2013/14 GCIS AUDIT REPORT Executive Committee Portfolio Committee 21 October 2014

Auditor-General (AG)’s Report 2013/14 GCIS maintained the status of an unqualified audit report in the 2013/14 financial year Overall, relative to the previous financial years, the system of governance, risk management and control has shown great improvement Issues raised by the Auditor-General are outlined below: 2

Matters raised by the Auditor-General No. Audit Finding Commitment Implementation Status 1. Human Resources Employees were appointed without following a proper process to verify claims made in their applications in contravention of Public Service Regulation 1/VII/D.8 Appointments will only be made once the appointment process has been completed Resolved as at 30 August 2013. NIA has been engaged to conduct criminal, citizenship and credit checks and SAQA is conducting the qualification verifications, before any appointment is made. 2. Annual financial statements, performance and annual reports: The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework as required by section 40(1) (a) of the PFMA of 1999. To ensure that accounts are reconciled to avoid future material misstatements of annual financial statements Accounts are reconciled on a monthly basis to ensure that annual financial statements are free from possible misstatements.

Expenditure summary as at 31 March 2014   Programme Name 2013/2014 2012/2013 Final Appropriation Actual Expenditure (Over)/ Under Expenditure (Over)/Under Expenditure R’000 Administration 184,458 184,457 1 194,340 154,494 39,846 Content Processing and Dissemination 82,600 - 87,840 85,962 1,878 Intergovernmental Coordination and Stakeholder Management 118,249 120,566 (2,317) 127,282 125,794 1,488 Communication Service Agency 51,910 53,290 (1,380) 51,519 Total 437,217 440,913 (3,696) 460,981 417,769 43,212 Note: The over expenditure of R3.7 million at the end of the 2013/14 financial year is due to the 2013 State Funeral

2013/14 Financial Performance Per Programme BUDGET (R’000) EXP % VARIANCE REASONS FOR VARIANCE 1 ADMINISTRATION Operational Personnel 129 163 55 295 129 162 99.9% 100% 1 - 2 CONTENT PROCESSING AND DISSEMINATION 40 963 41 637

2013/14 Financial Performance Per Programme BUDGET (R’000) EXP % VARIANCE REASONS FOR VARIANCE 3 INTERGOVERNMENTAL COORDINATION & STAKEHOLDER MANAGEMENT Operational Transfer to MDDA Personnel 32 046 20 790 65 413 34 363 107% 100% (2 317) - Overspending due to the funding of the state funeral 4 COMMUNICATION SERVICE AGENCY 32 008 19 902 33 388 104% (1 380)

2013/14 Financial Performance Per Programme BUDGET (R’000) EXP % VARIANCE REASONS FOR VARIANCE GRAND TOTAL OPERATIONAL TRANSFERS TO PUBLIC ENTITIES PERSONNEL 437 217 234 180 20 790 182 247 440 913 237 876 100.8% 101.6% 100% (3 696) - Indicated per Programme Overspending due to the funding of the state funeral.

2013/14 Departmental Revenue DEPARTMENTAL RECEIPTS EXPECTED REVENUE (R’000) REVENUE COLLECTED % VARIANCE REASONS FOR VARIANCE GRAND TOTAL 904 874 96.68 (30)

Transfer to Entities – 2013/14 Financial Year Budget of R20 790 000 to Media Development and Diversity Agency Meetings were held to discuss progress on activities and expenditure trend before funds transfer ENTITY AMOUNT MDDA R20 790 000 TOTAL

Thank you.