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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