybe they should give the Government Departments monopoly money to practice with, before entrusting them with real money.

      Spyker - 2012-01-26 21:39

      They will screw that up as well. But this is what happens when you put cattle-herders, domestic servants and gardeners in charge of a country. Ex-British Prime-Minister, Margaret Thatcher said it: 'Anybody who thinks the ANC can govern a country is living in cloud-cuckoo-land'.

      Ian - 2012-01-26 22:04

      In order to get qualified audits, you need qualified auditors, not Zuma's brother's,mother's, uncle's, daughter who has a fake degree, a fake auditing firm, and given millions to give a fake audit!

      Sheik - 2012-01-26 23:26

      Sharon, They spend it as if it were Monopoly money.

      Max - 2012-01-27 05:34

      @Ian, I agree with the idea of what you are saying but I assume you are referring to unqualified audits. When a government department gets a qualified audit report they have screwed up.

      Dave - 2012-01-27 06:05

      But who put the ANC in power , the same people who resort to violant protest about service delivery and any other grevances, but will still vote the same people back into power time after time. So we get what we vote for-- TRUE.

  • braamc - 2012-01-26 21:42

    When you pass beginning, don't collect R2b, go straight to jail

      Phillip - 2012-01-26 21:47

      Or not!!!Remember,"We are the people"!!!

  • Saksak Motsepe - 2012-01-26 21:45

    A good news story that will be messed up by the usual comments

      Zulumfana - 2012-01-26 22:43

      "Qualified audit report is issued when the auditor encountered situations which do not comply with generally accepted accounting principles (GAAP)however rest of the financial statements are fairly presented.". So how can this be 'a good news story'if basic accounting procedures are not followed when handling public funds?

      Derek - 2012-01-26 22:46

      In other words Saksak...you just received a qualified audit too....

      Spyker - 2012-01-27 07:58

      Dear D@D - no wonder they keep on voting for the ANC..!

  • Marcell - 2012-01-26 22:19

    Follow the herdboy.

  • Sinudeity - 2012-01-26 22:33

    Maybe government officials should play Simcity before tackling the real deal.

  • mastersvoice - 2012-01-26 22:34

    So provinces and municipalities are improving. That is very good news indeed, but I must admit the Limpopo example and shambles in JHB detracts somewhat. National Government is failing, but we all knew that, so no surprises there. It will be interesting to see if the ANC is a strong enough organization to remove the main cause of this failure (Zuma) in Bloemfontein.

  • Bokfan - 2012-01-26 22:36

    Look on the brighteside you grumpy lot. For every qualified audit there are ten unqualified BEE millionaires.

      Max - 2012-01-27 05:40

      Skerp!

      Gerhard - 2012-01-27 07:42

      Baie, Baie Skerp!!!

  • Bangoma - 2012-01-26 22:50

    If this statement is true then the AG does not do his job at Ngwathe, because I believe they technically are on section139 of the constituion.(Qualified audits received by municipal departments decreased substantially from 75% to 39% over the same period. These qualified audits included qualified, adverse, and disclaimer opinions.) Out of 39% of municipal departments how many in freestate are forming part of this report.

  • ludlowdj - 2012-01-27 09:21

    Anyone who believes the ANC is here to either serve or protect the people of this country is in for a nasty shock, the ANC simply borrows money to use for partying and self enrichment and then uses taxpayers money to pay the loan back. This is not unique to this country either being the standard operating procedure of most governments, its just a lot worse here with our officials scrapping the bottom of the money barrel.

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