Question NW889 to the Minister in The Presidency for Planning, Monitoring and Evaluation
16 August 2023 - NW889
Kohler-Barnard, Ms D to ask the Minister in The Presidency for Planning, Monitoring and Evaluation
(1) What progress has her Office made in incrementally eliminating wasteful and fruitless expenditure in public sector institutions; (2) whether she will furnish Ms D Kohler with the amount lost in each year due to wasteful and irregular expenditure since 1 January 2019 to date; if not, why not; if so, what are the relevant details; (3) whether her Office is on track to achieve a 75% reduction in qualified audits in the public sector by 31 March 2024; if not, what is the position in this regard; if so, what are the relevant details?
Reply:
1. The Department of Planning, Monitoring and Evaluation (DPME) has been working with other departments to improve financial management within the public sector. Some of the measures to this end include the implementation of the Heads of Department Performance Management and Development System (HoD PMDS), which includes the prevention of fruitless and wasteful expenditure as one of the Key Government Focus Areas that are assessed. This and other measures complement the amendments to the Public Audit Act, which empowers the Auditor-General of South Africa (AGSA) to issue a certificate of debt for failure to implement the remedial action if financial loss was involved. Data shows that these measures are beginning to make an impact, as reflected in the 2021/22 report of the AGSA, which shows that there has been a decline in the number of institutions that incur fruitless and wasteful expenditure.
2. The 2021-22 report of the AGSA shows that public sector institutions disclosed fruitless and wasteful expenditure of R5,83 billion over the past three years of the current administration. In 2020-21 financial year public sector instituions incurred R1,72 billion in fruitless and wasteful expenditure. This was a decline from the 2019-20 financial year when R2,23 billion in fruitless and wasteful expenditure was incurred. Whilst challenges persist, the report notes that a descernible improvement trajectory has been established.
(3) According to the 2021-22 report of the AGSA, audit outcomes have shown a gradual upward trend since the previous administration’s term ended, with 114 institutions improving whilst 46 regressed. During the 2021-22 financial year, 312 out of 424 public sector institutions achieved unqualified audit opinion (128 clean and 184 unqualified with findings). This translates into 74% (30% clean and 44 unqualified with findings). If this trend can be maintained the target of 75% of auditees achieving an unqualified audit opinion would be achieved by 2024.
THANK YOU