Chapter 2 - P rogramme 1 - Department of Defence

| Financial Performance |
14. SCOPA Resolutions
Annual Report FY 2007 - 2008 238
| Department of Defence | Vote 20 |
REPORT OF THE ACCOUNTING OFFICER
for the year ended 31 March 2008 (continued)
14.1 The SCOPA hearing on the DOD Annual Report for the financial year 2005/2006 was held on
9 March 2007 and the SCOPA resolutions were adopted by Parliament on 21 November 2007.
The DOD received these SCOPA resolutions and a response has been submitted to SCOPA.
Progress made on the action plans as submitted are contained in the tables below:
14.1.1 System and control related matters (Par 1). The Committee recommended that the
Accounting Officer, with the assistance of the National Treasury, ensures:
05/06 AG
ANNUAL
REPORT
REF
Page 262,
par 4.1
RECOMMENDATIONS MADE
IN SCOPA RESOLUTIONS
DATED 21 NOV 07
a) The upgrade of the financial
management system in order
to ensure accuracy and validity
of amounts disclosed in the
financial statements.
DOD PROGRESS ON ACTION PLANS
i. The DOD is still dependent on unique
legacy resource management systems that
are not integrated and are purely based
on cash accounting. It does not support
accrual accounting practices and principles
and cannot support integrated information
requirements in terms of the National
Treasury Guide for the preparation of
Annual Reports by National and Provincial
Departments.
ii. Due to the intended development and
implementation of IFMS throughout the
Public Sector the DOD was requested not
to proceed with major enhancements on its
unique legacy systems in order to prevent
fruitless and wasteful expenditure.
iii. National Treasury currently only allows
for minor enhancements to the IT system
which do not in total completely eliminate
problems experienced regarding National
Treasury reporting requirements.
iv. The DOD has, in collaboration with SITA,
implemented minor enhancements to its IT
systems to ensure accurate and auditable
data with regards to S&T advances and
claims as well as revenue, budgeting and
collection.
v. Only with the implementation of the
Integrated Financial Management System
will the DOD be able to fully adhere to
the requirement of Generally Recognised
Accounting Practices prescribed by the
National Treasury.