First Report of the Standing Committee on Public Accounts, dated 5 February 2003:



The Standing Commmittee on Public Accounts, having considered the Report of the Auditor-General on the Financial Statements of the Zoological Gardens of South Africa for the year ended 31 March 2002, tabled on 5 September 2002 and referred to it, reports as follows:



1. Audit opinion

The Committee commends the management of the Zoological Gardens of South Africa for the unqualified audit opinion expressed by the Auditor-General, and trusts that future audit opinions will be equally unqualified.



The Committee, however, notes that the Auditor-General has raised several issues of concern.



2. Investments

The Committee notes that the Zoological Gardens incurred a loss on an investment held in a private bank, which was subsequently placed under curatorship.



Through intervention of the South African Reserve Bank, the loss was reduced to R60 277 at 31 March 2002. The Zoological Gardens received an interim distribution of 44 cents in the Rand on 8 April 2002. The Committee recommends that the management make every attempt to recover the outstanding balance from the appointed curator, and that funds be securely invested in future.



3. Tabling of Annual Report

The Committee notes that the Annual Report and Financial Statements were tabled in Parliament on 5 September 2002.



This late tabling constitutes non-compliance with section 65(1)(a) of the Public Finance Management Act.

The Committee recommends that the management of the Zoological Gardens strictly adhere to the relevant sections of the PFMA at all times.



4. Going concern

The Committee also notes that the Zoological Gardens is totally dependent for its funding on the Department of Arts, Culture, Science and Technology. They must explain by 30 April 2003 why funds cannot be generated from patrons of the Zoological Gardens.



5. Decision on hearing

Because the audit opinion is unqualified, the Committee recommends that no hearing be held for the financial year under review.



Report to be considered.