23 FEB 2016 Our reputation promisemission The AuditorGeneral of South Africa has a constitutional mandate and as the Supreme Audit Institution SAI of South Africa exists to strengthen our countrys democracy by ID: 480048
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Slide1
SAPO audit outcomes
23 FEB
2016Slide2
Our reputation promise/mission
The Auditor-General of South Africa has a constitutional mandate and, as the Supreme Audit Institution (SAI) of South Africa, exists to strengthen our country’s democracy by
enabling oversight, accountability
and governance in the public sector through auditing, thereby building public confidence.
2Slide3
1
The results of the three areas examined by the AGSA
2
The internal control chart
3Key focus areas to improve audit outcomes and recommendationsThe audit on the South African Post Office3Slide4
1
The results of the three areas examined by the AGSA
4Slide5
Determined whether the
financial statements
were fair and reliable
Determined whether the
performance reports
were reliable and credible
Determined whether the auditee
complied
with
key legislation
The AGSA
examined
three areas
1
2
3
Findings
Qualified
Findings
Regressed
Regressed
Regressed
5Slide6
Property, plant and equipment
(including depreciation and impairment
)
Heritage assets
Retirement benefit obligationIrregular, fruitless and wasteful expenditure
Taxation (income tax and deferred tax)
Improved
Regressed
Stagnant or limited progress
Financial statements:
areas of concern
6Slide7
Strategic goal
Audit criteria
Usefulness
Reliability
Current yearPrior yearCurrent yearPrior yearStrategic goal 1: Attain financial sustainability while delivering on the government’s social mandate0%0%
60%
0%
Strategic goal 2
:
Remain customer centric by effectively and efficiently fulfilling customer wants and needs
67%
0%
100%
0%
Strategic goal 4:
Provide innovative, affordable and relevant services that meet the needs of our customers
0%
0%
50%
0%
Strategic goal 6:
Maintain good corporate governance principles to continuously improve as a trusted corporate citizen
33%
0%
66%
0%
Performance reports:
areas of concern
7Slide8
Strategic planning/AOPO
Internal audit
Shareholder compact
Liability management
Improved
Regressed
Stagnant or limited progress
Compliance:
areas of concern
8Slide9
Opening balance under investigation
R213
655 000
R41
197 000Under investigation Current YearR197 441 000
R53 859 000
Under investigation Prior
Year (identified
in the current year)
R165 765 000
Totals
R576 861 000
R95 056 000
Expenditure incurred in contravention of key legislation, prescribed processes not followed
Irregular, fruitless and wasteful expenditure
Irregular expenditure
Fruitless and wasteful expenditure
Expenditure incurred in vain and could have been avoided if reasonable steps had been taken. No value for money!
Legends:
Decrease in incurred
expenditure
No change
Increase in incurred
expenditure
Definitions
9
Note
these balances
were qualifiedSlide10
2
The internal control chart
10Slide11
Internal control dashboard as per
July 2015
Effective leadership
culture
Oversight responsibilityHR managementPolicies and proceduresAudit action plans
IT governance
Proper
record-keeping
Processing and reconciling controls
Regular reporting
Compliance monitoring
IT system controls
Risk management
Internal audit
Audit committee
Governance
Leadership
Financial and
performance management
Good
Concerning Intervention required
Improved
Regressed
Unchanged
11
Intervention required but unchangedSlide12
3
Key
focus areas to improve audit outcomes and
recommendations
12Slide13
Key focus areas to improve audit outcomes
Leadership
Human resources
Going concern/
cash flowPolicies and proceduresIT environment and infrastructure13Slide14
Recommendations:
leadership
Stable leadership
Effective governance structures and committee charters
Adequate oversight over financial, compliance and performance reporting
Adequate oversight over the STP and cash flow forecast
E
ffective organisational structure
Effective and appropriate HR plan
A strong company secretary unit
A comprehensive and appropriate IT strategy
An up-to-date policy register
A
ction plans that are tracked and met
A
ccountability for non-performance
14Slide15
Recommendations:
financial and performance management
Structured and appropriately capacitated finance function
Entrenched internal control disciplines/checks and balances
A focus on reconciliation of suspense accounts
Centralised procurement process
Formal controls over IT systems in all areas
Proper
record-keeping
in all areas
Standard operating procedures for performance reporting
Systems and processes to monitor compliance
Effective financial systems
A complete set of half-year financial statements
15Slide16
Recommendations:
governance
Effective governance
structures
internal audit reports taken seriously
Adequately capacitated oversight units
Effective risk
management process
16Slide17
17
Thank you