annrep 1011 1 to 148.qxp - Department of Defence
annrep 1011 1 to 148.qxp - Department of Defence
annrep 1011 1 to 148.qxp - Department of Defence
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D E P A R T M E N T O F D E F E N C E<strong>Department</strong> <strong>of</strong> <strong>Defence</strong> and Military VeteransVote 21REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 201109/10 AGSA Audit ReportReferenceFY firstreportedProgress made in clearing/resolving the matterOver and above the yearly comprehensive reportinginstructions, the DOD has started a process <strong>to</strong> developa DOD policy framework <strong>to</strong> streamline the reportingrequirements, responsibilities and accountabilities.A DOD team was established <strong>to</strong> coordinate and verifyDOD performance information. (DOD CorporateStrategic Planning Team).SDA - Irregular expenditure(A400M) Emphasis <strong>of</strong> Matter -Page 263. As disclosed in note7.3 <strong>to</strong> the financial statements,irregular expenditure <strong>to</strong> theamount <strong>of</strong> R63 999 205.32 wasincurred, as the AccountingOfficer did not obtain the necessaryexemption from NationalTreasury <strong>to</strong> deviate from thestandard tender process.SDA - Non-compliance withapplicable legislation OtherMatters - Page 264. Contrary <strong>to</strong>the requirements <strong>of</strong> section 3 <strong>of</strong>the <strong>Defence</strong> Special Account Act,moneys standing <strong>to</strong> the credit <strong>of</strong>the account, which were notrequired for immediate use or asa reasonable working balance,were not invested. The<strong>Department</strong> <strong>of</strong> <strong>Defence</strong> wasauthorised <strong>to</strong> deviate from the<strong>Defence</strong> Special Account Act byNational Treasury per letterdated 30 June 2008.08/0909/10 Airbus made a proposal <strong>to</strong> the DOD on 4 Oc<strong>to</strong>ber 2010regarding the repayment <strong>of</strong> the advance payments onthe A400M purchase contract. On 3 March 2011 the Ministers <strong>of</strong> Trade and Industryand Finance accompanied by NT representatives metAirbus representatives in Paris <strong>to</strong> discuss the A400Madvance payment reimbursement. An inter-departmental work group (IDWG) consisting<strong>of</strong> representatives from the DPE, DTI, NT, DOD, andArmscor has been established <strong>to</strong> harmonise a RSAposition.Notwithstanding the requirements <strong>of</strong> the <strong>Defence</strong> SpecialAccount Act the National Treasury has requested theDOD not <strong>to</strong> invest the reserve on the SDA.17. Exemptions and deviations received from the National Treasury.No exemptions or deviations were received.18. AppreciationThe progress and success <strong>of</strong> the <strong>Department</strong>'s achievements over the past year is due <strong>to</strong> the efforts <strong>of</strong> many. The strategicguidance and support <strong>of</strong> the Minister and Deputy Minister <strong>of</strong> <strong>Defence</strong> and Military Veterans has been consistentexemplary and is acknowledged. The funding and support provided by the Minister <strong>of</strong> Finance and the NationalTreasury is appreciated. My colleagues in the Plenary <strong>Defence</strong> Staff Council and the <strong>Defence</strong> Secretariat Councilhave provided wise council and shared the operational load. To our various forces, locally and abroad, and our administrativeand management personnel go my heartfelt thanks for their commitment, dedication and perseverance in achallenging year <strong>of</strong> major accomplishments.176ANNUAL REPORT FY 2010/2011
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