Department tightens financial controls

22 Sep 2010

In an effort to strengthen financial controls, the Gauteng Department of Health and Social Development supported by the national Department of Health (NDOH) have put in place interventions to ensure that it achieves clean audit.

The department is currently in the process of implementing short-term interventions that includes among others, asset management, supply chain management, payroll management, budget planning and expenditure monitoring.

With regards to procurement and contract management, the department will maintain, update and review a register of financial interests so as to safeguard the conduct of officials of the department against the interest of the department. All officials will also be requested to annually declare their interest in order to improve controls over possible conflict of interest.

In addition, the department will improve monitoring of compliance with procurement policies and procedures and also perform a risk assessment on procurement.

The department will embark on the physical verification of employees with a view to validate the number of employees in the organisation. Continuous collection and updating of personnel information for validation processes will also be undertaken. As part of reducing expenditure limitation of overtime and recruitment of competent and skilled financial managers and training of existing ones as well as clinicians will also be implemented.

Currently, physical verification of all assets is in process to ensure that all assets are accounted for.

The department will in conjunction with Treasury manage its cash flow to address accruals as well as current supplier payments.

All managers will be encouraged to attend change management course and enforce strict financial controls in their units.

In response to the financial challenges, the NDOH signed a Memorandum of Understanding with National Treasury and the Treasury's technical support group to help strengthen public financial management. In addition, the NDOH has established a provincial support unit to oversee this work.

Enquiries:
Mandla Sidu
Cell: 082 773 9013

Issued by: Gauteng Health and Social Development 
22 Sep 2010