Preventative measures for avoiding disclaimers in the Department of Public Works : Mmabatho Regional Office

Abstract

The purpose of the study is investigating causes of disclaimer by finding preventative measures at the National Department of Public Works in the Mmabatho Regional Office. The study was conducted from sixty sampled employees from all relevant directories in the department. The Department of Public Works had been in the public domain on how funds have been spent that cannot be accounted for, which raises the desire to conduct a study by examining and investigating causes of disclaimer and its challenges. National Department of Public Works (NDPW), Mmabatho Regional Office is a government entity assigned by the parliament to provide infrastructure for all National Departments within the boundaries of the North West Province. As a consequence of Section 8, 9, 40 and 55 of the Public Finance Management Act of 1999 (PFMA), for year 2012, management of National Department of Public Works reported their assessment of the financial year and its operating effectiveness of internal controls measures over financial reporting which resulted in a disclaimer of opinion. Since the study is positioned as an exploratory study, the questionnaire was the critical tool used as the primary source of data collection. These questionnaires were distributed, evaluated and analysed to evaluate major causes of a disclaimer and preventative measures to be implemented by the department. Sixty questionnaires were distributed to sampled officials at the Regional Office. It is outlined that among all other causes of disclaimers, non-compliance to policies and regulations, and prescriptions played a significance role in the poor audit report as published by the Auditor General for the public interest. It has been concluded that the National Department of Public Works is faced with challenges including communication, leadership, non-compliance, financial statements, internal controls, and many more gaps identified.