AGSA
The Auditor-General of South Africa (AGSA), Tsakani Maluleke, recently reported an overall improvement in the national and provincial government audit outcomes in the 2022-23 general report for departments, entities, and legislatures. This improvement reflects the progress made during the current administration’s term, now in its fourth year. Despite this improvement, Maluleke highlighted weaknesses in planning, monitoring, and reporting on service delivery, challenges in infrastructure management, and increasing pressure on the fiscus due to imprudent spending.
## Encouraging Signs of Improvement
Maluleke acknowledged the encouraging signs of improvement in the ability of national and provincial government to transparently report on their finances and performance. She noted that compliance with key legislation has also improved. However, she emphasized that high-impact auditees, responsible for 85% of the expenditure budget, are lagging behind in financial and performance management disciplines. These auditees play a crucial role in delivering essential services to the public and managing government finances.
Despite these challenges, both national and provincial government audit outcomes have shown improvement over the administration’s term. In 2022-23, there was a net improvement of 37 auditees (9%), the largest movement over the four-year period. Provincial and national government also showed a net improvement of 44 (27%) and 34 (15%) respectively, demonstrating progress in financial and performance management.
### Clean Audits and Accountability
Maluleke emphasized that the number of clean audits continues to increase each year, reflecting significant effort and commitment by leadership, officials, and governance structures. While a clean audit is not always indicative of good service delivery, it enables auditees to transparently communicate with citizens about their needs. This transparency allows for informed decisions by different role-players in the accountability ecosystem.
In 2022-23, 147 auditees (35%) achieved clean audits, managing 16% of the R3.10 trillion expenditure budget. Furthermore, 162 auditees (39%) received unqualified audit opinions with findings, managing 48% of the budget. Maluleke commended these auditees for publishing credible financial statements, emphasizing the importance of accountability and transparency in financial and performance reporting.
Additionally, she praised the 53 auditees (36%) that maintained their clean audit status over the administrative term, highlighting their commitment to institutionalizing and monitoring key controls. Their efforts demonstrate the importance of all role-players in the accountability ecosystem fulfilling their monitoring, governance, and oversight roles to ensure clean audits and financial transparency.
### Striving for Improvement
Maluleke also acknowledged the 37 auditees that are close to obtaining a clean audit, with only one finding to address. She encouraged these auditees to persevere in overcoming the last hurdle, which she believes will set a strong foundation for the next administration. This commitment to improvement will pave the way for increased clean audits and financial accountability in the years to come.
However, Maluleke cautioned that the number of auditees with disclaimed audit opinions decreased, and any additional disclaimed opinions from the 31 auditees with outstanding audits would impact this improvement. She also reported an increase in adverse audit opinions due to three public entities moving from a disclaimed opinion last year to an adverse opinion in 2022-23.
CentralNewsZa
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