Download presentation
Presentation is loading. Please wait.
1
MFMA Audit outcomes of local government
2
MFMA Reputation promise The Auditor-General of South Africa (AGSA) has a constitutional mandate and, as the Supreme Audit Institution (SAI) of South Africa, it exists to strengthen our country’s democracy by enabling oversight, accountability and governance in the public sector through auditing, thereby building public confidence.
3
Improvement in overall audit outcomes
MFMA MFMA Unqualified with no findings Unqualified with findings Qualified with findings Adverse Disclaimer
4
Movement in audit outcomes
MFMA MFMA Improved Unchanged Regressed Unqualified with findings = 12 Mangaung Metro Metsimaholo Setsoto Tokologo Centlec Lejweleputswa DM Thabo Mofutsanyana DM Dihlabeng Nketoana Tswelopele Maluti-a-Phofung Water Lejweleputswa Development Agency Qualified with findings = 6 Naledi Xhariep DM Kopanong Masilonyana Mohokare Fezile Dabi DM Dsclaimer with findings = 9 Mafube Maluti-a-Phofung Mantsopa Matjhabeng Moqhaka Nala Ngwathe Phumelela Letsemeng 6 19 2 Colour indicates audit opinion from which auditee has moved from.
5
Quality of submitted financial statements
MFMA Outcome if NOT corrected Outcome after corrections Financially unqualified (clean audit/ unqualified with findings) Financially qualified (qualified with findings) 11 auditees Avoided qualifications by correcting material misstatements during audit process Outcome if NOT corrected Outcome after corrections 100% (27) 8 auditees
6
Quality of submitted annual performance reports
MFMA Outcome if NOT corrected Outcome after corrections With no material adjustments With material adjustments 1 auditee Auditees with no material misstatements: Xhariep DM Kopanong LM Nketoana LM Auditees made corrections to avoid findings: Current year: Thabo Mofutsanyana DM Prior year: Thabo Mofutsanyana DM and Kopanong The denominator in both years is 26 as Phumelela LM and Mafube LM did not submit performance reports for the and years respectively. Avoided findings by correcting material misstatements during audit process Outcome if NOT corrected Outcome after corrections 2 auditees
7
Findings on compliance with key legislation
MFMA MFMA 100% Significant non-compliance with legislation by of auditees With findings 2013/14: I48 2012/13: L48 2011/12: “PY” L42 27 auditees 27 auditees 27 auditees 27 auditees 27 auditees 7
8
Financial and performance management
Drivers of internal control MFMA Financial and performance management Governance Leadership Good Concerning Intervention required Improved Stagnation or little progress 8
9
Assurance provided by key role players improved
MFMA First level of assurance Management/Leadership Second level of assurance Internal independent assurance and oversight Third level of assurance External independent assurance and oversight Provides assurance Provides some assurance Provides limited/no assurance Coordinating/ monitoring institutions Senior management Accounting officer/ authority Executive authority Internal audit Audit committee Municipal councils Municipal Public accounts committee Legislature/NCOP and portfolio committee on local government Improved assurance Limited progress on assurance Regressed 9
10
Root causes should be addressed (top three)
MFMA MFMA Slow response by management in addressing the root causes of poor audit outcomes(accounting officer and senior management) Improved Key officials and support staff lack appropriate competencies Stagnant or little progress Regressed Lack of consequence for poor performance 10
11
1111
Similar presentations
