Document: Consolidated General Report in the Local Government audit outcomes 2009-10

Description

The Auditor-General of South Africa has a constitutional mandate and, as the Supreme Audit Institution (SAI) of South Africa, it exists to strengthen our constitutional’s democracy by enabling oversight, accountability and governance in the public sector through auditing, thereby building public confidence.

Especially interesting for ICT in Local Government is the Part Findings on information technology used by municipalities and municipal entities on page 41.

Municipalities and municipal entities need appropriate, reliable and secure computer systems to effectively manage their finances and to maintain adequate financial records for the preparation of financial statements. They also need to manage information technology (IT) effectively to ensure uninterrupted service delivery and continuity of business operations. At the 162 municipalities and municipal entities audited countrywide there were 43 different systems in use. These ranged from off-the-shelf packages (computer packages bought) to systems developed in-house and customised systems (computer packages bought and modified). Transactions processed on these systems include procurement, supplier payments, payroll, asset acquisitions, disposals and location tracking, debtor accounts and billing for water and electricity consumption, rates, refuge removal, etc.

Analysis of provincial audit findings raised on common IT focus areas

The above table expresses findings as a percentage of municipalities and municipal entities audited in the province. However, not all of the IT focus areas were afforded coverage at all of the auditees audited.

Table of Contents

SECTION 1: FOREWORD
SECTION 2: AUDIT OUTCOMES
2.1 Highlights of audit outcomes
2.2 Findings on financial management, including defects in financial statements
2.3 Findings on reporting on predetermined objectives
2.4 Findings on compliance with laws and regulations
2.5 Findings on information technology used by municipalities and municipal entities
SECTION 3: KEY CONTROLS, INITIATIVES AND COMMITMENTS FROM KEY NATIONAL AND PROVINCIAL ROLE PLAYERS
3.1 Overall assessment of the key controls at the time of the audits
3.2 Assessment of key controls at the time of the audit of auditees receiving disclaimed, adverse or qualified opinions
3.3 Monitoring capacity of provincial key role players to address audit outcomes at the time of the audit
3.4 Focus areas for national role players to improve audit outcomes
3.5 Matters dealt with at trilateral meeting between the ASB, National Treasury and the AGSA
3.6 AGSA initiatives to encourage clean administration
3.7 Other emerging matters that require attention to prevent a negative impact on future audit outcomes
SECTION 4: DRIVERS OF AUDIT OUTCOMES
4.1 Provincial analysis of key controls
4.2 Assessment of the key controls and outline of their related criteria
4.3 Outline of recommended focus areas for national and provincial role players
4.4 Overview of needs and challenges of provincial role players at the time of the audit
SECTION 5: SIGNIFICANT FINDINGS ARISING FROM THE AUDIT OF SUPPLY CHAIN MANAGEMENT
5.1 Limitations on planned scope of audit of awards
5.2 Awards to persons in the service of the state
5.3 Awards to family members of persons in the service of the state
5.4 Uncompetitive or unfair procurement processes
5.5 Inadequate contract management
5.6 Inadequate SCM controls
5.7 Overall comments on SCM findings

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thanks