1. 2013/14 GCIS AUDIT REPORT Executive Committee Portfolio Committee
21 October 2014

2. 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

3. 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 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.

4. 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

5. 2013/14 Financial Performance Per Programme
BUDGET
(R’000)
EXP %
VARIANCE
REASONS FOR VARIANCE
1 ADMINISTRATION
Operational
Personnel
55 295
99.9%
100% 1 -
2 CONTENT PROCESSING AND DISSEMINATION
40 963
41 637

6. 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)

7. 2013/14 Financial Performance Per Programme
BUDGET
(R’000)
EXP %
VARIANCE
REASONS FOR VARIANCE
GRAND TOTAL
OPERATIONAL
TRANSFERS TO PUBLIC ENTITIES
PERSONNEL
20 790
100.8%
101.6%
100%
(3 696) -
Indicated per Programme
Overspending due to the funding of the state funeral.

8. 2013/14 Departmental Revenue
DEPARTMENTAL RECEIPTS
EXPECTED REVENUE
(R’000)
REVENUE COLLECTED %
VARIANCE
REASONS FOR VARIANCE
GRAND TOTAL
904
874
96.68
(30)

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

10. Thank you.