Ninety-Fifth Report of the Standing Committee on Public Accounts, dated 10 September 2003:
The Standing Committee on Public Accounts, having attended the 5th Annual Conference of the Association of the Public Accounts Committees (APAC) held in East London, Eastern Cape Province from 25-28 May 2003, reports as follows:
Terms of Reference. A multiparty delegation attended the Conference from 25-28 May 2003 and compiled a report on what transpired at the Conference.
The delegation was composed of the following members:
Mr. F. Beukman, (Chairperson of SCOPA, NNP);
Mr. V. Smith, (Chairperson of APAC, ANC);
Mr. D. Gumede, (ANC);
Mr. G Madikiza, (UDM);
Mr. R. Mofokeng, (ANC);
Ms. K. Mothoagae, (ANC);
Mr. B. Kannemeyer, (ANC);
Mr. E Vezi, (IFP); and
Mr. E Molefe (Committee Section).
Background and Introduction The APAC was formally established in July 1997 at a founding Conference held in Cape Town at which a constitution was adopted. Annually, the APAC host a Conference, which provide learning opportunity to members and the support staff. Best-practice methods and tools are shared and international, regional and strategic local guest are invited to present a paper on topical and specific issues faced by APAC members. The Conference formulates and adopts resolutions with the aim of improving the level of oversight by APAC members.
In its capacity as member of the APAC, the SCOPA attended and participated at the 5th annual APAC Conference held in East London (Eastern Cape) from 25-28 May 2003. The theme of the 2003 Conference was ‘Ensuring Accountability towards a Progressive Southern Africa’.
The Conference was attended by the representatives from Lesotho, Malawi, Seychelles, Mozambique, Tanzania, Zimbabwe, Kenya, Swaziland, Zambia and Australia. Also in attendance was the Premier of the Eastern Cape Province Mr. M. Stofile, Mr. S MacLean, the Mayor of Buffalo City Municipality, Ms. Jajula (MEC for Education: Eastern Cape Province), Mr. S Fakie (The Auditor-General of SA), Prof. S Sangweni (Chairperson of the Public Service Commission), Mr. T Mokwena (CEO of SALGA) and Dr. I Abedian (Standard Bank of SA).
Welcome and opening of the Conference. The Premier of the Eastern Cape Province, Mr. M Stofile, the Executive Mayor of Buffalo City Municipality and the MEC for Education in the Eastern Cape, Ms Jajula welcomed delegates to the Conference. They emphasised the importance of APAC in ensuring and raising awareness to the importance of high standards of financial management and accountability, developing more effective strategies to empower Public Accounts Committees for greater vigilance and action, and harmonizing their work on regional basis.
Panel Discussions and Commissions. The Conference which was divided into three Commissions, had panel discussions on the following themes which correspond to the three Commissions viz.
Financial Management: Obstacle to Service Delivery;
Provincial and Local Government: Impact of the Municipal Finance Management Act (MFMA) on Public Accounts Committees; and
Partners in Transformation: Ex Post Facto and Ex-Ante Committees.
The resolutions from the Commissions, although not adopted by the Conference were referred to individual jurisdictions for consideration and adoption.
Financial Management: Obstacle to Service Delivery.
Panel Discussion The Chairperson of the panel discussion was Mr. F Beukman (Chairperson: SCOPA, National) and the panelist were Mr. S Fakie (Auditor-General, SA), Ms. S Nkomo (Chairperson: SCOPA, Gauteng Legislature) and Prof: Sangweni (Chairperson: Public Service Commission). In their presentations and the discussions that followed the following were noted:
Sound financial management contributes positively to service delivery as it safeguards the assets and resources that the state uses to deliver services, and it facilitates the effective and efficient delivery of services;
Logic, experience and evidence show that amongst the greatest obstacles to efficient and effective service delivery is non-existent or poor financial management.
To achieve sound financial management, the following key element should be attained:
Proper control environment.
Have systems to collect and utilize financial and operational data or information;
Strategic planning linked to resources.
Mismanagement is an obstacle to service delivery;
The greatest challenge in government remains identifying and developing competent managers able to respond to the demands of ensuring efficient, economical and effective service delivery.
When people experience poor service delivery, or projects fail then not only are citizens denied those services to which they are entitled, but in turn their capacity to contribute further to the development process is undermined.
In Countries like Malaysia, United Kingdom, Sweden and New Zealand there have been a growing trend towards budget reform as part of a broader thrust towards improving public service delivery;
In South Africa, the introduction of medium-term expenditure frameworks, the development of systems and mechanisms aimed at forging closer links between strategic planning, budgeting, financial management, the promotion of greater transparency and accountability to the public in budgetary matters have significantly improved service delivery and restored government’s credibility among citizens and overseas investors.
There can be no delivery without accountability, and no accountability without oversight.
There has to be political will from the executive to evaluate performance contracts of senior management against predetermined objectives.
Commission 1
The Commission, which was chaired by Mr. R Tooley, resolved that: In order for Public Accounts Committees to exercise their oversight role effectively and efficiently, they should introduce an integrated model of monitoring departments
Public Accounts Committees should improve their relationships with the relevant stakeholders in particular the Auditor-General and the National Treasury.
To improve Service delivery the Public Accounts Committees should monitor the effective, economic and efficient implementation of policies.
Partners in Transformation: Ex-Post Facto and Ex-Ante Committees. 4.2.1 Panel Discussion. The debate was Chaired by Ms. S Lucas, and the Panelist were Mr. D Pearson (Auditor-General: Western Australia), Dr. W Kabourou (Chairperson: PAC Tanzania), Ms Z Sebekedi (Chairperson: Finance Economical Development and Tourism Committee: North West Province). From the presentations and deliberations that followed the following were noted:
That for Parliamentary Committees to properly and effectively discharge their oversight function over the executive authorities in government, there is a need for members of Parliament to keep on improving on their method of work;
That in this times of scarce resources it is important that individuals, agencies and committees involved in the oversight process work together as partners to avoid duplication or even worse getting in each others way;
That a close co-operation between SCOPA and the Office of the Auditor-General is essential;
That it is the responsibility of the Portfolio Committees (EX –ANTE COMMITTEES) to play an oversight role on respective departments they have to monitor:
By Monitoring performance and the usage of Public Funds allocated to those departments, as to whether programmes are carried out as budgeted for, to achieve government policy objectives;
By checking on departmental quarterly reports regarding shortfalls on budgeted revenue, over and under-spending and a projection of expenditure and revenue for that current financial year;
By ensuring that Departments have strategic or business plans on how they intend using their budgets to implement government policy;
By ensuring that Departments implement the resolutions of Public Accounts Committees as adopted by Parliament.
That it is the responsibility of the Public Accounts Committees (EX-POST FACTO COMMITTEES) to:
Scrutinise the Auditor-General’s reports and interacts with those departments whose financial positions and transactions do not comply with the law;
Table recommendations on financial matters to Parliament.
That synergy in the working relationship between the Public Accounts Committees and other Portfolio Committees is of vital importance;
That there should be co-operation between the two Committees as policy issues fall outside the mandate of Public Accounts Committees;
There is a need to have a tracking system to check on the implementation of the Public Accounts Committee’s resolutions by the department.
That Public Accounts Committee’s should have specialized kind human and technical resources.
That, Committees of parliament should ensure that a good working relationship between the ex-post facto committees and the ex-ante committees is maintained to achieve our objectives of ‘ensuring accountability towards a progressive Southern Africa’.
That the findings and recommendations of the public accounts committees should be shared with the portfolio committees to enhance their effectiveness.
Commission 2
The Commission, which was chaired by Ms M Vantura, resolved that: The APAC fraternity facilitates clarification of the different roles between the two types of committees, as well as the very necessary synergy between these committees.
The APAC establish an appropriate minimum standard practices.
The Management of the legislatures/Parliament should play an important role on the effective implementation of oversight processes.
Development of appropriate best practice guidelines that will guide the APAC membership and possibly their partner committees in "synergies" oversight.
Provincial and Local Government: Impact of the Municipal Finance Management Act (MFMA) on Public Accounts Committee’s. 4.3.1Panel Discussion. The debates on this theme were chaired by Ms. T Mabena (APAC EXCO Member) and the panelists were Mr. T Mokwena (CEO: SALGA), Mr. B Kannemeyer (SCOPA: National) and Mr. I Pillay (National Treasury).
The panelist noted:
That the Municipal financial Management Bill is a step in the right direction for financial accountability at local level as it would:
Strengthen oversight role in municipalities;
Promote co-operative government between the spheres;
Promote good governance and accountability in all spheres of government;
Translate gains made in national and provincial sphere to the local sphere;
Implement and operationalise oversight procedures and processes;
Set up appropriate municipal, provincial and national oversight committees;
That there is a need to clarify roles i.e municipal councils have legislative and executive functions;
That there is a need to develop Public Accounts Committees for municipalities to hold people accountable;
There is a role for provincial and National Public Accounts Committees to define vision with regard to municipalities.
Commission 3.
The Commission which was chaired by Ms. B Scott resolved that: Upon implementation of the MFMA the local Government and the Portfolio Committees on Finance should monitor budget reports and strategic plans of local authorities.
Upon implementation of the MFMA, all provincial Public Accounts Committees should obtain and deal with the audited financial statements of local authorities;
All Provincial Public Accounts Committees should take proactive steps by assisting local Authorities to establish Public Accounts Committees;
Public Accounts Committees should ensure that their recommendations on local governments should be addressed to the relevant MEC.
APAC EXCO and the Auditor General should establish a tracking document that would assist in ensuring effective monitoring of local Authorities
5. Official launch of the APAC handbook The Conference in an attempt to enhance and improve the role of legislative oversight of the executives by Parliament, launched the APAC Best Practice handbook, a user-friendly pocket book designed to assist members and support staff in their daily functioning as Public Accounts Committee Members. The handbook contains seven sections. Viz.
Accountability and Oversight;
Elements of Legislative oversight;
Key Relationships of Public Accounts Committees;
Organising Public Accounts Committees for purposeful impact;
Hearings, Recommendations and follow-ups;
Implementing effective oversight; and
Resources.
Annual General-Meeting The Council elected Ms. Z Sebekedi as the Deputy Secretary General of the APAC. She replaced Mr. M
Tarr.
Conclusions. The Committee would like to extend its appreciation to the organizers of the Conference and the Eastern Cape Public Accounts Committee for making our stay in East London a memorable one.
Report to be considered.
== Ninety-Sixth Report of the Standing Committee on Public Accounts, dated 23 September 2003: The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Independent Auditors on the National Electronic Media Institute of South Africa for the financial year ending 31 March 2002, reports as follows:
The Committee commends the management of the National Electronic Media Institute of South Africa for the unqualified audit opinion expressed by the Independent Auditors and trust that future audit opinions will be equally unqualified.
The Committee also noted the following issues raised under emphasis of matter:
A register of interest in contracts was not maintained as required by the Companies Act, and
Requirements of the PFMA were not fully complied with.
The Committee expects the accounting authority to expeditiously rectify all the issues in question. The Committee will await the Report of the Independent Auditors for the 2002/03 financial year to see whether there was any improvement in this regard.
Having considered the Annual Report, the Report of the Independent Auditors and noting the unqualified audit opinion expressed by the Independent Auditors, the Committee is of the view that, except for the matters highlighted above, no further interaction with the accounting authority is necessary for the year under review.
The Committee therefore awaits the next Annual Report and the Report of the Independent Auditors.
Report to be considered.
== Ninety-Seventh Report of the Standing Committee on Public Accounts, dated 23 September 2003: The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the National Student Financial Aid Scheme for the financial year ending 31 March 2002, reports as follows:
The Committee commends the management of the National Student Financial Aid Scheme for the unqualified audit opinion expressed by the Auditor-General, and trust that future audit opinions will be equally unqualified.
The Committee also noted the issue raised under Emphasis of Matter where the accounting authority only appointed an internal auditor in January 2002. The Committee expects the accounting authority to adhere to Treasury Regulations regarding the conducting of internal audits. The Committee will await the Report of the Auditor-General on the follow-up audit work in this regard.
Having considered the Annual Report, the Report of the Auditor-General and noting the unqualified audit opinion expressed by the Auditor-General, the Committee is of the view that no further interaction with the accounting authority is necessary for the financial year under review.
The Committee therefore awaits the next Annual Report and the Report of the Auditor-General.
Report to be considered.
== Ninety-Eighth Report of the Standing Committee on Public Accounts, dated 23 September 2003: The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Independent Auditors on the People's Housing Partnership Trust for the financial year ending 31 March 2002, reports as follows:
The Committee commends the management of the People's Housing Partnership Trust for the unqualified audit opinion expressed by the Independent Auditors and trust that future audit opinions will be equally unqualified.
Having considered the Annual Report, the Report of the Independent Auditors and noting the unqualified audit opinion expressed by the Independent Auditors, the Committee is of the view that no further interaction with the accounting authority is necessary for the year under review.
The Committee therefore awaits the next Annual Report and the Report of the Independent Auditors.
Report to be considered.
== Ninety-Ninth Report of the Standing Committee on Public Accounts, dated 23 September 2003: The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Represented Political Parties' Fund for the financial year ending 31 March 2002, reports as follows:
The Committee commends the management of the Represented Political Parties' Fund for the unqualified audit opinion expressed by the Auditor-General and trust that future audit opinions will be equally unqualified.
The Committee also noted the following issues raised under emphasis of matter:
Although the Represented Political Parties' Fund meets the definition of a public entity as defined in the PFMA, the fund has not yet been listed as a public entity;
Late tabling of previous year reports to Parliament, and
Reports of some political parties were not available for reviewing/auditing as per section 6(6) of the Public Accountants' and Auditors' Act, 1991 (Act No. 80 of 1991).
The Committee expects the accounting authority to expeditiously rectify all the issues in question. The Committee will await the Report of the Auditor-General for the 2002/03 financial year to see whether there was any improvement in this regard.
Having considered the Annual Report, the Report of the Auditor-General and noting the unqualified audit opinion expressed by the Auditor-General, the Committee is of the view that, except for the matters highlighted above, no further interaction with the accounting authority is necessary for the financial year under review.
The Committee therefore awaits the next Annual Report and the Report of the Auditor-General.
Report to be considered.
== One-Hundredth Report of the Standing Committee on Public Accounts, dated 23 September 2003: The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Independent Auditors on the South African Broadcasting Corporation (SABC) for the financial year ending 31 March 2002, reports as follows:
The Committee commends the management of the SABC for the unqualified audit opinion expressed by the Independent Auditors and trust that future audit opinions will be equally unqualified.
Having considered the Annual Report, the Report of the Independent Auditors and noting the unqualified audit opinion expressed by the Independent Auditors, the Committee is of the view that no further interaction with the accounting authority is necessary for the year under review.
The Committee therefore awaits the next Annual Report and the Report of the Independent Auditors.
Report to be considered.
== One-Hundred-and-First Report of the Standing Committee on Public Accounts, dated 23 September 2003: The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the South African Human Rights Commission for the financial year ending 31 March 2002, reports as follows:
The Committee commends the management of the South African Human Rights Commission for the unqualified audit opinion expressed by the Auditor-General and trust that future audit opinions will be equally unqualified.
The Committee also noted the issue raised under emphasis of matter where, although an internal audit department and audit committee was established, no internal audit work had been executed. The Committee expects the accounting authority to expeditiously rectify the issue in question. The Committee will await the Report of the Auditor-General for the 2002/03 financial year to see whether there was any improvement in this regard.
Having considered the Annual Report, the Report of the Auditor-General and noting the unqualified audit opinion expressed by the Independent Auditors, the Committee is of the view that, except for the matter highlighted above, no further interaction with the accounting authority is necessary for the year under review.
The Committee therefore awaits the next Annual Report and the Report of the Auditor-General.
Report to be considered.
== One-Hundred-and-Second Report of the Standing Committee on Public Accounts, dated 23 September 2003: The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the South African Medical Research Council for the financial year ending 31 March 2002, reports as follows:
The Committee commends the management of the South African Medical Research Council for the unqualified audit opinion expressed by the Auditor-General on the audit of the financial statements, but expressed its concern on the disclaimer of the audit opinion on the performance information.
The Committee also noted the following issues raised under Emphasis of Matter:
The accounting policy adopted by the Council for land and buildings is not in accordance with generally accepted accounting practice.
Although future lease commitments for the year under review have been disclosed, the comparative disclosure for the previous financial year has not been provided.
Ministerial approval for the transfer of funds had not yet been obtained.
Deficiencies and shortcomings in the internal checking and control measures.
Areas of concern within the general computer controls.
The Committee expects the accounting authority to expeditiously rectify the issues in question. The Committee will await the Report of the Auditor-General on the follow-up audit work in this regard.
Having considered the Annual Report, the Report of the Auditor-General and noting the audit opinions expressed by the Auditor-General, the Committee is of the view that no further interaction with the accounting authority is necessary for the financial year under review.
The Committee therefore awaits the next Annual Report and the Report of the Auditor-General.
Report to be considered.
== One-Hundred-and-Third Report of the Standing Committee on Public Accounts, dated 23 September 2003: The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Independent Auditors on SENTECH for the financial year ending 31 March 2002, reports as follows:
The Committee commends the management of SENTECH for the unqualified audit opinion expressed by the Independent Auditors and trust that future audit opinions will be equally unqualified.
Having considered the Annual Report, the Report of the Independent Auditors and noting the unqualified audit opinion expressed by the Independent Auditors, the Committee is of the view that no further interaction with the accounting authority is necessary for the year under review.
The Committee therefore awaits the next Annual Report and the Report of the Independent Auditors.
Report to be considered.
== One-Hundred-and-Fourth Report of the Standing Committee on Public Accounts, dated 23 September 2003: The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the State Information Technology Agency (SITA) for the financial year ending 31 March 2002 as well as the Report of the Auditor-General on the performance audits completed during the 2001/02 financial year, reports as follows:
The Committee notes the qualified opinion expressed by the Auditor-General with regard to the post-retirement medical benefits, with concern.
The Committee also noted the following issues raised under emphasis of matter:
The environment of restructuring, in which SITA operated for the year under review, had a negative impact on the control environment and led to inefficiencies in internal control systems and procedures.
Shares were not issued to the State in terms of the State Information Technology Act, 1998.
The disclosed issued share capital did not agree with the registered issued share capital of R1 billion as recorded at the Registrar of Companies.
The Committee expects the accounting authority to expeditiously rectify all the issues in question. The Committee will await the Report of the Auditor-General for the 2002/03 financial year to see whether there was any improvement in this regard.
Having considered the Annual Report, the Report of the Auditor-General and noting the qualified audit opinion expressed by the Auditor-General, the Committee is of the view that no further interaction with the accounting authority is necessary for the financial year under review.
The Committee therefore awaits the next Annual Report and the Report of the Auditor-General on the regularity audit as well as the follow-up audit on the performance audit.
Report to be considered.
==
One-Hundred-and-Fifth Report of the Standing Committee on Public Accounts, dated 23 September 2003: The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Independent Auditors on Thubelisha Homes for the financial year ending 31 March 2002, reports as follows:
The Committee commends the management of Thubelitsha Homes for the unqualified audit opinion expressed by the Independent Auditors and trust that future audit opinions will be equally unqualified.
The Committee also noted the issue raised under emphasis of matter where the continuation of the company's activities is dependent on the outcome of the negotiations in progress. The Committee expects the accounting authority to monitor the issue in question. The Committee will await the Report of the Independent Auditor for the 2002/03 financial year to see whether there was any improvement in this regard.
Having considered the Annual Report, the Report of the Independent Auditors and noting the unqualified audit opinion expressed by the Independent Auditors, the Committee is of the view that, except for the matter highlighted above, no further interaction with the accounting authority is necessary for the year under review.
The Committee therefore awaits the next Annual Report and the Report of the Independent Auditors.
Report to be considered.
== One-Hundred-and-Sixth Report of the Standing Committee on Public Accounts, dated 23 September 2003: The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Truth and Reconciliation Commission for the financial year ending 31 March 2002, reports as follows:
The Committee commends the management of the Truth and Reconciliation Commission for the unqualified audit opinion expressed by the Auditor-General and trust that future audit opinions will be equally unqualified.
The Committee also noted the following issues raised under emphasis of matter:
The balance for debtors amounted to R202 350 and includes amounts that have been outstanding for periods of up to five years, the recoverability of which appears to be doubtful, and
The activities of the commission were concluded on 28 March 2002 on which date the bank account was closed and all assets and liabilities were transferred to the Department of Justice and Constitutional Development.
Having considered the Annual Report, the Report of the Auditor-General and noting the unqualified audit opinion expressed by the Auditor-General, the Committee is of the view that no further interaction with the accounting authority is necessary for the year under review.
The Committee will, however, interact with the Department of Justice and Constitutional Development regarding the transfer of assets and liabilities as stated above.
Report to be considered.
== One-Hundred-and-Seventh Report of the Standing Committee on Public Accounts, dated 23 September 2003: The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Universal Service Agency for the financial year ending 31 March 2002, reports as follows:
The Committee commends the management of the Universal Service Agency for the unqualified audit opinion expressed by the Auditor-General on the Fund and trust that future audit opinions will be equally unqualified. However, the Committee took note of the qualified audit opinion expressed by the Auditor-General on the Agency, with concern.
Having considered the Annual Report, the Report of the Auditor-General and noting the audit opinions expressed by the Auditor-General, the Committee is of the view that no further interaction with the accounting authority is necessary for the year under review.
The Committee therefore awaits the next Annual Report and the Report of the Auditor-General.
Report to be considered.
== One-Hundred-and-Eighth Report of the Standing Committee on Public Accounts, dated 23 September 2003: The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Independent Auditors on LANOK for the financial year ending 31 March 2002, reports as follows:
The Committee commends the management of LANOK for the unqualified audit opinion expressed by the Independent Auditors and trust that future audit opinions will be equally unqualified.
Having considered the Annual Report, the Report of the Independent Auditors and noting the unqualified audit opinion expressed by the Independent Auditors, the Committee is of the view that no further interaction with the accounting authority is necessary for the year under review.
The Committee therefore awaits the next Annual Report and the Report of the Independent Auditors.