Address by MEC Elizabeth Sempe Mokua to Departmental Management Committee (DMC) during a gala dinner held at Stonehenge River Lodge (Parys) on Tuesday, July 30, to celebrate the improved audit outcome...

Head of Department
Members of our Executive Management Committee
Management Committee of the department (DMC)
The team from the Office of the Auditor General of South Africa (AGSA)
Finance Team of the Department
Representatives of the firm of Finance Consultants assisting us

Good evening to you all.

Once again, it is a pleasure to be amongst this collective gathered here tonight, but a special privilege to address and share this fulfilling and joyful moment with you.

It should not be a night of long speeches, HoD, but a night of celebration and reflection on the favourable and pleasing outcome of what is very often:

A very stressful, challenging and unpredictable process of audit conducted by our Chapter Nine (9) institution, the Auditor General of South Africa (AGSA).

So stressful a process this is, that some people will ask the question:
But why is it necessary for departments, and government entities to be subjected to audits yet we are a service delivery machine for the people of this country.

Unlike the private sector, we are not in the business of making and maximising profits, but service delivery to our people remains central to our existence.

On the face of it, one may argue ignorantly so, of course, that Government departments should NOT be subjected to the intense scrutiny by the AG and other regulatory bodies to ensure compliance and accountability when dealing with tax payers monies.

Ladies and Gentlemen

Public Sector auditing is very essential and critical:

It provides legislative and oversight bodies, and the general public, an independent and objective assessments concerning the stewardship and performance of government policies, programmes and operations.

Audit outcomes, are important for building trust in the public sector and ensure accountability and transparency.

These outcomes help us, or rather, are expected to help us, to promote financial stability more so that we are tasked with handling and spending tax payers monies.

By examining financial records, auditors can help detect and prevent fraud, and ensure that resources are used appropriately and only for the purpose intended.

By validating financial and performance reporting, auditors can help create opportunities to strengthen internal controls and also improve decision-making. 

Therefore, HoD and Colleagues:

The audit processes should not be a stressful exercise. It is a ritual that must be embraced and welcomed with open hands.
It should not be a monster we sometimes make it to be if indeed we want to achieve some of the issues I have just highlighted especially during our journey through Seventh Administration

In short, we ought to be very positive, and cooperate fully with the AG at all times.
Audit outcomes are based on the audits we perform on the quality of financial statements and performance reports as well as on compliance with key legislation.

Ladies and Gentlemen
This department came very close, within a whisker, of getting a clean audit in the 2021/22 Audit.

There, with only one Qualification Area, which was irregular expenditure. Debatable as it was then, this is water under the bridge. Sadly we regressed in the 2022/23 with qualification on Six (6) paragraphs.

But now we have turned the tide, because the signs were there already of our evident potential to turn the corner at some point and at the right time.

With this unqualified audit report, as we embark on another journey of the Seventh Administration:

It means the financial statements of the department are transparent and free of material misstatements and errors. This indicates that AG is satisfied with our financial reporting and that the statements can be trusted. 

The AG also believes that the department’s operations comply with applicable laws and governance principles.

That being the case, we are mindful of the areas we still need to work very hard to address.
So that next time when an opportunity arises we gather in this fashion we to celebrate a clean audit.
These are the areas we have to overcome and deal with vigorously in order to reach that goal.

• Irregular Expenditure
• Fruitless and Wasteful Expenditure.
• Performance Information

Ladies and Gentlemen
You are going to be asked questions, sooner or later, what exactly did you do right to deserve an unqualified audit opinion? I also expect these questions – formally or informally- from my colleagues in the Provincial Legislature.

We must be able to respond without hesitation that we have worked and worked hard to:

• Develop a Post Action Plan to address all Audit Findings of the previous Audit.
• Appointed Consultants to assist with the preparation of Annual Financial Statement.
• Implemented the Culture-Shift-Action plan for desired results

In Conclusion

The Auditor General of South Africa as I mentioned earlier, is a chapter 9 institution.

It serves as the country's supreme audit institution, tasked with auditing and reporting on how the government spends public funds. 

Its role is to promote financial accountability and sound governance practices in the public sector, thereby strengthening the country's democracy.

Therefore, the favourable unqualified audit opinion we are celebrating here tonight has to be defended by all of us. It cannot be a fluke.

In fact, we must even be in a position to say:

Bring any audit firm or different team from the AG today, the outcome will be the same if not better!! That is the confidence that must ooze from all of us!!!

But be careful not to be carried away or be ahead of yourselves as we savour the moment.
Yes!
This audit outcome, has provided us with more ammunition for board room debates and arguments to dispel the negativity always associated with this department.

The real battleground is on the ground, to ensure what the AG had said about us is cascaded and translated into visible and impactful quality service delivery to our people on the ground.

That is the only yard stick the people of the province on the ground will judge us with.

I want to thank all Programme Managers and the entire DMC members for embracing this audit outcome and sharpening your spears to do battle for the Seven Administration.

Special thanks to our Finance Team for putting shoulder to the wheel when required.

To the Financial Consultants, thanks for the excellent service, but do not forget to impart your valuable skills to some of our team members. The AG team, thanks for your patience, cooperation and hard work.

As the scriptures often remind us:

``Therefore, since we are surrounded by so great a cloud of witnesses, let us also lay aside every weight and sin which clings so close, and let us run with endurance the race that is set before us,’’ Hebrew 12.1

I thank you. Ke a Leboga

Ends

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