KZN Education praised for clean audit

2010-11-05 00:00

THE KwaZulu-Natal office of the Auditor-General showered the KZN Department of Education with praise “for a marked improvement in financial management and the control environment of the department over the last five years.”

The A-G’s office offered its praises yesterday when MEC for Education Senzo Mchunu and his department appeared before the KZN Legislature’s standing committee on public accounts (Scopa) to account for its financial report for the 2009/2010 financial year.

Mchunu’s department has received unqualified reports for the past three financial years, despite having a history of receiving disclaimers and qualified opinions.

“Good working relationships were reinforced and communication channels strengthened between the A-G’s staff, officials of the department, internal audit and audit committee members …” the A-G’s office told Scopa during the briefing which preceded the hearing.

Mchunu said the report marks a tremendous achievement by his department, but he pointed out the continued existence of unavoidable unauthorised expenditure as a “taint” on the clean report.

The department was found to have unauthorised expenditure of R253,2 million as a result of overspending on four programmes and irregular spendingof R32,3 million was incurred.

Almost half of the irregular expenditure was as a result of Ithala Development Corporation’s failure to comply with supply chain management procedures.

It was also found that the department had R130,4 million in statement accruals that exceeded the payment terms of 30 days.

Mchunu said that as a result of Ithala’s unscrupulous handling of its businesses, the department has decided to cut ties with it as an implementing agent of some of their projects like school building.

The department’s chief financial officer (CFO), Hlengiwe Mcuma, said unauthorised spending in some categories like the compensation of employees could not be avoided.

This, he said, is “because during the year a number of collective agreements were signed for which inadequate funding was allocated to the department”.

Mcuma said the department continues to lobby the provincial and national treasury regarding the funding.

“In addition, the agreements that are signed nationally need to take affordability into account …”

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions. publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.