Issues reported

Reasons/steps taken

Qualification: Non compliance with NAC Act

Remaining funds allocated in the following financial year

No request to Treasury to accumulate surpluses.

Timing difference of allocation. It is difficult to request to accumulate surpluses before the report is finalised.

No minutes kept for Panel and Council approvals of grants

The problem was with the previous board and panel members. Subsequently the last 2 funding sessions minutes are kept, approved and signed by DAC.

Board of directors dissolved by the Minister

DAC to appoint a new board.

Vacancies of CEO and CFO not filled for significant portion of year.

After the suspension of CEO and CFO, a disciplinary hearing was held in August 2004. CFO was re-instated in September 2004. An interim CFO/CEO was appointed (Mr. David Janks). In March 2005 another acting CEO was appointed by DAC.

Freezing of bank account resulted in loss of control over payments.

Since there were no signatories the NAC bank account was frozen. Currently the Acting CEO and CFO are signatories. DAC instructed the bank to freeze the account.

50% vacancy note on council

Temporary staff appointed to assist in the grants section. Full time staff positions will be filled when the new CEO and board is appointed.

Weakness of control over fixed assets

A person will be appointed soon to do the asset register.

No internal function

Internal auditors appointed in January 2005.

No risk assessment performed

Draft document available

No materiality to significance framework complied

Draft document available

Non-disclosure of conflict of interest by board members

Currently no board. Currently policy manual requires staff members to declare.

Grants turned down by advisory panels subsequently approved by executive.

Refer to NAC Act, it allows such a decision.

Non compliance to tender policies and procedures.

Previous board did not comply. We currently adhere by going the tender route. For example, went on tender for travelling agency and we also source three quotations for amounts exceeding R10 000-00.

Late submission of financial statements for auditing.

Original financial statements submitted on time but the Auditor General submitted some amendments. They were subsequently submitted on June 10 2005.

Weaknesses in internal controls regarding the segregation of duties, pre-approved of expenses and the familiarity of policies and procedure.

This will be resolved once the full complement of staff is appointed because we do not have enough signatories, some of whom would be board members.

Failure so submit budget to Department.

Subsequently submitted March 2004.