Chapter 2 - P rogramme 1 - Department of Defence

| Financial Performance |
05/06 AG
ANNUAL
REPORT
REF
Annual Report FY 2007 - 2008 242
| Department of Defence | Vote 20 |
REPORT OF THE ACCOUNTING OFFICER
for the year ended 31 March 2008 (continued)
Page 264,
par 6.4 (a)
Page 264,
par 6.4 (a)
Page 264,
par 6.4 (b)
Page 264,
par 6.4 (c)
RECOMMENDATIONS MADE
IN SCOPA RESOLUTIONS
DATED 21 NOV 07
a) That storage facilities and
security of fixed assets and
inventory are improved.
DOD PROGRESS ON ACTION PLANS
i. The lack of sufficient funds necessitates the
DOD to follow a holistic approach when
identifying upgrading priorities. Facilities
that have the biggest negative impact on
the DOD’s ability to render a service to the
people of the country are addressed first to
minimise the negative impact.
ii. Storage facilities falling into this category
will be part of a bigger project, being
addressed by the Repair and Maintenance
Programme (RAMP).
iii. The safekeeping of inventory is also seen
as a priority and is evaluated by inspectors
during visits to units as part of the
control and monitoring actions for asset
management.
b) Sufficient segregation of duties. Services and Divisions were instructed to
ensure that their organisations are fully
resourced and structured to have the capacity
and capability to carry out their duties and
comply with systems of internal control such
c) Regular monitoring of
transactions to ensure
compliance with policies and
procedures.
d) A stock take is done as
prescribed by the relevant
regulations.
as the segregation of duties.
Compliance with policies and procedures is
monitored by analysing various exception
reports on a monthly, quarterly and annual
basis.
i. An instruction for the submission of the
annual stock take certificates is compiled
according to the PFMA, Treasury
Regulations and other relevant instructions
in this regard and is issued on an annual
basis for the specific financial year.
ii. The execution of the stock take by units is
done according to a stock take plan.
iii. Stock takes in the DOD are monitored
by means of quarterly reports and
management reports that are discussed
monthly on the Matériel Administration
Management meetings.