Tenth Report of the Standing Committee on Public Accounts, dated 26 June 2002:
The Standing Committee on Public Accounts, having considered the Financial Statements and the Report of the Auditor-General on Vote 17: Independent Complaints Directorate [RP149-01] referred to it, as well as responses to its preliminary questions and the Management Report in the ICD's Annual Report for 2000-01, reports as follows:
1. Audit opinion
The Committee commends the Executive Director and staff of the ICD 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. Risk Management and Fraud Prevention Plans
The Committee welcomes the compilation of the Risk Management Plan, which includes a formal Fraud Prevention Plan and the introduction of additional measures to manage all the identified risks on an ongoing basis, and the fact that specific individuals have been identified for managing the various risk areas. In this regard, the Committee requested further information from the Executive Director of the ICD.
3. Internal Audit Component
The Committee welcomes the establishment of an Internal Audit Component, scheduled to have been fully operational by 1 March 2002.
The Committee recommends that a formal report be submitted to it by 30 August 2002, indicating the impact of the Internal Audit Component on the control environment, together with its findings and recommendations.
4. Audit Committee
The Committee notes and welcomes the decision of the ICD to establish its own Audit Committee, anticipated to have become fully operational on 1 April 2002.
The Committee recommends that the Executive Director submit a formal report to it by 30 August 2002, confirming the establishment of the Audit Committee by the said date, as well as evaluating and testing the financial statements for the financial year 2001-02 for effectiveness in terms of internal control.
The Committee further recommends that it be furnished with the minutes of the Audit Committee's first meeting by 30 August 2002.
5. Asset Management Plan
The Committee expresses concern at the misplacement of the original assets register, having noted the reasons for this.
The Committee is equally concerned about the Auditor-General's statement that there was no evidence to substantiate that annual stocktaking was being done.
The Committee welcomes the finalisation of an Asset Management Plan, which would include an assets register, a procurement policy and disposal procedures.
The Commiittee recommends that the Executive Director submit a formal report to it by 30 August 2002, confirming the successful implementation of the Asset Management Plan.
The Committee further recommends that the Office of the Auditor-General monitor the management of assets at the ICD and report thereon during the next audit.