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785 MONDAY, 27 OCTOBER 2008
786
is Goods and Services, of which
‘‘Consultants, contractors and
special services’’ is a sub-classification.
● The full complement of this
sub-category and accompanying
description can be indicated as
follows:
— Goods and services
— Consultants, contractors and
special services (2005-06:
R130,908 million/2006-07:
R227,488 million/2007-08:
R222,445 million)
Consulting services refer to
specialist services and skills
provided that are required for
the achievement of a specific
objective, with the aim of providing
expert and professional
advice on a time and material
basis. It is unnecessary to maintain
these skills in-house, since
they are required on a once-off
or temporary basis. Therefore, a
consultant is a professional person
appointed by the department
to provide technical and
specialist advice or to assist
with the design and implementation
of projects/programmes.
The legal status of this person
can be an individual, a partnership
or a corporation. The fact
that a consultant is defined as a
professional person implies that
the consultant is professionally
qualified. The provision of advice
or service is in line with a
contractual arrangement (usually
commissioned on a project
basis). Remuneration is usually
based on an hourly fee or a fixed
fee for a product/deliverable.
Contractors, on the other hand,
are required to provide services
that are of a current and nonspecialised
nature, that are not
core business of the department.
It is normally not cost-effective
to maintain these skills within
the department, eg cleaning services.
— The major sub-categories as utilised by
the SAPS, are the following:
● Accountants and auditors (2005-06:
R13,395 million/2006-07: R15,321
million/2007-08: R13,921 million)
A distinction should be made between
fees paid for the audit and fees paid for
other services. Audits of departments
are performed by the Auditor-General
or by a firm of auditors on behalf of the
Auditor-General. That firm may not
render other services to the department,
unless prior approval of the Auditor-
General has been obtained. Accordingly,
any fees paid to firms that also act
as auditors, but not to the department,
would be included under the heading of
consultants and advisory services, in
particular where, for example, the internal
services have been outsourced. (Example:
Internal Audit firm appointed)
● Financial, advisory and management
consultants (2005-06: R82 thousand/
2006-07: R1,933 million/2007-08:
R5,264 million)
Management consulting services/advisory
services are those professional
services provided to management by a
management consulting services practitioner
and which typically involves
some combination of the following
activities in relation to the functions of
management:
(1) Identifying and investigating
(2)
problems and opportunities concerned
with policy, organisation,
procedures and methods
Providing advice and recommend-