annrep 1011 1 to 148.qxp - Department of Defence

D E P A R T M E N T O F D E F E N C EREPORT OF THE AUDITOR-GENERAL TOPARLIAMENT ON THE SOUTH AFRICANNATIONAL DEFENCE FORCE FUNDfor the year ended 31 March 2011R E P O R T O N T H E F I N A N C I A L S T A T E M E N T SI n t r o d u c t i o nI have audited the accompanying financial statements of the South African National Defence Force Fund, which comprise thestatement of financial position as at 31 March 2011, and the statement of financial performance, statement of changes in net assetsand cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information,and the accounting authority's report, as set out on pages 278 to 279 and 282 to 294.A c c o u n t i n g a u t h o r i t y ' s r e s p o n s i b i l i t y f o r t h e f i n a n c i a l s t a t e m e n t sThe accounting authority is responsible for the preparation and fair presentation of these financial statements in accordance withSouth African Standards of Generally Recognised Accounting Practice (SA Standards of GRAP), and the requirements of theFund-Raising Act, 1978 (Act No. 107 of 1978) and General Notice 1111 of 2010 issued in Government Gazette 33872 of15 December 2010, and for such internal control as management determines necessary to enable the preparation of financial statementsthat are free from material misstatement, whether due to fraud or error.A u d i t o r -G e n e r a l ' s r e s p o n s i b i l i t yAs required by section 188 of the Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996) and section 4 of thePublic Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA), my responsibility is to express an opinion on these financialstatements based on my audit.I conducted my audit in accordance with International Standards on Auditing and General Notice 1111 of 2010 issued inGovernment Gazette 33872 of 15 December 2010. Those standards require that I comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of thefinancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevantto the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriatein the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control.An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimatesmade by management, as well as evaluating the overall presentation of the financial statements.I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.O p i n i o nIn my opinion, the financial statements present fairly, in all material respects, the financial position of the South African NationalDefence Force Fund as at 31 March 2011, and its financial performance and cash flows for the year then ended in accordancewith South African Standards of Generally Recognised Accounting Practice (SA Standards of GRAP) and the requirements ofsection 22 (7) of the Fund Raising Act 1978, (Act No. 107 of 1978).A d d i t i o n a l m a t t e r sI draw attention to the matters below. My opinion is not modified in respect of these matters:280ANNUAL REPORT FY 2010/2011