The internal control deficiencies that put Lepelle Northern Water Board under a Special Investigating Unit probe have come back to bite it, leaving it with a qualified audit opinion from Auditor-General Kimi Makwetu. "The entity did not componentise significant parts of infrastructure assets and buildings in order to depreciate them separately as per their appropriate useful lives in accordance with international financial reporting standards," said Makwetu. He said because the entity did not review the useful lives of property plant equipment, assets with a gross carrying amount of R15.2m had a zero net carrying amount while they were still in use. "Effective steps were not taken to prevent irregular expenditure amounting to R8.9m… This was due to goods and services not procured through the proper procurement processes," he added. Makwetu said the R383,000 in wasteful expenditure was due to "inadequate controls to ensure that all monies owed by the entity were settled within the ag...
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