BRAND SOUTH AFRICA

PRESENTATION TO PCOF ON AUDIT OUTCOMES

21 OCTOBER 2014

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THE FUNDAMENTAL ‘WHY’ OF BRAND SA

VisionTo be the authority on national identity and reputation building for the benefit of South Africa and the continent.

Mission

Purpose Ensure a sustainable future for our children

Strategic

Positioning

Inspire and unify civil society, business, government and the media to build the reputation of South Africa, and contribute to its global competitiveness.

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To contribute to the NDP OBJECTIVES on…

OUR MANDATE

by undertaking coordinated INITIATIVES to…

Build South Africa’s Nation Brand reputation to contribute to South Africa’s global

competitiveness

and achieving the following OUTCOMES…

1. Brand and Message Alignment

by key stakeholders.

2. Pride and Patriotism and Active Citizenship amongst South Africans.

3. Positive positioning of SA as a business destination amongst target international and domestic audiences.

1. Brand strategy development and management… through the

followingSTRATEGIES 4. Insight and research

management

4. A Sustainable Organisation

2. Reputation management4. Strengthening &

deepening Stakeholder & partner relationships

5. Organisational Development

6. Prudent financial management and control

1. Economic Growth & Employment

2. Position South Africa in the Region and the World

3. Nation Building and Social Cohesion

Increased Social CohesionImproved International &

Domestic ReputationIncreased International

Competitiveness

and contribute to the following broader IMPACT…

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AUDIT OUTCOMES

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REASONS ROOT CAUSE COMMITMENTS STATUS

Material misstatement subsequently corrected – understated payables accruals R4m

• Finance Manager position vacant (resigned October 2013)

 • Accountant position

vacant - 31 Marc 2014

  • Supply chain

management no fully established.

  • Inadequate accounting

system

• Review of organisational structure addressing organisational resource requirements

• Fill the position    • Fill the position   • Develop an adequate

structure   • Re-configuration and

automation of the accounting system

• Review, approval and implementation of the OD

• Finance Manager was appointed 02 May 2014

  • A secondi was

procured for a period of a year ending 31 March 2014

 • A permanent

Accountant position recruitment is underway

 • Services of a

knowledgeable service provider has been procured to configure the system – automate contract management and alert management

• Reviewed OD structure approve by the Board July 2014

• Implementation is underway 5

AUDIT REPORT 2013/2014

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BASELINE AND EXPENDITURE TRENDLINES

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2010/2011Baseline increased due to funding of FIFA World Cup tournamentExpenditure decreased – awaiting approval of the payoff line

2011/2012Baseline dropped to the normal level prior to FIFA World Cup tournament“Inspiring New Ways” was approved in October 2010All plans relating to the approved payoff line were executed – prior year accumulated surplus expended

2012/2013Inflationary increase on the baselineExpended prior year accumulated surplus

2013/2014Inflationary increase on the baselineIndications of insufficient funding/baselineRecorded an accumulated loss of R4.7m

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BASELINE AND EXPENDITURE TRENDS (CONT’d)

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IRREGULAR EXPENDITURE TREND

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2010/2011Decentralised procurementNo SCM unit establishedChief Financial Officer dismissedProcurement of FIFA 2010 world tickets – R3 275 586Acting Chief Financial Officer2011/2012Decentralised procurementAppointed Chief Financial Officer October 2011No SCM unit establishedNo application of PPPFA and invalid tax clearance certificate – R6 676 948.Pending forensic audit – identify fraud if any – condonation2012/2013Progressive establishment of SCM with contract employeesCondoned R370 000 irregular expenditure relating to prior year2013/2014SCM Manager appointed 01 August 2013

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IRREGULAR EXPENDITURE (CONT’D)

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FRUITLESS AND WASTEFUL EXPENDITURE TREND

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2010/2011Cancellation of an onerous copier contract – R678 841Cancellation of event : poor turnout – R72 000

2011/2012Cancellation of an onerous copier contract – R154 664Cancellation of an event – R46 655

2012/2013Labour settlements : domestic and UK – R342 601

2013/2014SARS penalties iro prior years – R33 818Cancellation of photocopier machines – R29 758

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FRUITLESS AND WASTEFUL EXPENDITURE (CONT’D)

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AUDIT FINDINGS OVER THREE YEARS

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Re a leboga!

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