1. Accounting Standards Board Annual Report 2006

2. Contents Progress on standard setting
Relationship with Accountant-General & Auditor-General
Corporate Governance
Compliance with duties ito PFMA
Reporting on Performance
Underutilisation of grant
Work programme
Work accomplished

3. Progress on standard setting
Framework
3 Standards of GRAP and 8 Standards of GAMAP approved by Minister
8 Standards submitted to Minister for approval
3 Standards ready for submission to Minister for approval
4 International exposure drafts undergoing concurrent exposure
6 Local exposure drafts issued for comment
3 Discussion papers issued for comment

4. Relationship with Accountant-General & Auditor-General
Accountant-General responsible for implementation
Auditor-General responsible for assessment of compliance
Accounting Standards Board responsible for setting standards
Regular trilateral meetings
Capacity to implement
Common approach to implementation issues
Setting priorities

5. Corporate Governance
Share audit committee and internal audit function with National Treasury
Internal controls appropriate to size of organisation

6. Compliance with duties ito. PFMA
Exercised due & utmost care to protect assets & records
Acted with fidelity, honesty, integrity & in best interest of ASB
No disclosures were needed to executive authority
Prevented any prejudice to financial interests of the state

7. Compliance with Duties ito PFMA
Complied with responsibilities ito PFMA
Did not obtain any personal gain or improper benefit
Disclosed all interests
There were no conflicts of interest
Maintained appropriate financial, risk management and internal controls
Audit committee & internal audit functioned effectively

8. Compliance with Duties ito PFMA
Appropriate procurement & provisioning system was maintained
No irregular expenditure
No fruitless & wasteful expenditure
No losses from criminal conduct
All expenditure complied with operation policies
Working capital was managed efficiently & economically

9. Compliance with Duties ito PFMA
Did manage & safeguard assets
Complied with legislation re taxes, levies, pension & audit commitments
No disciplinary steps were required against employees
Submitted all reports, returns, notices & other info required
Complied with legislation

10. Compliance with Duties ito PFMA
Prepared & submitted budget ito PFMA
Budget was approved
Did not budget for a deficit
Maintained expenditure control
Submitted financials in accordance with timetable
Complied with all delegations
Used all resources to effectively, efficiently & economically

11. Performance Reporting
STRATEGY
ACTION
TARGETED OUTCOME
ACTUAL OUTCOME FOR THE YEAR
Set Standards of GRAP as required by section 216(1) of Constitution.
Develop & maintain updated work programme after consulting relevant stakeholders.
Consider best practices
Prepare & publish exposure drafts
Amend exposure drafts & publish final Standard
Respond to comments & concerns
Balance representation on project groups
Core set of high-quality Standards by 2008/9
Published 8 exposure drafts
Issued 3 standards of GRAP

12. Performance Reporting
STRATEGY
ACTION
TARGETED OUTCOME
ACTUAL OUTCOME FOR THE YEAR
Publish directives, guidelines, interpre-tations concerning Stds of GRAP
Publish directives, guidelines, interpretations on accounting and financial reporting.
Amend and re-publish final documents
Respond to comment and concerns raised during comment period
When requested, develop high-quality directives, guidelines, interpretations
Draft issued:
Guideline on accounting for public-private partnerships.

13. Performance Reporting
STRATEGY
ACTION
TARGETED OUTCOME
ACTUAL OUTCOME FOR THE YEAR
Recommend to Minister appropriate dates for implementation
Recommend effective dates for implementation in accordance with approved process
Recommend an effective date for each Std of GRAP based on capacity of institutions
Five standards have been submitted

14. Performance Reporting
STRATEGY
ACTION
TARGETED OUTCOME
ACTUAL OUTCOME FOR THE YEAR
Perform any other function incidental to advancing financial reporting in public sector
Participate in national & international standard setting
Respond to major consultation papers
Assist NT and others with docs designed to assist with implementation
Maintain website
Publish and write accounting-related articles
Tailor communications with stakeholders
Publish approved documents on website
Regular newsletters
Attend to technical queries
Presentations at conferences and seminars
Meet with major stakeholders
Perform functions incidental to advancing financial reporting in the public sector
Participated in national and international standard setting
Comment letters submitted on public sector EDs to IPSASB
Technical support to SA representatives on IPSASB
Commented on NT documentation
Newsletters issued after every Board meeting
Submitted articles to public sector institutions on approved EDs

15. Performance Reporting
STRATEGY
ACTION
TARGETED OUTCOME
ACTUAL OUTCOME FOR THE YEAR
Manage Board to ensure compliance with best practices in Corporate Governance appropriate to Board
Achieve compliance with relevant laws & regulations
Establish appropriate structures, set policies and assess compliance
Comply with relevant laws regulations
Report regularly on financial performance, financial position and service delivery
Manage and report annually on financial performance, financial position and service delivery
Managing public entity to comply with best practices in corporate governance
Board maintained appropriate corporate governance structures
Implemented appropriate policies to ensure compliance laws & regulations
Internal audit identified some housekeeping matters

16. UNDEREXPENDITURE Actual R Budget Variances Revenue 4 164 469 4 783 000
( )
Grant used
( )
Interest income
56 709
50 000
6 709
Less Operating expenses
Local meetings
International meetings
Staff costs
63 443
Training
55 673
Communication and marketing
32 911
Establishment costs
15 614
Administration
8 898
Surplus for the year
(4 085)
Capital expenditure

17. Explanation of material variances
3 vacancies on board & 1 vacancy on management committee exist - under-expenditure on costs of local meeting expenses, meetings with stakeholders & project group expenses.
One of 3 IPSASB meetings was hosted by South Africa, resulting in a saving in travel expenses. 2 board members attended, while we budgeted for greater attendance.
Attended 1 regional meeting where the World Bank paid the accommodation.
Remuneration partly based on incentives.
Budgeted for an executive development programme, but due to time constraints, the CEO did not attend such a programme.