Health dept fails to reach 56% of targets; R2 billion overspent
Had it not been a legislated requirement for the Auditor-General (AG) to perform an audit on the department of health, the AG would have withdrawn from doing so.
POLOKWANE – Had it not been a legislated requirement for the Auditor-General (AG) to perform an audit on the department of health, the AG would have withdrawn from doing so.
This was according to the AG’s latest audit report, which was discussed during a health portfolio committee meeting last week. Even though the department had to explain the outcomes of their 2012/13 financial statements, its administrator, Tiny Rennie, did not attend the meeting.
The department’s performance had regressed even though it had been under administration since December 2011. Around 56% of the department’s targets were not reached, yet its budget was overspent by more than R2 billion.
A disclaimer (issued when the AG could not form an opinion, and consequently refuses to present an opinion on the financial statements) was received again, and the AG found there were major discrepancies between the planned and reported targets for the financial year. Adequate and reliable corroborating evidence could not be provided for 32% major variances as disclosed in the annual report. Recurring issues were at the heart of the disclaimer received by the department.
The lack of reliability and integrity of information about various issues of financial and operational information, the lack of standard operating procedures, including risk management to prevent fraud and IT risks, the inaccurate recording of and lack of proper record keeping in a timely manner of information, the lack of systems, a credible and reliable asset register, inadequate expenditure management and lack of internal control were some of the issues found by the AG in the audit report.
The AG also highlighted the non-adherence of the department to prescribed requirements of the department’s medical waste disposal sites, the general requirements for the collection, storage and disposal of medical waste as well as the transportation of medical waste in terms of the applicable legislation and regulations. Expired medicines were also not properly managed and disposed of.
Employees within the department still did remunerative work outside their employment in the department and failed to get permission from the relevant authorities, close family members of persons working for the department had business interests in contracts awarded by the department and failed to disclose such interests, contracts were not advertised for the required time, competitive bids were not always invited when it should have and contracts were extended and modified without the required approval by authorised delegated officials.
Head of the department, Dr Sipho Kabane, assured the committee the department was looking forward to obtaining a better outcome this year. He ascribed the declined performance to the heritage of the previous years, where documents could not be found to substantiate statements, shortage of professional staff and vehicles, especially ambulances, the state of asset management and various other reasons, such as the budget being cut last year, leading to huge over-expenditure, especially on employee compensation. He said some targets were irrational and would be revisited.
