Audit Outcomes – PFMA 2007/08 Auditor-General 18 November 2008

Presentation to National Parliament Audit Outcomes - PFMA 2007/08 Status of audit completion as at 14 November Total Audit Completed Audit Outstanding % Completion National departments % National public entities and other entities % Constitutional Institutions % Provincial departments % Provincial public entities and other entities % Overall %

Presentation to National Parliament Audit Outcomes - PFMA 2007/08 Audit opinions Type of audit opinion No % % % Adverse92%1%2% Disclaimer215%6%8% Qualified10523%28%29% Financially unqualified (with other matters)21647%46%51% Financially unqualified (with no other matters)11223%19%10% TOTAL ANALYSED463100% 3

Presentation to National Parliament 4 Audit Outcomes - PFMA Qualification audit findings

Presentation to National Parliament 5 Audit Outcomes - PFMA 2007/08 Other matters audit findings

Presentation to National Parliament 6 Audit Outcomes - PFMA Good practice indicators Good Practices% Clear trail of supporting documentation that is easily available and provided timely73% Quality of financial statements and management information58% Timeliness of financial statements and management information88% Availability of key officials during audits85% Development and compliance with risk management and good internal control and governance practices 65% Leadership / supervision / monitoring71%

Presentation to National Parliament 7 Audit Outcomes - PFMA Overall conclusion 1. Close leadership involvement is required, including to address challenges such as human resource competency and capacity issues, as well as to monitor the implementation of action plans appropriately designed to address the various audit issues 2. Monthly in year monitoring to include reporting on year to date financial statements. 3. Ongoing monitoring and evaluation of internal controls by audit committee and internal audit to ensure better quality financial information and statements 4. Continued coordination between the portfolio committees and public accounts committees to be institutionalised and focus on financial performance and audit action plans. 5. Continued strengthening of co-ordination between national and provincial treasury as well as capacity of provincial treasuries to enable better support to entities