Chapter 2 - P rogramme 1 - Department of Defence

| Department of Defence | Vote 20 |
PART 4: Financial Performance
REPORT OF THE AUDIT COMMITTEE
for the year ended 31 March 2008
We present our report for the financial year ended 31 March 2008.
Audit Committee Members and Attendance
The Audit Committee consists of the members listed hereunder and meets at least four times per annum as
per its approved terms of reference. During the current year five meetings were held.
Names of External Members Number of Meetings Attended
Dr D Konar (Chairperson) 4
Ms J Kumbirai 1
Mr KA Ross 5
Mr GR Witthöft 5
Mr DS Molapo 2
Names of Internal Members Number of Meetings Attended
Mr TE Motumi 3
Lt Gen JL Jansen van Rensburg 5
Audit Committee responsibility
The Audit Committee reports that it has complied with its responsibilities arising from section 77 of the
PFMA and Treasury Regulations 3.1.9, 3.1.12 and 3.1.13 (c).
Section 38 of the PFMA states the following:
a)
The accounting authority must ensure that the public entity has and maintains -
i)
ii)
iii)
effective, efficient and transparent systems of financial and risk management and internal control;
a system of internal audit under the control and direction of an audit committee complying with
and operating in accordance with regulations and instructions prescribed in terms of sections 76
and 77, and
an appropriate procurement and provisioning system is fair, equitable, transparent, competitive and
cost effective.
The Audit Committee also reports that it has adopted appropriate formal terms of reference as its Audit
Committee Charter, has regulated its affairs in compliance with this Charter and has discharged all its
responsibilities as contained therein.
The effectiveness of internal control
The system of control is designed to provide cost effective assurance that assets are safeguarded and that
liabilities and working capital are efficiently managed. In line with the PFMA and the King II Report on
Corporate Governance requirements, Internal Audit provides the Audit Committee and management with
assurance that the internal controls are appropriate and effective. This is achieved by means of the risk
management process, as well as the identification of corrective actions and suggested enhancements to the
controls and processes.
215 Annual Report FY 2007 - 2008
| Financial Performance |