1. SCOPA 23 September 2003 National Treasury

2. PFMA IMPLEMENTATION NATIONAL TREASURY r Accreditation of training courses r Roll-out of large-scale training programme r Systems master plan - Jan 2004 r ASB fully operational r Supply Chain Management Framework

3. PFMA IMPLEMENTATION DEPARTMENTS AND CONSTITUTIONAL INSTITUTIONS r Previous reports based on compliance r Normative measures for Financial Management r Measure compliance and qualitative improvements r Progress by departments/institutions presented graphically

4. National Treasury

5. 13 34 54 49 77 91 020406080100 Vacancies - Finance Component Alignment of Finance Component to support CFO Appointment: Supply Chain Practitioner Appointment: Management Accountant Appointment: Financial Accountant Appointment of CFO OFFICE OF THE CFO MANAGEMENT ARRANGEMENTS

6. 60 51 71 80 63 020406080100 Favourability of Internal Audit findings - Organisation of functions Favourability of Internal Audit findings - Control mechanisms Annual revision of policies/procedures Consistency of policies/procedures with Treasury Regulations Documented financial policies/procedures INTERNAL CONTROL (INC. POLICIES/PROCEDURES) MANAGEMENT ARRANGEMENTS (CONT.)

7. 74 83 100 020406080100 Regular feedback on strategies implemented to mitigate risks Documented Fraud Prevention Plan as part of risk strategy Risk Assessment performed annually Risk Assessment conducted RISK MANAGEMENT MANAGEMENT ARRANGEMENTS (CONT.)

8. 63 100 91 94 89 57 020406080100 IA Unit report directly to Accounting Officer IAP addresses risk areas IA Unit reports quarterly to the Audit Committee Rolling 3 year strategic Internal Audit Plan (IAP) Audit Charter approved by Audit Committee Head of Internal Audit appointed System of Internal Audit (IA) INTERNAL AUDIT MANAGEMENT ARRANGEMENTS (CONT.)

9. 66 60 86 94 97 020406080100 Reports on compliance with legal and regulatory provisions Reports on risk areas to be covered in internal and external audit Reports on effectiveness of internal audit Meets with external auditors at least annually Meets at least twice per annum EFFECTIVENESS OF AUDIT COMMITTEES MANAGEMENT ARRANGEMENTS (CONT.)

10. 54 69 58 67 020406080100 Submission: Quarterly reports on performance (2 & 3B) Conclusion of shareholders compacts (2 & 3B Submission of Corporate Plans & est i.r.o rev, exp & borrowings (2 & 3B) Submission: Quarterly performance reports (3A) Submission: Strategic Plans & estimates of rev & exp (3A) NATIONAL PUBLIC ENTITIES (SCH 2/3A/3B) MANAGEMENT ARRANGEMENTS (CONT.)

11. 7 42 100 020406080100 Variance of deviation in excess of cash flow projection Actual expenditure in accordance with cash flow projection Compliance with Sec 38(1)(j) before transferring funds Regular cash deposits REVENUE, EXPENDITURE, ASSET AND LIABILITY MANAGEMENT (REAL) MANAGEMENT REVENUE AND EXPENDITURE

12. 7 54 63 66 77 89 020406080100 Bad debts in relation to debtors Documented debt write off policy Integration with purchasing and payment system Clear identification of persons responsible for assets Classification of different assets Establishment of Asset Register ASSET AND LIABILITY MANAGEMENT REVENUE, EXPENDITURE, ASSET AND LIABILITY MANAGEMENT (REAL) MANAGEMENT (CONT)

13. 46 31 62 83 100 020406080100 Accounting officer certifies month end closures Uncleared amounts reported to accounting officer Postings to suspense/clearing accounts approved by CFO Monthly recon of suspense/clearing accounts Control measures to ensure authentic supporting documentation ACCOUNTING AND REPORTING ACCOUNTING

14. 29 67 65 29 020406080100 PFMA and Treasury Reg compliance - Quarterly reporting: 30 days from end of quarter Rev/Exp - Quarterly reporting (3A) within 30 days from end of quarter Tabling of explanations if not tabled within 6 months Tabling:Annual Report and Fin Statements - Legislature within 6 months from year end ACCOUNTING AND REPORTING (CONT) REPORTING - PUBLIC ENTITIES

15. 83 100 66 97 94 020406080100 Monthly reports on actual/projected rev&exp Annual Report/Fin Statements -consistent with Treasury Guidelines Tabling of explanations if not tabled by 30 Sept 2002 Annual reports tabled in legislature before 30 Sept 2002 Submission of financial statements to Treasury by 31 May 2002 REPORTING- DEPARTMENTS ACCOUNTING AND REPORTING (CONT)

16. National Treasury

17. 3 13 38 50 100 75 020406080100 Percentage of vacancies in the Finance Component Alignment of Finance Component to support the CFO Appointment of Management Account Appointment of Supply Chain Practitioner Appointment of Financial Accountant Appointment of competent CFO MANAGEMENT ARRANGEMENTS OFFICE OF THE CFO

18. 63 88 020406080100 Documented Fraud Prevention Plan as part of risk strategy Regular feedback on strategies implemented to mitigate risks Risk Assessment conducted/Annual Risk Assessment MANAGEMENT ARRANGEMENTS (CONT) RISK MANAGEMENT

19. 25 50 75 020406080100 Annual revision of policies and procedures Consistency of policies and procedures with TR's Documentation of financial policies and procedures Delegations i.t.o the PFMA and Treasury Regulations MANAGEMENT ARRANGEMENTS (CONT) DELEGATIONS OF AUTHORITY AND INTERNAL CONTROL

20. 50 75 63 88 100 020406080100 IA Unit reports quarterly to the Audit Committee IAP addresses risk areas Rolling 3 year strategic Internal Audit Plan Audit Charter approved by Audit Committee System of Internal Audit (IA) reporting directly to AO MANAGEMENT ARRANGEMENTS (CONT) INTERNAL AUDIT

21. 50 88 020406080100 Reports on risk areas to be covered in internal and external audit Reports: Effectiveness of internal audit/compliance with legal prov Meets with external auditors at least annually Meets at least twice per annum MANAGEMENT ARRANGEMENTS (CONT) EFFECTIVENESS OF AUDIT COMMITTEES

22. 25 63 100 63 020406080100 Documented procedure to monitor performance against SP SP annually revised SP compliant with Treasury Regulations Strategic plan (SP) tabled timeously in legislature STRATEGIC PLANNING

23. 3 63 100 020406080100 Variance of deviation in excess of cash flow projection Actual expenditure in accordance with cash flow projection Regular cash deposits REVENUE, EXPENDITURE, ASSET AND LIABILITY (REAL) MANAGEMENT REVENUE AND EXPENDITURE MANAGEMENT

24. 38 50 100 020406080100 Integration with purchasing and payment system Persons responsible for assets Classification of assets Establishment of Asset Register REVENUE, EXPENDITURE, ASSET AND LIABILITY (REAL) MANAGEMENT (CONT) ASSET AND LIABILITY MANAGEMENT

25. 0 25 50 100 020406080100 Daily bank reconciliations Uncleared amounts reported to AO AO certificate of compliance w.r.t month end closures Postings to suspense/clearing accounts approved by CFO Monthly recon of suspense/clearing accounts Control measures: ensure authentic supporting documents ACCOUNTING AND REPORTING ACCOUNTING

26. 0 63 50 020406080100 Tabling of Sec 65 explanations if not tabled by 30 Sept 2002 Annual report & fin statements tabled in legislature by 30 Sept 2002 Submission: fin. statements to National Treasury by 31 May 2002 ACCOUNTING AND REPORTING (CONT) REPORTING - CONSTITUTIONAL INSTITUTIONS

27. INTERVENTIONS TO ADDRESS ISSUES OF CONCERN r Financial Management Improvement Programme r Accounting policies, practices, procedures and guidelines related to REAL. r Revised Internal Audit Framework and booklets on various areas of internal control. r Quality assurance reviews on internal units.

28. RECOMMENDATIONS NOTE r Progress with Implementation of the PFMA r Interventions to assist departments with PFMA implementation r Next progress report towards end of 2003/04 financial year.

29. National Treasury