1. 5 th Parliament capacity building Portfolio Committee on Home Affairs Presented by: Naveen Mooloo 9 September 2014

2. Reputation promise/mission The Auditor-General of South Africa has a constitutional mandate and, as the Supreme Audit Institution (SAI) of South Africa, it exists to strengthen our country’s democracy by enabling oversight, accountability and governance in the public sector through auditing, thereby building public confidence.

3. To provide members of parliament with the necessary information/guidance on the role of the AGSA to enable them to effectively execute their oversight function Objective of presentation

4. 1.Combined assurance  Complimentary support mandate 2. Audit mandate and process  Legislative requirements  Regularity audit process  AGSA audits  Audit of Predetermined Objectives 4.How to interpret and Audit Report  Audit report structure  Financial audit opinions  Good administration 5. Briefing process Index

5. Oversight

6. 6 Identify desired impacts Assess and adjust Specify performance indicators MonitorSet targets and take correctiveand allocate actionresources End-year reporting Strategic Planning Implementation and in-year reporting Operational planning and budgeting Policy development INSTITUTION National department Provincial department Municipality Public entity Municipal entity INSTITUTION National department Provincial department Municipality Public entity Municipal entity OVERSIGHT: Parliament, provincial legislature or municipal council OVERSIGHT: Parliament, provincial legislature or municipal council Oversight model

7. Section 55(2) of the Constitution: the National Assembly must provide for mechanisms to ensure that all executive organs of state are accountable to them Section 114(2) of the Constitution: the Provincial Legislature must provide for mechanisms to ensure that all executive organs of state are accountable to them Oversight legislation National Provincial Legislatures Appoint Committees to Oversee on behalf of Parliament Committees PC’s– overseeing the overall performance and functioning of departments PAC’s– scrutiny of the financial statements of organs of State and reports of the AGSA

8. 8 Oversight Definition: Oversight entails the informal and formal, watchful, strategic and structured scrutiny exercised by legislatures in respect of the implementation of laws, the application of the budget, and the strict observance of statutes and the Constitution. In addition, and most importantly, it entails overseeing the effective management of government departments by individual members of Cabinet in pursuit of improved service delivery for the achievement of a better quality of life for all citizens. Oversight Definition: Oversight entails the informal and formal, watchful, strategic and structured scrutiny exercised by legislatures in respect of the implementation of laws, the application of the budget, and the strict observance of statutes and the Constitution. In addition, and most importantly, it entails overseeing the effective management of government departments by individual members of Cabinet in pursuit of improved service delivery for the achievement of a better quality of life for all citizens. OVERSIGHT FUNCTIONS To detect and prevent abuse, arbitrary behaviour or illegal and unconstitutional conduct on the part of the government and public agencies. At the core of this function is the protection of the rights and liberties of citizens. To hold the government to account in respect of how the taxpayers’ money is used. It detects waste within the machinery of government and public agencies. Thus it can improve the efficiency, economy and effectiveness of government operations. To ensure that policies announced by government and authorised by Parliament are actually delivered. This function includes monitoring the achievement of goals set by legislation and the government’s own programmes. To improve the transparency of government operations and enhance public trust in the government, which is itself a condition of effective policy delivery 1. 2. 3. 4. Oversight and Accountability Model - concept

9. 9 Accountability Definition: Accountability is the hallmark of modern democratic governance. Democracy remains clichéd if those in power cannot be held accountable in public for their acts or omissions, for their decisions, their expenditure or policies. Accountability refers to institutionalised practices of giving account of how assigned responsibilities are carried out. To enhance the integrity of public governance in order to safeguard government against corruption, nepotism, abuse of power and other forms of inappropriate behaviour. As an institutional arrangement, to effect democratic control. To improve performance, which will foster institutional learning and service delivery. In regard to transparency, responsiveness and answerability, to assure public confidence in government and bridge the gap between the governed and the government and ensure public confidence in government. To enable the public to judge the performance of the government by the government giving account in public. Accountability functions

10. 10 consider, amend, approve or reject legislation (bills in its portfolio) 1. Legislation consider and approve budgets and monitor expenditure of the Departments and entities reporting to them 2. Budgets consider progress reports (monitoring) from line-function departments, and provincial and local government authorities and entities on their respective mandates 3. Mandates ensure that all appropriate executive organs of state in its portfolio are held accountable for their actions (oversight); and 4. Accountability conduct oversight over the executive authority and consult/liaise with any other executive organ of state and make recommendations 5. Oversight Role of Portfolio Committees (Rule 201) Oversight component - Portfolio committee mandate

11. Senior management Senior management Accounting officers/ authority Accounting officers/ authority Executive authority Executive authority Required assurance levels Extensive Management’s assurance role Senior management – take immediate action to address specific recommendations and adhere to financial management and internal control systems Accounting officers/ authority – hold officials accountable on implementation of internal controls and report progress quarterly and annually Executive authority – monitor the progress of performance and enforce accountability and consequences Management assurance First level of assurance Management assurance First level of assurance Senior management Senior management Accounting officers/ authority Accounting officers/ authority Support oversight – complimentary mandate Oversight assurance Second level of assurance Oversight assurance Second level of assurance Coordinating / Monitoring institutions Coordinating / Monitoring institutions Internal audit Internal audit Audit committee Audit committee Extensive Required assurance levels Oversight’s assurance role National Treasury/ DPSA – monitor compliance with laws and regulations and enforce appropriate action Internal audit – follow up on management’s actions to address specific recommendations and conduct own audits on the key focus areas in the internal control environment and report on quarterly progress Audit committee – monitor risks and the implementation of commitments on corrective action made by management as well as quarterly progress on the action plans Independent assurance Third level of assurance Independent assurance Third level of assurance Oversight (portfolio committees / councils) Oversight (portfolio committees / councils) Public accounts committee Public accounts committee National Assembly Extensive Required assurance levels Role of independent assurance Oversight (portfolio committees) – review and monitor quarterly progress on the implementation of action plans to address deficiencies Public accounts committee – exercise specific oversight on a regular basis on any report which it may deem necessary National Assembly – provide independent oversight on the reliability, accuracy and credibility of National and provincial government

12. Figure 2 below illustrates the oversight cycle on an annual basis: The oversight cycle requires Parliament to take a long-term view of oversight in order to ensure effective oversight of sustainable delivery. The parliamentary oversight cycle provides a means through which Parliament can monitor government delivery in terms of long-term commitments, rather than focusing exclusively on annual commitments, annual planning and performance assessments. The cycle thus provides for continuity in Parliament’s oversight activities from year to year. Support oversight – complimentary mandate Month ProcessJanFebMarchAprilMayJuneJulyAugSeptOctNovDec Petitions Constituency Work Study Tours & Site Visits ISD Submissions Civil Society submissions Strat Plans X Departmental Briefings Pres Speech X Ministerial speeches media briefing budget speeches Ministerial statements MTBPS X Legislation /Policy Assessment of Impact of Legislation Youth Parliament Women’s Parliament People’s Assembly Annual Reports XX

13. Audit mandate and process

14. 14 Legislative Requirements AGSA Constitution Chapter 9 Section 188 – must audit and report on accounts, financial statements and financial management of government institutions Public Audit Act (No. 25 of 2004) Section 20 – AGSA must prepare audit report containing opinion/ conclusion on: - Financial statements and financial position - Compliance and financial management - Predetermined objectives (performance) Departments/Entities Public Finance Management Act (No. 1 of 1999) Section 38 – General responsibilities of accounting officers Section 40 – Accounting officer’s reporting responsibilities Section 51 – General responsibilities of accounting authorities Section 55 – Annual report and financial statements Treasury Regulations Part 1 –Definitions Part 2 –Management arrangements Part 3 –Planning & budgeting Part 4 –Revenue & Expenditure management Part 5 –Asset & Liability management Part 6 –Frameworks Part 7 –Accounting & Reporting requirements Part 8 –Miscellaneous Part 9 –Public Entities -Guidelines, - Instruction Notes, - Practice Notes issued by National Treasury FMPPI & PSR Framework for managing programme performance information (issued by the National Treasury in May 2007) Chapter 5 & Framework for Strategic Plans and Annual Performance Plans par. 4&6 Public Service Regulations – for Human Resource management requirements Available on Treasury website www.treasury.gov.za/legislation/pfma/circulars Also refer to AG Directive General Notice 263 of 2014 issued 2 April 2014 Available on Treasury website www.treasury.gov.za/legislation/pfma/circulars Also refer to AG Directive General Notice 263 of 2014 issued 2 April 2014 Audit - Legislative requirements

15. 15 Regularity Audit - process The public sector auditor assesses the stewardship of public funds, implementation of government policies and compliance with key legislation in objective manner. The scope of the annual audit performed for each auditee is prescribed in the Public Audit Act and the general notice issued in terms thereof. It includes the following: - Providing assurance that the financial statements are free from misstatements that will affect the users of the financial statements - Reporting on the usefulness and reliability of the information in the annual performance report - Reporting on material non-compliance with key legislation - Identifying the key internal control deficiencies that should be addressed to achieve a clean audit Performance audits may also be performed to determine whether resources have been procured economically and are used effectively and efficiently. The public sector auditor assesses the stewardship of public funds, implementation of government policies and compliance with key legislation in objective manner. The scope of the annual audit performed for each auditee is prescribed in the Public Audit Act and the general notice issued in terms thereof. It includes the following: - Providing assurance that the financial statements are free from misstatements that will affect the users of the financial statements - Reporting on the usefulness and reliability of the information in the annual performance report - Reporting on material non-compliance with key legislation - Identifying the key internal control deficiencies that should be addressed to achieve a clean audit Performance audits may also be performed to determine whether resources have been procured economically and are used effectively and efficiently. What is an audit in the public sector? What does an audit not do? Due to the test nature and other inherent limitations of an audit, together with the inherent limitations of internal control, there is an unavoidable risk that some, even material, misstatements in reported information may not be detected, and the completeness and the accuracy of the information reported are not guaranteed. Due to the focus on specific areas in key legislation, the audit does not provide assurance that all applicable legislation has been complied with. Although possible fraud may be identified during the audit, this is not the main purpose of the audit. The audit does not provide assurance that service delivery has been achieved, only that the annual performance report is useful and reliable.

16. 16 AGSA Audits (service types & value add) Regularity Audit The audit of financial statements The financial statements submitted for auditing must be free from material misstatements. Misstatements refer to incorrect or omitted information in the financial statements. Examples include the incorrect or incomplete classification of transactions, or incorrect values placed on assets, liabilities or financial obligations and commitments. The objective of an audit of financial statements is to express an audit opinion on whether the financial statements fairly present the financial position of auditees at financial year-end and the results of their operations for that financial year. The audit of financial statements The financial statements submitted for auditing must be free from material misstatements. Misstatements refer to incorrect or omitted information in the financial statements. Examples include the incorrect or incomplete classification of transactions, or incorrect values placed on assets, liabilities or financial obligations and commitments. The objective of an audit of financial statements is to express an audit opinion on whether the financial statements fairly present the financial position of auditees at financial year-end and the results of their operations for that financial year. Audit of computer systems used by the public sector: - PFMA 1.Basic Accounting System (BAS) 2.PERSAL (HR management 3.Logis (asset management) -MFMA System used by municipality (each different) Focus on: 1.IT Governance 2.User access management 3.Security management 4.IT service continuity (Disaster recovery and Business continuity plans) Audit of computer systems used by the public sector: - PFMA 1.Basic Accounting System (BAS) 2.PERSAL (HR management 3.Logis (asset management) -MFMA System used by municipality (each different) Focus on: 1.IT Governance 2.User access management 3.Security management 4.IT service continuity (Disaster recovery and Business continuity plans) ISAs (International Standards of Auditing) and ISSAIs Information systems auditing standards/Guidelines Audit reports The AGSA fulfils its mandate by conducting a variety of audits, such as regularity audits (financial and compliance) and the audit of reporting against predetermined objectives. We also identity root causes that drive the audit outcomes. These are then communicated to the General Conference, through the Executive Board, and the various oversight bodies, i.e. Oversight Advisory Committee, Internal Oversight Service, and Oversight bodies of international standing Audit reports The AGSA fulfils its mandate by conducting a variety of audits, such as regularity audits (financial and compliance) and the audit of reporting against predetermined objectives. We also identity root causes that drive the audit outcomes. These are then communicated to the General Conference, through the Executive Board, and the various oversight bodies, i.e. Oversight Advisory Committee, Internal Oversight Service, and Oversight bodies of international standing Performed annually Financial Statement Audit Information Systems Audit

17. 17 VS Performance Audit Investigations Value add processes are usually performed after inspecting the financial records of an auditee following a directive for the audit to be performed before the usual annual audit. The government may order a special audit conducted on an auditee if there is evidence that its financial affairs are not being run in accordance with proper accounting practices. Performance Audits – (independent auditing process to evaluate the measures instituted by management to ensure that resources have been procured economically and are used efficiently and effectively) Performed when: problems are identified/requested International Standards of Supreme Audit Institutions (ISSA) 3000 and ISSAI 3001 Investigations assist and support the regulatory audit teams with the identification of fraud risks in the audit environment. The investigations team perform the following procedures: 1.Assist with fraud risk assessments 2.Special forensic engagements 3.Fraud research and training, and 4.Peer quality assurance support. Investigations assist and support the regulatory audit teams with the identification of fraud risks in the audit environment. The investigations team perform the following procedures: 1.Assist with fraud risk assessments 2.Special forensic engagements 3.Fraud research and training, and 4.Peer quality assurance support. Value add processes Standards & Guidelines: Investigations Performance Audits Focus on performance while spending – the three Es Economy Efficiency Effectiveness Performance Audits Focus on performance while spending – the three Es Economy Efficiency Effectiveness AGSA Audits (service types and value add) Regularity Audits Focus on finances Financial statements Financial management Compliance with laws and regulations Regularity Audits Focus on finances Financial statements Financial management Compliance with laws and regulations

18. 18 AGSA Audits (service types and value add) Performance Auditing: Looking at the 3Es Performance Auditing: Looking at the 3Es GOAL REACHED BEST RESOURCE BASED ON NEED BEST RESULTS USING WHAT WE HAVE

19. 19 AGSA Audits (service types and value add) Ask: what do I need, what quality do I need, when do I need it, where do I need it, how much of it do I need and where can I get all my needs met at the lowest price? Examples of findings: Needs assessments were not always done Competitive bidding processes were not always followed Contracts were open-ended in terms of cost and time Ask: what do I need, what quality do I need, when do I need it, where do I need it, how much of it do I need and where can I get all my needs met at the lowest price? Examples of findings: Needs assessments were not always done Competitive bidding processes were not always followed Contracts were open-ended in terms of cost and time Ask: was the work done with the minimum of effort? Examples of findings: Projects were extended because of a lack of project management and monitoring Payments were made in excess of the amounts approved The document archiving system was not adequately maintained Ask: was the work done with the minimum of effort? Examples of findings: Projects were extended because of a lack of project management and monitoring Payments were made in excess of the amounts approved The document archiving system was not adequately maintained Ask: Did we do what we set out to do? Examples of findings: Project objectives were not achieved, and deliverables only partially completed Skills transfer was not always effective Projects were not analysed to determine whether objectives were met and to determine the benefits received Ask: Did we do what we set out to do? Examples of findings: Project objectives were not achieved, and deliverables only partially completed Skills transfer was not always effective Projects were not analysed to determine whether objectives were met and to determine the benefits received Performance Auditing: Looking at the 3Es Performance Auditing: Looking at the 3Es

20. 20 Investigations The Investigation Business Unit assists the regularity audit teams as follows: 1.Fraud risk assessments Assist and support the regularity audit teams with the identification of fraud risks in the audit environment as required by ISA 240. 2. Special forensic engagements Review amongst others, the following complex audit areas to identify non-compliance with prescripts and risk of fraud and irregularities: Supply chain management Human resource management Information Technology controls Submitted financial statements Perform investigations in exceptional cases. 3. Fraud research and training Perform pro-active data analysis on government payment systems, to identify fraud risks. Provide fraud risk awareness training. 4. Peer quality assurance support Assist the regularity audit teams with peer reviews on procedures performed to mitigate risks identified during risk assessment process. The Investigation Business Unit assists the regularity audit teams as follows: 1.Fraud risk assessments Assist and support the regularity audit teams with the identification of fraud risks in the audit environment as required by ISA 240. 2. Special forensic engagements Review amongst others, the following complex audit areas to identify non-compliance with prescripts and risk of fraud and irregularities: Supply chain management Human resource management Information Technology controls Submitted financial statements Perform investigations in exceptional cases. 3. Fraud research and training Perform pro-active data analysis on government payment systems, to identify fraud risks. Provide fraud risk awareness training. 4. Peer quality assurance support Assist the regularity audit teams with peer reviews on procedures performed to mitigate risks identified during risk assessment process. Value add processes AGSA Audits (service types and value add)

21. 21 Audit of Predetermined Objectives (AoPO) vs. Performance audit AoPO Mandatory audit (section 20(2)(c) of the PAA) Includes compliance with laws and regulations Reflects an opinion or conclusion on performance information Reporting is done annually as part of the regularity audit process Done as part of the regularity audit process and by the regularity auditor Reviews and confirms the validity and completeness of information Reporting at entity level and tabled in the relevant legislature Annual assurance on the credibility of an auditee’s reporting of their performance Performance Audit Discretionary audit (section 20(3) of the PAA) Includes compliance with laws and regulations Reporting is factual and does not include an audit opinion Report is not limited to annual information and can cover more than one financial year Done by performance auditors and may include subject matter experts Evaluates the 3 E’s at organisational, programme or project level Reporting at entity level and tabled in the relevant legislature Factual report : whether goods & services acquired economically, applied efficiently and managed effectively towards achieving the desired goals Audit of Predetermined Objectives

22. 22 Regularity Audit - process THE ANNUAL AUDIT PROCESS What do auditors do? Why they do it? Risk assessment Risk response Reporting Terms of engagement are communicated & agreed to ensure a clear understanding of responsibilities of the parties, the objectives of the audit, access to information and the reports to be provided. An understanding of the auditee is obtained for risk assessment purposes & an audit plan is prepared. A risk assessment is performed to determine the number and type of procedures to perform. Procedures are performed to obtain evidence that the financial statements & annual performance report do not contain material misstatements and that key legislation has been complied with. The report is only provided to the management of the auditee and the executive authority at the end of the audit. It details the findings from procedures performed, identifies the root causes of these findings and makes recommendations for improvement. The report is published in the auditees’s annual report. It informs those responsible for oversight, the public and others of material misstatements in the financial statements, material findings on the usefulness and reliability of the performance report, material non- compliance with key legislation in specific focus areas, and the deficiencies in internal control that were identified during the audit. Agree terms of engagement Plan the audit Perform risk assessment procedures Design and Perform procedures to address identified risk Prepare Management Report (Not published) Prepare Audit Report (Published)

23. 23 Key concepts for Predetermined Objectives the indicator should be accurate enough for its intended use and respond to changes in the level of performance. Reliable the indicator needs to have a clear, unambiguous definition so that data will be collected consistently, and be easy to understand and use. Well defined it must be possible to validate the processes and systems that produce the indicator Verifiable the usefulness of the indicator must justify the cost of collecting the data. Cost-effective the indicator must avoid unintended consequences and encourage service delivery improvements, and not give managers incentives to carry out activities simply to meet a particular target. Appropriate the indicator must relate logically and directly to an aspect of the institution's mandate, and the realisation of strategic goals and objectives. Relevant A good performance indicator ito the FMPPI chapter 3.2 should be:

24. 24 Specific the nature and the required level of performance can be clearly identified Measur able the required performance can be measured Achieva ble the target is realistic given existing capacity Relevan t the required performance is linked to the achievement of a goal Time bound the time period or deadline for delivery is specified Key concepts for predetermined objectives continued A useful set of criteria for selecting performance targets is the "SMART" criteria ito the FMPPI chapter 3.3;

25. How to interpret an Audit report

26. 26 Regularity Audit - report departures from financial reporting framework, or limitation on scope which is not so material and pervasive (unqualified opinion cannot be expressed ) Disclaimer limitation on scope is so material and pervasive the auditor has NOT been able to obtain sufficient appropriate audit evidence to form an opinion (unable to express opinion) Adverse disagreement with management regarding departures from the financial reporting framework, is so material and pervasive to AFS (qualification of the report is not adequate to disclose the misleading or incomplete nature of the AFS) disagreement with management regarding departures from the financial reporting framework, is so material and pervasive to AFS (qualification of the report is not adequate to disclose the misleading or incomplete nature of the AFS) Audit opinions four (4) Financial audit opinions Audit opinions four (4) Financial audit opinions financial statements give a true and fair view (or are presented fairly, in all material respects) in accordance with the applicable financial reporting framework. Unqualified with findings on compliance and PDO Qualified

27. 27 Regularity Audit - report Financially Unqualified AFS (free from material misstatement) No material findings on Compliance with laws and regulations No material findings on the Performance Report (Predetermined Objectives) Good Administration Additional Matter paragraph included in audit report: >20% of targets are not achieved

28. 28 Regularity Audit – Best practices Best practices on how to achieve a good administration? Matters reported by external and internal auditors should receive timeous management attention, internal controls should address the following key areas: Leadership Establish a culture of honesty, ethical business practices and good governance Exercise oversight responsibility Ensure effective human resource practices Implement appropriate policies and procedures Approve and monitor the implementation of action plans to address internal control deficiencies Approve an appropriate information technology governance framework Financial and performance management Ensure proper record keeping of all transactions Maintain effective controls over daily and monthly processing and reconciling of transactions Produce regular, accurate and complete financial and performance (service delivery) reports Review and monitor compliance with applicable legislation Design and implement formal controls to mitigate information technology risks Governance Ensure that risks are periodically identified, assessed and effectively mitigated Maintain an adequately resourced and functioning internal audit unit Maintain an audit committee that performs its legislated duties and promote accountability and service delivery Matters reported by external and internal auditors should receive timeous management attention, internal controls should address the following key areas: Leadership Establish a culture of honesty, ethical business practices and good governance Exercise oversight responsibility Ensure effective human resource practices Implement appropriate policies and procedures Approve and monitor the implementation of action plans to address internal control deficiencies Approve an appropriate information technology governance framework Financial and performance management Ensure proper record keeping of all transactions Maintain effective controls over daily and monthly processing and reconciling of transactions Produce regular, accurate and complete financial and performance (service delivery) reports Review and monitor compliance with applicable legislation Design and implement formal controls to mitigate information technology risks Governance Ensure that risks are periodically identified, assessed and effectively mitigated Maintain an adequately resourced and functioning internal audit unit Maintain an audit committee that performs its legislated duties and promote accountability and service delivery

29. Briefing process by the AGSA

30. 30 - Reliable, accurate and complete Annual Reports by entities - AGSA review of annual reports critical in ensuring complete, reliable and accurate reporting - Reliable, accurate and complete Annual Reports by entities - AGSA review of annual reports critical in ensuring complete, reliable and accurate reporting - AGSA briefing of Root causes of audit outcomes - Root causes are linked to the Key Focus Areas - Analysis and understanding of the Root causes of the audit outcomes by oversight - AGSA make recommendations to oversight in addressing the deficiencies reported - AGSA briefing of Root causes of audit outcomes - Root causes are linked to the Key Focus Areas - Analysis and understanding of the Root causes of the audit outcomes by oversight - AGSA make recommendations to oversight in addressing the deficiencies reported Reporting by departments and entities Actual Briefing process - Oversight committees must obtain an understanding of the entity - The Annual Report of the entity must be studied prior to the briefing and hearing - Oversight committees must obtain an understanding of the entity - The Annual Report of the entity must be studied prior to the briefing and hearing Understanding Mandate of entities by Oversight - Oversight committees issues their findings and must make recommendations which address the deficiencies identified by way of resolutions - Recommendations must have milestones and conform to the “SMART” principles -Send reports to executives for implementation. - Oversight committees issues their findings and must make recommendations which address the deficiencies identified by way of resolutions - Recommendations must have milestones and conform to the “SMART” principles -Send reports to executives for implementation. Recommend- ations by oversight committees -Entities must compile an action plan to address the deficiencies - Action plans must have deliverable milestones and also conform to the “SMART” principles - Progress on implementation of action plan and measures to improve the audit outcomes must be reported to oversight for monitoring. -Entities must compile an action plan to address the deficiencies - Action plans must have deliverable milestones and also conform to the “SMART” principles - Progress on implementation of action plan and measures to improve the audit outcomes must be reported to oversight for monitoring. Action plans by entities and progress monitoring EFFECTIVE BRIEFING PROCESS Briefing process

31. 31 State of the Nation Address/ Budget speeches Estimates of National Expenditure Accounting officer and audit committee ’s Reports AGSA Briefing Notes Annual Report including Audit Report & Performance Report Annual Report including Audit Report & Performance Report TOOLS Briefing process

32. 32 Summary: Laws and regulations applicable on National and Local Government PFMA Public Finance Management Act (No. 1 of 1999) FMPPI Framework for managing programme performance information (issued by the National Treasury in May 2007) PFMA CircularsPFMA Treasury RegulationsInstruction notes MFMA Municipal Finance Management Act (No. 56 of 2003) FMPPI Framework for managing programme performance information (issued by the National Treasury in May 2007) MFMA CircularsMFMA Treasury RegulationsMunicipal Systems Act (MSA) Acts applicable

33. How to interpret an Audit report - Example Report

34. DHA audit outcomes to 2012/13

35. Audit opinion history Audit opinions08-09 09-1010-1111-1212-13 Department of Home Affairs (DHA) Qualification areas  Capital assets XX X  Revenue X X  Receivables for departmental revenue X X  Payables X X  Leases X  Revenue management: Contingent Assets XX  Accruals X  Contingent liabilities X  Leave liability X Other matters  Predetermined objectives XX X  Compliance with laws and regulations XXX X X Key: AUDIT OPINION CLEAN AUDIT OPINION: No findings on PDOs and compliance UNQUALIFIED with findings on PDOs and compliance QUALIFIED AUDIT OPINION (with/without findings) DISCLAIMER/ADVERSE AUDIT OPINION

36. Thank You