Chapter 2 - P rogramme 1 - Department of Defence

| Financial Performance |
05/06 AG
ANNUAL
REPORT
REF
Annual Report FY 2007 - 2008 240
| Department of Defence | Vote 20 |
REPORT OF THE ACCOUNTING OFFICER
for the year ended 31 March 2008 (continued)
Page 263,
par 4.3
Page 263,
par 6.1
RECOMMENDATIONS MADE
IN SCOPA RESOLUTIONS
DATED 21 NOV 07
c) Valid and accurate disclosure of
housing loan guarantees on the
financial statements.
d) An adequate financial reporting
system is aligned to disclosure
requirements as set out by
National Treasury.
DOD PROGRESS ON ACTION PLANS
i. A large number of guarantees have
been released and the PERSOL system
information corrected. The DOD, is on a
continuous basis, requesting information
from financial institutions regarding
guarantees issued to institutions taken over
by them.
ii. The request submitted to SITA to enhance
the housing programmes on the PERSOL
system to allow for the capturing of
guarantee details immediately when it is
issued was placed on a priority list at SITA
and have not been actioned yet.
iii. An enhanced PERSOL system will ensure
proper and effective management, oversight
and control.
i. The lack of integration between the various
accounting and reporting systems in the
DOD is the main challenge.
ii. The requirements as set out by the National
Treasury, with which the DOD cannot
comply with, are amongst others the
disclosure notes.
iii. The DOD however has not embarked
on an exercise to integrate the various
accounting and reporting systems due
to the anticipated development and
implementation of the Integrated Financial
Management System of the National
Treasury.
iv. Minor enhancements have been
performed on independent accounting
and reporting systems to improve on
reporting requirements but not eliminating
all the problems related to the reporting
requirements.