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WINDYBROW THEATRE: FORENSIC AUDIT REPORT. Presented by ADG: Mr. Vusithemba Ndima: Date: 16 February 2016. OUTLINE OF THE PRESENTATION. STATUS OF WINDYBROW THEATRE INFRASTRUCTURE PROJECTS COMMISSIONG OF FORENSIC AUDIT SCOPE OF FORENSIC AUDIT FINDINGS OF FORENSIC AUDIT
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WINDYBROW THEATRE: FORENSIC AUDIT REPORT Presented by ADG: Mr. Vusithemba Ndima: Date: 16 February 2016
OUTLINE OF THE PRESENTATION • STATUS OF WINDYBROW THEATRE • INFRASTRUCTURE PROJECTS • COMMISSIONG OF FORENSIC AUDIT • SCOPE OF FORENSIC AUDIT • FINDINGS OF FORENSIC AUDIT • RECOMMENDATIONS AND INTERVENTIONS
INFRASTRUCTURE PROJECTS • DAC allocates capital grants to its public entities including the Windybrow Theatre to address their infrastructure requirements. • Since 2010, the Windybrow Theatre has spent about R65 million on capital works. • The funds were applied to the renovation of the Heritage House and the refurbishment of the main theatre. • The then Accounting Authority together with the Audit Committee visited the Windybrow Theatre premises. • The Accounting Authority and the Audit Committee of the Windybrow Theatre expressed concerns related to the lack of correlation between the work done and expenditure incurred and the state of Windybrow Theatre premises.
COMMISSIONING OF FORENSIC AUDIT • Council was of the view that the funds spent on capital works projects at Windybrow Theatre comprises of irregular payments and fruitless and wasteful expenditure. • The Council resolved that the expenditure incurred on capital works projects must be investigated. • On 1 0ctober 2013, the Council appointed Ernst and Young to conduct a forensic audit on the financial affairs of the Windybrow Theatre for the period 2009/10 to 2012/13 financial years.
SCOPE OF FORENSIC AUDIT The scope of investigation covers: • Payments made to various service providers that were contracted to refurbish the premises of the entity. • Procurement processes followed in awarding contracts; and • Terms of reference for various service providers.
FINDINGS OF FORENSIC AUDIT • Payments made were in excess of the Contract Values (Over-payments). • CFO and CEO overstepped their mandate (Delegation of authority). • Windybrow Theatre has incurred Fruitless and Wasteful expenditure • The entity executives effected unauthorised payments. • Non-compliance with local authority requirements.
