In the past few days there has been extensive media coverage of the auditor-general’s General Report on National Audit Outcomes. This report outlines the summary of audit findings across national departments and public entities for the 2010-11 financial year.

Using a metaphor of the body to represent South Africa, the various national departments and public entities represent the internal organs and parts of the body of South Africa. Two critical elements allow the body to work – the head and heart.

I would suggest the National Treasury is the government’s heart and the presidency its head. The heart pumps blood throughout the body to ensure it functions optimally, while the head co-ordinates the entire body’s functions and houses the most delicate organ – the brain.

The National Treasury houses the revenue-generating entity, Sars, and dispenses the money through the budget process to the body’s various parts, including the head. If you stifle the blood flow to certain parts of the body they invariably suffer.

The presidency, which includes the two key functions of national planning and performance monitoring, and evaluation and administration, is supposed to co-ordinate the government’s various functions.

Other departments can also be compared to various organs and body parts. The auditor-general is the independent economics doctor. He diagnoses the problem, and provides suggestions and prescriptions for South Africa’s economic body to be healthy.

The auditor-general cannot force anyone to take their pills, which leaves the responsibility of enforcing the prescribed medicine to the body’s head.

The auditor-general’s report provides the analysis of the problem and gives us an indication of the severity of the various organs and body parts’ condition.

There are fives conclusions: a clean bill of health; a financially unqualified opinion, which means while the body is technically fine, there are minor concerns; a qualified opinion, which shows symptoms of concern that need urgent attention; an adverse opinion, which indicates something is gravely wrong with an organ or body part; a disclaimer of opinion, which means things are so bad no conclusion can be reached as the vital signs are impossible to read.

In the 2010/11 financial year only 8 percent of the organs and body parts of South Africa’s national departments were functioning well. About 67 percent of national departments had financially unqualified opinions. But problems were identified in meeting predetermined objectives of the organs and compliance with laws and regulations that govern the body.

This means if you don’t achieve these objectives or comply with laws and regulations, those organs start decaying and compromise the body. Altogether 26 percent of departments received qualified audit opinions. These accounted for 53 percent of total voted funds. This means more than half of South Africa’s economic body has symptoms of ill health. The Department of Public Works received a disclaimer of opinion.

This department, which oversees the public sector’s resources and infrastructure, can be likened to the skin that covers the body. Effectively, the doctor says the skin is so damaged, he cannot ascertain the extent of the damage and can’t give an opinion. This is not good for the country’s body politic. Imagine the doctor gave the heart and head qualified opinions then the entire body would be crippled. Luckily South Africa is not there yet, but the warning bells are ringing.

The doctor prescribes basic maintenance functions should be performed for the body. These include proper record keeping, preparing monthly accounts, regular basic reconciliations, and monitoring compliance with laws and regulations on an ongoing basis, and putting internal controls in place. The bottom line is leadership from the top is needed to monitor and discipline the body when needed. - Vuyo Jack