Department of Defence Annual Report 2008-2009

| Department of Defence | Vote 19 |
REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT
ON THE FINANCIAL STATEMENTS AND PERFORMANCE
INFORMATION OF VOTE NO.19: DEPARTMENT OF
DEFENCE for the year ended 31 March 2009 (continued)
Corresponding gure: accruals: R144 951 000
12. The modied cash basis of accounting as prescribed by National Treasury stipulates that goods and
services received for which an invoice had not been received at year-end should be included in the
accruals. The accruals disclosed in note 24 to the nancial statements for the corresponding gures did
not include goods and services received for which an invoice had not been received at year-end. My
opinion on the nancial statements for the period ending 31 March 2008 was modied accordingly. My
opinion on the current period nancial statements is also modied because of the possible effect of this
matter on the comparability of the current period gures and the corresponding gures.
Qualied opinion
13. In my opinion, except for the possible effects of the matters described in the Basis for qualied opinion
paragraphs, the nancial statements present fairly, in all material respects, the nancial position of the
Department of Defence as at 31 March 2009 and its nancial performance and its cash ows for the
year then ended, in accordance with the modied cash basis of accounting determined by the National
Treasury, as set out in accounting policy note 1.1 and in the manner required by the Public Finance
Management Act, 1999 (Act No. 1 of 1999) (PFMA).
Emphasis of matters
I draw attention to the following matters on which I do not express a qualied opinion:
Basis of accounting
| Financial Performance |
14. The department’s policy is to prepare nancial statements on the modied cash basis of accounting
determined by the National Treasury, as set out in accounting policy note 1.1.
Irregular and fruitless and wasteful expenditure
15. As disclosed in note 28 to the nancial statements, irregular expenditure to the amount of
R118 473 000 was incurred, as the procurement processes were not followed.
16. Fruitless and wasteful expenditure of R4 587 000, as disclosed in note 29 to the nancial statements,
was incurred as the procurement processes were not followed.
Restatement of corresponding gures
17. Where changes were made to corresponding gures this has been disclosed in a note to the relevant
disclosure note.
Other matters
I draw attention to the following matters that relate to my responsibilities in the audit of the nancial
statements:
239 Annual Report FY 2008 - 2009