REPORT OF THE AUDITOR-GENERAL THE AFRIKAANS LANGUAGE REPORT

The financial statements as set out on pages 18 to 31, for the year ended 31 March 2006, have been audited in terms of section 188 of the Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996), read with sections 4 and 20 of the Public Audit Act, 2004 (Act No. 25 of 2004). These financial statements are the responsibility of the accounting officer. My responsibility is to express an opinion on these financial statements, based on the audit.

2. Scope
The audit was conducted in accordance with International Standards on Auditing read with General Notice 544 of 2006, issued in Government Gazette no. 28723 of 10 April 2006 and General Notice 808 of 2006, issued in Government Gazette no. 28954 of 23 June 2006. Those standards require that I plan and perform the audit to obtain reasonable assurance that the financial statements are free of material misstatement.

An audit includes:

· examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements,

· assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation.

I believe that the audit provides a reasonable basis for my opinion.

3. Basis of Accounting
The entity’s policy is to prepare financial statements on the basis of accounting determined by the National Treasury, as described in note 1 to the financial statements.

4. Qualification
In common with similar organisations, it is not feasible for the museum to institute accounting controls over cash collections from funding and marketing prior to initial entry of the collections in the accounting records. Accordingly, it was impracticable for us to extend our examination beyond the receipts actually recorded.

5. Qualified Audit Opinion
In my opinion, except for the effect on the financial statements of the matter referred to in the preceding paragraph, the financial statements present fairly, in all material respects, the financial position of the Afrikaans Language Museum and Language Monument at 31 March 2006 and the results of its operations and its cash flows for the year then ended, in accordance with South African Statements of GAAP with GRAP Standards 1, 2 and 3, as described in note 1 to the financial statements, and in the manner required by the Public Finance Management Act, 1999 (Act no. 1 of 1999).

6. Emphasis of Matter
Without further qualifying the audit opinion expressed above, attention is drawn to the following matters:

6.1 Related party relationship
As per note 16 to the annual financial statements a related party relationship exists between the Afrikaans Language Museum and the Afrikaans Language Committee. According to this note the property known as the Historium, registered in the name of the Afrikaans Language Museum, is the property of the Afrikaans Language Committee as the committee originally purchased it. Furthermore, it should be noted that all income and expenses related to the Historium are not included in the financial statements of the Afrikaans Language Museum.

6.2 Materiality and significance framework

· The following deficiencies in the existing materiality and significance framework of the entity were noted:

· A materiality figure for the entity as a whole has not been developed and included in the framework;

· Qualitative aspects/events documented were limited to unplanned events and activities that were outside the respective legislation. No specific details were given on the type of events mentioned in the framework.

· Quantitative aspects determined by the museum were compared to an acceptable norm. The current basis set by the museum is 5 to 20% of total assets, which is materially higher than the norm of 0.25% to 2%.

6.3 Performance information
The objectives as per the strategic plan are not adequately documented in the annual report in order to facilitate comparison and benchmarking to the desired performance as per the strategic plan.

7. Appreciation
The assistance rendered by the staff of the Afrikaans Language Museum and Language Monument during the audit is sincerely appreciated.

Z Abrams for Auditor-General
Cape Town
31 July 2006