auditor-general of south africa integrated annual report 2012-13
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Auditor-General of South Africa Integrated Annual Report 2012-13. Briefing to SCoAG - 20 September 2013. AGSA’s reputation promise – our mission. - PowerPoint PPT PresentationTRANSCRIPT
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Auditor-General of South Africa Integrated Annual Report 2012-13
Briefing to SCoAG - 20 September 2013
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AGSA’s reputation promise – our mission
The Auditor-General of South Africa has a constitutional mandate and, as the Supreme Audit Institution (SAI) of
South Africa, exists to strengthen our country’s democracy by enabling oversight, accountability and governance
in the public sector through auditing, thereby building public confidence.
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Content Objectives of the presentation Overview of the AGSA’s commitments to Parliament Report on the achieving of AGSA’s commitments
Simplicity, clarity and relevance of messages Visibility of leadership Strengthen human resources Lead by example Funding
Sustainability performance SCoAG decisions
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Objectives of the presentation
To report on the execution of the predetermined objectives
set out in the AGSA Strategic Plan and Budget 2012-2015
To provide information to Parliament about the AGSA’s
financial performance for 2012-13
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AGSA’s strategic commitments
We promised that all our messages will be simple, clear and relevant to ensure that they are understood by all stakeholders
We promised that we will be visible to encourage response and action by our stakeholders
We promised to develop a skilled, high-performing and diverse workforce to deliver best on our mandate
We promised to lead by example in all our internal processes to demonstrate that clean and effective administration is possible and achievable
We promised not to waste public resources and to execute our operations in an economical, efficient and effective manner
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HOW WE PERFORMED
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What were our messages and how they contributed to the quest for clean administration
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Highlights: Simplicity, clarity and relevance of messages
Piloted interim audits of annual performance plans to enable corrective actions earlier in the process
Published the performance audit report on the use of consultants at national on 31 January 2013
And as a rule our auditors continued identifying root causes and making recommendations for improvement in the auditees’ environments
Tabled 20 general reports, demonstrating our commitment and ability to communicate the insights we obtain through our audits for the betterment of the public sector
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Highlights: Simplicity, clarity and relevance of messages
Participated in the development of an IT governance framework for the country approved by Cabinet
Introduced the combined assurance model to all stakeholders
Initiated a project with the Institute of Internal Auditors to equip internal auditors in the public sector for performing control assessments
Lead by example by publishing our first integrated annual report. It was incorporated in the Global Reporting Initiative’s (GRI) database of sustainability and integrated reports for sharing and learning purposes.
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Continuous Interactions and engagements with both our internal and external stakeholders contribute to the impactful delivery of our organisational mandate
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Highlights: Visibility of Leadership
We increased our briefings to the portfolio committees and the quarterly interactions with portfolio chairpersons
Achieved increased interest by executive authority for the key control visits
Completed the municipal door to door visits to all nine provinces
After 12 very successful years our engagement with the United Nations Board of Auditors came to an end.
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Highlights: Visibility of Leadership
Hosted study tours from Libya, Kenya, Uganda, Bahrain, Namibia, China, Jordan, Ghana and Nigeria
We hosted the INTOSAI Professional Standards Steering Committee which worked towards finalisation of a number of International Standards of Supreme Audit Institutions (ISSAIs)
We continued our strong participation in the INTOSAI working mechanisms
Our experience and knowledge are sought after by many other SAIs
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Strengthening our human resources
A motivated workforce is not only critical for
achieving organisational objectives, but also for the
well-being of employees and their families
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The number of the newly qualified audit professionals increased by 36% compared to last year
Our total expenditure on study support, learning and growth was R65 million
The trainee auditor registration for learnership programmes increased by 23% from last year
We launched two unique programmes for trainee auditors – AGSA SAICA UNISA (ASU) Jumpstart and CTA2 Boot Camp
The pass rate for external bursary holders increased to 68,6% (2011-12: 51,7%)
Highlights: Strengthening our human resources
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We abolished the use of fixed-term contracts (FTCs) as a staffing model.
Our Ethics policy and procedures were revised to ensure they remain relevant and in line with best practice.
We created a platform for knowledge sharing and dialogue through the invitation of thought leaders from the broader public service.
Enhanced our team effectiveness model and rolled it out to most business units
Implemented a PeopleSoft e-Recruitment system
Highlights: Strengthening our human resources
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The public sector awareness programme, aimed at assisting our leadership and audit teams in understand our public sector auditing environment better, continued to yield positive results
Provided funding of over R3 million to
the University of Fort Hare to maintain
their SAICA accreditation, in an effort to
support the transformation of the
accounting profession in the country
We became a founding member of the
Chartered Accountants’ Public Sector Forum (CAPSF) which was launched on 01 February 2013
Highlights: Strengthening our human resources
University of Fort Hare graduates
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Leading by
example
We have established policies and procedures designed to
provide us with reasonable assurance that the system of
quality control in AGSA is relevant, adequate, operating
effectively and complied with.
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Highlights: Lead by example
We have substantially improved our methodology for the auditing of compliance with legislation, also with a view to expressing an opinion in future
The outcome of the independent firm-level review by IRBA indicated the effective functioning of our internal control monitoring processes
The Quality results improved significantly compared to the previous year and are at their best in the last 4 years.
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Highlights :Leading by example
Strengthened our risk management processes and consider the identified risks in our strategy and our business processes.
We maintained the status of a B-BBEE contributor level 3, with 87% of the BUs being level 2 contributors
Spent R3 108 333 on different corporate social investment initiatives
Implemented a new module of the ASA MIS to capture and track stakeholder engagement
We officially opened the AGSA Museum and library on the 30 Nov 2012
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Highlights : Leading by example
We afforded 34 students the opportunity to pursue careers in accounting / auditing through the AGSA Centenary
Scholarship Fund
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Highlights: Leading by example
We exceeded our targets for timeliness of performance audit and investigation reports and achieved the targets for our corporate reports
We achieved a 90% compliance with statutory and legislative deadlines for PFMA audits and 2% below target for MFMA
Applicable legislation
Total number of auditees
Number of auditees that submitted AFS in
financial year
Number of audits completed within
legislative deadline
Number % Number %
PFMA and AG’s directive
546 532 97% 480 90%
MFMA 335 332 97% 291 88%Total 881 864 98% 771 89%
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We continuously monitor and consistently the desired employee equity profile by ethnic group and gender
Highlights: Leading by example
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Funding
We are determined to execute our mandate economically, efficiently and effectively.
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Highlights: Funding
Audit income is up by 6,75%: R2 214 million (2011-12: R2 074 million)
Surplus was down by 81%: R19 million (2011-12: R99 million)
Gross profit at 29%: R641 million (2011-12: R625 million)
Overheads up by 18%: R688 million (2011-12: R583 million)
Cash balance increased from R415 million to R464 million
Creditors’ payment days remained at 31 days vs target of 45 days
Total debtors increased from R480 million to R517 million
Local government debt collection remained a challenge, debt
increased from R206 million to R262 million
High increase in bad debt provision from R74 million to R115 million
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Highlights: Funding
Revenue, Direct cost and Gross Profit
The actual Revenue was 0.56% below
budget
The actual direct audit cost s were 71% vs
budget of 69%
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Highlights: Funding
Indirect overhead expenditure
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Highlights: Funding
We had an operating deficit of R42 million. The
surplus came as a results of net interest income of 60 million ( R65 interest less R 5 million other
comprehensive income)
Net surplus
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Highlights: Funding
Debtors
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Actual2010-11
Actual2011-12
Actual2012-13
Target
34 days
Improvement in creditors’ days is due to the availability of funds that makes it possible for us to pay our suppliers timeously . This is in line with our desire to build strong relations with our suppliers so that we are given preferential customer status.
Highlights: Funding
Creditors and creditors days
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Highlights: Funding
There was a net cash inflow of R129.2 million in 2012-13 (2011-12: R108.9 million). The cash was utilised to fund acquisitions of assets to the value of R67.1 million (2011-12: R29.7 million) and for the repayment of finance lease agreements of R13.0 million (2011-12: R16.2 million). The net result is an increase in the cash and cash equivalents of R49.1 million (2011-12: R63.0 million)
Cash flow
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Sustainability performance
review
We acknowledge that we have an impact on the physical environment and the society in which we
operate
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Highlights: Sustainability performance review
For the first time we reported on electricity, water and paper
use as well as business travel by employees
Our carbon footprint is estimated to be at least 9 683 metric
tons of carbon dioxide equivalent
We implemented two new environmental initiatives
Waste minimisation and waste management
Business travel optimisation
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Highlights: Sustainability performance review
Adopted 127 schools across South Africa bringing the total number of adopted schools to 207 since the programme’s inception
Spent R2,5 million in the current financial year (2011-12: R0,699 million) on the rural schools development
We invested R400 000 in CSR programmes rolled out to all nine provinces on ‘go green’ initiatives
At the AGSA, we believe that sustainabilit
y is our destiny and
not a temporary objective
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Highlights: Sustainability performance review
Another way of ensuring our sustainability is through investing in the transformation of the society via our CWC work
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End of report
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Decisions to be made by SCoAG
Retaining the net surplus by the AGSA: section 38(4)
of PAA act 2004
Confirm the appointment of External auditors:
section 39 (1) of PAA act 2004
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Thank you