First Report (First Session, Third Parliament) of Standing Committee on Public Accounts, dated 18 August 2004


1. INTRODUCTION

The Standing Committee on Public Accounts, having considered the

Annual Report of the Auditor-General on the Financial Statements of

the Council for Medical Schemes for the year ended 31 March 2003,

tabled in Parliament and referred to it, reports as follows:


2. AUDIT OPINION

The Committee commends the Management of the Council for the

unqualified audit opinion expressed by the Auditor-General, and trusts

that future audit opinions shall be equally unqualified.


3. CONCLUSION

The Committee is of the view that no further interaction with the

accounting authority of the Council 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.


==
Second Report (First Session, Third Parliament) of Standing Committee on Public Accounts, dated 18 August 2004


1. INTRODUCTION

The Standing Committee on Public Accounts, having considered the

Annual Report of the Auditor-General on the Financial Statements of

the Registrar for Medical Schemes for the year ended 31 March 2003,

tabled in Parliament and referred to it, reports as follows:


2. AUDIT OPINION

The Committee commends the Management of the Registrar for

Medical Schemes for the unqualified audit opinion expressed by the

Auditor-General, and trusts that future audit opinions shall be equally

unqualified.


3. CONCLUSION

The Committee is of the view that no further interaction with the

accounting authority of the Registrar for Medical Schemes 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.


==
Third Report (First Session, Third Parliament) of Standing Committee on Public Accounts, dated 18 August 2004


1. INTRODUCTION

The Standing Committee on Public Accounts, having considered the

Annual Report of the Auditor-General on the Financial Statements of

the Film and Publication Board for the year ended 31 March 2003,

tabled in Parliament and referred to it, reports as follows:


2. AUDIT OPINION

The Committee commends the Management of the Film and

Publications Board for the unqualified audit opinion expressed by the

Auditor-General, and trusts that future audit opinions shall be equally

unqualified.


3. CONCLUSION

The Committee is of the view that no further interaction with the

accounting authority of the Film and Publications Board 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.


==
Fourth Report (First Session, Third Parliament) of Standing Committee on Public Accounts, dated 18 August 2004


1. INTRODUCTION

The Standing Committee on Public Accounts, having considered the

Annual Report, and the Report of the Auditor-General on the

Financial Statements of Bala Farms for the year ended 31 March

2003, tabled in Parliament on 02 August 2003 and referred to it,

reports as follows:


2. AUDIT OPINION

The Committee commends the management of Bala Farms for the

unqualified audit opinion expressed by the Auditor-General, and trusts

that future audit opinions shall be equally unqualified.


3. MATTERS EMPHASISED BY AUDITOR-GENERAL: DISPOSAL OF ALL PROPERTIES

The Committee also noted with concern that the company is in the

process of disposing all of its properties, but that no time frame has

been set for this process. The company will however continue as a

going concern until the properties have been disposed of.

The committee recommends that it be provided, within two weeks

after tabling of this resolution, with the following:


_ Current status of the entity with regards to the winding down

process;

_ Lease agreements and their timeframes;

_ Details and plan of action for those properties where leasing is not

a viable option;

_ The investment policy being used to ensure optimum risk/ return

and

_ The list of properties that were disposed of, the valuations of the

properties, to whom they were disposed to and a detailed report on

what processes were followed to establish the respective beneficiaries

and the respective selling prices.


4. CONCLUSION

SCOPA will follow up on information requested as well as specific

matters raised during the consideration of the next Annual Report.

The Committee awaits the next Annual Report and the Report of the

Auditor-General.


Report to be considered.


==
Fifth Report (First Session. Third Parliament) of Standing

Committee on Public Accounts, dated 18 August 2004

1. INTRODUCTION

The Standing Committee on Public Accounts, having considered the

Annual Report and the Report of the Auditor-General on the Banking

Sector Education and Training Authority (BANK SETA) for the year

ended 31 March 2003 (RP 84/2003), tabled in Parliament on

28 August 2003 and referred to it, reports as follows:


2. AUDIT OPINION

The Committee commends the Management of the BANK SETA for

the unqualified audit opinion expressed by the Auditor-General, and

trusts that future audit opinions shall be equally unqualified. The

Committee further commends the Audit Committee for the comprehensive

report provided.


3. GENERAL MATTERS

The Committee recommends that, within two weeks of tabling this

resolution, the BANK SETA should provide SCOPA with the

following:

_ a copy of the investment policy for unspent funds which includes

consideration of both risk and return;

_ full details of the investment portfolio of unspent funds; and

_ a documented strategy on how it intends to utilise its unspent

money for the intended purposes while also ensuring Value for

Money.


4. CONCLUSION

SCOPA will follow up on information requested as well as specific

matters raised during the consideration of the next Annual Report.

The Committee awaits the next Annual Report and the Report of the

Auditor-General.


Report to be considered.


==
Sixth Report (First Session, Third Parliament) of Standing

Committee on Public Accounts, dated 18 August 2004


1. INTRODUCTION

The Standing Committee on Public Accounts, having considered the

Annual Report and the Report of the Auditor-General on the Financial

Statements of the Chemical Industries and Training Authority

(CHIETA) for the year ended 31 March 2003 (RP 147/2003), tabled

in Parliament on 28 August 2003 and referred to it, reports as follows:


2. AUDIT OPINION

The Committee commends the Management of the CHIETA for the

unqualified audit opinion expressed by the Auditor-General, and trusts

that future audit opinions shall be equally unqualified. The Committee

further commends the Audit Committee for the detailed report

provided.


3. GENERAL MATTERS

The Committee recommends that, within two weeks of tabling this

resolution, the CHIETA should provide SCOPA with the following:

_ a copy of the investment policy for unspent funds which includes

consideration of both risk and return;

_ full details of the investment portfolio of unspent funds; and

_ a documented strategy on how it intends to utilise its unspent

money for the intended purposes while also ensuring Value for

Money.


4. CONCLUSION

SCOPA will follow up on information requested as well as specific

matters raised during the consideration of the next Annual Report.

The Committee awaits the next Annual Report and the Report of the

Auditor-General.


Report to be considered.


==
Seventh Report (First Session, Third Parliament) of Standing

Committee on Public Accounts, dated 18 August 2004


1. INTRODUCTION

The Standing Committee on Public Accounts, having considered the

Annual Report of the Auditor-General on the Financial Statements of

the Construction Education and Training Authority (CETA) for the

year ended 31 March 2003, tabled in Parliament on 28 August 2003

and referred to it, reports as follows:


2. AUDIT OPINION

The Committee commends the Management of the CETA for the

unqualified audit opinion expressed by the Auditor-General, and trusts

that future audit opinions shall be equally unqualified.


3. MATTERS EMPHASISED BY AUDITOR-GENERAL

The Committee noted with concern the following matters pointed out

by the Auditor-General:


3.1 Transfer of assets and liabilities

The transfer of assets amounting to more than R5,8 million and

liabilities in excess of R4,2 million, belonging to the now

abolished Building Industry Training Board (BITB) and the

Building Industry Training Scheme (BITS), have not been

finalised. The consultants that investigated the matter are

currently in dispute with the Department of Labour and this is

delaying the finalisation of the process.


3.2 Internal audit

Owing to the fact that the internal audit function was established

in March 2003 and would only be fully functional in the next

financial year, the Auditor-General could not place any reliance

on the work of the internal auditor.


3.3 Materiality framework

_ No ‘‘materiality and significant framework’’ has yet been

developed as required by Treasury regulations.

The Committee expects the accounting authority to expeditiously

rectify the issues in question. The Committee will await

the Report of the Auditor-General for the 2003/04 financial year

to determine whether there will be any improvement in this

regard.


4. REPORT BY AUDIT COMMITTEE

The Committee was encouraged to note that the terms of reference of

the Audit Committee includes the obligation to promptly report on

any case of fraud or corruption. The Committee recommends that the

CETA confirms that it has implemented a fraud prevention strategy,

and that the internal audit function is fully functional.


5. GENERAL MATTERS

The Committee recommends that, within two weeks of tabling this

resolution, the CETA should provide SCOPA with the following:

_ a copy of the investment policy for unspent funds which includes

consideration of both risk and return;

_ full details of the investment portfolio of unspent funds; and

_ a documented strategy on how it intends to utilise its unspent

money for the intended purposes while also ensuring Value for

Money.


6. CONCLUSION

SCOPA will follow up on information requested as well as specific

matters raised during the consideration of the next Annual Report.

The Committee awaits the next Annual Report and the Report of the

Auditor-General.


Report to be considered.


==
Eighth Report (First Session, Third Parliament) of Standing

Committee on Public Accounts, dated 18 August 2004.


1. INTRODUCTION

The Standing Committee on Public Accounts, having considered the

Annual Report and the Report of the Auditor-General on the Financial

Statements of the Diplomacy, Intelligence, Defence and Trade

Education And Training Authority (DIDTETA) for the year ended

31 March 2003, tabled in Parliament on 27 August 2003 and referred

to it, reports as follows:


2. AUDIT OPINION

The Committee commends the Management of the DIDTETA for the

unqualified audit opinion expressed by the Auditor-General, and trusts

that future audit opinions shall be equally unqualified.


3. MATTERS EMPHASISED BY AUDITOR-GENERAL

The Committee also noted with concern the following issues:


3.1 Non-approval of procurement policy

The DIDTETA procurement policy had not been approved,

therefore there was no formal-basis for authorisation of acquisition

of goods and services.

The Board should therefore indicate why Parliament should not

regard this as irregular expenditure in terms of the PFMA.


3.2 Internal audit and Audit Committee

The Committee is concerned that the Audit Committee was only

established in February 2003 and possibly as a result, the Audit

Committee was not in a position to fully comply with its

reporting requirements in terms of Treasury Regulations 3.1.13.


3.3 Absence of materiality framework

No ‘‘materiality and significant framework’’ was developed as

required by Treasury Regulation 28.1.5.

The Committee expects the accounting authority to expeditiously

rectify the issues in question.


4. GENERAL MATTERS

The Committee recommends that, within two weeks of tabling this

resolution, the DIDTETA should provide SCOPA with the following:

_ a copy of the investment policy for unspent funds which includes

consideration of both risk and return;

_ full details of the investment portfolio of unspent funds; and

_ a documented strategy on how it intends to utilise its unspent

money for the intended purposes while also ensuring Value for

Money.


5. CONCLUSION

SCOPA will follow up on information requested as well as specific

matters raised during the consideration of the next Annual Report.

The Committee awaits the next Annual Report and the Report of the

Auditor-General.


Report to be considered.


==
Ninth Report (First Session, Third Parliament) of Standing Committee on Public Accounts, dated 18 August 2004


1. INTRODUCTION

The Standing Committee on Public Accounts, having considered the

Annual Report and the Report of the Auditor-General on the Financial

Statements of the Energy Sector Education and Training Authority

(ESETA) for the year ended 31 March 2003, tabled in Parliament on

28 August 2003 and referred to it, reports as follows:


2. AUDIT OPINION

The Committee commends the Management of the ESETA for the

unqualified audit opinion expressed by the Auditor-General, and trusts

that future audit opinions shall be equally unqualified.


3. MATTERS EMPHASISED BY AUDITOR-GENERAL

The committee noted with concern the following matter pointed out

by Auditor-General:


Weaknesses in Internal Control

The Committee however, took note of certain weaknesses in the

system of internal control, such as the lack of:

_ segregation of duties, and

_ proper delegations of authority.

The Committee expects the accounting authority to expeditiously

rectify the issues in question.


4. INTERNAL AUDIT AND AUDIT COMMITTEE

The Committee noted that as in the previous financial year, no audit

Committee report, as required by Treasury Regulation 3.1.13, was

included in the Annual Report. The Committee expects that this will

be corrected in the next Annual Report.


5. GENERAL MATTERS

The Committee recommends that, within two weeks of tabling this

resolution, the ESETA should provide SCOPA with the following:

_ a copy of the investment policy for unspent funds which includes

consideration of both risk and return;

_ full details of the investment portfolio of unspent funds; and

_ a documented strategy on how it intends to utilise its unspent

money for the intended purposes while also ensuring Value for

Money.


6. CONCLUSION

SCOPA will follow up on information requested as well as specific

matters raised during the consideration of the next Annual Report.

The Committee awaits the next Annual Report and the Report of the

Auditor-General.


Report to be considered.


==
Tenth Report (First Session, Third Parliament) of Standing Committee on Public Accounts, dated 18 August 2004

1. INTRODUCTION

The Standing Committee on Public Accounts, having considered the

Annual Report and the Report of the Auditor-General on the Financial

Statements of the Education, Training and Development Practices

Sector Education Training Authority (ETDP-SETA) for the year

ended 31 March 2003, tabled in Parliament on 28 August 2003 and

referred to it, reports as follows:


2. AUDIT OPINION

The Committee commends the Management of the ETDP-SETA for

the unqualified audit opinion expressed by the Auditor-General, and

trusts that future audit opinions shall be equally unqualified.


3. MATTERS EMPHASISED BY AUDITOR-GENERAL

The Committee also noted the following matters pointed out by the

Auditor-General:


Weaknesses in internal controls

The following internal control weaknesses were identified:

_ a complete fixed asset register was not available;

_ the approved budget and the budget recorded on the accounting

system reflected an unreconciled difference.

The Committee expects the accounting authority to expeditiously

rectify all identified weaknesses.


4. GENERAL MATTERS

The Committee recommends that, within two weeks of tabling this

resolution, the ETDP-SETA should provide SCOPA with the following:

_ a copy of the investment policy for unspent funds which includes

consideration of both risk and return;

_ full details of the investment portfolio of unspent funds; and

_ a documented strategy on how it intends to utilise its unspent

money for the intended purposes while also ensuring Value for

Money.


5. CONCLUSION

SCOPA will follow up on information requested as well as specific

matters raised during the consideration of the next Annual Report.

The Committee awaits the next Annual Report and the Report of the

Auditor-General.


Report to be considered.


==
Eleventh Report (First Session, Third Parliament) of Standing Committee on Public Accounts, dated 18 August 2004


1. INTRODUCTION

The Standing Committee on Public Accounts, having considered the

Annual Report, and the Report of the Auditor-General on the

Financial Statements of the MAPPP SETA, for the year ended

31 March 2003, tabled in Parliament on 06 October 2003 and referred

to it, reports as follows:


2. AUDIT OPINION

The Committee commends the management of the MAPPP SETA for

the unqualified audit opinion expressed by the Auditor-General, and

trusts that future audit opinions shall be equally unqualified.


3. MATTERS EMPHASISED BY AUDITOR-GENERAL

The Committee noted that the Auditor-General could not place

reliance on internal audit work due to the following:

_ no three-year strategic plan was prepared in consultation with the

Audit Committee,

_ the scope of each audit was not indicated in a plan;

_ reports detailing the performance against the plan were not

submitted to the audit Committee; and

_ the internal audit function of which the purpose, authority and

responsibility were not formally defined in an audit charter is

contracted to a private firm.


4. GENERAL MATTERS

The Committee recommends that, within two weeks of tabling this

resolution, the MAPPP-SETA should provide SCOPA with the

following:

_ a copy of the investment policy for unspent funds which includes

consideration of both risk and return;

_ full details of the investment portfolio of unspent funds; and

_ a documented strategy on how it intends to utilise its unspent

money for the intended purposes while also ensuring Value for

Money.


5. CONCLUSION

SCOPA will follow up on information requested as well as specific

matters raised during the consideration of the next Annual Report.

The Committee awaits the next Annual Report and the Report of the

Auditor-General.


Report to be considered.


=

Twelfth Report (First Session, Third Parliament) of Standing Committee on Public Accounts, dated 18 August 2004


1. INTRODUCTION

The Standing Committee on Public Accounts, having considered the

Annual Report of the Auditor-General on the Financial Statements of

the Council for Geoscience (Council) for the year ended 31 March

2003, tabled in Parliament on 29 September 2003 and referred to it,

reports as follows:


2. AUDIT OPINION

The Committee commends the Management of the Council for the

unqualified audit opinion expressed by the Auditor-General, and trusts

that future audit opinions shall be equally unqualified.


3. GENERAL MATTERS

The Committee recommends that, within two weeks of tabling this

resolution, the Council should provide SCOPA with the following:

_ a motivation for the retention of R123, 041 million in cash and cash

equivalents; and

_ a copy of the investment policy for unspent funds which includes

consideration of both risk and return.


4. CONCLUSION

The Committee awaits the next Annual Report and the Report of the

Auditor-General.


Report to be considered.


==
Thirteenth Report (First Session, Third Parliament) of Standing Committee on Public Accounts, dated 18 August 2004


1. INTRODUCTION

The Standing Committee on Public Accounts, having considered the

Annual Report and the Report of the Independent Auditor on the

Financial Statements of the Corporation for Public Deposits for the

year ended 31 March 2003, tabled in Parliament on 17 September

2003 and referred to it, reports as follows:


2. AUDIT OPINION

The Committee commends the Management of the Corporation for

Public Deposits for the unqualified audit opinion expressed by the

Independent Auditor, and trusts that future audit opinions shall be

equally unqualified.


3. CONCLUSION

The Committee is of the view that no further interaction with the

Corporation for Public Deposits would be necessary for the financial

year under review.

The Committee therefore awaits the next Annual Report and the

Report of the Independent Auditor.


Report to be considered.


==

Fourteenth Report (First Session, Third Parliament) of Standing Committee on Public Accounts, dated 18 August 2004


1. INTRODUCTION

The Standing Committee on Public Accounts, having considered the

Annual Report of the Independent Auditors on the Financial

Statements of the Accounting Standards Board (Board) for the year

ended 31 March 2003, tabled in Parliament on 29 August 2003 and

referred to it, reports as follows:


2. AUDIT OPINION

The Committee commends the Management of the Board for the

unqualified audit opinion expressed by the Independent Auditors, and

trusts that future audit opinions shall be equally unqualified.


3. CONCLUSION

The Committee is of the view that no further interaction with the

accounting authority of the Board is necessary for the financial year

under review.

The Committee therefore awaits the next Annual Report and the

Report of the Independent Auditors.


Report to be considered.


==
Fifteenth Report (First Session, Third Parliament) of Standing Committee on Public Accounts, dated 18 August 2004


1. INTRODUCTION

The Standing Committee on Public Accounts, having considered the

Annual Report and the Report of the Auditor-General on the Financial

Statements of the Insurance Sector Education and Training Authority

(INSETA) for the year ended 31 March 2003 (RP 79/2003), tabled in

Parliament on 28 August 2003 and referred to it, reports as follows:


2. AUDIT OPINION

The Committee commends the Management of the INSETA for the

unqualified audit opinion expressed by the Auditor-General, and trusts

that future audit opinions shall be equally unqualified. The Committee

further commends the Audit Committee for the comprehensive report

provided.


3. GENERAL MATTERS

The Committee recommends that, within two weeks of tabling this

resolution, the INSETA should provide SCOPA with the following:

_ a copy of the investment policy for unspent funds which includes

consideration of both risk and return;

_ full details of the investment portfolio of unspent funds; and

_ a documented strategy on how it intends to utilise its unspent

money for the intended purposes while also ensuring Value for

Money.


4. CONCLUSION

SCOPA will follow up on information requested as well as specific

matters raised during the consideration of the next Annual Report.

The Committee awaits the next Annual Report and the Report of the

Auditor-General.


Report to be considered.