Fifth Report of the Standing Committee on Public Accounts, dated 26 June 2002:
The Standing Committee on Public Accounts, having considered the Report of the Auditor-General on the financial statements of the Department of Education for the year ended 31 March 2001 [RP125-01], reports as follows:
The Committee studied the Report of the Auditor-General and put questions for clarification to the Accounting Officer of the Department on matters which, according to the Committee, needed attention.
After considering written replies from the Department, the Committee took note of the steps taken by the Accounting Officer and the staff to fulfil their obligations in terms of the PFMA concerning financial management at the Department. The Committee resolved not to have a hearing on the report for the year under review, but to await the Auditor-General's Report on the next financial year.
Having noted the above, however, the Committee wishes to bring the following to the attention of the Accounting Officer:
1. Audit opinion
The Committee commends the Accounting Officer and staff of the Department for the Auditor-General's unqualified audit opinion on both the financial and compliance audits, and trusts that future audit opinions will be equally unqualified.
2. Appointment of Chief Financial Officer
The Committee acknowledges the appointment of the Chief Financial Officer in December 2001. The Committee recommends that the performance contract, including the key performance areas relating to financial management, be finalised as a matter of urgency and reported to the Committee by 30 August 2002.
3. Internal audit
The Committee took cognisance of the fact that difficulty was experienced with the establishment of an Internal Audit Component with adequate capacity.
The Committee recommends that steps be taken to address this matter as soon as possible and to find a practical solution. The Committee further recommends that the Accounting Officer report to the Committee by 30 August 2002 on progress made with the establishment of the Internal Audit Component in accordance with Treasury Regulation 3.2, and with the finalisation of the Risk Assessment Plan.
4. Special audit investigation at six universities
After consideration of the explanation given by the Accounting Officer, the Committee expressed its satisfaction on progress made in respect of the previous resolution [Paragraph 4 of Ninth Report, 2001].
The Committee recommends that the Department continue with the biannual reports on progress made at the Universities of the North and of the Transkei [Paragraph 4(a) of Ninth Report, 2001].
The Committee further recommends that this matter be referred to the Portfolio Committee on Education of the National Assembly for further investigation, that committee to report to the House on the appointment of the administrators at the two universities.