Chapter 2 - P rogramme 1 - Department of Defence

| Financial Performance |
8.3.3 Internal Audit
Annual Report FY 2007 - 2008 232
| Department of Defence | Vote 20 |
REPORT OF THE ACCOUNTING OFFICER
for the year ended 31 March 2008 (continued)
8.3.3.1 Internal Audit comprised of both compliance audit as well as performance audit, reviewing
aspects of economy, efficiency and effectiveness. Internal Audit in the DOD followed a riskbased
approach, in accordance with the Rolling Three-Year Audit Strategy.
8.3.3.2 The effectiveness of internal audit results could be measured by the positive impact resulted from
the recommendations and advice given through audit reports issued by the Defence Inspectorate
during the reporting period. The following serves as examples:
• As a result of audits conducted on performance incentives, the Accounting Officer was able to
ensure that the implementation of the system was in accordance with departmental guidelines and
instructions.
• Audits were conducted on the effectiveness of the disciplinary legal system where backlogs on
sentences and court orders were experienced and where members who had been charged were
allowed to resign before being arraigned. Legal Services in the DOD were able to implement
measurers to eliminate the backlogs.
• The DOD Annual Report for the financial year 2006/2007 was audited and identified Services
and Divisions were required to verify the performance information contained in their respective
reports. The performance information as reported on in the first quarterly report for the financial
year 2007/2008 as well as the risks pertaining to the achievement of military objectives by the
SANDF in the internal deployments were also audited.
• An audit was conducted on the forces deployed in Burundi to determine if the risks as identified
actually materialised. Findings were communicated so that measures could be implemented to
mitigate the risks.
8.3.3.3 The activities of the Professional Internal Audit Forum (PIAF) resulted in an improvement
regarding co-ordination in work performed by the Defence Inspectorate Division and Service
Inspector General. The reporting format for the Service IG’s was streamlined and aligned with
that of the Defence Inspectorate Division. The qualified audit opinion as included in the Report
of the Auditor-General for the financial year 2006/2007 was included in the Rolling Three-Year
Audit Strategy as Internal Audit follow-up audits for the financial year 2007/2008.
8.3.4 Audit Committee
8.3.4.1 The Audit Committee provided guidance to the Internal Audit Division during the reporting
period. Amongst many issues it included the identification of shortcomings in the Internal Audit
Plan and the lack of expertise by internal auditors. The audit plan, Auditor-General’s audit report
and the quarterly reports revealed that financial statements were not addressed adequately, which
was ascribed to the reasons mentioned above.
8.3.4.2 The following information regarding the Audit Committee is relevant:
• Composition. During the year under review, the Audit Committee for the Department of
Defence (DOD AC) was duly constituted according to the Public Finance Management Act
(PFMA). The external members were (appointment dates indicated in brackets): Dr D Konar