1. TVETCGC Presentation on
Progress on the oversight in monitoring implementation of action plans to address the prior year audit findings and the development of action plans to address 2016/2017 audit findings

2. Progress on the oversight in monitoring implementation of action plans to address the prior year audit findings and the development of action plans to address 2016/2017 audit findings
In 2015 TVETCGC annual General Meeting Resolved to pay attention and support Colleges in dealing with issues of Audit Outcomes as a result of poor audit outcomes for prior years.
The poor Audit existed even though colleges are supported by SAICA CFO’s .
TVETCGC engaged the Auditor General to establish the in-depth and causes of this poor audit outcomes.
Our meeting resolved that AG will support TVETCGC is raising awareness through national and provincial workshops regarding the audit outcomes.

3. Progress on the oversight in monitoring implementation of action plans to address the prior year audit findings and the development of action plans to address 2016/2017 audit findings- Cont.
The first workshop was for the TVETCGC NEC.
Second Workshop was for all Colleges represented by Council Chairpersons, Deputy Chairpersons, Chairperson of Finance, Audit and Risk Committees, Principals, CFO’s and DHET in 2016.
Third workshop took place in September 2017 with all representatives mentioned above including SAICA.

4. Purposes of the AG workshops
AG to present audit findings to colleges.
To present common trends and challenges.
To present best practices for colleges to learn from each other.
For colleges to interact with AG and commit to prepare audit action plans.
To Assist TVETCGC to produce a consolidated audit action plans and strategies to improve college audit outcomes.
To evaluate the support of SAICA to colleges.
To create awareness to Councils on their oversight responsibility on the implementation of audit action plans.

5. Our annual audit examines three areas1 2 3
FAIR PRESENTATION AND RELIABILITY OF FINANCIAL STATEMENTS
RELIABLE AND CREDIBLE PERFORMANCE INFORMATION FOR PREDETERMINED OBJECTIVES
COMPLIANCE WITH KEY LEGISLATION ON FINANCIAL AND PERFORMANCE MANAGEMENT

6. Unqualified opinion with no findings (clean audit)
Financially unqualified opinion with findings
Auditee:
produced credible and reliable financial statements that are free of material misstatements
reported in a useful and reliable manner on performance as measured against predetermined objectives in the annual performance plan (APP)
complied with key legislation in conducting their day- to-day operations to achieve their mandate.
Auditee produced financial statements without material misstatements or could correct the material misstatements, but struggled in one or more areas to:
align their performance reports to the predetermined objectives they committed to in their APPs
set clear performance indicators and targets to measure their performance against their predetermined objectives
report reliably on whether they achieved their performance targets
determine the legislation that they should comply with and implement the required policies, procedures and controls to ensure compliance.

7. Qualified opinion Adverse opinion Disclaimed opinion
Auditee:
had the same challenges as those with unqualified opinions with findings but, in addition, they could not produce credible and reliable financial statements
had material misstatements on specific areas in their financial statements, which could not be corrected before the financial statements were published.
Adverse opinion
Auditee:
had the same challenges as those with qualified opinions but, in addition, they had so many material misstatements in their financial statements that we disagreed with almost all the amounts and disclosures in the financial statements.
Disclaimed opinion
Auditee:
had the same challenges as those with qualified opinions but, in addition, they could not provide us with evidence for most of the amounts and disclosures reported in the financial statements, and we were unable to conclude or express an opinion on the credibility of their financial statements.

8. Overall audit outcomes of TVET colleges
Outstanding audits for 2016 are East Cape Midlands, Northern Cape Rural, Sedibeng, Tshwane North and Tshwane South
Outstanding audits for 2015 are EC Midlands and TNC
50 auditees
50 auditees
50 auditees
50 auditees

9. Colleges audited by the AGSA
50 auditees
30 auditees
15 auditees
15 auditees

10. Movement table TVET Colleges (2016 over 2015)
Improved
Unchanged
Regressed +
Outstanding audits
Unqualified with no findings = 9
Esayidi,
Port Elizabeth, Majuba,
Nkangala
Ekurhuleni East, Boland, Buffalo City, Ekurhuleni West, False Bay
Unqualified with findings = 12
Central JHB, Lovedale, West Coast
Maluti, Mnambithi, NC Urban, Mthashana, South Cape, Elangeni, Flavius Mareka, Gert Sibande,
Orbit
Qualified with findings = 14
King Hintsa, Letaba, WestCol, Goldfields, Ingwe, KSD
Northlink, Coastal, Mopani SE, Umfolozi
College of Cape Town*
Thekwini* Umgungundlovu* Vhembe*
Adverse with findings = 4
Sekhukhune
Lephalale
Capricorn*
Waterberg*
Disclaimed with findings = 6
Ikhala, Motheo, Taletso, Vuselela, Ehlanzeni
South West Gauteng
East Cape Midlands, NC Rural, Tshwane North, Tshwane South, Sedibeng
Movement 14 23 8 5
Audit outcome

11. Key Focus Areas to Strengthen the Sector- SAICA Commitment
Improved Auditor / Auditee relationships and Audit Steering Committee functioning
Implementing Audit and Risk Committees, Internal Audit and Risk Management at all Colleges
Capacitating the finance departments at all Colleges
Improved Audit Action Plans and ICMA usage at all Colleges
Implementing month end closure processes and data integrity for TVET FMS
Finalisation of the Governance Framework Regulation
Finalising DPF Job grading at appropriate level and placement of DPFs starting July 2018
Improved audit outcomes
Project Management skills Transfer to DHET
SAICA and AG liaising more closely with regard to control compliance required

12. TVETCGC Council Capacity Building Programme
TVETCGC convened a capacity building workshop nationally for all colleges in partnership with ETDPSETA in 2016 and 2017.
Focusing on Corporate Governance and Financial management to strengthen Council oversight role.

13. The College engagements with the Auditor General and DHET to address the challenging arears
TVETCGC will continue to convene the AG workshop with stakeholders including the Institute of Internal Auditors will be held annually nationally and provincially.
TVETCGC currently co-ordinating the submission of individual Colleges Audit Action to prepare a consolidated National Audit Action by end of November
TVETCGC will conduct monitoring and evaluation of colleges audit action plans implementations quarterly.
TVETCGC to request AG to conduct interim audits.
TVETCGC to convene meetings with SAICA and Internal Auditors to evaluate the progress on the implementation of the Audit Action plans.

14. Challenges of TVETCGC in Monitoring and Evaluation
TVETCGC members are part-time, and this work is done on given intervals.
TVETCGC has inadequate human resource capacity to carry out our mandate.
TVETCGC has insufficient financial resources to properly executive effectively monitoring of the Audit Action Plans.
DHET failure to provide financial support for the implementation of this programme.
Performance management of the Principals that lies with DHET in terms of the ACT, requires legislative amendments.
Lack of recognition of TVETCGC as statutory body result in limitation of authority and resources.
TVET Colleges underfunding and huge deficit result in increase of numbers colleges declared by AG as non- going concerns and un able to pay subscription.

15. Conclusion
TVETCGC is committed to perform its support, advocacy and oversight role to Councils with its limited resources.
We are committed to clean good governance and clean audits in the TVET sector.