PFMA 2019-20 Report

on national and provincial audit outcomes 116 Overall audit outcomes improved Regressed Social Development Improved Cooperative Governance and Traditional Affairs, Agriculture and Rural Development, Office of the Premier, Provincial Legislature, Public Works Unchanged Dube TradePort Corporation, KZN Housing Fund, Provincial Treasury, Traditional Levies and Trust Account, Arts and Culture, Community Safety and Liaison, Economic Development, Environmental Affairs and Tourism, Education, Human Settlements, Ithala Development Finance Corporation, Ithala Limited, KZN Gaming and Betting Board, KZN Conservation Board, Natal Sharks Board, Sport and Recreation, Health, Transport Financially unqualified financial statements Unauthorised and fruitless and wasteful expenditure Irregular expenditure No findings on performance report Financial health indicators No findings on compliance with legislation 70% (16) 67% (14) 91% R9 745 m 52% 52% 39% R44 548 m R331 m R19 m 67% 26% 2018-19: 74% 2018-19: R12 448 m 22% 2018-19: 22% 2018-19: R41 968 m 2018-19: 62% 2018-19: 22% Auditees submitted financial statements without material misstatements: TOP THREE CONTRIBUTORS TOP THREE CONTRIBUTORS TOP THREE CONTRIBUTORS MOST COMMON SCM FINDINGS CLOSING BALANCE Vulnerable position Deficit Cash shortfall Unpaid claims Average creditor- payment period 4 R2 244 m (13) R1 704 m (10) R25 928 m (3) 29 days Reported achievement reliable: Overall internal control Leadership Basic financial and performance management Education R338 m Health R92 m Human Settlements R3 m Transport R5 475 m Education R1 584 m Health R1 434 m Procurement from suppliers without Sars tax clearance Bid documentation did not stipulate minimum threshold for local production and content Three written quotations not obtained – deviation not approved 35% 30% 30% 5 1 KWAZULU-NATAL: PERFORMANCE SNAPSHOT 2019-20 Unqualified with no findings Unqualified with findings Qualified with findings Adverse with findings Disclaimed with findings Outstanding audits The snapshot shows the audit outcomes of 23 auditees in the province – 15 departments and 8 public entities. The outcomes of 16 small public entities are excluded. Unauthorised expenditure Fruitless and wasteful expenditure Education R7 m Arts and Culture R5 m Ithala Ltd R2 m 5 16 2 Compliance with supply chain management (SCM) legislation Auditees that complied with SCM legislation: Status of good controls