1. Audit findings 2008/09 Financial Year

2. 2 Presentation Structure  Background  Areas of Improvement

3. 3 Background  The management report highlights audit findings from the audit of financial matters, financial reporting systems, governance matters, performance information and human resource management;  The annual financial statements of both entities do not contain any material misstatements;  The Academy did not comply with a circular issued by the Department of Public Service and Administration relating to human resource management;and  The AG expressed an unqualified audit opinion on the financial statements of both the Vote and the TTA for the 2008/09 financial year.

4. 4 Areas of Improvement NoAudit FindingResponsibilityTarget DateProgress OTHER MATTERS IMPACTING THE AUDIT REPORT Compliance 1.HR Plan not meeting minimum requirements During execution of compensation of employees it came to our attention that: The HR plan submitted for audit purposes were not signed and did not meet the minimum requirements of Circular 21 May 2008 of DPSA (Human Resources) and DPSA "Strategic Human Resources Planning Guideline and Toolkit, Medium Term Expenditure Period 2008-10 and financial year 2008/2009, issued during March 2007. Circular, 21 May 2008 of DPSA, states that the Department should submit their final approved HR plan on or before 1 September 2008 to DPSA. Chief Director: Corporate Services 01/09/2009The HR Plan for the 2009/10 year was submitted by 1 September 2009. OTHER IMPORTANT MATTERS Financial 2.Trade and other payables understated During the execution of trade and other payables it came to our attention that liabilities to the value of R301,602 were unrecorded for the financial year ended on 31 March 2009. Chief Financial OfficerResolvedA formal ordering process has been implemented to eliminate the finding by 30/04/09

5. 5 Areas of Improvement ADMINISTRATIVE MATTERS Control 3.Policies and procedures During the audit, we have identified that the following components audited during the 2008/09 audit did not have documented, approved and implemented policies and procedures.  Bank and Cash Management (including Petty Cash Management)  Clearance accounts  Transfer payments Acting Director: Financial Management ResolvedThe Departmental Financial Instruction (DFI) manual has been completed and implemented on 04/01/2010. This addresses all financial policies and procedures. Compliance 4.Payment of VAT to non VAT vendors During execution for goods and services of the Vote, it came to our attention that value added tax (VAT) was paid to the supplier without a valid VAT number as prescribed according to section 20(4) of the Value-added Tax Act, Act 89 of 1991. A vendor search was performed on the SARS website. The search indicated that a VAT vendor in respect of the mentioned supplier name did not exist. This could therefore result in an overpayment of R 8,058 to the relevant vendor. Acting Director: Financial Management ResolvedThe VAT was recovered from the supplier.

6. 6 Areas of Improvement Financial 5.Incorrect aging of debt During the execution of revenue and receivables it came to our attention that debtors to the value of R44,131.25 were incorrectly disclosed as debtors less than one year in note 12 of the financial statements of the Vote Acting Director: Financial Management 31/05/2010This will be tested during the final audit, but procedures are in place to ensure it does not re-occur 6.Unallocated receipts allocated after submission of financial statements for audit During the execution of Trade and other receivables it came to our attention that receipts to the value of R116,320 had been unallocated for a long period. Manager: Debtors31/05/2010This will be tested during the final audit, but procedures are in place to ensure it does not re-occur 7.Incorrect calculation of implicit interest in terms of IAS39 During the audit of the IAS 39 calculation of the Trading Entity, it came to our attention that an calculation error occurred, and the 15% interest calculation were used throughout the financial year to determine the interest on the IAS 39 calculation. The calculation did, however, not take interest fluctuations into account. The interest fluctuations throughout the year ranged from 13% to 15%. Manager: DebtorsResolvedThe interest rates have been rectified on 03/07/09 to ensure it will not re-occur