SCOPA provincial chairperson, Mahlakeng Mahlakeng commended has the board and management of the North West Provincial Arts and Cultural Council (NWPACC) for improving audit outcomes from a Disclaimer audit opinion in 2013/14 financial year to an Unqualified audit opinion with findings in the 2015/16 financial year.
Mahlakeng said this came after the entity appeared before the Provincial Public Accounts Committee to account on the Public Finance Management Act (PFMA) audit outcomes for the financial year 2015/16.
He further said the board and management has continued to show upward mobility in improving the financial situation of the provincial entity.
“You will leave the entity with integrity as it improved its audit outcomes when your term ends.
“We will also engage with the major shareholder which is the department of Culture, Arts and Traditional Affairs (CATA) to check its oversight work on the provincial entity” he said.
Mahlakeng said SCOPA will engage with the South African Police Services to get a report on a case where R151 000 was withdrawn at Waterfall Mall in Rustenburg from the provincial entity’s account but later withdrawn by SAPS due to non-cooperation from the departmental officials.
“The department and the entity should also submit a progress report in 14 working days on how they will resolve the matter,” Mahlakeng said.
According to the Assistant Stakeholder Liaison Manager at Office of the Auditor General, Nombulelo Nqume the provincial entity operates in a positive net asset position although cash resources reduced significantly in the current financial year due to expenditure of projects.
“The entity has negative cash from operations and concern exists as to future funding to management operating and future project expenses,” Nqume said.
In responding to the SCOPA questions on addressing irregular expenditure of R2,5 million in current financial year and R6,7 million in prior years, its root causes and control measures to improve expenditure management, the Administrator at the NWPACC, Celeste Mathe said the entity is preparing to file for all transactions regarding the R2,5 million incurred.
“In respect of R6,7 million incurred in prior years, information was handed to the South African Police Service for further investigations.
“The Provincial Treasury is assisting with the preparation of the 2016/17 annual financial statements that will be reviewed by the Board prior to submission for audit. We will also review the Supply Chain Management policies and developed a checklist prior to payment approval and budget processes,” Mathe said.
MEC for CATA, Ontlametse Mochware said the department will ensure that the winding down process of the entity will be done in line with relevant legislation and that all unresolved matters are concluded.-Newsnote