Premier Alan Winde wrote an op-ed in Daily Maverick about the auditor-general's (AG) purported "standards" that's allegedly preventing the Western Cape from meeting their service delivery objectives (Service Delivery Must Take Precedence Over Compliance). His predecessor Helen Zille said much the same including in her DM column.
This is either misinformation, ignorance or deliberate lies about the role and objectives of the auditor and audit respectively. Ironically, while the DA-run WC complain about the AG, they crow from the rooftops about the number of clean audits the AG gives them, showing their hypocrisy. A further irony is not even the ANC - corruption central - complains about the AG. What does that say about the DA's sour grapes. I don't understand them.
It appears like his predecessor, Winde and WC staffs don't understand what an auditor does. Zille complained about staff allegedly quaking before the AG's "wrath" (sic). While that sounded like an exaggeration, if true, it was childish.
The auditor is a special kind of consultant, but a consultant all the same employed by the entity. He provides an opinion on the fair presentation of the financial statements based on an examination of the accounting records and policy and entity's compliance with its (not auditor's) performance objectives and legislation.
Auditors' recommendations are not enforceable, although the Public Audit Amendment Act of 2018 shall make the AG's recommendations so. And about time because government at all levels is flagrantly disregarding sound financial management with no consequences. AG Kimi Makwetu stated "audit outcomes have regressed" since 2014. This is not his fault, but government's and its employees including Western Cape.
If Zille, Winde and their staff read undergraduate accounting and auditing they'd know accounting policy and its implementation and setting and meeting performance targets is management's prerogative. Whether or not they comply with that or legislation is their doing. The auditor just reports on what he finds - the outcomes. Management must take responsibility if they don't comply.
So Winde's complaint about "complying with the auditor-general’s standards is incredibly hard work that keeps our officials occupied for months [sic]" is arrant nonsense, i.e. the AG's standards that's keeping them from delivering service is a lie.
Complying with management's accounting policy is part of their jobs. Things invariably go wrong when policies and laws like PFMA, MFMA and Treasury regulations governing financial management are ignored. If the WC doesn't like the policies and laws, campaign the ANC to have them changed but don't blame the AG who's not responsible for them. The DA are demonising the AG to either make us feel sorry for them or try and show us they're better than the really are.
I was surprised and disappointed with the poor journalism of Mark Heywood's recent uncritical article about the WC Health Department's (WCHD) clean audit and his interview of its head Dr Beth Engelbrecht (you didn't publish my response). She too displays an ignorance of or is spreading misinformation about the WCHD's finances by inter alia telling the public, WC legislature's health committee and me in an email last week the department's budget has declined and patients numbers are increasing placing "tremendous pressure" on the service. Contradictorily, this is allegedly happening while they give themselves an A for overall service.
As I wrote to her, Winde and committee chair Wendy Philander on November 21 (see here), this is not true. In real and relative terms, including as a percentage of WC's total budget for 2018/19 at 40%, the department's budget increased over the past five years (probably before that too, but I didn't check before 2013/14). Total patient numbers increased only net 3% in the same period, the same as filled posts.
Why she should say that when their financial reports say otherwise is beyond me. But it likely indicates what I've been saying that they don't understand accounting or are misleading the public.
Winde, his staff and DA must stop forever moaning about audits and get on with it. It's the least the public can expect them to do for their extremely well paid posts. And please, register for a course in accounting.
This is either misinformation, ignorance or deliberate lies about the role and objectives of the auditor and audit respectively. Ironically, while the DA-run WC complain about the AG, they crow from the rooftops about the number of clean audits the AG gives them, showing their hypocrisy. A further irony is not even the ANC - corruption central - complains about the AG. What does that say about the DA's sour grapes. I don't understand them.
It appears like his predecessor, Winde and WC staffs don't understand what an auditor does. Zille complained about staff allegedly quaking before the AG's "wrath" (sic). While that sounded like an exaggeration, if true, it was childish.
The auditor is a special kind of consultant, but a consultant all the same employed by the entity. He provides an opinion on the fair presentation of the financial statements based on an examination of the accounting records and policy and entity's compliance with its (not auditor's) performance objectives and legislation.
Auditors' recommendations are not enforceable, although the Public Audit Amendment Act of 2018 shall make the AG's recommendations so. And about time because government at all levels is flagrantly disregarding sound financial management with no consequences. AG Kimi Makwetu stated "audit outcomes have regressed" since 2014. This is not his fault, but government's and its employees including Western Cape.
If Zille, Winde and their staff read undergraduate accounting and auditing they'd know accounting policy and its implementation and setting and meeting performance targets is management's prerogative. Whether or not they comply with that or legislation is their doing. The auditor just reports on what he finds - the outcomes. Management must take responsibility if they don't comply.
So Winde's complaint about "complying with the auditor-general’s standards is incredibly hard work that keeps our officials occupied for months [sic]" is arrant nonsense, i.e. the AG's standards that's keeping them from delivering service is a lie.
Complying with management's accounting policy is part of their jobs. Things invariably go wrong when policies and laws like PFMA, MFMA and Treasury regulations governing financial management are ignored. If the WC doesn't like the policies and laws, campaign the ANC to have them changed but don't blame the AG who's not responsible for them. The DA are demonising the AG to either make us feel sorry for them or try and show us they're better than the really are.
I was surprised and disappointed with the poor journalism of Mark Heywood's recent uncritical article about the WC Health Department's (WCHD) clean audit and his interview of its head Dr Beth Engelbrecht (you didn't publish my response). She too displays an ignorance of or is spreading misinformation about the WCHD's finances by inter alia telling the public, WC legislature's health committee and me in an email last week the department's budget has declined and patients numbers are increasing placing "tremendous pressure" on the service. Contradictorily, this is allegedly happening while they give themselves an A for overall service.
As I wrote to her, Winde and committee chair Wendy Philander on November 21 (see here), this is not true. In real and relative terms, including as a percentage of WC's total budget for 2018/19 at 40%, the department's budget increased over the past five years (probably before that too, but I didn't check before 2013/14). Total patient numbers increased only net 3% in the same period, the same as filled posts.
Why she should say that when their financial reports say otherwise is beyond me. But it likely indicates what I've been saying that they don't understand accounting or are misleading the public.
Winde, his staff and DA must stop forever moaning about audits and get on with it. It's the least the public can expect them to do for their extremely well paid posts. And please, register for a course in accounting.
Footnote:
I submitted the above verbatim to DM editor Janet Heard copying Winde and Harry Malila, the director-general of the Western Cape. She replied they would consider it for publication. They didn't. As I wrote in my introductory sentence, "You don't publish letters from rank-and-file readers, at least not mine. If you did I'd write a rebuttal like this one".
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