1. 2005-06 Overview of National Audit Outcomes Presentation to SCOPA,
SA Fakie, Auditor-General,
18 October 2006

2. Overview Audit opinions 2005-06 analysed – situation has deteriorated
Challenges ahead
Communication and participation of senior management in the audit process
Leadership role of National Treasury
Guidance and advice to departments
Other areas eg. IT systems and performance information

3. Governance Arrangements (G)
Strategic Issues
People
(P1)
Process
(P2)
Governance Arrangements (G)
Skills
Efficient process
Simple, Effective, Understandable
Accountability/
Consequences
Vacancies
Performance management systems
Checks and balances
In year monitoring
Monthly management accounts
Audit committee
Internal audit
External audit
Limitation of IT systems

4. Summary of the Audit Opinions of National Votes
Disclaimer 1
Qualified (except for) 10 7
Matters emphasised 21 24
Clean reports 2
Qualified Departments
(Number of consecutive years in brackets)
Correctional Services (5)
Defence (4)
Health (3)
Home Affairs (6)
Independent Complaints Directorate (1)
Justice (1)
Labour (2)
Land Affairs (1)
Parliament (3)
Transport (2)
Water Affairs and Forestry (1)

5. What are the qualification issues?
Traditional qualification issues
Asset management
Accounts receivable and revenue
Traditional matters emphasised that have been elevated to qualification issues
Personnel
Other expenditure

6. Qualifications analysed by cluster
Justice and Protection 4 2
Economic services and infrastructure 3 1
Social services
Central Government Administration
Financial and administration service
Qualified Departments
(Number of consecutive years in brackets)
Correctional Services (5)
Defence (4)
Health (3)
Home Affairs (6)
Independent Complaints Directorate (1)
Justice (1)
Labour (2)
Land Affairs (1)
Parliament (3)
Transport (2)
Water Affairs and Forestry (1)

7. Best and worst audit opinions
Disclaimer
Independent Complaints Directorate
Six Public Entities
Most Qualification Issues
Department of Correctional Services
Home Affairs
Clean Reports
Public Service Commission
Public Enterprises

8. Quality and timeliness of audit information
Submission of substandard financial statements and the late submission of supporting documentation resulted in material amendments to financial statements after submission
Lack of involvement of senior departmental management does affect the audit process
Forums such as audit committees and audit steering committees are not being used

9. National Treasury responsibilities - building block of good financial reporting
Standards
Guidance
IT systems

10. Performance information
Lack of information provided by Departments and other entities
Despite the phased in approach, there were still reporting items in audit reports for 17 National Departments