Annual Financial Statements 2015/16

INDEX Highlights/lowlights AFS 2015/16 Assets Liabilities Income Statement Other Expenditure

AFS 2015/16 The Group received an unqualified audit report. The Group posted a shortfall of R312m, compared to R714m for 2014/15 financial year. This is mainly due to a transfer of R800m from capital to operational subsidy. The Income on fare revenue remains a concern as the fare revenue for 2015/16 is R205m or 7% less than prior year.

TOTAL ASSETS

TOTAL LIABILITIES

INCOME STATEMENT

OTHER EXPENSES

SUBSIDY ALLOCATION AND OPEX EXPENDITURE

IRREGULAR EXPENDITURE

AUDIT FINDINGS Supply Chain Management: Supporting documentation Procurement and contract management issues Irregular expenditure and disclosure notes Finance Financial lease Capital commitment Contingent liabilities Investment property Property, plant & equipment Fruitless and wasteful SCM FINANCE HCM ICT

AUDIT FINDINGS (continued) Information Technology Systems Service continuity Leave provision HCM Overtime Suspensions Acting allowance Predetermined objectives Usefulness Inconsistencies SCM FINANCE HCM ICT

AUDIT FINDINGS (continued) To address the findings raised PRASA Board and Management has: Instituted reviews of policies, processes and procedures, SCM and HCM and ICT Policy; Re-aligned current existing organisational structures to increase efficiencies and enhance controls environment; Introduced and implemented proactive assurance in key processes SCM FINANCE HCM ICT

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