Department of Defence Annual Report 2008-2009

| Department of Defence | Vote 19 |
REPORT OF THE ACCOUNTING OFFICER
for the year ended 31 March 2009 (continued)
however, still challenges in terms of the disclosure of information pertaining to the logistic and
nancial environments regarding accrual accounting. Project Clean Audit has been initiated
by the Chief Financial Ofcer and has contracted a consortium comprising of KPMG and
SAB&T to assist with the cleaning of qualications and to improve the internal controls of the
department and to train DOD staff on the improved internal controls.
8.3.3.5 External Quality Review. The Defence Inspectorate Division is required by law to be audited
by external auditors once every ve years. This provides a holistic overview of the compliance
by the Defence Inspectorate Division to the International Standards for the Professional
Practice of Internal Auditing (standards). The next external audit is scheduled for the year
2011.
8.3.3.6 Professional Internal Audit Forum (PIAF). The activities of the PIAF resulted in an
improvement regarding co-ordination in work performed by the Defence Inspectorate
Division and Service Inspectors General. The PIAF also advises the IG DOD/CEA on
matters pertaining to internal auditing in the DOD.
| Financial Performance |
8.3.3.7 Conferences and Visits. The Inspector-General (IG) and two directors of the DOD attended
the Association of Defence Auditors Conference in Ottawa, Canada where new Defence audit
methodologies were discussed. The IG also visited the IG of the Mozambique Forces to set in
motion pre-preparation activities for the third Consultative Conference of SADC Inspectors
General that was to take place in November 2009. Eight ofcers of the Angolan Armed
Forces (AAF), who were trained as Defence auditors, successfully completed their course.
8.3.4 Audit Committee
8.3.4.1 The Audit Committee provided guidance in the 2008/2009 nancial year to the Internal Audit
Division. Amongst many issues it included the identication of shortcomings in the Internal
Audit Plan and the lack of expertise within the Division. The audit plan, the Auditor-General’s
audit report and the quarterly reports revealed that nancial statements were not addressed
adequately, which was ascribed to the lack of expertise. The external members of the Audit
Committee made their services available to assist the DOD to identify suitable candidates that
can assist the DOD to bridge the gap. The Defence Inspectorate provided the secretarial
services for the Audit Committee.
8.3.4.2 Composition. During the year under review, the Audit Committee for the Department
of Defence (DOD AC) was duly constituted in terms of the Public Finance Management
Act (PFMA). The external members to the DOD were as follow with their appointment
dates indicated in brackets: Dr D. Konar (Chairperson) (27 May 2005); Ms J. Kumbirai
(6 December 2007); Mr K.A. Ross (27 May 2005), Mr Mudaly (awaiting conrmation) and Mr
Radebe (awaiting conrmation). The internal members were Lieutenant General J.L. Jansen
van Rensburg (DOD: Chief of Corporate Staff) (1 February 2006) and Dr T. Gamede (DOD:
Chief Policy and Planning) (July 2008).
8.3.4.3 Responsibilities. The Audit Committee complied with its responsibilities arising from
Section 38(1)(a) of the PFMA and Treasury Regulation 3.1.13. Four scheduled and two special
meeting were held. Special In-Committee Meetings were held between the Audit Committee
members. Activities of the Audit Committee are formalised into a plan, allowing coverage
of the total spectrum of risk areas which needs to be assessed and monitored, in accordance
with the Public Finance Management Act No. 1 of 1999, and National Treasury Regulations
Annual Report FY 2008 - 2009 220