North West Treasury on Support for Public Entities

Support to Public Entities to be intensified
MEC Motlalepula Rosho when tabling the 2021/22 Departmental Budget raised concern on the state of governance at provincial public entities and highlighted that the situation requires critical intervention as a matter of urgency. She however promised that the R509 million departmental budget that was tabled will fund plans that will assist to turn around the situation in the public entities.
The MEC indicated that improvement of the financial sustainability of public entities depends on the extent to which sound governance systems are adhered to. She said most of the public entities do not have substantive accounting authorities and Chief Executive Officers (CEO’s) which compromise the long-term planning and achievement of the mandates of these entities. She added that there are no substantive Chief Financial Officers to administer the financial management affairs of these entities as most are in acting capacity.
To address these challenges, MEC committed that Provincial Treasury will be working with Office of the Premier and responsible departments for entities in putting measures in place to bring a turnaround around this critical area.
“Through the Office of the Provincial Accountant General, the department will continue to provide support to all Provincial Public Entities on accounting related matters and audit issues. All public entities will be required to develop Post Audit Action Plans (PAAP) which will be monitored by Provincial Treasury for improved audit outcomes”, said MEC.
Rosho further alluded that the Provincial Internal Audit’s work will be focused on reviewing the adequacy and effectiveness of post audit action plans and risk management systems. She said the two systems are critical enablers, which should be levered to their maximum potential for improvement towards clean administration and the achievement of service delivery objectives.
“Provincial Internal Audit will also provide advisory services to departments on the establishment of combined assurance systems, which represents a coordinated approach to ensure that all assurance activities provided by management, internal and external assurance providers adequately and effectively address significant risks facing the organisations and that suitable controls exist to mitigate the risks. The audit of bids in excess of R10 million prior to award will be continued in the in the current financial year”, she said.

Source: Government of South Africa

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