RESPONSES TO AUDIT OUTCOME BY AUDITOR GENERAL: 2014/15 Presented by: MRS SARAH MUVHULAWA 16 October

RESPONSES TO AUDIT OUTCOME BY AUDITOR GENERAL: 2014/15 FINDINGSACTION TAKEN Deferred revenue (grant received from the Department of Rural Development) on a new project was recognised without meeting the condition of the contract with regard to the project assets. AG interactions to improve financial outcome. Management has developed an audit finding matrix for both internal and external audit findings. And this is presented to Audit and Risk committee on a quarterly basis. Internal auditors also conduct a follow-up audit on the resolved audit findings and provide a report to Audit and Risk committee. Management has a developed a detailed GRAP compliance checklist for all the standards applicable to NAMC which will assist in applying the correct accounting treatment of the transactions and disclosure thereof. Management has a system in place for classification of revenue and deferred revenue in the annual financial statements. Reconciliations of deferred revenue are done on a monthly basis. Management interacts with Auditor General and National Treasury timeously in order to resolve issues before the audit starts. 2

RESPONSES TO AUDIT OUTCOME BY AUDITOR GENERAL: 2014/15 FINDINGSACTION TAKEN Planned target not in line with the SMART Principle: Targets and indicators were not specific, verifiable, measurable. The required level of performance were not documented. Targets were not time bound. The date of achievements of targets were not specified. Management has implemented Auditor Generals recommendations which will become effective during the 2015/16 financial year as highlighted by Auditor General. Refer to page 9 of Auditor General Report. Management has developed a technical indicator guideline in response to the target and indicators that were not meeting the smart criteria. 3

THANK YOU 4