GDF Annual Report - Gauteng Provincial Treasury

More documents

Recommendations

Info

SECTION 3: REPORT ON THE PERFORMANCE OF PROGRAMMESthe planned target of 90 of its stated auditcoverage for the year for all the various GPGdepartments. The remaining audits areat reporting stage with only managementcomments outstanding. A number of auditswere not finalized timely due to resourceconstraints as well as client delays in providingdocumentation and management comments.• Sub-Programme: Computer auditingFor the 2010-11 financial year, 22 auditswere completed against a target of 21 for allthe various GPG departments. The 22 auditreports also included 3 reviews that wereof an advisory nature. There is a residualnumber of 4 audits over and above the settarget which comprised of ad-hoc audits thatwere not planned for which were requestedby the various client departments. The fourremaining audits are at reporting stage withjust management comments outstanding.Three of these four outstanding audit reportswere audits that were outsourced to externalservice providers due to the specialised natureof the skills required. Part of the challenge wasthat the approval to outsource these auditswas granted very late in the financial year, i.e.in the last quarter of the financial year.• Sub-Programme: Performance AuditThe sub-unit has concluded 13 audits against atarget of 17 of its stated audit coverage for theyear for all the various GPG departments. In thecurrent financial year GAS was unable to usethe body shop of consultants as planned due tobudgetary constraints. The available resourceswere efficiently planned to ensure successfulconclusion of the audit coverage plan however,major delays experienced in terms of receivinginformation for audit, non availability of officialsand late provision of management commentsmade it impossible to conclude all 17 audits ontime.REASONS FOR MAJOR VARIANCESThe greatest challenge of the unit was limited resourcesi.e. availability of sufficient human resources to conductplanned audits. However, by the end of the financial yearthe department managed to fill most of the vacant postsand is currently sitting with a 10% vacancy rate thatis planned to be filled during 2011/12 financial year.The unit also faced difficulties in finalizing all audits asplanned as per approved internal audit plan timelines.This was mainly due to clients i.e. departmental officials,not always available as and when required to ensuresmooth facilitation of the audit process, delays in theprovision of documentation required for audit purposesand delays in provision of management comments andaction plans by departmental management. Escalationprocesses are being implemented on an ongoing basisto address this challenge and measures are beingimplemented to ensure forging of closer relationshipswith management.OUTLOOK FOR THE YEAR AHEADDuring the coming year, the division will continue toprovide independent assurance services by performingrisk and compliance audits, computer and performanceaudits covering 139 critical areas in line with approvedinternal audit plans based on key strategic risks of theGPG departments. These will focus on areas identifiedas high risk by the various departments and also takinginto account key control issues that have already beenhighlighted by the Auditor General in order to ensurecontinuous improvement in terms of internal controls,governance and risk management processes.• Sub-Programme: Risk and Compliance auditThe Gauteng Provincial Government is aimingto achieve a clean audit report by 2014and Gauteng Audit Services continues in itsinitiative to provide assistance to Departmentsin this regard. Therefore the internal audit plansare focused not only on the key service delivery8888Annual Report 2010 / 2011
SECTION 3: REPORT ON THE PERFORMANCE OF PROGRAMMESpriorities as per the Departmental strategicrisk assessments and Strategic Plans, but alsoplaying a role in helping Departments addresscritical findings raised by the Auditor General(AG), by ensuring that management puts inplace adequate, efficient and effective internalcontrols within their operations and financialprocesses. We will also continue with thetracking and monitoring of implementation ofaudit recommendations, working very closelywith Departmental risk management andinternal control units as well as AccountingServices unit within Treasury in the GautengDepartment of Finance. We therefore aimto balance the need to “add value” with ourobligation to deliver an independent assurance.The target for the 2011/12 financial year is to conduct94 risk and compliance audits.• Sub-Programme: Computer auditWe have moved beyond performing generalcomputer control and application controlreviews; our major focus is on providing aplethora of IT governance related servicesinformed by IT risks faced by clientdepartments based on their operationsand strategic objectives. In this regarddevelopments within the legal fraternityrelating to the governance of IT assets willbe a focus area, specifically considering thePFMA, King III code on the governance ofIT assets and other relevant legislation. Wewill also provide a host of services that webelieve will add value to the client operations,specifically with regards to the use oftechnology to perform data analysis on masterand transactional data on key functional areasidentified, e.g. procurement and finance. Thisin part is informed by the Continuous Auditstrategy that we previously communicated.We will also continue to provide assuranceservices (pro-active involvement) on keyprojects identified within client departments.Given the constraints within the operating environment,another focus area is with regards to the managementof human capital within the unit. This involves trainingand development (up-skilling) initiatives of our internalstaff on identified areas, targeting staff productivitygains, the procurement of identified technologysolutions to leverage on available capacity, recruitmentand filling of identified vacancies and, selectiveoutsourcing of audit assignments based on areaswhere we do not have internal capacity and where it isexpensive to build internal capacity, given operationalrequirements within the wider GPG IT landscape. Thisspecifically refers to the SAP platform and wider GPGNetwork architecture and infrastructure.The target for the 2011/12 financial year is to conduct24 computer audits and provide Ad hoc advisoryservices on new IT systems, projects upon request.• Sub-Programme: Performance audit• To perform 22 quality performance audits in the2011/12 financial year.• In addition to conducting value for money auditswe will also focus on auditing performanceinformation in all departments during this currentfinancial year. This will assist departments toensure that they implement corrective measuresthroughout the year to minimise qualificationsby Auditor General as they will be expressing anopinion on performance information in the nearfuture.• Sub-Programme: Audit Centre of Excellence• Implement GAS Quality Assurance Programmefocusing on ensuring consistent compliance withthe International Standards for the ProfessionalPractice of Internal Auditing of the Institute ofInternal Auditors.• Monitor implementation of business unit specificpolicies and procedures and internal auditmethodologies in line with best practice.• Strengthen the effective and efficient use of theTeamMate audit software.Gauteng Department of Finance89
Page 1:
Annual Report2010/11Building a resu
Page 4 and 5:
FOREWORD BY THE MECAs an activist,
Page 6 and 7:
EXECUTIVE SUMMARYThe 2010/2011 fisc
Page 9:
SECTION 1:DEPARTMENTAL OVERVIEW
Page 12 and 13:
SECTION 1:DEPARTMENTAL OVERVIEWPubl
Page 15 and 16:
SECTION 2: REPORT ON ORGANISATIONAL
Page 17:
SECTION 2: REPORT ON ORGANISATIONAL
Page 21 and 22:
SECTION 3: REPORT ON THE PERFORMANC
Page 23 and 24:
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
Page 37 and 38:
Page 39 and 40: SECTION 3: REPORT ON THE PERFORMANC
Page 89: SECTION 3: REPORT ON THE PERFORMANC
Page 135: SECTION 4:ANNUAL FINANCIAL STATEMEN
Page 138 and 139: SECTION 4: ANNUAL Report of FINANCI
Page 140 and 141:
SECTION 4: AUDIT ANNUAL COMMITTEE F
Page 142 and 143:
SECTION 4: ANNUAL REPORT OF FINANCI
Page 144 and 145:
SECTION 4: ANNUAL REPORT OF FINANCI
Page 146 and 147:
SECTION 4: REPORT ANNUAL OF FINANCI
Page 148 and 149:
SECTION 4: ANNUAL FINANCIAL STATEME
Page 150 and 151:
Page 152 and 153:
Page 154 and 155:
Page 156 and 157:
Page 158 and 159:
Page 160 and 161:
Page 162 and 163:
Page 164 and 165:
Page 166 and 167:
Page 168 and 169:
Page 170 and 171:
Page 172 and 173:
Page 174 and 175:
Page 176 and 177:
Page 178 and 179:
Page 180 and 181:
Page 182 and 183:
Page 184 and 185:
Page 186 and 187:
Page 188 and 189:
Page 190 and 191:
Page 192 and 193:
Page 194 and 195:
Page 196 and 197:
Page 198 and 199:
Page 200 and 201:
Page 202 and 203:
Page 204 and 205:
Page 206 and 207:
Page 208 and 209:
Page 210 and 211:
Page 213:
SECTION 5:OUTLOOK FOR THE COMINGFIN
Page 216 and 217:
SECTION 5: OUTLOOK FOR THE COMINGFI
Page 219:
SECTION 6:OVERSIGHT REPORT
Page 222 and 223:
SECTION 6: OVERSIGHT REPORTTABLE 1.
Page 224 and 225:
SECTION 6: OVERSIGHT REPORT2. Expen
Page 226 and 227:
Page 228 and 229:
SECTION 6: OVERSIGHT REPORT3. Emplo
Page 230 and 231:
Page 232 and 233:
Page 234 and 235:
Page 236 and 237:
Page 238 and 239:
Page 240 and 241:
Page 242 and 243:
Page 244 and 245:
Page 246 and 247:
Page 248 and 249:
SECTION 6: OVERSIGHT REPORTCritical
Page 250 and 251:
Page 252 and 253:
Page 254 and 255:
SECTION 6: OVERSIGHT REPORT11. Labo
Page 256 and 257:
SECTION 6: OVERSIGHT REPORT12. Skil
Page 258:
SECTION 6: OVERSIGHT REPORT13. Inju
show all

GDF Annual Report - Gauteng Provincial Treasury

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?