1. BRIEFING TO THE PARLIAMENTARY PORTFOLIO COMMITTEE ON FOREIGN AFFAIRS

2. IMPLEMENTATION OF THE AFRICAN RENAISSANCE AND INTERNATIONAL CO-OPERATION FUND ACT

3. OPERATIONS OF THE FUND THE SECRETARIAT THE ADVISORY COMMITTEE
FINANCIAL REGULATORY FRAMEWORK

4. SECRETARIAT
THE SECRETARIAT IS PLACED WITHIN CD: AFRICA MULTILATERAL AS A SUB-DIRECTORATE
IT HAS A STAFF COMPONENT OF TWO OFFICIALS: DEPUTY DIRECTOR AND AN ASSISTANT DIRECTOR
IT IS HEADED BY THE DIRECTOR FOR NEPAD, ARF, AND INFORMATION MANAGEMENT

5. SECRETARIAT CONT..
ALL PROJECTS ARE SENT TO THE SECRETARIAT FOR PERUSAL
SECRETARIAT PREPARES A PROJECT LIST WHICH IS CIRCULATED TO ADVISORY COMMITTEE MEMBERS
SECRETARIAT PREPARES A MEETING THAT WILL DISCUSS PROJECTS AND MAKE RECOMMENDATION TO MINISTER

6. SECRETARIAT CONT..
IT WILL FOLLOW UP ON THE RECOMMENDATION MADE TO MINISTER AND INFORM RELEVANT DESKS OF THE OUTCOME OF AC MEETING AND THE DECISIONS OF THE MINISTERS OF FOREIGN AFFAIRS AND FINANCE

7. SECRETARIAT CONT...
IT PROVIDES THE NECESSARY SUBMISSION TO THE MINISTER THROUGH THE CD: AFRICA MULTILATERAL
KEEPS RECORDS OF PROJECTS THAT HAVE BEEN DISCUSSED

8. SECRETARIAT CONT...
WILL RECEIVE LETTER OF CONCURRENCE FROM MINISTER OF FINANCE AND ADVISE THE DFA ON THE DISBURSEMENT OF THE APPROVED AMOUNT FOR A PARTICULAR PROJECT

9. SECRETARIAT CONT..
WILL KEEP THE RECORDS OF THE PROJECTS, APPROVED LETTERS OF CONCURRENCE AND MINUTES THAT DELIBERATED ON THE PROJECT BEING FINANCED

16. Irregular expenditure
On 28 March 2003, a request of R was received from the Office of the Facilitator for additional funding to host the final signing of an Agreement in respect of the Inter-Congolese Dialogue. The Accounting Officer approved the disbursement of the funds, however an administrative error occurred, whereby the amount was transferred directly from the Fund instead of departmental suspense account pending the final processing of the project. This matter will be rectified in the next financial year.

17. 3. Cash and cash equivalents
Cash in bank
4. Long-term loans
Balance at the beginning
of the year
Plus : Interest capitalised
Less : Repayments of loans (2 017) ( 2 550)
Balance at the end of the year

18. 5. Liabilities
Payables
Payables
The amount disclosed under Payables represents amounts paid by the Department on behalf of the Fund whilst processing requests in terms of the Act. This is largely due to the urgency of the project as well as the lengthy process to be followed to finalise the projects. The balance showed is inclusive of an amount of approximately R44,340 million, of which letters of concurrence from the Minister of Finance is still awaited. In terms of the Act, before any amount is disbursed the Minister of Finance has to give concurrence, therefore the amount owed by the fund is not enforceable.

19. 6. Accumulated funds
Accumulated funds at the beginning
of the year
Transfer from the income statement (27 869) (40 423)
Accumulated funds at the end
of the year
7. Net cash flow from operating
activities (7 989)
Net deficit as per income statement (27 869) (40 423)
Adjustments for:
Changes in working capital:
- Receivables (2 017)
- Payables
Interest capitalised (969) (937)

20. PROJECTS CONCLUDED 2002/2003
23rd AFCON 2002 SOCCER TOURNAMENT IN MALI R
INTER-CONGOLESE DIALOGUE SERIES (ICD) R
ZIMBABWE ELECTION MONITORING GROUP R
ASSISTANCE TO THE COMOROS DURING PRESIDENTIAL ELECTIONS R

21. PROJECTS CONSIDERED LESOTHO MINERAL MAPPING R 1 297 928.00
LESOTHO HYDRO R
RSA/RWANDA/CUBA TRILATERAL AGREEMENT (SIMILAR TO SSHCDP IN MALI) R
COMOROS Provision of training of civil society, building elections infrastructure R
NILISA reconstruction of Sierra Leone R

22. PROBLEMS EXPERIENCED
THERE IS LITTLE CORRELATION BETWEEN ACTIVITIES OF THE SECRETARIAT OF THE FUND AND FINANCE SECTION IN DFA
THIS IS BEING ADDRESSED BY THE SECONDMENT OF A MEMBER OF FINANCE TO THE SECRETARIAT

23. CONT.. SECRETARIAT NOT PRIVY TO EXECUTION OF FINANCIAL DISBURSEMENTS
AS SUCH IT IS DIFFICULT TO KEEP TRACK OF POST-CONCURRENCE DEVELOPMENTS - PROBABLY MATTER WILL BE CORRECTED AS MENTIONED ABOVE

24. CONT..
SECRETARIAT IS REACTIVE TO MATTERS THAT AFFECT ITS OFFICE - FROM PROJECT ASSESSMENTS TO PROJECT FINANCING
IDEALLY - SECRETARIAT SHOULD BE INVOLVED IN THE NEGOTIATIONS AND APPRAISAL

25. CONT..
IT HAS BEEN DIFFICULT TO CONVENE SOME MEETINGS BECAUSE OF MISUNDERSTANDINGS WITH MEMBERS OF THE AC FROM NATIONAL TREASURY - AS A WAY OUT, THE SECRETARIAT HAS REQUESTED THAT THE ACT BE CHANGED TO REMOVE THE AC

26. CONT..
IN THE PLACE OF THE AC IT IS RECOMMENDED THAT RULES OF PROCEDURE SHOULD BE CRAFTED TO REGULATE THE BUSINESS OF THE FUND. IN THIS MANNER, THE PROCESS OF DISBURSEMENTS WILL BE DRASTICALLY CUT

27. THANK YOU