In a first for any provincial government since 1994, all 25 departments and public entities falling under the Democratic Alliance-led Western Cape government received unqualified audits for the 2009-10 financial year.
The finding by auditor general Terence Nombembe means that proper records were kept and Nombembe’s office had sufficient information to assess how the Western Cape spent its money.
Western Cape auditor general Terence Arendse said that filling vacant positions, setting up better financial controls and introducing interim financial statements were the key to ensuring it had a clean slate.
A “red flag campaign” - no connection with the South African Communist Party — was set up to identify problems in financial reporting in departments and fix them.
Several departments, including health, education, local government and housing and social development, had had unqualified audits in previous years. But others, such as transport and public works, had received qualified audits in the previous three financial years. Arendse cited the Western Cape Liquor Board, which had not kept proper records of the income it received from liquor licences. The red flag campaign helped it introduce the necessary controls, he said.
Provincial departments were asked to prepare mid-year interim financial reports, allowing problems to be ironed out before final reports were submitted.
Some departments had problems complying with the Public Finance Management Act, which compels government to pay its debtors within 30 days of receiving invoices. However, monthly reports were now being generated to show which creditors were still awaiting payment.
Arendse said internal audit committees in departments had also been strengthened to facilitate better record keeping.