Audit findings

2008/09 Financial Year

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Presentation Structure

Background Areas of Improvement

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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.

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Areas of Improvement

No Audit Finding Responsibility Target Date Progress

OTHER MATTERS IMPACTING THE AUDIT REPORT

Compliance

1. HR Plan not meeting minimum requirementsDuring 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

01/09/2009 The HR Plan for the 2009/10 year was submitted by 1 September 2009.

OTHER IMPORTANT MATTERS

Financial

2. Trade and other payables understatedDuring 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 Officer Resolved A formal ordering processhas been implemented toeliminate the finding by30/04/09

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Areas of ImprovementADMINISTRATIVE MATTERS

Control

3. Policies and proceduresDuring 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

Resolved The 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 vendorsDuring 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

Resolved The VAT was recovered fromthe supplier.

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Areas of Improvement

Financial

5. Incorrect aging of debtDuring 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: FinancialManagement

31/05/2010 This 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 auditDuring 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: Debtors 31/05/2010 This 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 IAS39During 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: Debtors Resolved The interest rates havebeen rectified on 03/07/09to ensure it will not re-occur