127363 Gauteng Sports 2020.indb

GAUTENG DEPARTMENT OF SPORT, ARTS, CULTUREAND RECREATION: VOTE 12 ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

reported performance information. Those that were not corrected are reported above. Report on the audit of compliance with legislation Introduction and scope 25. In accordance with the PAA and the general notice issued in terms thereof, I have a responsibility to report material ¿ ndings on the department’s compliance with speci ¿ c matters in key legislation. I performed procedures to identify ¿ ndings but not to gather evidence to express assurance. 26. The material ¿ ndings on compliance with speci ¿ c matters in key legislation are as follows: Expenditure management 27. Effective and appropriate steps were not taken to prevent irregular expenditure of R70 677 000, as disclosed in note 23 to the annual ¿ nancial statements, as required by section 38(1)(c) (ii) of the PFMA and treasury regulation 9.1.1. The majority of the irregular expenditure was caused by non-compliance with section 16A6. 1 of the treasury regulations as some goods and services with a transaction value above R500 000 were procured without inviting competitive bids. Procurement and contract management 28. Some goods and services with a transaction value above R500 000 were procured without inviting competitive bids and deviations were approved by the accounting of ¿ cer but it was practical to invite competitive bids, as required by treasury regulations 16A6.1 and 16A6.4. Consequence management 29. I was unable to obtain suf ¿ cient appropriate audit evidence that disciplinary steps were taken against of ¿ cials who had incurred irregular expenditure as required by section 38(1)(h)(iii) of the PFMA. This was due to proper and complete records that were not maintained as evidence to support the investigations into irregular expenditure. 30. Disciplinary steps were not taken against the of ¿ cials who had incurred or permitted irregular expenditure, as required by section 38(1)(h)(iii) of the PFMA.

was consistent with the approved performance planning documents. I performed further procedures to determine whether the indicators and related targets were measurable and relevant, and assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete. 20. The material ¿ nding in respect of the usefulness and reliability of the selected programme is as follows: Programme 3 - Library information and archival services Number of linear meters repatriated/transferred to the archives repository 21. The method of calculation for the achievement of this indicator was not clearly de ¿ ned. As a result, I was unable to obtain suf ¿ cient appropriate audit evidence for the achievement of 26 579 linear meters repatriated/transferred to the archives repository, as reported in the annual performance report. I was unable to con ¿ rm the reported achievement by alternative means. Consequently, I was unable to determine whether any adjustments were required to the reported achievement. Other matters 22. I draw attention to the matters below. Achievement of planned targets 23. Refer to the annual performance report on pages 114 to 124 for information on the achievement of planned targets for the year and explanations provided for the under/over achievement of a signi ¿ cant number of targets. This information should be considered in the context of the material ¿ nding on the usefulness and reliability of the reported performance information in paragraph 21 of this report. Adjustment of material misstatements 24. I identi ¿ ed material misstatements in the annual performance report submitted for auditing. These material misstatements were on the reportedperformance informationof programme 3 – library information and archival services. As management subsequently corrected only some of the misstatements, I raised a material ¿ nding on the usefulness and reliability of the

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2019/20 ANNUAL FINANCIAL STATEMENTS