1. MARINE LIVING RESOURCES FUND (MLRF)
ANNUAL REPORT 2007/2008

2. INTRODUCTION
The Marine Living Resources Fund (MLRF) finances the operations of the Marine and Coastal Management Program
This Program is responsible for:
Managing the development and sustainable use of SA’s marine and coastal resources
Protecting the integrity of SA’s marine and coastal ecosystems
Striving to achieve a healthy balance between sustainable utilisation of resources while also protecting and conserving these same resources

3. ANNUAL REPORT SUMMARY
This Annual Report reflects a turnaround in the management and administration of the MLRF.
The turnaround strategy for the MLRF was developed in August 2006 in response to:
Cash Flow Problems experienced by the MLRF
Auditor General’s Report ( ) and SCOPA Hearing
Lack of skills, capacity and appropriate financial systems
Corrective strategies focused on corporate governance, risk management and compliance with International Accounting Standards.
Improved results achieved 2 years ahead of schedule

4. ANNUAL REPORT SUMMARY
In the Annual Reports (submitted for auditing three years late), the Auditor-General identified a number of concerns including:
Lack of Internal Controls
Lack of compliance with the PFMA
No proper accounting and fixed asset system
Lack of Historical Data and supporting documentation
Insufficient control on Debtors and Income
Failure to adhere to the principles of Accrual Accounting
Staffing Issues (capacity and skills)

5. ANNUAL REPORT SUMMARY
In the 2005/2006 audit report there were twenty-two qualifications resulting in the Auditor-General deciding not to express an opinion on those financial statements
In the 2006/2007 audit report the Auditor-General expressed an opinion with six qualifications
In the current audit report the Auditor-General expressed an unqualified audit opinion with no qualifications and no emphasis of matter affecting the audit report

6. COMPARISONS BETWEEN 2005/2006, 2006/2007 & 2007/2008 FINANCIAL YEARS
A comparison of the last three years audit findings by the Auditor-General:

7. FINANCIAL PERFORMANCE
2007/2008 also reflects a healthier financial position (positive accumulated surplus)
Better finances means more sea days for research and compliance vessels
Better able to fulfill mandate
This growth allows the MLRF to build and leverage on a strengthened balance sheet

8. FINANCIAL PERFORMANCE

9. PERFORMANCE INFORMATION
The Auditor-General reviewed the performance information, including performing procedures of an audit nature to obtain evidence about the performance information and related systems, processes and procedures
The Auditor-General concluded that no significant findings have been identified as a result of their review of the performance information
THANK YOU