ROAD ACCIDENT FUND

 INTERNAL AUDIT EPARTMENT

 

 

ANNUAL REPORT TO

THE AUDIT COMMITTEE

FOR THE FINANCIAL PERIOD

APRIL 2002 TO MARCH 2003

 

 

 

 

 

 

 

 

DATE: APRIL 2003

 

REPORT TO THE AUDIT COMMITTEE

FOR THE FINANCIAL PERIOD ENDED 31 MARCH 2003

 

DISTRIBUTION LIST

AUDIT COMMITTEE

 

NAME

 

CAPACITY

Mr V. Twala

Chairperson of the Audit Committee

Mr A.D. Twine

Member

Mr R. E. Scholtz

Member

Mr J. Lesejane

Member (Independent)

Mr R. Desai

Member (Independent)

 

MANAGEMENT

 

NAME

 

CAPACITY

Mr H.L. Kgomongwe

Chief Executive Officer

cc Mr M. Molibeli

Ms M. Kekana

Internal Audit Management

 

EXTERNAL AUDITORS / AUDITOR- GENERAL

 

 

 

PREPARED BY: S.T. Nxumalo, Head: Internal Audit Department

 

 

REPORT TO THE AUDIT COMMITTEE

FOR THE FINANCIAL PERIOD ENDED 31 MARCH 2003

 

INDEX

Pages

AUDIT REPORT 1 - 23

  1. Introduction …….……………………………………. ……………… 1

    2.  

     

     

  2. COMPLIANCE: Corporate Governance & PFMA/ Treasury Regulations ….. 2 - 4

    3. Corporate Governance as an RAF strategic objective

    Compliance with Code of Corporate Governance

    Compliance with the PFMA / Treasury Regulation

  3. ORGANISATION-WIDE RISK MANAGEMENT PROGRESS 4 - 6

    4.  

     

     

  4. INTERNAL CONTROL ENVIRONMENT 7 - 19

    5. Internal Control Weaknesses ………………………………………… 7 - 15

    Executive Summary of Significant Audit Findings ……….. 8 – 14

    Possible Fruitless / Wasteful Expenditure 15

    Internal Control Improvements 16 - 19

  5. AUDIT COVERAGE / ACTIVITIES ……………………………… 20 - 22

    6. Annual Audit Plans, Audit Approach and Three-Year Strategic Plans 20

    Departmental Activity Reports during the period ended March 2003 21 - 22

  6. IA Human Resource Management ………………………………… 22

    7. Organisational Structure

    Training and Development / Performance Management

  7. Conclusion ……………...…………………………………… 23

 

 

 

ANNEXURES

    1. SUMMARY OF SIGNIFICANT AUDIT FINDINGS 24 - 60
    2. SUMMARY ACTIVITY REPORT – QUARTER ENDED DECEMBER 2002 & MARCH 2003 61 - 75
    3. RAF’S COMPLIANCE WITH PFMA - QUESTIONNAIRE 76 - 91

 

 

 

REPORT TO THE AUDIT COMMITTEE

FOR THE FINANCIAL PERIOD ENDED 31 MARCH 2003

 

 

COVERING NOTE TO THE REPORT

 

This report covers the financial period April 2002 to March 2003.

The Board, together with its Audit Committee, has the ultimate responsibility and accountability for efficient and effective risk management, internal control and governance processes.

There are significant audit findings and observations that have been raised in this report that require the attention of the CEO and are therefore reported to the Fund’s Audit Committee. Ideally, the contents of the reports should be discussed with the CEO prior to the Audit Committee meeting.

However, due to his unavailability, the report has not been discussed with the CEO.

The Fund’s Corporate Secretary has also been made aware hereof.

 

 

 

 

 

 

Sinaye Nxumalo

Head: Internal Audit Department