Consolidated audit outcomes National departments and entities PFMA 2008-09 Consolidated audit outcomes National departments and entities 1

National constitutional institutions Departments and entities -PFMA audit outcomes 2008-09 Audit outcomes Type of audit opinion National legislature National constitutional institutions National departments National entities Total Disclaimer 1 5 6 Adverse 2 Qualified 12 20 33 Financially unqualified (with other matters) 15 96 118 Financially unqualified (with no other matters) 84 91 Total reported on 9 207 250 Total entities 10 212 256 2

Constitutional institutions Departments and entities -PFMA audit outcomes 2008-09 Comparison of audit outcomes between 2008-09 and 2004-05 Type of audit opinion Legislature Constitutional institutions Departments Entities 2008-09 2004-05 Disclaimer 1 5 8 Adverse 2 Qualified 12 6 20 27 Financially unqualified (with other matters) 7 15 24 96 77 Financially unqualified (with no other matters) 84 70 Total reported on 9 10 33 207 182 Total entities 212

Key internal control element Departments and entities -PFMA audit outcomes 2008-09 Drivers to improve audit outcomes: Fundamental elements of internal control Key internal control element Leadership: adequate leadership involvement and oversight must set the tone from the top and create an environment conducive to good financial management and service delivery Financial Management: quality monthly financial statements and management information must be produced, evaluated and monitored at appropriate leadership levels to enable quality decision making and service delivery Governance: effective governance arrangements must be in place and must ensure proper risk management and adequate internal controls as well as effective internal audit and audit committee functions

Departments and entities -PFMA audit outcomes 2008-09 Areas qualified in Annual Financial Statements 5 5

Departments and entities -PFMA audit outcomes 2008-09 Warning Signals 6 6

Non-compliance with PFMA / Treasury Regulations – National departments Departments and entities -PFMA audit outcomes 2008-09 Non-compliance with PFMA / Treasury Regulations – National departments

Departments and entities -PFMA audit outcomes 2008-09 Audit of Performance Information General ■ Phase-in approach by the AGSA since 2005-06 together with National Treasury ■ Stakeholder engagements to clarify approach and essence of AOPI have taken place and will continue throughout 2009-10 ■ 2009-10 will be a further opportunity to get ready for the AOPI opinion Areas requiring improvement Main findings National Departments National Entities Non-compliance with regulatory requirements 44% 28% Usefulness of reported performance information 47% 19% Reported performance information not reliable 15% 8 8