PROGRESS UPDATE ON 2017 PFMA AUDIT OUTCOMES

Transcript:PROGRESS UPDATE ON 2017 PFMA AUDIT OUTCOMES:
PROGRESS UPDATE ON 2017 PFMA AUDIT OUTCOMES (SCOPA) Presentation by: Mr P. Booi 1 Purpose. Executive Summary Overview of the Audit outcomes. 2017 Audit Outcomes. Audit Improvement Strategy. Contents 2 To brief the SCOPA on the 2017 PFMA Audit Outcomes as well as to highlight actions identified by Treasury to improve the situation. Purpose 3 Executive Summary (1 of 2). After stagnating from 2013/14 financial year improvements, there are notable improvements in the 2016/17 financial year, PFMA audit outcomes. Only Education is qualified and all other entities (13 departments and 11 public entities) are unqualified. This include 10 entities achieving clean audit (reflecting an increase of 2 entities) from the previous financial year. This is good in managing perceptions on the capacity of the state. Lays good foundation for translating good audit performance to service delivery. The trick is on sustaining improvements going forward. Experience still indicate a lot of negotiating changes in the financial statements and AG extending its flexibility in allowing changes to improve audit evidence. Capacity challenges in DRPW are yet to stabilise – there is still heavy reliance on consultants. It is encouraging to note that those departments that achieve unqualified audit outcomes tend to maintain this outcome. There is hope that these will be maintained as we get Education towards unqualified status in the next two years. 4 Executive Summary (2 of 2). Treasury will continue to support departments on financial management maturity so that good audit outcomes are a natural feature. NT and PT are collaborating on and Integrated Support Programme to build capacity, as identified from departmental SWOT analysis. To be used to benchmark with current support programmes Treasury continues to review its oversight strategies for better effectiveness. Just developed the Oversight Framework for Treasuries (CFO functions) to complement the FMAF. Just reviewed the Financial Management Accountability Framework(FMAF), with in-year implementation of consequence management to create the culture necessary for FM maturity. Working on CFO Capacitation Framework to secure minimum standards on recruitment, development & retention of staff in the CFO function. There are plans to evaluate successes in Health to see if these can document them as best practices. Financial Management Capacity Study is being rolled out to departments. There is heightened activity in the IFMS project for better integration of systems, with added benefits on the data integrity, turnaround times in accessing information for decision making and managing fraud. 5 Overview