Economic Development Annual Report

Annual Report 2023/2024 Mpumalanga: Department of Economic Development and Tourism - Vote 6

8. SCOPA RESOLUTIONS The Committee met with the department on 15 February 2024 to deliberate on the 2022/2023 annual report subsequently met to consider the draft Committee report which is dated 15 March 2024

Resolution No.

Subject

Details

Response by the department

Resolved (Yes/No)

5

Implementation of 2022-2023 Audit Action Plan

5.1.1- The Accounting Officer must ensure that the partially resolved issues and targets in the 2022/23 Audit Action Plan, that are dependent on responses from State Law Advisors, are fully implemented by the end of the 2023/24 financial year; and provide 6.1.1- The Accounting Officer must ensure that the official(s) liable for administrative errors that occurred during the procurement process of contracts, are held accountable a progress report to the Committee in this regard.

There were eighteen items raised in the audition action plan, 71% have been resolved, and 29% are significantly resolved. Items which have not been resolved are dependent on external factors, for example, responses from other entities such as the State Law Advisors. The Accounting Officer did take effective and appropriate steps to prevent Irregular Expenditure. For example SCM policies and procedures were reviewed and updated, and checklists were put in place, training was provided to officials, and procedures were implemented to ensure that no order could be created without supporting documents. Irregular Expenditure occurred where the policies and procedures which were in place were not adhered to correctly or completely, officials were disciplined for failing to follow policies and procedures correctly. financial year. R79 422 000 of the remaining accumulated irregular expenditure from prior financial years has already been removed from the register, while reports are due to be submitted to the next sitting of the LCC in respect of the condonation and removal of the remaining balance of R35 236 793 The LCC has been active throughout the current

Partially resolved

6

Irregular as well as Fruitless and Wasteful Expenditure

No

for the incurred irregular expenditure; and for the contravention and non

compliance to Section 38(1)(c) (ii) and Section 51(1)(b)(ii) of the Public Finance Management Act (PFMA), 1999. Furthermore, the Accounting Officer must put much needed and effective

measures in place to avoid any irregular expenditure henceforth.

6.1.2- The Accounting Officer must ensure that all the relevant condonation / removal requests submissions from the appointed task team to the Loss Control Committee (LCC) on the remaining irregular expenditure, are submitted to the Provincial Treasury by the end of the 2023/24 financial year.

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