DEPARTMENT OF PUBLIC WORKS (DPW) DRAFT RESOLUTION

The Standing Committee on Public Accounts (SCOPA), heard and considered evidence on the Annual Report and the Report of the Auditor-General on the financial statements of the Department of Public Works (DPW), for the year ended 31 March 2007, referred to it and report as follows:

1. Capacity and/or people related issues

The Committee is concerned about the high level of vacancies within the department. The previous year report indicated that the Department had an average rate of 19,3% vacant posts and currently, the average rate is 17, 5%. Of these, the high percentage is on critical posts.

The Committee recommends that the Accounting Officer ensures that:

a) vacancies especially the senior management and positions in highly skilled levels are filled;

b) staff with relevant skills and qualifications should be considered in filling those posts and appropriate training should provided where its lacking; and

c) Parliament be updated quarterly with the progress on how the department is addressing this rate of unfilled vacancies.

2. Asset management

The report highlighted some significant shortcommings in the management and control of assets which are caused by the following:

• Inadquate monitoring over some movable assets, resulting in the questionable integrity over the completeness, accuracy and valuation of the movable asset register.

• inadequate policies and procedures regarding the monitoring of immovable properties, resulting in the questionable integrity over the completeness, accuracy and valuation of the immoveable asset register;

• lack of monitoring over the completeness and rights and obligations over state-owned properties, resulting in the non-confirmation of amounts disclosed in the financial statements;

• lack of monitoring over issuing of confirmationn letters to other departments and

• no direct classification of current and capital expenses in maintenance, repairs and running costs.

The Committee recommends that the Accounting Officer;

• excercises strict controls on management and all staff in supervisory positions;

• ensures that all asset registers are updated accurately;

• must put controls in place to ensure that there are complete, accurate and valid asset registers;

• training as well as disciplinary action must be taken against staff members who do not perform as required;

• ensures that the management consistently monitor poilicies and procedures;

• must ensure that National Treasury classifies the expenditure and gives report back to Parliament;

• ensures that outstanding balances and all unallocated deposits are collected, reconcilled, and cleared

3. Internal control weaknesses

The report highlighted significant control weaknesses with regards to recovery of rental debtors, policies and procedures not implemented, and noncompliance with applicable legislation. The report further highlighted various shortcomings in information technology environment.

The Committee recommends that the Accounting Authority ensures that:

a) management implement proper monitoring controls to ensure compliance with applicable laws, regulations, policies and procedures;

b) follow ups on outstanding debts are done before any write-offs take place; and

c) strict controls are implemented and executed against officials not adherering to rules; and

d) qualified candidates are taken into account during employment in order to enhance service delivery and reduce systems deficiency.