Report
of the Standing Committee on the AG on having been consulted by the AG in terms
of sect. 23(1) of the Public Audit Act regarding the AG's charge out rate for
the period 1 April 2-7 - 31 March 2008
The Auditor-General annually determines a fixed charge out rate to be applied
by private firms who conduct audits on behalf of the Auditor-General (AG). He
does so after discussions with the South African Institute of Chartered
Accountants (SAICA) and National Treasury (NT) in terms of S23(1) of the Public
Audit Act, No. 25 of 2004.
The Committee was briefed by the AG on the charge out rate that he proposed
determining for the period 1 April 2007 - 31 March 2008. The proposed rates
increase was limited to a straight 4% increase on each level of the charge out
rate agreed to between the AG and SAICA for the previous period, ie. 1 April
2006 - 31 March 2007. This increase was in line with the Auditor-General's own
budgetary assumptions as included in its strategic plan for the corresponding
period. The Committee was also furnished with a letter from the National
Treasury that supported the proposed increase in rates.
Having considered the information furnished and having interacted with the AG
on certain of the specific details, the Committee is of the opinion that the
proposed increase is justified and reasonable under the circumstances.