1. Click to edit Master subtitle style 3/9/12 2011/12 Audit Readiness and Predetermined Objectives 11

2. 3/9/12 Presentation Outline 1) Preparation and actions  Assets & Liabilities  Expenditure  Revenue  Assets  Orders 2) Transfer of functions 3) Unauthorised, irregular and fruitless and wasteful expenditure 4) Predetermined Objects 5) Draft Annual Financial Statements and Predetermined Objectives 6) Projected audit outcome 22

3. 3/9/12 Readiness for preparation of Annual Financial Statements/Annual Report PREPARATIONS AND ACTIONS Financial Management controls are aligned to close the 2011/12 Financial year on 10 April 2012 (Planning with time frame attached as Annexure A):  Assets & Liabilities  Monthly verification on outstanding suspense accounts  Advances paid – NRM advances cleared in March  Debtors and possible write-off considered  Creditors managed to ensure timely payment  Claims confirmed and followed up  Working papers in progress  Confirmation of standing advances 33

4. 3/9/12 Continued Readiness for preparation of Annual Financial Statement/Annual Report  Expenditure  Spending trend estimated: 95%  Monthly reconciliation on expenditure of assets  Alignment to amended Standard Chart of Accounts  Monitoring of expenditure on a daily basis till year end  Revenue  Working papers in progress  Increased revenue due to fines recovered in terms of the National Environmental Management Act (R11.2 million) 44

5. 3/9/12 Continued Readiness for preparation of Annual Financial Statements/Annual Report  Assets  Departmental assets reported quarterly  Asset verification done  National Resources Management Programme assets not yet transferred – challenge in possibility that it would not be completed on 31 March 2012  Buyisa-e-Bag asset transfer in progress – no challenge expected  Orders  Issuing of new orders for 2011/12 closed  Closing all open orders which will not be delivered on in 2011/12 55

6. 3/9/12 Continue Readiness for preparation of Annual Financial Statements/Annual Report TRANSFER OF FUNCTIONS  Natural Resources Management Programme  Dedicated involvement from CFO Office  Ceding of contracts - done  Implementation of financial processes and policies relevant to Environmental Affairs - done  Alignment of Expanded Public Works Program contracts - done 66

7. 3/9/12 Continued Readiness for preparation of Annual Financial Statements/Annual Report Unauthorised, irregular and fruitless and wasteful expenditure Spending within budget No reported irregular expenditure to date No reported fruitless and wasteful expenditure to date Predetermined Objectives  Internal Audit review in 4th quarter  Predetermined Objective Report will be ready for submission to Internal Audit and Audit Committee before submission to Auditor – General on 31 May 77

8. 3/9/12 Continued Readiness for preparation of Annual Financial Statements/Annual Report Draft Annual Financial Statements and Predetermined Objectives  14 May – Submit draft to Internal Audit for review and discussion  16 May – Submit draft to Audit Committee for review and discussion  31 May – Submit Annual Financial Statements and Predetermined Objects to the Auditor - General 88

9. 3/9/12 Continue Readiness for preparation of Annual Financial Statements/Annual Report PROJECTED AUDIT OUTCOME  Clean audit projected in view of above 99