International relations audit outcomes2010-11

September 2011

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

National PFMA audit outcomes 2010-11

* Including Parliament and National Treasury Consolidation ** Including trading and other types of entities

Audit outcomes

Audits conducted by the AGSAAudits not conducted

by the AGSA

Departments* Public entities ** Public entities

2010-11 2009-10 2010-11 2009-10 2010-11 2009-10

Financially unqualified with no findings on predetermined objectives or compliance with laws and regulations

3 4 88 110 25 30

Financially unqualified with findings on predetermined objectives and/or compliance with laws and regulations

26 19 119 89 18 11

Financially unqualified financial statements 74% 66% 92% 89% 91% 98%

Qualified opinion 9 12 12 17 3 1

Adverse opinion 0 0 2 3 1  0

Disclaimer of opinion 1 0 4 5  0 0 

Financially qualified financial statements 26% 34% 8% 11% 9% 2%

Total number of audits reported on 39 35 225 224 47 42

Number of audit reports not issued by 31 August 2011 1 0 3 1 1 1

Total number of audits 40 35 228 225 48 43

Total number of auditees in which findings arose from the AGSA's other legal reporting responsibilities:

Predetermined objectives findings only 0 8 8 35 6 2

Compliance with laws and regulations findings only 8 4 55 15 10 3

Findings on both predetermined objectives and compliance with laws and regulations

28 19 74 64 6 7

4

International relations PFMA audit outcomes 2010-11

Audit outcomes

Audits conducted by the AGSAAudits not conducted by the

AGSA

Departments* Public entities ** Public entities

2010-11 2009-10 2010-11 2009-10 2010-11 2009-10

Financially unqualified with no findings on predetermined objectives or compliance with laws and regulations

0 1 0 1 0 0

Financially unqualified with findings on predetermined objectives and/or compliance with laws and regulations

1 0 1 0 0 0

Financially unqualified financial statements 100% 100% 100% 100% 0% 0%

Qualified opinion 0 0 0 0 0 0

Adverse opinion 0 0 0 0 0 0

Disclaimer of opinion 0 0 0 0 0 0

Financially qualified financial statements 0% 0% 0% 0% 0% 0%

Total number of audits reported on 1 1 1 1 0 0

Number of audit reports not issued by 31 August 2011 0 0 0 0 0 0

Total number of audits 1 1 1 1 0 0

Total number of auditees in which findings arose from the AGSA's other legal reporting responsibilities:

Predetermined objectives findings only 0 0 0 0 0 0

Compliance with laws and regulations findings only 0 1 0 0 0 0

Findings on both predetermined objectives and compliance with laws and regulations

1 0 1 1 0 0

5

3 Year progress towards clean administration

6

Audit outcomes comparison to 2009-10Departments

7

Movement in audit outcomes from 2009-10Departments

Movement in audit outcome over 2009-10 - Departments

Audit opinion Improvement Unchanged Regressed New departments Total reported onPrior year opinion on

audits outstanding 2010-11

Financially unqualified with no findings            

Financially unqualified with findings     1 0

Qualified            

Disclaimer / Adverse            

Total     1 0 1 0

1

8

Audit outcomes comparison with 2009-10 Public entities

9

Movement in audit outcomes from 2009-10Public entities

Movement in audit outcome over 2009-10 - Departments

Audit opinion Improvement Unchanged Regressed New departments Total reported onPrior year opinion on

audits outstanding 2010-11

Financially unqualified with no findings            

Financially unqualified with findings     1 0

Qualified            

Disclaimer / Adverse            

Total     1 0 1 0

1

10

Areas of material misstatements in financial statements

11

Corrections of material misstatements identified by auditors

12

Predetermined objectives (PDO) findings Department and public entities

Presentation

2010-11: 0%2009-10: 0%

 

Not reliable

2010-11: 0%2009-10: 0%

 

Not useful

2010-11: 100%

2009-10: 0%

 

Non-compliance

2010-11: 100%2009-10: 0%

 

13

Unauthorised, irregular, and fruitless and wasteful expenditureDepartments and public entities*

* Amounts are actual (no extrapolation of errors)/Based on actual disclosures and samples tested

14

Summary of findings on supply chain management

15

Areas of findings on non-compliance with laws and regulations

16

Findings on HR management focus areasDepartments

17

Findings on IT control focus areas

IT governance User access management Program change management

Security management IT service continuity Facility and environment controls

Data centre management

18

Four focal points (based on prior audit, risk assessment)

Procurement/SCMIncrease in irregular expendituresProcurement processes and contract management: non compliance with TRsPerformance of other remunerative work by employees: interest in suppliers to the DIRCO and other state institutions

Predetermined Objective ReportingNon compliance with laws and regulations relating to PDO reportingReporting on PDOs not useful as defined by FMPPI

IT ManagementSecurity and user management controls partially implementedIT governance framework developed, partially implemented

19

Progress made in implementing key controls

20

Progress in addressing high risk areas

  Concern

rating scale Number of auditees

Status of interventions proposed after 2009-10 audit cycle

Current year impact

 

5  

Not yet implemented (0 departments; 0 public entities)

Deteriorated (1 departments; 1 public entities)

4  

3  

Neutral (0 department; 0 public entity)

2  

Partially implemented (1 departments; 1 public entities)

1  

0  

-1  

-2  

-3  Substantially implemented (0 departments; 0

public entities)Improved (0 departments; 0 public entities)-4  

-5  Fully implemented (xx departments; yy public

entities)

    No concern from previous audit cycle = 0 auditees