Accounting Standards Board Annual Report 2006

Contents Progress on standard setting Relationship with Accountant-General & Auditor-General Corporate Governance Compliance with duties ito PFMA Reporting on Performance Underutilisation of grant Work programme Work accomplished

Progress on standard setting Framework 3 Standards of GRAP and 8 Standards of GAMAP approved by Minister 8 Standards submitted to Minister for approval 3 Standards ready for submission to Minister for approval 4 International exposure drafts undergoing concurrent exposure 6 Local exposure drafts issued for comment 3 Discussion papers issued for comment

Relationship with Accountant-General & Auditor-General Accountant-General responsible for implementation Auditor-General responsible for assessment of compliance Accounting Standards Board responsible for setting standards Regular trilateral meetings Capacity to implement Common approach to implementation issues Setting priorities

Corporate Governance Share audit committee and internal audit function with National Treasury Internal controls appropriate to size of organisation

Compliance with duties ito. PFMA Exercised due & utmost care to protect assets & records Acted with fidelity, honesty, integrity & in best interest of ASB No disclosures were needed to executive authority Prevented any prejudice to financial interests of the state

Compliance with Duties ito PFMA Complied with responsibilities ito PFMA Did not obtain any personal gain or improper benefit Disclosed all interests There were no conflicts of interest Maintained appropriate financial, risk management and internal controls Audit committee & internal audit functioned effectively

Compliance with Duties ito PFMA Appropriate procurement & provisioning system was maintained No irregular expenditure No fruitless & wasteful expenditure No losses from criminal conduct All expenditure complied with operation policies Working capital was managed efficiently & economically

Compliance with Duties ito PFMA Did manage & safeguard assets Complied with legislation re taxes, levies, pension & audit commitments No disciplinary steps were required against employees Submitted all reports, returns, notices & other info required Complied with legislation

Compliance with Duties ito PFMA Prepared & submitted budget ito PFMA Budget was approved Did not budget for a deficit Maintained expenditure control Submitted financials in accordance with timetable Complied with all delegations Used all resources to effectively, efficiently & economically

Performance Reporting STRATEGY ACTION TARGETED OUTCOME ACTUAL OUTCOME FOR THE YEAR Set Standards of GRAP as required by section 216(1) of Constitution. Develop & maintain updated work programme after consulting relevant stakeholders. Consider best practices Prepare & publish exposure drafts Amend exposure drafts & publish final Standard Respond to comments & concerns Balance representation on project groups Core set of high-quality Standards by 2008/9 Published 8 exposure drafts Issued 3 standards of GRAP

Performance Reporting STRATEGY ACTION TARGETED OUTCOME ACTUAL OUTCOME FOR THE YEAR Publish directives, guidelines, interpre-tations concerning Stds of GRAP Publish directives, guidelines, interpretations on accounting and financial reporting. Amend and re-publish final documents Respond to comment and concerns raised during comment period When requested, develop high-quality directives, guidelines, interpretations Draft issued: Guideline on accounting for public-private partnerships.

Performance Reporting STRATEGY ACTION TARGETED OUTCOME ACTUAL OUTCOME FOR THE YEAR Recommend to Minister appropriate dates for implementation Recommend effective dates for implementation in accordance with approved process Recommend an effective date for each Std of GRAP based on capacity of institutions Five standards have been submitted

Performance Reporting STRATEGY ACTION TARGETED OUTCOME ACTUAL OUTCOME FOR THE YEAR Perform any other function incidental to advancing financial reporting in public sector Participate in national & international standard setting Respond to major consultation papers Assist NT and others with docs designed to assist with implementation Maintain website Publish and write accounting-related articles Tailor communications with stakeholders Publish approved documents on website Regular newsletters Attend to technical queries Presentations at conferences and seminars Meet with major stakeholders Perform functions incidental to advancing financial reporting in the public sector Participated in national and international standard setting Comment letters submitted on public sector EDs to IPSASB Technical support to SA representatives on IPSASB Commented on NT documentation Newsletters issued after every Board meeting Submitted articles to public sector institutions on approved EDs

Performance Reporting STRATEGY ACTION TARGETED OUTCOME ACTUAL OUTCOME FOR THE YEAR Manage Board to ensure compliance with best practices in Corporate Governance appropriate to Board Achieve compliance with relevant laws & regulations Establish appropriate structures, set policies and assess compliance Comply with relevant laws regulations Report regularly on financial performance, financial position and service delivery Manage and report annually on financial performance, financial position and service delivery Managing public entity to comply with best practices in corporate governance Board maintained appropriate corporate governance structures Implemented appropriate policies to ensure compliance laws & regulations Internal audit identified some housekeeping matters

UNDEREXPENDITURE Actual R Budget Variances Revenue 4 164 469 4 783 000 (618 531) Grant used 4 107 760 4 733 000 (625 240) Interest income 56 709 50 000 6 709 Less Operating expenses 3 818 554 4 433 000 614 446 Local meetings 468 034 691 834 223 800 International meetings 154 172 317 625 163 453 Staff costs 2 319 503 2 382 946 63 443 Training 55 673 162 000 106 327 Communication and marketing 130 489 163 400 32 911 Establishment costs 349 956 365 570 15 614 Administration 340 727 349 625 8 898 Surplus for the year 345 915 350 000 (4 085) Capital expenditure

Explanation of material variances 3 vacancies on board & 1 vacancy on management committee exist - under-expenditure on costs of local meeting expenses, meetings with stakeholders & project group expenses. One of 3 IPSASB meetings was hosted by South Africa, resulting in a saving in travel expenses. 2 board members attended, while we budgeted for greater attendance. Attended 1 regional meeting where the World Bank paid the accommodation. Remuneration partly based on incentives. Budgeted for an executive development programme, but due to time constraints, the CEO did not attend such a programme.