Auditor General 2012/13 Management Letters Issues Date to be No. Finding Internal control deficiency Corrective Measures Responsible Resolved The following bank account held Financial and performance 1 All Bank accounts held by CFO 31/12/13 by the entity (JM) was not management the entity will be disclosed in the financial adequately disclosed in the statements financial statements. The following sampled invoices Financial and performance 2 All accruals will be CFO 31/12/13 included in the accruals balance management disclosed in the Financial were accounted net off vat thus statements VAT inclusive. Review and monitor understating amounts owed to compliance with applicable suppliers: accounting framework Projected misstatement: R1 500 000 Part A Financial and performance The Appropriation 3 Chief 30/11/13 management Statement in the Annual Financial During the review of the Financial Statement has Officer Appropriation Statement, it was Review and monitor been adjusted to include noted that management has not compliance with applicable explanation of material included any explanations for reporting framework variances between the material variances between the budget and actual budget and actual amounts amounts. disclosed in the annual financial statements. Part B Explanation for the 4 Chief 30/11/13 adjustment of the approved Financial budget has now been Officer disclosed in the notes to Furthermore, management has not the financial statements. disclosed in the notes to financial statements the explanations for the adjustment in the approved budget. A register for invoices has The following suppliers were not Financial and performance 5 been implemented to track Chief 31/12/13 paid within 30 days: management invoices and ensure that it Financial is monitored on a regular Officer Implement controls over basis to make sure that daily and monthly processing overdue invoices are and reconciling of cleared promptly. transactions to ensure payments are made within agreed terms.
Auditor General 2012/13 Management Letters Issues No. Finding Internal control deficiency Corrective Measures Responsible Date to be Resolved 1 The following bank account held by the entity (JM) was not disclosed in the financial statements Financial and performance management All Bank accounts held by the entity will be adequately disclosed in the financial statements. CFO 31/12/13 2 The following sampled invoices included in the accruals balance were accounted net off vat thus understating amounts owed to suppliers: Projected misstatement: R1 500 000 Financial and performance management Review and monitor compliance with applicable accounting framework All accruals will be disclosed in the Financial statements VAT inclusive. CFO 31/12/13 3 Part A During the review of the Appropriation Statement, it was noted that management has not included any explanations for material variances between the budget and actual amounts disclosed in the annual financial statements. Financial and performance management Review and monitor compliance with applicable reporting framework The Appropriation Statement in the Annual Financial Statement has been adjusted to include explanation of material variances between the budget and actual amounts. Chief Financial Officer 30/11/13 4 Part B Furthermore, management has not disclosed in the notes to financial statements the explanations for the adjustment in the approved budget. Explanation for the adjustment of the approved budget has now been disclosed in the notes to the financial statements. Chief Financial Officer 30/11/13 5 The following suppliers were not paid within 30 days: Financial and performance management Implement controls over daily and monthly processing and reconciling of transactions to ensure payments are made within agreed terms. A register for invoices has been implemented to track invoices and ensure that it is monitored on a regular basis to make sure that overdue invoices are cleared promptly. Chief Financial Officer 31/12/13
Mid-Year%20Report%202014-02-24.docx