Problems Unqualified Financial Statements

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					                                                                                                                                                                             67a13e23-6eed-4d65-aae9-6f4868a201f6.xls - 7/14/2011 - 1:13 PM


                                                                      Audit opinion:            Audit opinion:
    No. Classification                 Departments / entities                                                                                                    Auditee specific issues
                                                                        2008-09                   2007-08
                                          CE: Alice Muller
                                                                                                                 Emphasis of matter
                                                                                                                 o Irregular expenditure was incurred as a proper procurement process had not been followed.
                                                                                                                 • Restatement of corresponding figures

                                                                                                                 Other matters
                                                                                                                 • Material non-compliance with applicable legislation
                                                                                                                 o Effective, efficient and transparent systems of financial risk and internal control was not complied with
                                                                                                                 o Supply chain management was not complied with.
                                                                                                                 o The internal audit plan was not complied with.
                                                                                                                 • Governance framework
                                                                Financially unqualified (with                    o The financial statements were subject to material amendments resulting from the audit.
        1    NC          Pan South African Language Board                                         Disclaimer
                                                                      other matters)                             o The internal audit function did not operate in terms of an approved internal audit plan.
                                                                                                                 o The CEO and CFO were subject to investigations during the year.
                                                                                                                 Report on other legal and regulatory requirements

                                                                                                                 Performance information
                                                                                                                 • Inadequate systems and controls over performance management.
                                                                                                                 • TR 5.3.1 with regards to the submission of quarterly reports was not complied with.
                                                                                                                 • The targets with regard to the languages in education programmes were not specific, measurable and time bound.
                                                                                                                 • Sufficient, appropriate audit evidence could not be obtained to support the reported performance of languages in
                                                                                                                 education.

                                                                                                                 Qualified
                                                                                                                 • Departmental revenue
                                                                                                                 o Revenue from the Medicines Control Council could not be reconciled to application forms.
                                                                                                                 • Goods and services
                                                                                                                 o The expenditure incurred for the usage of motor vehicles in respect of the National Fleet Public Private Partnership
                                                                                                                 could not be reconciled to supporting documentation.

                                                                                                                 Other matters
                                                                                                                 • Material non-compliance with applicable legislation
                                                                                                                 • Division of Revenue Act
        2    ND          Health                                          Qualified                Qualified      o The monitoring by the department of the utilisation of conditional grants by the provincial departments of health was
                                                                                                                 inadequate and ineffective.
                                                                                                                 • Governance framework
                                                                                                                 o Significant difficulties were experienced during the audit concerning the availability of requested information.
                                                                                                                 o The financial statements were subject to material amendments resulting from the audit.

                                                                                                                 Report on other legal and regulatory requirements
                                                                                                                 Performance information
                                                                                                                 • The adequacy of performance information could not be determined due to a lack of a system to collate and verify
                                                                                                                 the source documentation to support the information received from the provincial departments.

                                                                                                                 Qualified
                                                                                                                 • Property, plant and equipment
                                                                                                                 o The opening balance, adjustments, disposals and additions could not be substantiated by sufficient appropriate
                                                                                                                 audit evidence.
                                                                                                                 Other matters
                                                                                                                 • Governance framework
                                                                                                                 o Significant difficulties were experienced during the audit concerning the availability of requested information.
        3    ND          Independent Complaints Directorate              Qualified                Qualified
                                                                                                                 o The prior year audit findings have not been substantially addressed.

                                                                                                                 Report on other legal and regulatory requirements
                                                                                                                 Performance information
                                                                                                                 • The source information provided did not adequately support the accuracy and completeness of the reported
                                                                                                                 performance information with regards to the Complaints Processing, Monitoring and Investigation Programme.




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                                                                                     Audit opinion:                  Audit opinion:
    No. Classification                  Departments / entities                                                                                                                              Auditee specific issues
                                                                                       2008-09                         2007-08
                                                                                                                                            Emphasis of matters
                                                                                                                                            o The department did not have adequate controls in place to prevent fruitless and wasteful expenditure.
                                                                                                                                            o Irregular expenditure was incurred as the department did not have adequate controls in place to prevent irregular
                                                                                                                                            expenditure.
                                                                                                                                            o A material under spending occurred as transfers to departmental agencies and household accounts were not done
                                                                                                                                            as budgeted.

                                                                                                                                            Other matters
                                                                               Financially unqualified (with
        4    ND          Arts and Culture                                                                               Qualified           o The information included in the annual report was not submitted to the auditor for identification of material
                                                                                     other matters)
                                                                                                                                            inconsistencies prior to the date of the audit report.
                                                                                                                                            • Governance framework
                                                                                                                                            o The financial statements were subject to material amendments resulting from the audit.

                                                                                                                                            Report on other legal and regulatory requirements
                                                                                                                                            Performance information
                                                                                                                                            • A report on performance information was not submitted in time for the auditor to perform a review of the information.


                                                                                                                                            Emphasis of matter
                                                                                                                                            • Irregular expenditure
                                                                                                                                            o Irregular expenditure was incurred due to proper procurement procedures not being followed.
                                                                               Financially unqualified (with   Financially unqualified (with
        5    ND          Communications                                                                                                      Other matters
                                                                                     other matters)                  other matters)
                                                                                                                                             • Governance framework
                                                                                                                                             o The financial statements were subject to material amendments resulting from the audit.
                                                                                                                                             o The internal audit department did not function effectively due to vacancies.

                                                                                                                                            Governance matters:
                                                                                                                                            Significant difficulties experienced during the audit
                                                                                                                                            Internal audit did not function effectively during the year
                                                                                                                                            Material amendments were necessry to the financial statements.
                                                                               Financially unqualified (with
        6    ND          Water Affairs and Forestry                                                                     Qualified
                                                                                     other matters)                                         Performance information
                                                                                                                                            The department did not report on predetermined targets.
                                                                                                                                            Performance indicators were inconsistent with the indicators in the business plan.
                                                                                                                                            Reported performance information not reliable due to a lack of an effectively implemented reporting system.

                                                                                                                                             Report on other legal and regulatory requirements
                                                                                                                                             Performance information
                                                                                                                                             • The accounting officer did not comply to the PFMA regarding an effective, efficient and transparent system and
                                                                                                                                             internal controls for performance management.
                                                                               Financially unqualified (with   Financially unqualified (with • The targets with regard to programme 2: Visible policing and programme 3: Detective services were not specific,
        7    ND          Safety and Security
                                                                                    no other matters)                other matters)          measurable and time-bound.
                                                                                                                                             • The controls were inadequate to ensure that performance information generated by the Case Administration System
                                                                                                                                             (CAS) for programme 2 and 3 are accurate and complete.
                                                                                                                                             • Performance information for programme 2 and 3 was inaccurately and incompletely captured.


                                                                                                                                             Report on other legal and regulatory requirements
                                                                                                                                             Performance information
                                                                                                                                             • The department has not reported consistently on the indicators and targets as contained in the corporate plan.
                                                                               Financially unqualified (with   Financially unqualified (with
        8    ND          Science and Technology                                                                                              • The subprogramme National Advisory Council on Innovation is included under programme 2 in the corporate plan
                                                                                    no other matters)               no other matters)
                                                                                                                                             and under programme 1 in the performance information report.
                                                                                                                                             • The targets with regard to Space Science Technology and Science Technology for Economic and Social Impact
                                                                                                                                             were not specific, measurable and time bound.

                                                                                                                                            1. Leadership:
                                                                                                                                               - Governance structures such as the audit committee and internal audit function was not established during the
                         Performing Arts Centre of the Free State trading as   Financially unqualified (with
        9    NOE                                                                                                    No comparative          year.
                         MACUFE                                                      other matters)
                                                                                                                                               - A risk assessment was not performed




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                                                                                    Audit opinion:                  Audit opinion:
    No. Classification                  Departments / entities                                                                                                                            Auditee specific issues
                                                                                      2008-09                         2007-08
                                                                                                                                            Other matters
                                                                                                                                            • Matters of governance
                                                                                                                                            o The annual report was not submitted for consideration prior to the tabling of the auditor’s report.
                                                                                                                                            o The audit committee did not substantially fulfil its responsibilities for the year.
                                                                                                                                            o The internal audit function did not substantially fulfil its responsibilities for the year.
                                                                                                                                            o Deficiencies in the design and implementation of internal control in respect of financial and risk management.
                                                                                                                                            o Deficiencies in the design and implementation of internal control in respect of compliance with applicable laws and
                                                                                                                                            regulations.
                                                                                                                                            o The information systems were not appropriate to facilitate the preparation of the financial statements.
                                                                              Financially unqualified (with   Financially unqualified (with
        10   NOE         South African National AIDS Trust                                                                                  o A risk assessment was not conducted .
                                                                                    other matters)                  other matters)
                                                                                                                                            o Prior year audit findings have not been substantially addressed.
                                                                                                                                            o SCOPA resolutions have not been implemented.

                                                                                                                                           Report on other legal and regulatory requirements
                                                                                                                                           Performance information
                                                                                                                                           • A strategic plan that is in consistent with the period covered by the medium term expenditure framework was not
                                                                                                                                           prepared for approval by the relevant executive authority.
                                                                                                                                           • The trust did not have a policy and procedure framework to manage and monitor the reporting of performance
                                                                                                                                           information.
                                                                              Financially unqualified (with   Financially unqualified (with
        11   NOE         Erf 706 Rietfontein                                                                                                None
                                                                                   no other matters)               no other matters)
                                                                              Financially unqualified (with   Financially unqualified (with
        12   NOE         National Forest Recreation and Access Trust                                                                        None
                                                                                   no other matters)                other matters)
                                                                                                                                            Other matters
                                                                                                                                             Financial statements were submitted late
                                                                              Financially unqualified (with   Financially unqualified (with
        13   NOE         King George V Silver Jubilee Fund for Tuberculosis                                                                  Limited operations (dormant)
                                                                                    other matters)                  other matters)
                                                                                                                                            Performance information
                                                                                                                                             Lack a strategc plan.
                                                                                                                                            Restatement of comparitive figures
                                                                                                                                            Governance matters:
                                                                                                                                            Significant difficulties experienced during the audit
                                                                                                                                            Internal audit did not function effectively during the year
                                                                                                                                            Material amendments were necessry to the financial statements.
                                                                              Financially unqualified (with
        14   NOE         Water Trading Account                                                                         Qualified
                                                                                    other matters)                                         Material non compliance were identified

                                                                                                                                           Performance information
                                                                                                                                           The trading entity did not have a separate approved strategic plan, indicating measurable objectives and targets for
                                                                                                                                           the year.




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                                                                      Audit opinion:   Audit opinion:
    No. Classification                 Departments / entities                                                                                          Auditee specific issues
                                                                        2008-09          2007-08
                                                                                                        Adverse opinion
                                                                                                        Basis of adverse opinion
                                                                                                        • Levy income and receivables
                                                                                                        o The completeness and accuracy of levy income and receivable could not be verified.
                                                                                                        • Interest received
                                                                                                        o Sufficient appropriate audit evidence could not be obtained as to the completeness and accuracy of interest
                                                                                                        received.
                                                                                                        • Provisions and contingent liabilities
                                                                                                        o Sufficient appropriate audit evidence could not be obtained as to the completeness and accuracy of provisions and
                                                                                                        contingent liabilities.
                                                                                                        • Liabilities and payments
                                                                                                        o Liabilities and receivables were understated with respect to levies from uncontrolled mines and works.
                                                                                                        • Interest paid
                                                                                                        o Sufficient appropriate evidence could not be obtained as to the completeness and accuracy of interest payable.

                         Compensation Commissioner for Occupational                                     Emphasis of matter
        15   NOE                                                         Adverse          Adverse
                         Diseases                                                                       Going concern
                                                                                                        • As a result of delayed actuarial valuation it could not be ascertain whether the Fund has adequate assets to settle all
                                                                                                        potential claims.

                                                                                                        Other matters
                                                                                                        • Non-compliance with applicable regulations
                                                                                                        o Occupational Diseases in Mines and Works Act

                                                                                                        • Matters of governance
                                                                                                        o The financial statements were subject to material amendments.
                                                                                                        o The annual report was not submitted for consideration prior to the tabling of the auditor’s report.
                                                                                                        o The audit committee did not substantially fulfil its responsibilities for the year.
                                                                                                        o The internal audit function did not substantially fulfil its responsibilities for the year.
                                                                                                        o There were significant deficiencies in the design and implementation of internal control in respect of financial and
                                                                                                        risk management.
                                                                                                        o The information systems were not appropriate to facilitate the preparation of the financial statements.
                                                                                                        1. Leadership:
                                                                                                            - Governance structures such as the audit committee and internal audit function was not established during the
                                                                                                        year.
        16   NPE         Performing Arts Centre of the Free State       Qualified        Qualified          - A risk assessment was not performed
                                                                                                        2. Financial:
                                                                                                           - Procedures are inadequate to ensure compliance with accounting standards (PPE)
                                                                                                           - Procedures are inadequate to ensure quality financial records and reporting.




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                                                                Audit opinion:   Audit opinion:
    No. Classification                 Departments / entities                                                                                     Auditee specific issues
                                                                  2008-09          2007-08
                                                                                                  Qualification
                                                                                                  Comparative figures
                                                                                                  • The existence, allocation, valuation and completeness of property, plant and equipment, deferred revenue and
                                                                                                  retained earnings could not be obtained as no corrections were made to these figures following the prior year’s
                                                                                                  disclaimer opinion.
                                                                                                  Property, plant and equipment
                                                                                                  • Existence, valuation and completeness of fixed assets could not be determined due to inadequate asset
                                                                                                  management.
                                                                                                  • No support for componentisation of assets in terms of IAS16
                                                                                                  • No review of useful life and residual value of assets in terms of IAS16
                                                                                                  Deferred revenue
                                                                                                  • Sufficient appropriate audit evidence to determine the accuracy, occurrence and completeness of deferred revenue
                                                                                                  to inadequate control systems implemented.

                                                                                                  Emphasis of matter
                                                                                                  o Irregular expenditure was incurred as a result of expenditure authorised in contravention with delegation of
        17   NPE         Robben Island Museum, Cape Town          Qualified        Disclaimer
                                                                                                  authority.
                                                                                                  o Fruitless and wasteful expenditure was incurred.

                                                                                                  Other matters
                                                                                                  • Non-compliance with applicable regulations
                                                                                                  o RIM did not take effective and appropriate steps to collect all revenue
                                                                                                  o RIM did not submit all the financial quarterly reports in the prescribed time to the executive authority.

                                                                                                  • Matters of governance
                                                                                                  o The annual report was not submitted for consideration prior to the tabling of the auditor’s report.
                                                                                                  o There were significant deficiencies in the design and implementation of internal control in respect of financial and
                                                                                                  risk management.
                                                                                                  o A risk assessment was not conducted on a regular basis and a risk management strategy, which includes a fraud
                                                                                                  prevention plan.
                                                                                                  o Prior year audit findings have not been substantially addressed.
                                                                                                  o SCOPA resolutions have not been implemented.
                                                                                                  Qualification
                                                                                                  Revenue
                                                                                                  • Accuracy and completeness of casual parking income could not be obtained.

                                                                                                  Property Plant and Equipment
                                                                                                  • Valuation of fixed assets could not be ascertained.
                                                                                                  • No assessment performed of useful life and residual value in terms of IAS16

                                                                                                  Other matters
        18   NPE         The South African State Theatre          Qualified        Qualified      • Matters of governance
                                                                                                  o The financial statements were subject to material amendments resulting from the audit.

                                                                                                  Report on other legal and regulatory requirements
                                                                                                  Performance information
                                                                                                  • The accounting authority did not ensure that the entity has and maintains an effective, efficient and transparent
                                                                                                  system and internal controls regarding performance management.
                                                                                                  • Reported performance information not relevant as the set delivery targets with regards to the key objectives were
                                                                                                  not specific, measurable and time bound




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                                                                                Audit opinion:                  Audit opinion:
    No. Classification                   Departments / entities                                                                                                                               Auditee specific issues
                                                                                  2008-09                         2007-08
                                                                                                                                          Emphasis of matter
                                                                                                                                          • Significant uncertainties - The entity is involved in two court cases.
                                                                                                                                          • Irregular expenditure
                                                                                                                                          o Irregular expenditure was incurred as a result of deviations from Treasury Regulations, Treasury guidelines and
                                                                                                                                          procurement policies.
                                                                                                                                          • Restatement of corresponding figures

                                                                                                                                          Other matters
                                                                                                                                          • Non-compliance with applicable regulations
                                                                                                                                          o Public Finance Management Act
                                                                                                                                          The accounting authority did not exercise the duty of utmost care to ensure reasonable protection of the assets and
                                                                                                                                          records
                                                                                                                                          Inadequate procurement and provisioning system.
                                                                          Financially unqualified (with
        19   NPE         Africa Institute of South Africa, Pretoria                                                 Qualified
                                                                                other matters)                                            • Matters of governance
                                                                                                                                          o Significant difficulties were experienced during the audit concerning delays or the availability of requested
                                                                                                                                          information.
                                                                                                                                          o The financial statements were subject to material amendments resulting from the audit.
                                                                                                                                          o There are significant deficiencies in the design and implementation of internal control in respect of financial and risk
                                                                                                                                          management.
                                                                                                                                          o There are significant deficiencies in the design and implementation of internal control in respect of compliance with
                                                                                                                                          laws and regulations.
                                                                                                                                          o The information systems were not appropriate to facilitate the preparation of the financial statements.

                                                                                                                                          Report on other legal and regulatory requirements
                                                                                                                                          Performance information
                                                                                                                                          • The entity did not have adequate documented reporting guidelines for performance information.

                                                                                                                                          Emphasis of matter
                                                                                                                                          Restatement of corresponding figures
                                                                          Financially unqualified (with   Financially unqualified (with
        20   NPE         Council for Medical Schemes                                                                                    Other matters
                                                                                other matters)                 no other matters)
                                                                                                                                        • Matters of governance
                                                                                                                                        o The internal audit function did not substantially fulfil its responsibilities for the year.

                                                                                                                                          Emphasis of matters
                                                                                                                                          • Restatement of corresponding figures
                                                                                                                                          • Irregular and fruitless and wasteful expenditure
                                                                                                                                          o Irregular expenditure was incurred as a result of non-compliance with procurement procedures.

                                                                                                                                        Other matters
                                                                                                                                        • Matters of governance
                                                                          Financially unqualified (with   Financially unqualified (with o The financial statements were subject to material amendments resulting from the audit.
        21   NPE         Human Sciences Research Council
                                                                                other matters)                  other matters)          o The internal audit function did not operate in terms of an approved internal audit plan.
                                                                                                                                        o The internal audit function did not substantially fulfil its responsibilities for the year.
                                                                                                                                        o There are significant deficiencies in the design and implementation of internal control in respect of financial and risk
                                                                                                                                        management.
                                                                                                                                        o There are significant deficiencies in the design and implementation of internal control in respect of compliance with
                                                                                                                                        applicable laws and regulations.


                                                                                                                                          Other matters
                                                                                                                                          • Matters of governance
                                                                                                                                          o The financial statements were subject to material amendments.

                                                                          Financially unqualified (with   Financially unqualified (with Report on other legal and regulatory requirements
        22   NPE         Market Theatre Foundation
                                                                                other matters)                 no other matters)        Performance information
                                                                                                                                        • The Market Theatre Foundation has not reported on all the predetermined objectives
                                                                                                                                        • The Market Theatre Foundation reported on objectives, indicators and targets in addition to those as per the
                                                                                                                                        approved strategic plan. (additional targets were not approved)

                                                                          Financially unqualified (with   Financially unqualified (with 1. Governance:
        23   NPE         National English Literary Museum (Grahamstown)
                                                                                other matters)                  other matters)            - Internal audit did not fulfill its responsibilities.




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                                                                                       Audit opinion:                  Audit opinion:
    No. Classification                  Departments / entities                                                                                                                                Auditee specific issues
                                                                                         2008-09                         2007-08
                                                                                                                                               Other matters
                                                                                                                                               o The financial statements were subject to material amendments.

                                                                                 Financially unqualified (with                                 Performance information
        24   NPE         National Library of South Africa (Pretoria/Cape Town)                                            Qualified
                                                                                       other matters)                                          • The South Africa National Library reported on objectives, indicators and targets in addition to those as per the
                                                                                                                                               approved strategic plan.
                                                                                                                                               • The South African National Library did not report on its performance with regard to its objectives per the approved
                                                                                                                                               strategic plan, due to the changes in the objectives. No approval evidence was obtained.
                                                                                 Financially unqualified (with   Financially unqualified (with 1. Financial:
        25   NPE         National Museum
                                                                                       other matters)                 no other matters)           - Regular monitoring and review is required to improve the quality of the financial statements.
                                                                                                                                               Emphasis of matters
                                                                                                                                               • Restatement of corresponding figures
                                                                                                                                               Other matters
                                                                                                                                               • Matters of governance
                                                                                                                                               o The financial statements were subject to material amendments.
                                                                                 Financially unqualified (with   Financially unqualified (with o The prior year audit findings have not been substantially implemented.
        26   NPE         National Research Foundation
                                                                                       other matters)                  other matters)
                                                                                                                                               Report on other legal and regulatory requirements
                                                                                                                                               Performance information
                                                                                                                                               • The entity did not report on its performance with regard to its targets as per the approved strategic plan, due to
                                                                                                                                               changes to the targets and indicators from the approved strategic plan.

                                                                                 Financially unqualified (with
        27   NPE         Nelson Mandela National Museum (Umtata)                                                         Disclaimer            1. Material non compliance
                                                                                       other matters)
                                                                                                                                               Other matters
                                                                                 Financially unqualified (with                                 • Matters of governance
        28   NPE         Northern Flagship Institution (Pretoria)                                                         Qualified
                                                                                       other matters)                                          o The financial statements were subject to material amendments resulting from the audit.

                                                                                 Financially unqualified (with   Financially unqualified (with 1. Governance
        29   NPE         South Africa Library for the Blind (Grahamstown)
                                                                                       other matters)                  other matters)            Internal audit and audit committee did not function during the year.
                                                                                                                                               Emphasis of matter
                                                                                                                                               o Irregular expenditure was incurred as a result of expenditure authorised in contravention with delegation of
                                                                                                                                               authority.
                                                                                                                                               o Fruitless and wasteful expenditure was incurred as a result of late submission of tax returns and short attendance at
                                                                                 Financially unqualified (with   Financially unqualified (with training courses.
        30   NPE         Universal Service and Access Agency of South Africa
                                                                                       other matters)                  other matters)
                                                                                                                                               Other matters
                                                                                                                                               • Matters of governance
                                                                                                                                               o The financial statements were subject to material amendments resulting from the audit.

                                                                                                                                               Other matters
                                                                                                                                               • Matters of governance
                                                                                                                                               o The financial statements were subject to material amendments resulting from the audit
                                                                                 Financially unqualified (with   Financially unqualified (with
        31   NPE         Windybrow Theatre                                                                                                     Report on other legal and regulatory requirements
                                                                                       other matters)                  other matters)
                                                                                                                                               Performance information
                                                                                                                                               • Reported performance information not relevant as the set delivery targets with regards to the key objectives were
                                                                                                                                               not specific, measurable and time bound

                                                                                 Financially unqualified (with   Financially unqualified (with
        32   NPE         Council for Scientific and Industrial Research (CSIR)                                                                 None
                                                                                      no other matters)               no other matters)
                                                                                                                                               Emphasis of matter
                                                                                                                                               • The trust adopted early implementation of GRAP 102

                                                                                 Financially unqualified (with   Financially unqualified (with Report on other legal and regulatory requirements
        33   NPE         Freedom Park Trust
                                                                                      no other matters)                other matters)          Performance information
                                                                                                                                               • Reported performance information not relevant as the set delivery targets with regards to the key objectives were
                                                                                                                                               not specific, measurable and time bound

                                                                                 Financially unqualified (with   Financially unqualified (with
        34   NPE         National Electronic Media Institute of SA                                                                             None
                                                                                      no other matters)                other matters)
                                                                                                                                               Emphasis of matter
                                                                                 Financially unqualified (with   Financially unqualified (with o Irregular expenditure was incurred as a result of expenditure authorised in contravention with delegation of
        35   NPE         Universal Service and Access Fund
                                                                                      no other matters)                other matters)          authority.

                                                                                 Financially unqualified (with   Financially unqualified (with
        36   NPE         War Museum of the Boer Republics                                                                                      None
                                                                                      no other matters)               no other matters)
                                                                                 Financially unqualified (with   Financially unqualified (with
        37   NPE         Water Research Commission                                                                                             None
                                                                                      no other matters)               no other matters)


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                                                                                 Audit opinion:                 Audit opinion:
    No. Classification                  Departments / entities                                                                                                                          Auditee specific issues
                                                                                   2008-09                        2007-08
                                                                                                                                       Basis of disclaimer of opinion
                                                                                                                                       • Unknown deposits
                                                                                                                                       o Insufficient audit evidence to verify completeness and valuation of revenue, accounts payables and receivables.
                                                                                                                                       • Value added tax liability and net income
                                                                                                                                       o Insufficient audit evidence to verify the completeness, existence, allocation and valuation of vat liability as well as
                                                                                                                                       completeness and valuation for revenue and expenditure.
                                                                                                                                       • Property, plant and expenditure
                                                                                                                                       o Insufficient audit evidence could to verify the valuation of property, plant and expenditure.
                                                                                                                                       • Other income
                                                                                                                                       o Insufficient evidence to verify the completeness and valuation of other income and accounts receivable.

                                                                                                                                       Emphasis of matter
                                                                                                                                       o PSIRA granted penalty interest concessions to its trade debtors during the 2008 financial year, which paid the
                                                                                                                                       excessive penalties raised.
                                                                                                                                       o Fruitless and wasteful expenditure was incurred due to rental of unutilised floor space and purchase of incompatible
                                                                                                                                       printer cartridges
        38   NPE         Public Security Industry Regulatory Authority             Disclaimer                   No comparative
                                                                                                                                       Other matters
                                                                                                                                       • Non-compliance with various PFMA, and TR

                                                                                                                                       • Matters of governance
                                                                                                                                       o No accounting authorithy, audit committe or internal audit
                                                                                                                                       oThe financial statements were subject to material amendments resulting from the audit.
                                                                                                                                       o The annual report was not submitted for consideration prior to the tabling of the auditor’s report.
                                                                                                                                       o There were significant deficiencies in the design and implementation of internal controls
                                                                                                                                       o A risk assessment was not conducted.
                                                                                                                                       o Powers and duties have not been assigned, as set out in section 56 of the PFMA.
                                                                                                                                       o Prior year audit findings have not been substantially addressed.
                                                                                                                                       o A strategic plan was not prepared and approved.
                                                                                                                                       • Investigations
                                                                                                                                       o The CEO was suspended in May 2008 and therefore the investigation was not concluded due to the vacancy of the
                                                                                                                                       accounting authority.
                         Electronic Communication Security (PTY LTD) -
        39   NPE                                                                   Disclaimer                   No comparative         1. Report will be considered by the JSCI
                         COMSEC
                                                                           Financially unqualified (with   Financially unqualified (with Other matter
        40   NPE         National Heritage Council of South Africa (NHC)
                                                                                 other matters)                  other matters)          Material amendments were made to the financial statements




Alice                                                                                                                                                                                                                                                          Page 8 of 30
                                                                                    Audit opinion:                  Audit opinion:
No. Classification                  Departments / entities                                                                                                                                     Auditee specific issues
                                                                                      2008-09                         2007-08
                                      CE: Barry Wheeler

                                                                                                                                              There were instances of non compliance with the entity board approved supply chain management process. There
                                                                                                                                              were instances of non-compliance with various other laws and regulations.                           Management did not
                     Independent Communications Authority of South            Financially unqualified (with   Financially unqualified (with
 1       NC                                                                                                                                   implement adequate controls regarding preparation of financial statements hence the financial statements submitted for
                     Africa                                                         other matters)                  other matters)
                                                                                                                                              audit purposes after approval was subject to material adjustments.             There were significant deficiencies in the
                                                                                                                                              design and implementation of internal control in respect of financial and risk management.
                                                                                                                                              There were significant deficiencies in the design and implementation of internal control in respect of financial and risk
                     Independent Communications Authority of South                                            Financially unqualified (with
 2       NC                                                                        Audit outstanding                                          management.                                                                                                    There were
                     Africa Revenue Fund                                                                            other matters)
                                                                                                                                              instances of non-compliance with laws and regulations
                                                                                                                                              Insufficient monitoring and guidance by senior management to ensure an adequate internal control environment,
 3       ND          Correctional Services                                             Qualified                       Qualified
                                                                                                                                              preparation of financial statements and availability of documentation.
                                                                                                                                              Insufficient monitoring and guidance by senior management relating to the preparation and completion of financial
 4       ND          Defence                                                           Qualified                       Qualified
                                                                                                                                              statements, specifically the evaluation of supporting documentation and figures.
                                                                                                                                              (i) Receivables for departmental revenue relating to royalties - full and proper records may not be available, as well as a
 5       ND          Sport and Recreation                                              Qualified                       Qualified              lack of policies and procedures to account for royalty revenue (completeness issue) (ii) Various instances of non
                                                                                                                                              compliance with applicable legislation
                                                                              Financially unqualified (with   Financially unqualified (with   Dual accountability relationship exists between SASSA and the Department of Social Development over the grants.
 6       ND          Social Development
                                                                                    other matters)                  other matters)            This relationship results in actions of SASSA impacts on the audit report of the Department of Social Development.

                                                                                                                                              The board members were not appointed by the Minister.
                                                                              Financially unqualified (with   Financially unqualified (with
 7       NOE         South African Defence Force Fund
                                                                                    other matters)                  other matters)            An audit committee have not yet been appointed.
                                                                                                                                              Instances of non-compliance with legislation.
                                                                              Financially unqualified (with   Financially unqualified (with
 8       NOE         Special Defence Account                                                                                                  None compliance to section 3 of the Defence Special Account act on the investment of surplus funds
                                                                                    other matters)                  other matters)
                                                                              Financially unqualified (with   Financially unqualified (with
 9       NOE         Disaster Relief Fund                                                                                                     None
                                                                                   no other matters)               no other matters)
                                                                              Financially unqualified (with   Financially unqualified (with
10       NOE         High School Vorentoe Disaster Fund                                                                                       None
                                                                                   no other matters)               no other matters)
                                                                              Financially unqualified (with   Financially unqualified (with
11       NOE         Refugee Relief Fund                                                                                                      None
                                                                                   no other matters)               no other matters)
                                                                              Financially unqualified (with   Financially unqualified (with
12       NOE         Social Relief Fund                                                                                                       None
                                                                                   no other matters)               no other matters)
                                                                              Financially unqualified (with   Financially unqualified (with
13       NOE         State President Fund                                                                                                     None
                                                                                   no other matters)               no other matters)
                                                                                                                                              (i) Going concern problems (ii) Various instances of non compliance with applicable legislation (iii) Lack of appropriate
14       NPE         Boxing South Africa                                               Qualified                       Qualified
                                                                                                                                              audit evidence due to poor record keeping system.
                                                                                                                                              Unchanged
                                                                                                                                              - Cost benefit decision on asset valuation resulting in non compliance with application of IAS 16 iro the treatment of
15       NPE         Ingonyama Trust Board                                             Qualified                       Qualified              land.
                                                                                                                                              - No system in place to account for royalty revenue, hence limitation of scope regarding royalty revenue. (Cost benefit
                                                                                                                                              consideration)
                                                                                                                                              Non compliance with various laws and regulations.                                                              Total
                                                                                                                                              liabilities exceeded total assets by R38.4 million.                                                           This raised
                                                                                                                                              questions as to whether the entity was going concern.                                                        Management
                                                                                                                                              did not implement adequate controls regarding preparation of financial statements hence the finacial statements
                                                                              Financially unqualified (with   Financially unqualified (with
16       NPE         Commission for Conciliation, Mediation and Arbitration                                                                   submitted for audit purposes after approval was subject to material adjustments.
                                                                                    other matters)                  other matters)
                                                                                                                                              Management did not implement all prior year audt recommendations.
                                                                                                                                              Management did not implement risk managment framework although it was approved.                                       There
                                                                                                                                              were inadequate controls processes and procedures to ensure to ensure the accuracy and completeness reported
                                                                                                                                              performance information. The information systems were not appropriate to facilitate the preparation of a performance
                                                                              Financially unqualified (with                                    Management did not implement adequate controls regarding preparation of financial statements hence the financial
17       NPE         Council for Mineral Technology (Mintek)                                                           Qualified
                                                                                    other matters)                                            statements submitted for audit purposes after approval was subject to material adjustments.
                                                                              Financially unqualified (with   Financially unqualified (with
18       NPE         International Marketing Council (IMC)                                                                                    The financial statements were subject to material corrections as a result of the audit.
                                                                                    other matters)                 no other matters)
                                                                                Audit opinion:                  Audit opinion:
No. Classification                  Departments / entities                                                                                                                                Auditee specific issues
                                                                                  2008-09                         2007-08
                                      CE: Barry Wheeler
                                                                                                                                          Unchanged
                                                                                                                                          - The entity had appropriate governance policies and practices which operated effectively and substantially complied
                                                                                                                                          with the key governance responsibilities.
                                                                          Financially unqualified (with   Financially unqualified (with   - Weaknesses with respect to financial, risk management and internal controls need to be addressed to improve
19       NPE         Luthuli Museum
                                                                                other matters)                  other matters)            adherence to the governance framework and removing the negative outcome on these matters.
                                                                                                                                          - The financial statements were subject to material corrections as a result of the audit.


                                                                          Financially unqualified (with   Financially unqualified (with   Management did not prepare and implement a disaster recovery plan and business continuity plan.
20       NPE         Media Development and Diversity Agency
                                                                                other matters)                 no other matters)          The audit committee did not conduct an assessment of internal audit effectiveness.
                                                                                                                                          Management did not implement adequate controls regarding preparation of financial statements hence the financial
                                                                          Financially unqualified (with   Financially unqualified (with   statements submitted for audit purposes after approval was subject to material adjustments.
21       NPE         National Arts Council of South Africa
                                                                                other matters)                  other matters)            There were significant deficiencies I the design and implementation of internal control in respect of financial risk
                                                                                                                                          management.
                                                                          Financially unqualified (with   Financially unqualified (with
22       NPE         National Development Agency                                                                                          CEO and CFO positions are vacant with acting staff executing the duties
                                                                                other matters)                  other matters)
                                                                                                                                          New Audit
                                                                          Financially unqualified (with                                   - The entity is in its start up stage and making efforts to document and implement policies, procedures for the financial
23       NPE         Ports Regulator of South Africa                                                            No comparative
                                                                                other matters)                                            cycle and components and relevant monitoring strategies of risk management, the internal control deficiencies and non-
                                                                                                                                          compliance identified during the audit.
                                                                                                                                          Management did not implement adequate controls regarding preparation of financial statements hence the financial
                                                                          Financially unqualified (with                                   statements submitted for audit purposes after approval was subject to material adjustments. There were significant
24       NPE         South Africa Diamond and Precious Metals Regulator                                            Qualified
                                                                                other matters)                                            deficiencies regarding internal control, risk management and compliance with laws, rules and regulations. Furthermore,
                                                                                                                                          management did not implement all prior year audit recommendations.
                                                                          Financially unqualified (with   Financially unqualified (with   SASSA got exemption for preparing their financial statements in accordance with SA GAAP, but this exemption expired
25       NPE         South African Social Security Agency (SASSA)
                                                                                other matters)                  other matters)            at the end of 2008/09 and this application of accrual accounting is a serious challenge for the entity going forward.
                                                                                                                                          Management did not implement adequate controls regarding preparation of financial statements hence the financial
                                                                                                                                          statements submitted for audit purposes after approval was subject to material adjustments. There were deficiencies
                                                                          Financially unqualified (with   Financially unqualified (with
26       NPE         State Diamond Trader                                                                                                 regarding internal controls, risk management and compliance with laws, rules and regulations. Furthermore,
                                                                                other matters)                  other matters)
                                                                                                                                          management did implement all prior year recommendations by audit. The internal audit function was not in operation
                                                                                                                                          throughout the year.
                                                                          Financially unqualified (with   Financially unqualified (with
27       NPE         Armaments Corporation of South Africa Limited                                                                        None
                                                                               no other matters)               no other matters)
                                                                          Financially unqualified (with   Financially unqualified (with
28       NPE         Armscor Business (Pty) Ltd                                                                                           None
                                                                               no other matters)               no other matters)
                                                                          Financially unqualified (with   Financially unqualified (with
29       NPE         Erasmusrand Eiendomme (Pty) Ltd                                                                                      None
                                                                               no other matters)               no other matters)
                                                                          Financially unqualified (with   Financially unqualified (with
30       NPE         Institute for Maritime Technology (PTY) Ltd                                                                          None
                                                                               no other matters)               no other matters)
                                                                          Financially unqualified (with   Financially unqualified (with   Unchanged
31       NPE         iSimangaliso Wetland Park
                                                                               no other matters)               no other matters)          - Fundamental elements of internal control in place driving the year on year positive audit outcomes.
                                                                                                                                          Improvement
                                                                          Financially unqualified (with   Financially unqualified (with
32       NPE         KwaZulu-Natal Performing Arts Company                                                                                 The entity has put place the fundamental elements of internal controls resulting in a better audit outcome over the
                                                                               no other matters)                other matters)
                                                                                                                                          precious year.
                                                                          Financially unqualified (with   Financially unqualified (with   Unchanged
33       NPE         Msunduzi/Voortrekker Museum: Pietermaritzburg
                                                                               no other matters)               no other matters)          - Fundamental elements of internal control in place driving the year on year positive audit outcomes.
                                                                                                                                          Improvement
                                                                          Financially unqualified (with   Financially unqualified (with
34       NPE         Natal Museum                                                                                                          The entity has put place the fundamental elements of internal controls resulting in a better audit outcome over the
                                                                               no other matters)                other matters)
                                                                                                                                          previous year.
                                                                          Financially unqualified (with   Financially unqualified (with
35       NPE         National Film and Video Foundation of South Africa                                                                   None identified
                                                                               no other matters)               no other matters)
                                                                          Financially unqualified (with   Financially unqualified (with
36       NPE         Oospark (Pty) Ltd                                                                                                    None
                                                                               no other matters)               no other matters)
                                                                          Financially unqualified (with   Financially unqualified (with   Unchanged
37       NPE         People and Parks Development
                                                                               no other matters)               no other matters)          - Fundamental elements of internal control in place driving the year on year positive audit outcomes.
                                                                          Financially unqualified (with   Financially unqualified (with
38       NPE         Sportsrand (Pty) Ltd                                                                                                 None
                                                                               no other matters)               no other matters)
                                                                                                          Financially unqualified (with   Audit report issued in September 2009 was financially unqualified with other matters. No auditee specific issues
39       NPE         National Home Builders Regulatory Council                 Audit outstanding
                                                                                                                other matters)            identified.
                                                             Audit opinion:   Audit opinion:
No. Classification                  Departments / entities                                     Auditee specific issues
                                                               2008-09          2007-08
                                      CE: Barry Wheeler
    Legend for Classification
         ND        National Departments
         NC        National Constitutional Institutions
         NL        National Legislature
        NOE        National Other Entities
        NPE        National Public Entities
                                                                            Audit opinion:                  Audit opinion:
No. Classification                     Departments / entities                                                                                                                         Auditee specific issues
                                                                              2008-09                         2007-08
                                        CE: Eugene Zungu
                                                                      Financially unqualified (with   Financially unqualified (with   1. Effective interactions between management and AGSA.
 1       NC          Financial and Fiscal Commission
                                                                           no other matters)               no other matters)          2. Action plan in place to ensure management report findings.

                                                                                                                                      Other matters:
                                                                                                                                      1. Non-compliance with the PFMA and Treasury Regulations on cash management processes and procurement
                                                                                                                                      matters.
                                                                      Financially unqualified (with   Financially unqualified (with
 2       NC          Independent Electoral Commission                                                                                 2. A delay in the receipt of the annual financial statements for audit.
                                                                            other matters)                  other matters)
                                                                                                                                      3. Material adjustments were made to the AFS regarding inventory and provisions.
                                                                                                                                      4. The leadership were not regularly available during the audit.




                                                                                                                                      Qualifications:
                                                                                                                                      1. Departmental revenue - lack of supporting documentation to verify the occurrence, accuracy and completeness
                                                                                                                                      2. Capital assets - Misstatements due to completeness, existence and valuation of capital assets.
                                                                                                                                      3. Payables - Lack of supporting documentation.
                                                                                                                                      4. Leases - Finance leases recorded as operating leases in FS
                                                                                                                                      Other matters:
 3       ND          Home Affairs                                              Qualified                      Disclaimer
                                                                                                                                      1. Non-compliance with PFMA re revenue collection
                                                                                                                                      2. Non-compliance with Public Service Regulations re the payment of overtime
                                                                                                                                      3. Material adjustments were made to FS
                                                                                                                                      4. Delays in receipt of requested financial information
                                                                                                                                      Investigations:
                                                                                                                                      1. AGSA issued a report on a special investigation in the awarding of a contract for the development of the planned
                                                                                                                                      integrated online system. The dept was investigating the regularisation of the tender process


                                                                      Financially unqualified (with   Financially unqualified (with   Significant other matters:
 4       ND          Environmental Affairs and Tourism
                                                                            other matters)                  other matters)            1. Non compliance with Treasury Regulations.
                                                                                                                                      2. Material amendments to financial statements.

                                                                                                                                      Significant other matters:
                                                                      Financially unqualified (with   Financially unqualified (with
 5       ND          Foreign Affairs                                                                                                  1. Material amendments to financial statements.
                                                                            other matters)                  other matters)
                                                                                                                                      2. Risk assessment not performed in a timely manner.


                                                                      Financially unqualified (with   Financially unqualified (with
 6       ND          Minerals and Energy                                                                                              Other matters:
                                                                            other matters)                  other matters)
                                                                                                                                      1. Material adjustments were made to the AFS regarding prepayments.

                                                                      Financially unqualified (with   Financially unqualified (with   Other matters:
 7       ND          Public Service and Administration
                                                                            other matters)                  other matters)            1. Non-compliance with the Public Service Regulations.
                                                                                                                                      2. Risk assessment not performed on a regular basis.
                                                                      Financially unqualified (with   Financially unqualified (with
 8       ND          Public Service Commission                                                                                        Other matters:
                                                                            other matters)                 no other matters)
                                                                                                                                      1. Non-compliance with the Treasury Regulations regarding payments of vendors.
                                                                      Financially unqualified (with   Financially unqualified (with
 9       ND          South African Management Development Institute                                                                   Other matters:
                                                                            other matters)                  other matters)
                                                                                                                                      1. Non-compliance with the Public Service Regulations.
                                                                                                                                      1. Non compliance with laws and regulations.
                                                                      Financially unqualified (with   Financially unqualified (with   2. Lack of effective and efficient systems.
10       ND          Statistics South Africa
                                                                            other matters)                  other matters)            3. Management to implement controls to ensure proper monitoring and supervision of items in future.
                                                                                                                                      4. Material amendments of financial statements.

                                                                                                                                      Significant other matters:
                                                                      Financially unqualified (with   Financially unqualified (with
11       ND          Transport                                                                                                        1. Non compliance with legislation (PFMA) in that suppliers were not paid within 30 days in all instances.
                                                                            other matters)                  other matters)


                                                                                                                                      1. Governance structures in place and functioning effectively.
                                                                      Financially unqualified (with   Financially unqualified (with   2. Adequate policies in place and regular monitoring does take place.
12       ND          Education
                                                                           no other matters)               no other matters)          3. CFO and senior management always available during audit process.
                                                                                                                                      4. Oversight by Director-General.
                                                                        Audit opinion:                  Audit opinion:
No. Classification                  Departments / entities                                                                                                                         Auditee specific issues
                                                                          2008-09                         2007-08
                                      CE: Eugene Zungu
                                                                  Financially unqualified (with   Financially unqualified (with   1. Constant availability of CFO to assist during audit process.
13       ND          National Treasury
                                                                       no other matters)               no other matters)          2. Effective Audit Committee and Internal Audit structures.
                                                                                                                                  1. Strong financial leadership and good governance structures.
                                                                  Financially unqualified (with   Financially unqualified (with   2 Acceptable quality of financial information.
14       ND          Public Enterprises
                                                                       no other matters)                other matters)            3. Timeous receipt of audit evidence.

                                                                                                                                  1. Governance matters reported related to:
                                                                                                                                  -material corrections to the AFS;
                                                                                                                                  -significant difficulties experienced during the audit and
                                                                  Financially unqualified (with   Financially unqualified (with
15        NL         Parliament of the Republic of South Africa                                                                   -prior yr findings not substantially addressed.
                                                                        other matters)                  other matters)
                                                                                                                                  The root cause of these reported matters is the lack of ongoing monitoring by leadership caused mainly by the vacant
                                                                                                                                  CFO position since September 2008, which will be filled wef 2 Feb 2010.


                                                                                                                                  Other matters:
16       NOE         Government Printing Works                             Qualified                        Adverse               1. Non-compliance with the PFMA Treasury regulations regarding revenue collection and payments to vendors.
                                                                                                                                  2. Material adjustments were made to the AFS regarding inventory and accounts payable.
                                                                                                                                  3. Internal control processes not effective and efficiently operating.

                                                                                                                                  Significant other matters:
                                                                                                                                  1. Going concern issues.
                                                                                                                                  2. Fruitless and wasteful expenditure.
                     Driving License Card Account
                                                                  Financially unqualified (with                                   3. Non-compliance with Treasury Regulations.
17       NOE                                                                                               Qualified
                                                                        other matters)                                            4. Lack of supporting documentation that is easily available and provided in timely manner.
                                                                                                                                  5. Material amendments to the financial statements.
                                                                                                                                  6. Availability of key officials during audit.
                                                                                                                                  Investigations:
                                                                                                                                  1. Investigations regarding abuse of assets
                                                                  Financially unqualified (with   Financially unqualified (with   1. Lack of internal control procedures.
18       NOE         Project Development Facility
                                                                        other matters)                 no other matters)          2. Material amendments to financial statements.
                                                                  Financially unqualified (with   Financially unqualified (with
19       NOE         SAMDI Training Trading Account                                                                               Other matters:
                                                                        other matters)                  other matters)
                                                                                                                                  1. Material adjustments were made to the AFS regarding the identification of liabilities for the trading account.
                                                                                                                                  1. Strong financial leadership and good governance structures.
                                                                  Financially unqualified (with   Financially unqualified (with
20       NOE         Equalisation Fund                                                                                            2 Acceptable quality of financial information.
                                                                       no other matters)               no other matters)
                                                                                                                                  3. Timeous receipt of audit evidence.
                                                                  Financially unqualified (with
21       NOE         Technical Assistance Unit                                                          No comparative            1. Effective internal controls.
                                                                       no other matters)
                                                                                                                                  Qualification:
                                                                                                                                  1. Irregular expenditure - all expenditure is irregular as no budget was submitted to EA for approval.
                                                                                                                                  2. Revenue - R46m of revenue could not be verified due to lack of supporting documentation or reconciliations
22       NPE         Cross-Border Road Transport Agency                    Qualified                       Qualified              Other matters:
                                                                                                                                  1. Non-compliance with PFMA and Treasury Regulations
                                                                                                                                  2. Material amendments to FS
                                                                                                                                  3. Lack of risk assessment and fraud prevention plan
                                                                                                                                  Qualifications:
                                                                                                                                  1. Incomplete income - lack of controls over cash received from fund raising activities
                                                                                                                                  Other matters reported includes:
                                                                                                                                  -material corrections;
23       NPE         Die Afrikaanse Taalmuseum                             Qualified                       Qualified              -prior year findings not substantially addressed;
                                                                                                                                  -late submission of AFS;
                                                                                                                                  -delegations not appropriately assigned;
                                                                                                                                  -internal audit not effective.
                                                                                        Audit opinion:                  Audit opinion:
No. Classification                   Departments / entities                                                                                                                                       Auditee specific issues
                                                                                          2008-09                         2007-08
                                       CE: Eugene Zungu
                                                                                                                                                  Qualifications:
                                                                                                                                                  1. PPE - due to inaccurate valuation of the account balance
                                                                                                                                                  2. Leases - incorrect recording of lease liability
                                                                                                                                                  3. Irregular expenditure - R3.7m was not disclosed.
                                                                                                                                                  4. Cash flow statement - inaccurate recording of cash utilised during operations
                                                                                                                  Financially unqualified (with   Other matters:
24       NPE         Film and Publication Board                                            Qualified
                                                                                                                        other matters)            1. Non-compliance with the PFMA and Treasury Regulations regarding declaration of interests, cash management
                                                                                                                                                  systems and procurement matters.
                                                                                                                                                  2. A delay in the receipt of the annual financial statements for audit.
                                                                                                                                                  3. Material adjustments were made to the AFS regarding irregular expenditure.
                                                                                                                                                  4. Internal control processes not effective and efficiently operating.

                                                                                                                                                  Qualifications:
                                                                                                                                                  1. PPE - R16m of capital assets written off without EA's prior approval

                                                                                                                                                  Other matters raised include:
                                                                                                                  Financially unqualified (with   -late submission of AFS;
25       NPE         Medical Research Council of South Africa                              Qualified
                                                                                                                        other matters)            -Quarterly reports not submitted:;
                                                                                                                                                  -material corrections;
                                                                                                                                                  -key officials not available and
                                                                                                                                                  -inadequately designed internal controls.


                     African Renaissance and International Cooperation            Financially unqualified (with   Financially unqualified (with   1. Monitoring mechanisms in place, but do in certain instances appear not to function effectively.
26       NPE
                     Fund                                                               other matters)                  other matters)            2. Risk assessment not performed in a timely manner.

                                                                                                                                                  1. Leadership intervention required wrt:
                                                                                  Financially unqualified (with   Financially unqualified (with
27       NPE         Castle Control Board                                                                                                           - establishing internal audit function; and
                                                                                        other matters)                  other matters)
                                                                                                                                                    - the appointment of a permanent CFO so that financial management can be strengthened.

                                                                                  Financially unqualified (with   Financially unqualified (with
28       NPE         CEF (Pty) Ltd                                                                                                                Other matters:
                                                                                        other matters)                 no other matters)
                                                                                                                                                  1. Material adjustments were made to the AFS regarding taxation and provisions as a result of the group consolidation.
                                                                                                                                                  Other matters:
                                                                                  Financially unqualified (with   Financially unqualified (with
29       NPE         Council for Geoscience                                                                                                       1. The relevant documentation necessary for the audit was not always readily available.
                                                                                        other matters)                  other matters)
                                                                                                                                                  2. Material adjustments were made to the AFS regarding reclassification of assets for the entity.
                                                                                                                                                  Other matters:
                                                                                  Financially unqualified (with   Financially unqualified (with
30       NPE         Electricity Distribution Industry (EDI) Holdings (Pty) Ltd                                                                   1. The relevant documentation necessary for the audit was not always readably available.
                                                                                        other matters)                  other matters)
                                                                                                                                                  2. Material adjustments were made to the AFS regarding provisions and PPE.
                                                                                  Financially unqualified (with
31       NPE         ETA Energy (Pty) Ltd                                                                               No comparative            Other matters:
                                                                                        other matters)
                                                                                                                                                  1. No effective Internal Audit and Audit Committee structures.
                                                                                                                                                  1. Non-compliance with applicable Treasury Guidelines.
                                                                                  Financially unqualified (with   Financially unqualified (with
32       NPE         Financial Intelligence Centre                                                                                                2. Material amendments to financial statements.
                                                                                        other matters)                  other matters)
                                                                                  Financially unqualified (with   Financially unqualified (with   1. Material non-compliance with applicable own and Treasury SCM policies.
33       NPE         Independent Regulatory Board for Auditors
                                                                                        other matters)                 no other matters)          2. Material amendments to financial statements.
                                                                                                                                                  Other matters raised:
                                                                                  Financially unqualified (with   Financially unqualified (with
34       NPE         Iziko Museums of Cape Town                                                                                                   -material corrections and
                                                                                        other matters)                  other matters)
                                                                                                                                                  -significant difficulties experienced during the audit.
                                                                                                                                                  1. Significant other matters:
                                                                                                                                                  (i) Fruitless and wasteful expenditure
                                                                                                                                                  (ii) Non compliance with applicable legislation
                                                                                  Financially unqualified (with                                   (iii) Issues relating to the reporting of performance information.
35       NPE         Land and Agricultural Bank of South Africa                                                            Qualified
                                                                                        other matters)
                                                                                                                                                  2. Investigations:
                                                                                                                                                  Ongoing investigations of irregularities
                                                                               Audit opinion:                  Audit opinion:
No. Classification                  Departments / entities                                                                                                                                Auditee specific issues
                                                                                 2008-09                         2007-08
                                      CE: Eugene Zungu
                                                                                                                                         1. Clean audit opinion achieved, which appears to be sustainable because:
                                                                         Financially unqualified (with   Financially unqualified (with   2. Leadership and governance structures are effective.
36       NPE         Marine Living Resources Fund
                                                                              no other matters)                other matters)            3. There is was an effective utilisation of consultants.


                                                                                                                                         Other matters:
                                                                                                                                         1. Non-compliance with the PFMA and Treasury Regulations regarding internal control responsibilities and
                                                                         Financially unqualified (with   Financially unqualified (with
37       NPE         Mine Health and Safety Council                                                                                      procurement.
                                                                               other matters)                  other matters)
                                                                                                                                         2. A delay in the receipt of the annual financial statements for audit.
                                                                                                                                         3. Material adjustments were made to the AFS regarding accounts receivable.
                                                                                                                                         4. The leadership were not regularly available during the audit.

                                                                         Financially unqualified (with   Financially unqualified (with   Other matters:
38       NPE         National Energy Regulator of South Africa (NERSA)
                                                                               other matters)                  other matters)            1. The relevant documentation necessary for the audit was not always readably available.
                                                                                                                                         2. Material adjustments were made to the AFS regarding the disclosure of irregular expenditure.

                                                                         Financially unqualified (with                                   Other matters:
39       NPE         National Nuclear Regulator                                                                   Qualified
                                                                               other matters)                                            1. Non-compliance with the Treasury Regulations regarding cash management.

                                                                                                                                         Other matters::
                                                                                                                                         -significant difficulties experienced;
                                                                                                                                         -material corrections;
                                                                         Financially unqualified (with   Financially unqualified (with
40       NPE         National Student Financial Aid Scheme                                                                               -inadequately designed internal controls;
                                                                               other matters)                  other matters)
                                                                                                                                         -risk management strategies not adequate;
                                                                                                                                         -PI systems and control processes and procedures not adequate.



                                                                                                                                         Significant other matters:
                                                                                                                                         1. Significant difficulties were experienced during audit concerning delays and the availability of requested information.
                                                                                                                                         2. The financial statements were subject to material amendments resulting from the audit.
                                                                         Financially unqualified (with   Financially unqualified (with
41       NPE         Office of the Pension Funds Adjudicator                                                                             3. Problems with development and compliance with risk management, effective internal control and governance
                                                                               other matters)                  other matters)
                                                                                                                                         practices,
                                                                                                                                         4. Prior year findings not addressed.
                                                                                                                                         5. Performance information not reported.


                                                                         Financially unqualified (with   Financially unqualified (with
42       NPE         Pelchem                                                                                                             Other matters:
                                                                               other matters)                 no other matters)
                                                                                                                                         1. Material adjustments were made to the AFS regarding taxation.
                     Petroleum Oil and Gas Corporation of South Africa   Financially unqualified (with   Financially unqualified (with
43       NPE                                                                                                                             Other matters:
                     (Pty) Ltd                                                 other matters)                  other matters)
                                                                                                                                         1. Material adjustments were made to the AFS regarding taxation and provisions.

                                                                         Financially unqualified (with                                   Other matters:
44       NPE         Petrosa Egypt (Pty) Ltd                                                                      Qualified
                                                                               other matters)                                            1. Material adjustments were made to the AFS regarding liabilities of the company.


                                                                         Financially unqualified (with
45       NPE         Petrosa Sudan (Pty) Ltd                                                                      Qualified              Other matters:
                                                                               other matters)
                                                                                                                                         1. Material adjustments were made to the AFS regarding taxation and liabilities of the company.
                                                                         Financially unqualified (with   Financially unqualified (with
46       NPE         Railway Safety Regulator                                                                                            Significant other matters:
                                                                               other matters)                  other matters)
                                                                                                                                         1. Material amendments to financial statements.
                                                                         Financially unqualified (with   Financially unqualified (with
47       NPE         Road Accident Fund                                                                                                  Significant other matters:
                                                                               other matters)                  other matters)
                                                                                                                                         1. Material changes were made to AFS after it was submitted for audit.
                                                                                   Audit opinion:                  Audit opinion:
No. Classification                   Departments / entities                                                                                                                                  Auditee specific issues
                                                                                     2008-09                         2007-08
                                       CE: Eugene Zungu

                                                                                                                                             Significant other matters:
                                                                                                                                             1. Irregular, fruitless and wasteful expenditure.
                                                                             Financially unqualified (with   Financially unqualified (with   2. Material amendments to financial statements.
48       NPE         Road Traffic Management Corporation
                                                                                   other matters)                  other matters)            3. Significant deficiencies in the design and implementation of internal control in respect of compliance with laws and
                                                                                                                                             regulations.
                                                                                                                                             4. Information systems were not appropriate to facilitate the preparation of a performance information report that is
                                                                                                                                             accurate and complete.
                                                                                                                                             1. Non-compliance (SCM deviations) and governance issues.
                                                                                                                                             3. Material corrections and risk management strategies not adequate.
                                                                             Financially unqualified (with   Financially unqualified (with
49       NPE         SA Institute for Drug-free Sport                                                                                        4. No internal audit and audit committee structures in place.
                                                                                   other matters)                  other matters)
                                                                                                                                             5. Reliance on consultants to prepare AFS.
                                                                                                                                             6. The PE is fairly small with an expenditure budget of R400k and staff complement of 7.
                                                                             Financially unqualified (with   Financially unqualified (with   1. Application of procurement system.
50       NPE         SA Rail Commuter Corporation Limited
                                                                                   other matters)                  other matters)            2. Regular performance of bank reconciliations.

                                                                                                                                             Other matters:
                                                                             Financially unqualified (with   Financially unqualified (with
51       NPE         SFF Association                                                                                                         1. The relevant documentation necessary for the audit was not always readily available.
                                                                                   other matters)                 no other matters)
                                                                                                                                             2. Material adjustments were made to the AFS regarding the disclosure of expenditure and fruitless and wasteful
                                                                                                                                             expenditure.
                                                                                                                                             Other matters reported:
                                                                                                                                             -significant difficulties experienced;
                                                                                                                                             -material corrections;
                                                                                                                                             -key officials not available;
                                                                             Financially unqualified (with   Financially unqualified (with
52       NPE         South Africa Heritage Resources Agency                                                                                  -inadequate design of internal controls,
                                                                                   other matters)                  other matters)
                                                                                                                                             -information systems inadequate for preparation of AFS and
                                                                                                                                             -prior year findings not substantially addressed.


                                                                             Financially unqualified (with   Financially unqualified (with   1. Governance issues reported include material corrections and PI.
53       NPE         South African National Biodiversity Institute (SANBI)
                                                                                   other matters)                  other matters)
                                                                                                                                             Significant other matters:
                                                                                                                                             (i) Fruitless and wasteful expenditure
                     South African Maritime Safety Authority                 Financially unqualified (with
54       NPE                                                                                                          Qualified              (ii) Non compliance with applicable legislation
                                                                                   other matters)
                                                                                                                                             (iii) Supporting documentation not easily available and provided in a timely manner
                                                                                                                                             (iv) The financial statements were subject to material amendments resulting from the audit.
                                                                             Financially unqualified (with   Financially unqualified (with
55       NPE         South African National Parks                                                                                            Significant other matters:
                                                                                   other matters)                 no other matters)
                                                                                                                                             1. Material amendments to financial statements.

                                                                                                                                             Other matters:
                                                                                                                                             1. Non-compliance with the PFMA and Treasury Regulations on cash management processes and procurement
                                                                                                                                             matters.
                                                                                                                                             2. Non-compliance with the State Information Technology Act regarding service delivery processes.
                                                                             Financially unqualified (with   Financially unqualified (with   3. A delay in the receipt of the annual financial statements for audit.
56       NPE         State Information Technology Agency
                                                                                   other matters)                  other matters)            4. Material adjustments were made to the AFS regarding revenue and accounts payable.
                                                                                                                                             5. Internal control processes not effective and efficiently operating.
                                                                                                                                             Investigations:
                                                                                                                                             1. Investigation into the procurement of teh "Who Am I Online" system
                                                                                                                                             2. Investigations into the irregular expenditure and fruitless & wasteful exp discovered during the previous financial year
                                                                                                                                             re Gateway and CabEnet
                                                                                                                                             1. Monitoring mechanisms in place.
                                                                             Financially unqualified (with   Financially unqualified (with
57       NPE         The South African National Roads Agency Limited                                                                         2. Auditee plans still need to be assessed.
                                                                                   other matters)                  other matters)
                                                                                                                                             3. No consultants.
                                                                             Financially unqualified (with   Financially unqualified (with   Other matters:
58       NPE         William Humphreys Art Gallery
                                                                                   other matters)                  other matters)            1. Material amendments to FS
                                                                                                                                             1. Strong financial leadership and good governance structures.
                                                                             Financially unqualified (with   Financially unqualified (with
59       NPE         AEC-Amersham (Pty) Ltd                                                                                                  2. Acceptable quality of financial information.
                                                                                  no other matters)               no other matters)
                                                                                                                                             3. Timeous receipt of audit evidence.
                                                                     Audit opinion:                  Audit opinion:
No. Classification                    Departments / entities                                                                                                                     Auditee specific issues
                                                                       2008-09                         2007-08
                                          CE: Eugene Zungu
                                                                                                                               1. Strong financial leadership and good governance structures.
                                                               Financially unqualified (with   Financially unqualified (with
60       NPE         Arecsa Human Capital (Pty) Ltd                                                                            2. Acceptable quality of financial information.
                                                                    no other matters)                other matters)
                                                                                                                               3. Timeous receipt of audit evidence.
                                                               Financially unqualified (with   Financially unqualified (with   1. Clean audit opinion achieved.
61       NPE         Artscape
                                                                    no other matters)                other matters)            2. Leadership and governance structures are effective.
                                                                                                                               1. Strong financial leadership and good governance structures.
                                                               Financially unqualified (with                                   2. A new entity with the 2008-09 being its first financial year.
62       NPE         Carbon Stream Africa (Pty) Ltd                                                  No comparative
                                                                    no other matters)                                          3. Acceptable quality of financial information.
                                                                                                                               4. Timeous receipt of audit evidence.
                                                                                                                               1. Strong financial leadership and good governance structures.
                                                               Financially unqualified (with                                   2. A new entity with the 2008-09 being its first financial year.
63       NPE         CCE Solutions (Pty) Ltd                                                         No comparative
                                                                    no other matters)                                          3. Acceptable quality of financial information.

                                                                                                                               1. Strong financial leadership and good governance structures.
                                                               Financially unqualified (with                                   2. A new entity with the 2008-09 being its first financial year.
64       NPE         CEF Carbon (Pty) Ltd                                                            No comparative
                                                                    no other matters)                                          3. Acceptable quality of financial information.

                                                                                                                               1. The company is dormant.
                                                               Financially unqualified (with   Financially unqualified (with
65       NPE         Cotec Development (Pty) Ltd                                                                               2. Acceptable quality of financial information.
                                                                    no other matters)               no other matters)
                                                                                                                               1. The company is dormant.
                                                               Financially unqualified (with   Financially unqualified (with
66       NPE         Cotec Patrade (Pty) Ltd                                                                                   2. Acceptable quality of financial information.
                                                                    no other matters)               no other matters)
                                                               Financially unqualified (with   Financially unqualified (with   1. Small organisation without complex transactions.
67       NPE         Council on Higher Education
                                                                    no other matters)               no other matters)          2. A qualified CA appointed to all financial matters.
                                                                                                                               1. The company is dormant.
                                                               Financially unqualified (with   Financially unqualified (with
68       NPE         Cyclofil (Pty) Ltd                                                                                        2. Acceptable quality of financial information.
                                                                    no other matters)               no other matters)
                                                                                                                               1. Strong financial leadership and good governance structures by holding company NECSA.
                                                               Financially unqualified (with   Financially unqualified (with
69       NPE         Cyclotope (Pty) Ltd                                                                                       2. Acceptable quality of financial information.
                                                                    no other matters)               no other matters)
                                                               Financially unqualified (with   Financially unqualified (with   1. Small organisation with competent finance staff.
70       NPE         Education and Labour Relations Council
                                                                    no other matters)                other matters)            2. Qualified Finance Manager appointed to assist CFO in financial capacity.
                                                                                                                               1. Strong financial leadership and good governance structures.
                                                               Financially unqualified (with   Financially unqualified (with
71       NPE         Energy Africa Rehabilitation                                                                              2. Acceptable quality of financial information.
                                                                    no other matters)               no other matters)
                                                                                                                               1. Effective internal controls.
                                                               Financially unqualified (with   Financially unqualified (with
72       NPE         Financial Services Board                                                                                  2. Constant availability of Senior Management during audit process.
                                                                    no other matters)               no other matters)
                                                                                                                               3. Effective oversight by Board.
                                                                                                                               1. Strong financial leadership and good governance structures by holding company NECSA.
                                                               Financially unqualified (with   Financially unqualified (with
73       NPE         Fluoro Pack (Pty) Ltd                                                                                     2. Acceptable quality of financial information.
                                                                    no other matters)               no other matters)

                                                                                                                               1. Strong financial leadership and good governance structures by holding company NECSA. The company is dormant.
                                                               Financially unqualified (with   Financially unqualified (with
74       NPE         Fluorochem (Pty) Ltd                                                                                      2. Acceptable quality of financial information.
                                                                    no other matters)               no other matters)


                                                                                                                               1. Strong financial leadership and good governance structures by holding company NECSA. The company is dormant.
                                                               Financially unqualified (with   Financially unqualified (with
75       NPE         Fluoropharm (Pty) Ltd                                                                                     2. Acceptable quality of financial information.
                                                                    no other matters)               no other matters)


                                                                                                                               1. Strong financial leadership and good governance structures by holding company SFF. The company is dormant.
                                                               Financially unqualified (with   Financially unqualified (with
76       NPE         Klippoortje Koolmyne (Pty) Ltd                                                                            2. Acceptable quality of financial information.
                                                                    no other matters)               no other matters)


                                                                                                                               1. Strong financial leadership and good governance structures by holding company SFF. The company is dormant.
                                                               Financially unqualified (with   Financially unqualified (with
77       NPE         Mahne's Areas (Pty) Ltd                                                                                   2. Acceptable quality of financial information.
                                                                    no other matters)               no other matters)

                                                               Financially unqualified (with   Financially unqualified (with   1. Effective internal controls.
78       NPE         National Credit Regulator
                                                                    no other matters)               no other matters)          2. Oversight by Board.
                                                                                    Audit opinion:                  Audit opinion:
No. Classification                   Departments / entities                                                                                                                                   Auditee specific issues
                                                                                      2008-09                         2007-08
                                       CE: Eugene Zungu
                                                                                                                                              1. Strong financial leadership and good governance structures.
                                                                              Financially unqualified (with   Financially unqualified (with
79       NPE         NTP Logistics (Pty) Ltd                                                                                                  2. Acceptable quality of financial information.
                                                                                   no other matters)               no other matters)
                                                                                                                                              1. Strong financial leadership and good governance structures.
                                                                              Financially unqualified (with   Financially unqualified (with
80       NPE         NTP Radiosotopes (Pty) Ltd                                                                                               2. Acceptable quality of financial information.
                                                                                   no other matters)               no other matters)
                                                                              Financially unqualified (with   Financially unqualified (with   1. Effective internal controls.
81       NPE         Office of the Ombud for Financial Service Providers
                                                                                   no other matters)                other matters)            2. Effective Oversight by Board.
                                                                                                                                              1. Strong financial leadership and good governance structures by holding company PetroSA. The company is dormant.
                                                                              Financially unqualified (with   Financially unqualified (with
82       NPE         Oil and Gas Corporation of SA (Namibia) (Pty) Ltd                                                                        2. Acceptable quality of financial information.
                                                                                   no other matters)               no other matters)

                                                                                                                                              1. Strong financial leadership and good governance structures.
                                                                              Financially unqualified (with   Financially unqualified (with
83       NPE         Oil Pollution Control South Africa                                                                                       2. Acceptable quality of financial information.
                                                                                   no other matters)               no other matters)
                                                                                                                                              1. Strong financial leadership and good governance structures as provided by holding company CEF (Pty) Ltd as this is
                                                                              Financially unqualified (with                                   a new entity with the 2008-09 being its first financial year..
84       NPE         Pan African Mineral Development Company (Pty) Ltd                                              No comparative
                                                                                   no other matters)                                          2. Acceptable quality of financial information.


                                                                                                                                              1. Strong financial leadership and good governance structures by holding company PetroSA. The company is dormant.
                                                                              Financially unqualified (with   Financially unqualified (with
85       NPE         Petrosa Brass (Pty) Ltd                                                                                                  2. Acceptable quality of financial information.
                                                                                   no other matters)               no other matters)

                                                                                                                                              1. Improved financial leadership and governance structures.
                                                                              Financially unqualified (with
86       NPE         Petrosa Equatorial Guinea (SA) (Pty) Ltd                                                          Qualified              2. Acceptable quality of financial information.
                                                                                   no other matters)

                                                                                                                                              1. Strong financial leadership and good governance structures by holding company PetroSA. The company is dormant.
                                                                              Financially unqualified (with   Financially unqualified (with
87       NPE         Petrosa Gryphon Marin Permit (Pty) Ltd                                                                                   2. Acceptable quality of financial information.
                                                                                   no other matters)               no other matters)


                                                                                                                                              1. Strong financial leadership and good governance structures by holding company PetroSA. The company is dormant.
                                                                              Financially unqualified (with   Financially unqualified (with
88       NPE         Petrosa Iris (Pty) Ltd                                                                                                   2. Acceptable quality of financial information.
                                                                                   no other matters)               no other matters)

                                                                                                                                              1. Strong financial leadership and good governance structures.
                                                                              Financially unqualified (with   Financially unqualified (with
89       NPE         Petrosa North America Inc                                                                                                2. Acceptable quality of financial information.
                                                                                   no other matters)               no other matters)

                                                                                                                                              1. Strong financial leadership and good governance structures by holding company PetroSA. The company is dormant.
                                                                              Financially unqualified (with   Financially unqualified (with
90       NPE         Petrosa Synfuels International (Pty) Ltd                                                                                 2. Acceptable quality of financial information.
                                                                                   no other matters)               no other matters)


                                                                                                                                              1. Strong financial leadership and good governance structures by holding company PetroSA. The company is dormant.
                                                                              Financially unqualified (with   Financially unqualified (with
91       NPE         Petrosa Themis (Pty) Ltd                                                                                                 2. Acceptable quality of financial information.
                                                                                   no other matters)               no other matters)

                                                                                                                                              1. Constant availability of CFO to assist during audit process.
                                                                              Financially unqualified (with   Financially unqualified (with
92       NPE         Public Investment Corporation Limited                                                                                    2. Audit committee and internal audit effective.
                                                                                   no other matters)               no other matters)
                                                                                                                                              3. Oversight functions effectively exercised by Board.
                                                                                                                                              1. Effective interactions between management and AGSA.
                                                                              Financially unqualified (with   Financially unqualified (with
93       NPE         South Africa Civil Aviation Authority                                                                                    2. Strong finance section
                                                                                   no other matters)                other matters)
                                                                                                                                              3. Effective internal controls
                     South African Agency for Promotion of Petroleum
                                                                              Financially unqualified (with   Financially unqualified (with   1. Strong financial leadership and good governance structures.
94       NPE         Exploration and Exploitation (Pty) Ltd (Petroleum
                                                                                   no other matters)                other matters)            2. Acceptable quality of financial information.
                     Agency SA)
                                                                                                                                              1. Strong financial leadership and good governance structures.
                                                                              Financially unqualified (with   Financially unqualified (with
95       NPE         South African Gas Development Company (Pty) Ltd                                                                          2. Acceptable quality of financial information.
                                                                                   no other matters)               no other matters)
                                                                                                                                              1. Strong financial leadership and good governance structures.
                     South African National Energy Research Institute (Pty)   Financially unqualified (with   Financially unqualified (with
96       NPE                                                                                                                                  2. Acceptable quality of financial information.
                     Ltd                                                           no other matters)               no other matters)
                                                                          Audit opinion:                  Audit opinion:
No. Classification                  Departments / entities                                                                                                                           Auditee specific issues
                                                                            2008-09                         2007-08
                                      CE: Eugene Zungu
                                                                                                                                    1. Strong financial leadership and good governance structures.
                                                                    Financially unqualified (with   Financially unqualified (with
97       NPE         South African Nuclear Energy Corporation                                                                       2. Acceptable quality of financial information.
                                                                         no other matters)               no other matters)
                                                                                                                                    1. Strong finance section.
                                                                    Financially unqualified (with   Financially unqualified (with
98       NPE         South African Qualifications Authority                                                                         2. CEO and CFO fully committed to address any audit matters and constantly available.
                                                                         no other matters)               no other matters)
                                                                                                                                    3. Adequate controls in place and effective monitoring does take place.
                     South African Revenue Services (Administered   Financially unqualified (with   Financially unqualified (with   1. Effective interactions between management and AGSA.
99       NPE
                     Revenue)                                            no other matters)               no other matters)          2. Action plan in place to address management report findings.
                                                                    Financially unqualified (with   Financially unqualified (with   1. Improvement in management of asset register.
100      NPE         South African Revenue Services (Own Account)
                                                                         no other matters)                other matters)            2. No consultants used.
                                                                                                                                    1. Effective internal controls.
                                                                    Financially unqualified (with   Financially unqualified (with
101      NPE         South African Tourism Board                                                                                    2. Constant availability of Senior Management during audit process.
                                                                         no other matters)               no other matters)
                                                                                                                                    3. Oversight by Board.
                                                                    Financially unqualified (with   Financially unqualified (with   1. Irregular expenditure of R1.1 m incurred.
102      NPE         South African Weather Services
                                                                         no other matters)               no other matters)          2. Effective oversight by Board.
                                                                                                                                    1. Strong financial leadership and good governance structures.
                     The African Exploration Mining and Finance     Financially unqualified (with   Financially unqualified (with
103      NPE                                                                                                                        2. Acceptable quality of financial information.
                     Corporation (Pty) Ltd                               no other matters)                other matters)
                                                                    Financially unqualified (with   Financially unqualified (with   1. Fund closed down on 31 Mar 2009.
104      NPE         Urban Transport Fund
                                                                         no other matters)                other matters)            2. No further audits will be conducted.
                                                                                                                                    1. Close involvement of senior management during audit process.
                                                                                                                                    2. Effective Internal and Audit Committee structures.
106                  RDP (falls under NT)                                    Qualified                       Qualified
                                                                                                                                    3. Not feasible for fund to institute accounting controls over funds received from donors before initial entry of the receipt
                                                                                                                                    in the accounting records.
                                                                                Audit opinion:                  Audit opinion:
No. Classification                  Departments / entities                                                                                                                                 Auditee specific issues
                                                                                  2008-09                         2007-08
                                        CE: Paul Serote

                                                                                                                                          Qualified
                                                                                                                                          Property, plant and equipment - Useful life of assets were not reviewed during the current or previous financial periods.
                                                                                                          Financially unqualified (with
 1       NC          The Public Protector of South Africa                          Qualified                                              Emphasis of matter
                                                                                                                other matters)
                                                                                                                                          - Significant uncertainties relating to operating lease payments in respect of premises used by the OPP.
                                                                                                                                          - Restatement of corresponding figures

                                                                                                                                          1)Emphasis of matter: Irregular expenditure- tender processes not followed.                                        Other
                                                                                                                                          matters:
                                                                                                                                          1) conditions of employment of commissioners not finalized in terms of CRL Act
                                                                                                                                          2) Accounting officer did not report irregular expenditure in terms of PFMA to National Treasury.
                                                                                                                                          3) Delays were experienced during the audit in obtaining requested information.
                     Commission for the Promotion and Protection of the
                                                                          Financially unqualified (with   Financially unqualified (with   4) Material adjustments were made to the financial statements.
 2       NC          Rights of Cultural Religious and Linguistic
                                                                                other matters)                  other matters)            5) Significant deficiencies in the design and implementation of internal controls with regard to financial and risk
                     Communities
                                                                                                                                          management and compliance with laws.
                                                                                                                                          6) A risk assessment was not conducted regularly. Prior year audit findings have not been addressed substantially.
                                                                                                                                          7)Scopa resolutions have not been addressed substantially.
                                                                                                                                          8) Controls were not adequate to ensure accurate and complete performance information. 9) No functioning
                                                                                                                                          performance management system.
                                                                          Financially unqualified (with   Financially unqualified (with
 3       NC          Municipal Demarcation Board                                                                                                                                             No matters to report
                                                                                other matters)                  other matters)
                                                                          Financially unqualified (with                                   Emphasis of matter
 4       NC          South African Human Rights Commission                                                         Qualified
                                                                                other matters)                                            Restatement of corresponding figures
 5       NC          Commission on Gender Equality                                Disclaimer                      Disclaimer

                                                                                                                                          Qualified
                                                                                                                                          - Departmental revenue, contingent liability and receivables for departmental revenue - Lack of adequacy financial and
                                                                                                                                          control system at the Third Party Fund’s
                                                                                                                                          - Employee benefit - Lack of controls over capturing of leave.
                                                                                                                                          - Finance lease commitment – Lack of supporting documents to calculate the future lease commitment.
                                                                                                                                          - Irregular expenditure condoned - Finance lease agreements exceeding 36 months were not condoned.
                                                                                                                                          - Capital and minor assets - Significant errors relating to the completeness of the capital and minor asset register and
                                                                                                                                          the existence of certain capital and minor assets.
                                                                                                                                          Emphasis of matters
                                                                                                                                          - Irregular expenditure - R69 million was incurred, mainly as a result of proper tender processes that was not followed.
                                                                                                                                          - Possible Fruitless expenditure – R18 million was identified as a result of the audit. The Department is still in the
                                                                                                                                          process of investigating this matter.
 6       ND          Justice and Constitutional Development                        Qualified                       Qualified              - Restatement of corresponding figures
                                                                                                                                          Other matters
                                                                                                                                          Non-compliance with applicable legislation
                                                                                                                                          Treasury Regulations (TR)
                                                                                                                                          - Not all procurement of goods and services were within the threshold values
                                                                                                                                          - Payments were not in all instances made with in 30 days.
                                                                                                                                          - Payroll certifications were not always done.
                                                                                                                                          Public Service Regulations (PSR)
                                                                                                                                          - The Human Resource organisational structure was not approved by the DPSA.
                                                                                                                                          - The job descriptions and titles were not reviewed and redefined.
                                                                                                                                          - All newly appointed employees did not have signed written contracts of employment,.
                                                                                                                                          Investigations
                                                                                                                                          - Various allegations of financial misconduct and irregularities were being investigated.
                                                             Audit opinion:         Audit opinion:
No. Classification                  Departments / entities                                                                                                    Auditee specific issues
                                                               2008-09                2007-08
                                       CE: Paul Serote

                                                                                                              Qualification
                                                                                                              Valuation, existence and completeness of capital assets valued at 110.5 million could not be verified. As well Public
                                                                                                              Private Partnership ( PPP) Assets of which the conract is being administered by Siemens of 134.9 million.
                                                                                                              Other matters
                                                                                                              Non compliance with legislation - PFMA; TR; Skills development levies act
 7       ND          Labour                                    Qualified               Qualified              Material misstatements
                                                                                                              Investigations - fraudulent activities relating to unauthorised payments
                                                                                                              Performance information
                                                                                                              Pre-determined objectives not included in the strategic plan.
                                                                                                              Lack of effective, efficient and transparent systems and internal controls regarding performance management
                                                                                                              Inconsistently reported information.
                                                                                                              Qualifications
                                                                                                              Receivables for departmental revenue - Lack of supporting documentation to verify valuation, existence and
                                                                                                              completeness of receivable for departmental revenue.
                                                                                                              Tangible capital assets - Asset register not complete - could not verify accuracy and completeness of the imovable
                                                                                                              asset register. Lack of sufficient audit evidence to support completeness and rights and obligation of imovable assets
                                                                                                              disclosed at R1 values
                                                                                                              EOM
                                                                                                              Fruitless and wasteful expenditure disclosed in annual report amounting to R4.86 mil as a result of irregularities in
                                                                                                              acquisition of Land reform projects - e.g. paying more than the valuation value of the property.
 8       ND          Land Affairs                              Qualified               Qualified
                                                                                                              Irregular exenditure - amounting to R76.96 mil due to Parliament not retrospectively approving expenditure incurred in
                                                                                                              contravention of the Provision of Land Assistance Act (PLAS) in the previous years
                                                                                                              Other matters
                                                                                                              Non compliance with applicable legislation - TR 8.2.3 - payments made after 30 days from reciept of invoice R19.98 mil;
                                                                                                              TR 11.2.1 - non collection of monies held in trust on behalf of the department
                                                                                                              Other matters
                                                                                                              Investigation - Ongoing investigations as a result of allegations on internal staff.
                                                                                                              Performance audit
                                                                                                              Lack of source documents
                                                                                                              Qualification - assets. Lack of supporting documentation to verify accuracy and valuation of adjustments to assets
                                                                                                              balances and to determine completeness of assets and the existence and value of assets.
                                                                                                              Emphasis of matter:
                                                                                                              1) Uncertainty with regard to the outcome of legal cases.
                                                                                                              2) Irregular expenditure due to non compliance with supply chain management procedures.
                                                                                                              Other Matters:
                                                                              Financially unqualified (with   1) Non Compliance with Treasury regulations- Payments not made within 30 days.
 9       ND          Provincial and Local Government           Qualified
                                                                                    other matters)            2) Material adjustments to financial statements.
                                                                                                              3) Significant deficiencies in the design and implementation of internal controls with regard to financial and risk
                                                                                                              management and compliance with laws.
                                                                                                              4) Prior year audit findings have not been addresses substantially.
                                                                                                              5) Control not adequate to ensure accuracy and completeness of performance information.
                                                                                                              Investigations:The department was investigating irregularities with regard to the awarding of a contract and officials that
                                                                                                              did not disclose interests in companies.
                                                                                                              Qualified:                                                                                                  1) Immoveable
                                                                                                              assets - completeness, rights and obligations and valuation could not be verified due to incomplete asset register and
                                                                                                              the initiative for the vesting of ownership of state owned land is still in progress
                                                                                                              2) Moveable assets - completeness, accuracy and existence could not be verified due to incomplete asset register,
                                                                                                              3) Intangible assets - assets not being utilised therefore existence could not be verified
                                                                                                              EOM Significant uncertainty - potential liability which can only be determined once validation has been performed by
                                                                              Financially unqualified (with   DPW
10       ND          Public Works                              Qualified
                                                                                    other matters)            Other matters -
                                                                                                              1) Non compliance of: PMFA re, management and safeguarding of assets, appropriate steps to collect money due,
                                                                                                              reporting of fruitless and wasteful and unauthorised expenditure to NT. TR's re invoices not paid within 30days, letting of
                                                                                                              immoveable not always at market-related rates and transfers and subsidies not applied for intended purposes. PSR re
                                                                                                              non declaration of interest to executive authority.
                                                                                                              2) Material adjustments were made to AFS's
                                                                                                              3) Significant delays and unavailability of information
                                                                              Audit opinion:                  Audit opinion:
No. Classification                 Departments / entities                                                                                                                              Auditee specific issues
                                                                                2008-09                         2007-08
                                          CE: Paul Serote
                                                                                                                                        Qualified
                                                                                                                                        Capital assets - Lack proper asset register and lack of supporting documentation for adjustments to opening balances
                                                                                                                                        and disposal of assets
                                                                                                                                        Other matters
11       ND          The Presidency                                              Qualified                       Qualified              Governance
                                                                                                                                        - Lack of supporting documentation that is easily available and provided in timely manner.
                                                                                                                                        - Material corrections to the AFS;
                                                                                                                                        - Significant deficiencies in the design and implementation of internal control;
                                                                                                                                        - Information systems inadequate for preparation of AFS
                                                                                                                                        EOM
                                                                                                                                        Irregular expenditure amounting to R15.5 million due to non-compliance with s38(1)(j)
                                                                                                                                        Other matters
                                                                        Financially unqualified (with   Financially unqualified (with
12       ND          Agriculture                                                                                                        Non compliance with applicable legislation - TR 3.2.1- no risk assessment conducted
                                                                              other matters)                 no other matters)
                                                                                                                                        Performance information
                                                                                                                                        Reported performance information not relevant
                                                                                                                                        Lack of source documentation
                                                                                                                                        Other matters:
                                                                                                                                        Non-compliance with applicable legislation:
                                                                                                                                        Public Finance Management Act – Party to a loan to the value of R100 million for the N2 Gateway Project without
                                                                                                                                        complying with sections 66, 70(1)(a), 38(1)(c)(ii) and 38(2) of the PFMA.
                                                                                                                                        Treasury Regulations - Creditors not paid within 30 days from receipt of invoice.
                                                                        Financially unqualified (with   Financially unqualified (with   Governance Framework
13       ND          Housing
                                                                              other matters)                  other matters)            - Lack of supporting documentation that is easily available and provided in timely manner.
                                                                                                                                        - material corrections to the AFS;
                                                                                                                                        - significant deficiencies in the design and implementation of internal control;
                                                                                                                                        - information systems inadequate for preparation of AFS
                                                                                                                                        Other reports
                                                                                                                                        A special audit on the process flow of the N2 Gateway Project, as well as the achievement of goals.
                                                                                                                                        Emphasis of matter:
                                                                                                                                        1. Restatement of corresponding figures as a result of prior period error.
                                                                                                                                        Other matters:
                                                                                                                                        1. Non-compliance with Public Service Regulations regarding leave and human resource plan.
                                                                        Financially unqualified (with   Financially unqualified (with
14       ND          Trade and Industry                                                                                                 2. Non-compliance with Public Service Act regarding leave.
                                                                              other matters)                  other matters)
                                                                                                                                        3. Material adjustments were made to FS
                                                                                                                                        4. Delays in receipt of requested financial information.
                                                                                                                                        5. Deficiencies in the design and implementation of internal control in respect of compliance with applicable laws and
                                                                                                                                        regulations.
                                                                        Financially unqualified (with   Financially unqualified (with
15       ND          Government Communications and Information System                                                                                                                    No matters to report
                                                                             no other matters)               no other matters)
                                                                   Audit opinion:                  Audit opinion:
No. Classification                  Departments / entities                                                                                                                   Auditee specific issues
                                                                     2008-09                         2007-08
                                       CE: Paul Serote
                                                                                                                             Qualified opinion
                                                                                                                             - Movable tangible capital assets - Opening balance not supported by an asset register. The asset registers relating to
                                                                                                                             addition incomplete.
                                                                                                                             - Intangible capital assets - Opening balance supported by an asset register. Additions as per asset register did not
                                                                                                                             agree the financial statements.
                                                                                                                             - Immovable tangible capital assets - No asset register provided
                                                                                                                             - Employee benefits - Inadequate policies and procedures relating to capturing and submission of leave forms.
                                                                                                                             Significant number of leave forms were not captured on PERSAL at year-end.
                                                                                                                             - Prepayments and advances - Prepayments and advances are overstated with an irrecoverable amount of R19,2
                                                                                                                             million.
                                                                                                                             - Finance lease expenditure - The finance cost element of the lease expenditure was not disclosed separately from the
                                                                                                                             capital portion
                                                                                                                             - Cash and cash equivalents - The third party transport account was not reconciled and cleared at year-end.
                                                                                                                             - Irregular expenditure - Irregular expenditure disclosed in the financial statements is understated with an amount of
                                                                                                                             R29,5 million.
                                                                                                                             Emphasis of matter
16       NOE         National Prosecuting Authority                   Qualified                      Disclaimer
                                                                                                                             Irregular expenditure - To the value of R526,6 million
                                                                                                                             Restatement of corresponding figures - contingent liabilities, employee benefits, irregular expenditure and related party
                                                                                                                             transactions.
                                                                                                                             Other matters
                                                                                                                             Non-compliance with applicable legislation
                                                                                                                             Did not submit annual report within one month to National assemble - PFMA sections 65(1)(a)
                                                                                                                             Non-compliance with PSR
                                                                                                                             Treasury regulations - Payments were not in all instances made with in 30 days. Payroll certifications were not always
                                                                                                                             done.
                                                                                                                             Key governance responsibilities
                                                                                                                             - Internal audit not effective.
                                                                                                                             - Material amendments were made to the financial statements.
                                                                                                                             - Prior year’s external audit recommendations were not substantially implemented.
                                                                                                                             - SCOPA resolutions were not substantially implemented.
                                                                                                                             - Financial statements were not submitted within the legislated deadline.
                                                                                                                             - Deficiencies in the design and implementation of internal control in respect of compliance with applicable laws and
                                                                                                                             Qualification
                                                                                                                             Inventory - Valuation method for inventory not according to accounting standards. Could not determine valuation of
                                                                                                                             work in progress.
                                                                                                                             EOM
                                                                                                                             Irregular expenditure - SCM
                                                                                             Financially unqualified (with   Fruitless & wasteful exp - payment of cell phone cost to non employees
17       NOE         Sheltered Employment Factories                   Qualified
                                                                                                  no other matters)          Governance matters
                                                                                                                             Material misstatements
                                                                                                                             Investigations
                                                                                                                             Cheques fraudulently cashed - investigation underway
                                                                                                                             Performance information
                                                                                                                             Lack of effective, efficient and transparent systems and internal controls regarding performance information
                                                                                                                             Qualification:
                                                                                                                             Non-consolidation of Financial Intermediaries
18       NOE         South African Micro-Finance Apex Fund            Qualified                       Qualified              Other matters:
                                                                                                                             1. Material adjustments were made to FS
                                                                                                                             2. Deficiencies in the design and implementation of internal control in respect of financial and risk management.
                                                                                                                             Emphasis of matter
                                                                                                                             Restatement of corresponding figures
                                                                                                                             Other matters
                                                             Financially unqualified (with                                   Key governance responsibilities
19       NOE         Criminal Asset Recovery Account                                                  Qualified
                                                                   other matters)                                            - Material amendments were made to the financial statements.
                                                                                                                             - SCOPA resolutions were not substantially implemented.
                                                                                                                             - Internal audit did not substantially fulfill their responsibilities for the year.
                                                                                                                             - Financial statements were not submitted within the legislated deadline.
                                                                              Audit opinion:                  Audit opinion:
No. Classification                  Departments / entities                                                                                                                               Auditee specific issues
                                                                                2008-09                         2007-08
                                        CE: Paul Serote
                                                                                                                                        Emphasis of matter
                                                                                                                                        Restatement of corresponding figures
                                                                                                                                        Other matters
                                                                                                                                        The Guardian’s Fund did not comply with sections 7(1) and 69(1) of the Income Tax Act.
                                                                        Financially unqualified (with   Financially unqualified (with
20       NOE         Guardians Fund                                                                                                     Key governance responsibilities
                                                                              other matters)                  other matters)
                                                                                                                                        - Internal audit did not substantially fulfill their responsibilities for the year.
                                                                                                                                        - Financial statements were not submitted within the legislated deadline.
                                                                                                                                        - Deficiencies in the design and implementation of internal control in respect of compliance with applicable laws and
                                                                                                                                        regulations
                                                                                                                                        Emphasis of matter
                                                                                                                                        - Irregular expenditure - amounting to R5,7 million was disclosed.
                                                                                                                                        Other matters
                                                                        Financially unqualified (with   Financially unqualified (with   Key governance responsibilities
21       NOE         National Lottery Distribution Trust Fund
                                                                              other matters)                  other matters)            - Prior year’s external audit recommendations were not substantially implemented.
                                                                                                                                        - The information systems were not appropriate to facilitate the preparation of a performance report that is accurate and
                                                                                                                                        complete.
                                                                                                                                        - Adequate control processes and procedures are not designed and implemented to ensure the accuracy and
                                                                                                                                        completeness of reported performance information.
                                                                                                                                        EOM
                                                                                                                                        Irregular expenditure - not following proper tender processes
                                                                                                                                        Restatement of corresponding figures
                                                                                                                                        Other maters
                                                                                                                                        Non compliance with applicable legislation - PFMA, TR
                                                                        Financially unqualified (with
22       NOE         National Skills Fund                                                                        Qualified              Material misstatements
                                                                              other matters)
                                                                                                                                        Investigations - ongoing investigation on utilisation of funds other than for training.
                                                                                                                                        Performance information -
                                                                                                                                        Pre-determined objectives not included in the strategic plan,
                                                                                                                                        Lack of effective, efficient and transparent systems and internal controls regarding performance management,
                                                                                                                                        Reported performance information not reliable.
                                                                        Financially unqualified (with   Financially unqualified (with   Emphasis of matter:
23       NOE         National Supplies Procurement Fund
                                                                              other matters)                 no other matters)          1. Going concern issue regarding the continuation of the Fund.
                                                                        Financially unqualified (with   Financially unqualified (with
24       NOE         President's Fund                                                                                                   No matters to report
                                                                              other matters)                 no other matters)
                                                                        Financially unqualified (with                                   Investigations
25       NOE         The Deeds Registration Trading Account                                                      Qualified
                                                                              other matters)                                            Ongoing investigation into allegations of corruption at one of the regional offices.
                                                                        Financially unqualified (with   Financially unqualified (with
26       NOE         South African Housing Fund                                                                                         No matters to report
                                                                             no other matters)               no other matters)
                                                                                                                                        Qualification:
                                                                                                                                        Revenue - completeness of revenue from annual returns.
                                                                                                                                        Emphasis of matter:
                                                                                                                                        1. Restatement of corresponding figures as a result of prior period error.
                                                                                                                                        Other matters:
                                                                                                                                        1. Material adjustments were made to FS
                                                                                                                                        2. Deficiencies in the design and implementation of internal control in respect of revenue.
                                                                                                                                        3. Strategic plan of CIRPO is not approved.
                     Companies and Intellectual Property Registration                                   Financially unqualified (with   Investigations:
27       NOE                                                                 Audit outstanding
                     Office                                                                                   other matters)            1. An investigation is being conducted into the procurement of the Enterprise Content Management (ECM) system. The
                                                                                                                                        investigation aims to establish whether any irregularities existed during the awarding of the contract. The investigation
                                                                                                                                        was still ongoing at the reporting date.
                                                                                                                                        2. A special investigation was being conducted to establish whether the controls relating to monitoring compliance and
                                                                                                                                        performance of various contracts were adequate. The investigation was finalised in the year under review and a report
                                                                                                                                        was issued to management, which contained various recommendations for CIPRO to consider and implement.
                                                                                                                                        3. An investigation was conducted to probe allegations of the irregularities in the registration of entities. Other internal
                                                                                                                                        investigations were also conducted, based on incidents reported by CIPRO clients through the national anti-corruption
                                                                                                                                        hotline. The investigations focused on transactions processed by certain CIPRO officials pertaining to the registration of
28       NOE         Third Party Funds (Monies in Trust)                     Audit outstanding                  Disclaimer                                                                Audit report outstanding
                                                                     Audit opinion:         Audit opinion:
No. Classification                  Departments / entities                                                                                                            Auditee specific issues
                                                                       2008-09                2007-08
                                       CE: Paul Serote
                                                                                                                      Adverse:                                                                                                      1) Did not
                                                                                                                      report in terms of required framework (GAAP)
                                                                                                                      2) Receivables overstated by unknown amount as appropriate steps not taken to collect debt or evaluate the
                                                                                                                      recoverability
                                                                                      Financially unqualified (with
29       NOE         The Property Management Trading Entity             Adverse                                       Other matters -
                                                                                            other matters)
                                                                                                                      1) Non compliance with: TR's re invoices not paid within 30 days, Fruitless and wasteful not reported monthly
                                                                                                                      2) Material adjustments were made to AFS's
                                                                                                                      3) Significant delays and unavailability of information
                                                                                                                      4) The audit committee was not in operation throughout the year


                                                                                                                      Qualification
                                                                                                                      Clearing without supporting documentation of previous' years' unreconciled debits and credits
                                                                                                                      EOM
                                                                                                                      Basis of accounting
                                                                                                                      Restatement of corresponding figures
                                                                                      Financially unqualified (with
30       NPE                     Agricultural Research Council         Qualified                                      Irregular expenditure - R9.2 mil due to not following proper tender processes
                                                                                            other matters)
                                                                                                                      Other matters
                                                                                                                      Non compliance with legislation - Required submission ito TR 26.1.1 and 26.1.2
                                                                                                                      Investigation
                                                                                                                      Employee criminally prosecuted for misappropriation of funds
                                                                                                                      Performance information
                                                                                                                      Lack of reporting on all predetermined objectives in the annual report
                                                                                                                      Reported performance information not relevant
                                                                                                                      Qualification
                                                                                                                      Employer grant expenses and payables - Could not determine accuracy and completeness of current year's
                                                                                                                      manadatory grant expenses and related skills development garnt payable - mandaory and skills development grant
                                                                                                                      provision due to lack of sufficient supporting documentation and control weaknesses
                                                                                                                      Related parties - Completeness and accuracy could not be verified
                                                                                                                      Discretionary grant expense and payables - Accuracy, classification, cut off and occurrence of expenses could not be
                                                                                                                      verified and valuation, existence and rights and obligations of prior period discretionary grants expenditure could not be
                                                                                                                      verified.
                                                                                                                      EOM
                                                                                                                      Basis of accounting
                                                                                                                      Significant uncertainty - Pending litigation amounting to R14.6 mil and contingent asset amount to R0.986 mil due to
                                                                                                                      pending settlement of debt
31       NPE         Construction Education and Training Authority     Qualified               Qualified
                                                                                                                      Irregular expenditure - prior year irregular expenditure not yet condoned an curent year's none compliance with SCM
                                                                                                                      Fruitless and wasteful expenditure - R1.1 incurred in prior year not yet condoned.
                                                                                                                      Restatement of corresponding figures
                                                                                                                      Other matters
                                                                                                                      Re-licensing
                                                                                                                      Non compliance with legislation (PFMA, TR, Skills development act)
                                                                                                                      Governance matters
                                                                                                                      Significant difficulties during the audit
                                                                                                                      Material adjustments to F/S
                                                                                                                      Difficiencies in internal control and risk management
                                                                                                                      Performance information
                                                                                                                      Source information not acurate and complete
                                                                     Audit opinion:         Audit opinion:
No. Classification                  Departments / entities                                                                                                            Auditee specific issues
                                                                       2008-09                2007-08
                                       CE: Paul Serote
                                                                                                                      Qualified
                                                                                                                      Prior period error - The entity reviewed the residual values of property, plant and equipment as well as intangible
                                                                                                                      assets, and also reclassified individual assets to their appropriate class of asset, which also had an impact on prior
                                                                                                                      periods.
                                                                                                                      Emphasis of matter
                                                                                                                      Irregular expenditure - To the amount of R356 947.
                                                                                                                      Restatement of corresponding figures
                                                                                                                      Other matters
                                                                                      Financially unqualified (with   Non-compliance with legislation
32       NPE         Construction Industry Development Board           Qualified
                                                                                            other matters)            Treasury regulations 30.1.3(e) - materiality and significance framework not included in the strategic plan
                                                                                                                      Governance
                                                                                                                      - Material amendments to the financial statements submitted resulting from audit
                                                                                                                      - The prior years external audit recommendations have not been substantially implemented
                                                                                                                      - Significant difficulties concerning delays or the availability of requested information
                                                                                                                      - The information systems were not appropriate to facilitate the preparation of the financial statements
                                                                                                                      - The information systems were not appropriate to facilitate the preparation of a performance report that is accurate and
                                                                                                                      complete
                                                                                                                      - Adequate control processes and procedures are not designed and implemented to ensure the accuracy and
                                                                                                                      Qualified
                                                                                                                      Revenue (membership fee income) and trade receivables - No internal control systems to ensure completeness,
                                                                                                                      occurrence and accuracy of membership fees and therefore ensure the valuation of the related trade receivables.
                                                                                                                      Emphasis of matter
                                                                                                                      Restatement of corresponding figures
                                                                                                                      Other matters
                                                                                                                      Non compliance – treasury regulations
                                                                                                                      - Regulation 28.3.1 – acceptable levels of materiality and significance was not quantified and agreed with executive
                                                                                                                      authority
33       NPE         Council for the Built Environment (CBE)           Qualified                Adverse
                                                                                                                      - Regulation 30.1.3(e) – materiality framework was not included in the strategic plan
                                                                                                                      Governance
                                                                                                                      - The financial statements were subject to material amendments
                                                                                                                      - Significant difficulties concerning delays or the unavailability of expected information and the unavailability of senior
                                                                                                                      management
                                                                                                                      - There are significant deficiencies in the design and implementation of internal control in respect of financial and risk
                                                                                                                      management and compliance with applicable laws and regulations.
                                                                                                                      - The information systems were not appropriate to facilitate the preparation of the financial statements
                                                                                                                      - The prior years external audit recommendations have not been substantially implemented
                                                                                                                      Qualification:
                                                                                                                      Property, plant and equipment - Misstatement due to valuation of property, plant and equipment.
                                                                                                                      Emphasis of matter:
                                                                                                                      1. Irregular expenditure as the correct procurement procedures had not been followed.
                                                                                      Financially unqualified (with
34       NPE         International Trade Administration Commission     Qualified                                      Other matters:
                                                                                            other matters)
                                                                                                                      1. Non-compliance with Treasury Regulations in respect of bank reconciliations.
                                                                                                                      2. Material adjustments were made to FS
                                                                                                                      3. Deficiencies in the design and implementation of internal control in respect of compliance with applicable laws and
                                                                                                                      regulations
                                                                                    Audit opinion:                  Audit opinion:
No. Classification                  Departments / entities                                                                                                                                    Auditee specific issues
                                                                                      2008-09                         2007-08
                                       CE: Paul Serote
                                                                                                                                                                                                    Qualification
                                                                                                                                               Employer grant and projet expenses - Amount reflected as mandatory grant disbursement in F/S does not agree with
                                                                                                                                                  disbursement listing. Amount of R19 9 mil disclosed as discresionary grant disbursement does not agree with
                                                                                                                                                                                      discressionary grant listing of R14.7 mil
                                                                                                                                                                       Property, plant and equiptment - Incorrect calculation of depreciation
                                                                                                                                                 NSF funds recieved in advance - Misallocation of donor funding recieved in advance to the NSF fund resulting in
                                                                                                                                              overstatement by R1.5 mil; and allocation of more expenditure into the NSF than utilised resulting in understatement by
                                                                                                                                                                                                      R509 000
                     Media, Advertising, Publishing, Printing and Packaging
35       NPE                                                                           Qualified                        Adverse                 Reserves; Comparative figures; Non-exchange payables - a number of prior year mistatements which resulted in a
                     Training Authority
                                                                                                                                                                           disclaimer of opinion in the previous year, still not corrected.
                                                                                                                                                                                                        EOM
                                                                                                                                                                                                Basis of accounting
                                                                                                                                                              Irregular expenditure - Non compliance with skills development Act and supply chain.
                                                                                                                                                                                                   Other matters
                                                                                                                                                                                                     Relicensing
                                                                                                                                                 Non compliance with legilation - TR 31.1.2 and 31.1.3 - bank reconciliations and monthly accounts not prepared

                                                                              Financially unqualified (with   Financially unqualified (with   Other matters
36       NPE         Chemical Industries Education and Training Authority
                                                                                    other matters)                  other matters)            Relicensing
                                                                                                                                              Other matters
                     Clothing, Textiles. Footwear and Leather Sector          Financially unqualified (with   Financially unqualified (with
37       NPE                                                                                                                                  Relicensing
                     Education Training Authority                                   other matters)                 no other matters)
                                                                                                                                              Non compliance with legislation - TR 31.2.1 - SCM
                                                                              Financially unqualified (with   Financially unqualified (with   Other matters:
38       NPE         Competition Commission
                                                                                    other matters)                 no other matters)          1. Material adjustments were made to FS
                                                                                                                                              EOM
                                                                                                                                              Basis of accounting
                                                                                                                                              Fruitless and wasteful exp - R54 375 - double payment to learners.
                     Education, Training and Development Practices Sector     Financially unqualified (with   Financially unqualified (with
39       NPE                                                                                                                                  Other matters
                     Education and Training Authority                               other matters)                  other matters)
                                                                                                                                              Relicensing
                                                                                                                                              Investigations
                                                                                                                                              Concluded investigation which resulted in warning letters sent to members implicated.
                                                                                                                                              Other matters
                     Food and Beverages Manufacturing Industry Sector         Financially unqualified (with   Financially unqualified (with   Relicensing
40       NPE
                     Education and Training Authority                               other matters)                  other matters)            Investigations
                                                                                                                                              Underperformance of service provider. Legal proceeding to recover the money still underway.
                                                                                                                                              EOM
                                                                                                                                              Basis of accounting
                     Health and Welfare Sector Education and Training         Financially unqualified (with   Financially unqualified (with
41       NPE                                                                                                                                  Irregular exp - tender processes
                     Authority                                                      other matters)                  other matters)
                                                                                                                                              Other matters
                                                                                                                                              Relicensing
                                                                                                                                              Emphasis of matter
                                                                                                                                              Programme recoverables to the amount of R56 624 885 was written off.
                                                                              Financially unqualified (with   Financially unqualified (with
42       NPE         Independent Development Trust                                                                                            Other matters
                                                                                    other matters)                  other matters)
                                                                                                                                              Governance
                                                                                                                                              The financial statements were subject to material amendments resulting from audit.
                                                                                                                                              EOM
                                                                                                                                              Basis of accounting
                     Information Systems, Electronics and                     Financially unqualified (with   Financially unqualified (with   Fruitless & wasteful - Penalties due to late payment of PAYE
43       NPE
                     Telecommunications Technologies Training Authority             other matters)                  other matters)            Other matters
                                                                                                                                              Relicensing
                                                                                                                                              Non compliance with legislation - Breakdown in controls as a result of non-compliance with s51(1)(a)(i)
                                                                                                                                              Other matters
                                                                                                                                              Relicensing
                                                                                                                                              Investigations
                                                                              Financially unqualified (with   Financially unqualified (with
44       NPE         Insurance Sector Education and Training Authority                                                                        One employee dismissed and the other resigned as a result of conflict of interest in a contract due to investigation
                                                                                    other matters)                 no other matters)
                                                                                                                                              conducted
                                                                                                                                              Performance information
                                                                                                                                              Lack of source documentation
                                                                                  Audit opinion:                  Audit opinion:
No. Classification                   Departments / entities                                                                                                                                 Auditee specific issues
                                                                                    2008-09                         2007-08
                                        CE: Paul Serote
                                                                                                                                            EOM
                                                                                                                                            Basis of accounting
                                                                                                                                            Irregular exp - duplicate lease expenditure
                                                                                                                                            Other matters
                     Local Government Sector Education and Training         Financially unqualified (with   Financially unqualified (with
45       NPE                                                                                                                                Relicensing
                     Authority                                                    other matters)                  other matters)
                                                                                                                                            Non compliance with legislation
                                                                                                                                            Material misstatements
                                                                                                                                            Investigations - Ongoing investigation on possible financial misconduct by employee and validity of key management's
                                                                                                                                            qualification.
                     Manufacturing Engineering & Related Services           Financially unqualified (with   Financially unqualified (with   Other matters
46       NPE
                     Education and Training Authority                             other matters)                  other matters)            Relicensing
                                                                                                                                            Other matters
                                                                            Financially unqualified (with   Financially unqualified (with   Relicensing
47       NPE         Mining Qualifications SETA
                                                                                  other matters)                 no other matters)          Performance information
                                                                                                                                            Reported performance information not reliable
                                                                            Financially unqualified (with   Financially unqualified (with   Other matters
48       NPE         National Agricultural Marketing Council
                                                                                  other matters)                  other matters)            Non compliance with legislation - Procurement processes
                                                                            Financially unqualified (with   Financially unqualified (with   Other matters:
49       NPE         National Gambling Board of South Africa
                                                                                  other matters)                 no other matters)          1. Material adjustments were made to FS
                                                                                                                                            Other matters
                                                                                                                                            Key governance responsibilities
                                                                                                                                            - Prior year’s external audit recommendations were not substantially implemented.
                                                                            Financially unqualified (with   Financially unqualified (with
50       NPE         National Lotteries Board                                                                                               - The information systems were not appropriate to facilitate the preparation of a performance report that is accurate and
                                                                                  other matters)                  other matters)
                                                                                                                                            complete.
                                                                                                                                            -Adequate control processes and procedures are not designed and implemented to ensure the accuracy and
                                                                                                                                            completeness of reported performance information.
                                                                            Financially unqualified (with
51       NPE         National Regulator for Compulsory Specifications                                             No comparative                        New entity, however there is a commitment in ensuring an effective internal control environment.
                                                                                  other matters)
                                                                                                                                            Emphasis of matter
                                                                            Financially unqualified (with   Financially unqualified (with   Event subsequent to balance sheet date - The regulatory split has been referred to the Department of Trade and
52       NPE         SA Bureau of Standards (SABS)
                                                                                  other matters)                  other matters)            Industry and the outcome of which cannot be presently determined, and therefore no provision for any liability that may
                                                                                                                                            result has been made in the financial statements
                     Safety and Security Sector Education and Training      Financially unqualified (with   Financially unqualified (with   Other matters
53       NPE
                     Authority                                                    other matters)                 no other matters)          Relicensing
                                                                                                                                            Emphasis of matter
                                                                                                                                            Investigation - The accounting authority’s report refers to an investigation during the year regarding project expenditure.
                                                                                                                                            Other matters
                                                                            Financially unqualified (with
54       NPE         Small Enterprise Development Agency                                                             Qualified              Key governance responsibilities
                                                                                  other matters)
                                                                                                                                            - Material amendments were made to the financial statements post submission.
                                                                                                                                            - Prior year’s external audit recommendations were not substantially implemented.
                                                                                                                                            - Inadequate control processes and procedures in relation to the reporting on performance information.
                                                                                                                                            Other matters
                                                                            Financially unqualified (with   Financially unqualified (with   Key governance responsibilities
55       NPE         Special Investigating Unit
                                                                                  other matters)                  other matters)            - Material amendments were made to the financial statements post submission.
                                                                                                                                            - The strategic plan was not submitted and approved in terms of the requirements of the Treasury Regulations.
                                                                                                                                            EOM
                                                                                                                                            Basis of accounting
                                                                                                                                            Contingent contractual commitments exceeds reserves
                     Tourism , Hospitality & Sport Education and Training   Financially unqualified (with   Financially unqualified (with
56       NPE                                                                                                                                Significant uncertainty - legal action against service provider
                     Authority                                                    other matters)                  other matters)
                                                                                                                                            Fruitless and wasteful exp - settlement of legal case with serve provider
                                                                                                                                            Other matters
                                                                                                                                            Relicensing
                                                                                                                                            EOM
                                                                                                                                            Basis of accounting
                                                                                                                                            Irregular expenditure - R3 mil due to SCM not followed
                                                                            Financially unqualified (with   Financially unqualified (with   Other matters
57       NPE         Transport Education and Training Authority
                                                                                  other matters)                  other matters)            Relicensing
                                                                                                                                            Unaudited supplementary schedule included
                                                                                                                                            Performance information
                                                                                                                                            Reported performance information not reliable.
                                                                                    Audit opinion:                  Audit opinion:
No. Classification                  Departments / entities                                                                                                                                    Auditee specific issues
                                                                                      2008-09                         2007-08
                                       CE: Paul Serote
                                                                                                                                              EOM
                                                                                                                                              Basis of accounting
                     Wholesale & Retail Sector Education and Training         Financially unqualified (with   Financially unqualified (with   Fruitless and wasteful exp - R123 000 - penalties for late submission of vat returns.
58       NPE
                     Authority                                                      other matters)                  other matters)            Other matters
                                                                                                                                              Relicensing
                                                                                                                                              Material misstatements
                     Agricultural Sector Education and Training               Financially unqualified (with   Financially unqualified (with   Other matters
59       NPE
                     (AGRISETA)                                                    no other matters)               no other matters)          Relicensing
                                                                              Financially unqualified (with   Financially unqualified (with   Other matters
60       NPE         Banking Sector Education and Training Authority
                                                                                   no other matters)               no other matters)          Relicensing
                                                                              Financially unqualified (with   Financially unqualified (with
61       NPE         Competition Tribunal                                                                                                                                                        No matters to report
                                                                                   no other matters)               no other matters)
                     Forest Industries Sector Education and Training          Financially unqualified (with   Financially unqualified (with   Other matters
62       NPE
                     Authority                                                     no other matters)               no other matters)          Relicensing
                                                                              Financially unqualified (with   Financially unqualified (with
63       NPE         Legal Aid Board                                                                                                                                                             No matters to report
                                                                                   no other matters)                other matters)
                                                                              Financially unqualified (with   Financially unqualified (with
64       NPE         National Consumer Tribunal                                                                                                                                                  No matters to report
                                                                                   no other matters)                other matters)
                                                                              Financially unqualified (with   Financially unqualified (with   Other matters
65       NPE         Services Sector Education and Training Authority
                                                                                   no other matters)                other matters)            Relicensing
                     SETA for Finance, Accounting, Management                 Financially unqualified (with   Financially unqualified (with   Other matters
66       NPE
                     Consulting and Other Financial Services (FASSET)              no other matters)               no other matters)          Relicensing
                                                                                                                                              Performance information
                                                                              Financially unqualified (with   Financially unqualified (with   Inconsistently reported information
67       NPE         Unemployment Insurance Fund
                                                                                   no other matters)                other matters)            Reported performance information not relevant

                                                                                                                                              Qualification
                                                                                                                                              Revenue contributions - incorrect assessments and lack of supporting documentation
                                                                                                                                              Bank reconciliation and suspense accounts - unreconciled differences in the suspense accounts and recons not done
                                                                                                                                              monthly
                                                                                                                                              Claims incurred - Lack of supporting documentation - backlog in scanning documents
                                                                                                                                              Accounts Payable - no reconciliations and creditor's listing to support the financial statements
68       NPE         Compensation Fund, including Reserve Fund                        Disclaimer                      Disclaimer              PPE - Incomplete valuation of PPE as required by IAS 16
                                                                                                                                              IFRS7 disclosure mainly due to lack of supporting documentation.
                                                                                                                                              Other matters
                                                                                                                                              Non compliance with legislation - TR 31.1.1
                                                                                                                                              Material misstatements
                                                                                                                                              Performance information
                                                                                                                                              Reported performance information not relevant
69       NPE         National Youth Commission                                        Disclaimer                      Disclaimer              Refer to audit report

                                                                                                                                              1)Disclaimer: Limitation of scope due to restricted access to KZN office of SALGA. Affecting PPE, Provisions,
                                                                                                                                              Revenue, Expenditure, Accounts receivable, Accounts payable, Bank Balances, employee cost, and contingent
                                                                                                                                              liabilities
                                                                                                                                              Emphasis of Matter:
                                                                                                                                              1) Going concern risk due to current liabilities exceeding current assets and other indicators.
                                                                                                                                              2) Significant uncertainty due to pending legal cases.
                                                                                                                                              3) Irregular expenditure due to non compliance with supply chain management procedures and Fruitless and wasteful
                                                                                                                                              expenditure due to Interest and penalties on late payment of TAX.
70       NPE         South African Local Government Association (SALGA)               Disclaimer                       Qualified
                                                                                                                                              Other Matters
                                                                                                                                              1) No concurrence of minister of finance for issuing of guarantees as required by PFMA.
                                                                                                                                              2) Credit Card not repaid in full within 30 days as required by Treasury regulations. Governance Framework
                                                                                                                                              1) Delays in receipt of requested information.
                                                                                                                                              2) Material adjustment to financial information.
                                                                                                                                              3) Investigations- SALGA conducted two investigations- One into procurement irregularities and one into the
                                                                                                                                              involvement of salga into the establishment of the Local Government pension fund.
                                                                                                                                              4) Compliance with SALGA constitution.
71       NPE         Energy Sector Education and Training Authority                Audit outstanding                  Disclaimer              Refer to audit report
                     Public Service Sector Education and Training Authority
72       NPE                                                                       Audit outstanding                  Disclaimer              Refer to audit report
                     (PSETA)
                                                             Audit opinion:   Audit opinion:
No. Classification                  Departments / entities                                     Auditee specific issues
                                                               2008-09          2007-08
                                       CE: Paul Serote



    Legend for Classification
         ND        National Departments
         NC        National Constitutional Institutions
         NL        National Legislature
        NOE        National Other Entities
        NPE        National Public Entities

				
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Description: Problems Unqualified Financial Statements document sample