MFMA 2019-20

SECTION 5: MATERIAL IRREGULARITIES 95 These auditees covered 42% of the expenditure budget, 54% of the irregular expenditure incurred, and 68% of the irregular expenditure balance. We specifically looked at irregular expenditure as an indicator of the level of non-compliance with Our annual regularity audit process has distinct phases, including planning and execution. As the legislated reporting date comes closer, we finalise and conclude on our audits, allowing for the audit report to be signed on time. Thereafter we interact with oversight committees and undertake engagements on the overall audit outcomes and the general report. The material irregularity process is integrated into the audit process, but is not bound to the audit legislation at an auditee and the potential for material financial losses. This does not mean that irregular expenditure and material irregularities are the same thing, as explained later on in this section. cycle in the same way as our regularity audits. It does not have a distinct start and stop date, which is quite a different approach than what our auditees are used to. We can identify matters that can potentially be material irregularities at any time of the audit – even right before the audit report is signed. We then do not leave it to the next annual audit, but rather follow our structured material irregularity route to confirm whether the matter meets the definition and start with the process so as not to delay the accountability process. GP NW NC WC EC KZN FS MP LP NORTH WEST • Dr Ruth Segomotsi Mompati District • Ngaka Modiri Molema District • City of Matlosana • JB Marks • Madibeng • Mahikeng • Rustenburg MPUMALANGA • Bushbuckridge • City of Mbombela • Dr JS Moroka • Emalahleni • Govan Mbeki • Steve Tshwete • Thaba Chweu GAUTENG • City of Ekurhuleni Metro • City of Johannesburg Metro • City of Tshwane Metro • Brakpan Bus Company (municipal entity of City of Ekurhuleni Metro) LIMPOPO • Vhembe District • Elias Motsoaledi • Fetakgomo Tubatse • Greater Letaba • Mogalakwena • Polokwane KWAZULU-NATAL • eThekwini Metro • uMkhanyakude District • uMzinyathi District • uThukela District • Msunduzi • Newcastle • uMhlathuze EASTERN CAPE • Buffalo City Metro • Nelson Mandela Bay Metro • Alfred Nzo District • Chris Hani District • OR Tambo District • King Sabata Dalindyebo FREE STATE • Mangaung Metro • Letsemeng • Maluti-A-Phofung • Matjhabeng • Ngwathe • Setsoto • Tokologo WESTERN CAPE • City of Cape Town Metro • Garden Route District • Beaufort West • Cederberg • Drakenstein • George • Stellenbosch NORTHERN CAPE • Emthanjeni • Ga-Segonyana • Hantam • Joe Morolong • Nama Khoi • Sol Plaatje IDENTIFYING AND REPORTING ON MATERIAL IRREGULARITIES