KwaDukuza Municipality’s (KDM) internal audit department continues to be hamstrung by inadequate resources, while repeated audit findings plague the municipality.
Problems around the submission of documents for internal auditors are compounded by a lack of funding and vacancies within the department.
This emerged at the last council meeting on August 31 and is of serious concern given the internal audit department is meant to be one of the first safeguards to intercept maladministration and corruption.
“The internal audit department has been strained in terms of resources which has impacted the completion of the approved internal audit plan. The audit committee has expressed concerns about repeat audit findings, non-submission of information and audit evidence, especially in relation to performance management,” reads the report prepared by internal audit head, Yogan Pillay.
Five audit areas were listed as high risk, indicating a need for swift response from responsible officials.
Revenue Management saw questions raised with regards to electricity billing and reconciliation timelines, while there were also discrepancies encountered between meter readings and the billing system.
Human Resources and Payroll raised concerns surrounding overtime processes, including excess overtime, as well as improper leave procedures.
There were repeated red flags in Supply Chain Management (SCM) processes as well, with incorrect procedures noted around bids and contracts registers, with potential irregular expenditure not recorded.
A consistent problem for KDM has been Electrical Infrastructure Management, where concerns over the maintenance procedures and funding for the maintenance plan were flagged.
Compliance Management was the final high risk audit area.
As part of the internal audit, performance management targets are reviewed.
Eighty-two performance targets were laid out for the fourth quarter, with 22 (27%) exceeding the target, 26 (32%) meeting the target and 34 (41%) not achieving their targets.
The performance was met at 59 %, representing a 9% downturn from the previous year’s figure.
Reasons for targets not being achieved include non-submission of documents, non-sitting of portfolio committees, repeated energy losses and delays in SCM processes.
Preparing its audit plan for the current financial year (2022/2023), the internal audit committee recommended action be taken on seven main targets.
Consequence management, compliance, unidentified fruitless and wasteful expenditure, widespread vacancies, risk management, electricity losses and prioritising audit findings were all recommended to be put under review by council.
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