Briefing to the Portfolio Committee on the Department of Home Affairs (DHA) APP 2015/16

Presenter : Naveen Mooloo – Senior Manager AGSA

11 March 2015

Reputation promise/mission

The Auditor-General of South Africa has a constitutional mandate and,

as the Supreme Audit Institution (SAI) of South Africa, it exists to strengthen our

country’s democracy by enabling oversight, accountability and governance

in the public sector through auditing, thereby building public confidence.

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End-year reporting

Strategic Planning

Implementation and in-year reporting

Operational planning and

budgeting

Policy development

INSTITUTIONNational department

Provincial departmentMunicipalityPublic entity

Municipal entity

OVERSIGHT:Parliament, provincial legislature or municipal council

Oversight model

Accountability

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Role of Portfolio Committees (Rule 201)

Oversight component - Portfolio committee mandate

Considerations for Portfolio Committees when dealing with performance monitoring

Portfolio Committee

should track any changes to the

APP

Seniormanagement

Accountingofficers/authority

Executiveauthority

Required assurance levels

Extensive Extensive Extensive

Management’s assurance role•Senior management – take immediate action to address specific recommendations and adhere to financial management and internal control systems•Accounting officers/ authority – hold officials accountable on implementation of internal controls and report progress quarterly and annually•Executive authority – monitor the progress of performance and enforce accountability and consequences

Management assuranceFirst level of assurance

Seniormanagement

Accountingofficers/authority

Support oversight – complimentary mandate

Oversight assuranceSecond level of assurance

Coordinating /Monitoringinstitutions

Internalaudit

Auditcommittee

Extensive Extensive Extensive

Required assurance levels

Oversight’s assurance role•National Treasury/ DPSA – monitor compliance with laws and regulations and enforce appropriate action•Internal audit – follow up on management’s actions to address specific recommendations and conduct own audits on the key focus areas in the internal control environment and report on quarterly progress•Audit committee – monitor risks andthe implementation of commitments on corrective action made by management as well as quarterly progress on the action plans

Independent assuranceThird level of assurance

Oversight(portfolio

committees / councils)

Publicaccounts

committee

National Assembly

Extensive Extensive Extensive

Required assurance levels

Role of independent assurance•Oversight (portfolio committees) – review and monitor quarterly progress on the implementation of action plans to address deficiencies •Public accounts committee – exercise specific oversight on a regular basis on any report which it may deem necessary•National Assembly – provide independent oversight on the reliability, accuracy and credibility of National and provincial government

Understanding and monitoring of the accounting officer’s mandate are key to improving internal control environment

Role of accounting officer

Robust financial and performance management

systems

Effective, efficient and transparent systems for

•financial and risk management

•internal controls (under control of audit committee)

•procurement and evaluation

• Effective, efficient, economical and transparent use of resources

• Prevention of unauthorised, irregular and fruitless and wasteful expenditure and, if discovered, reporting to treasury

• Efficient and economic management of available working capital

Oversight and accountability

• Manage and safeguard assets and liabilities

• Take appropriate disciplinary steps against any official contravening the PFMA

Commitment and ethical behaviour

Chapter 5 of the Public Finance Management Act, 1999

The role of the accounting officer is critical to ensure:

timely, credible information + accountability + transparency + service delivery

• Transparent and stable reporting systems• Budgeting and planning processes• Focussed information management platforms• Strong internal audit capabilities

• Reporting to enable effective oversight

• Applying consequences for transgressions and poor performance

• Visible commitment by all players in the public service

• Demonstrated impeccable ethical behaviour and professionalism

• Independent and relevant reporting by the AG

• Value-adding input expressed by the AG

Professionalism

Creating a better and

dignified life for the

citizens of South Africa

through timely

effective, efficient

and economical SERVICE DELIVER

Y

AGSA’S aspirations for the Public Service

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AGSA Review of DHA 2015/16 APP

AGSA Review of DHA 2015/16 APP

AGSA Review of DHA 2015/16 APP

AGSA Review of DHA 2015/16 APP - SCOPE

Audit findings history

AUDIT OPINION INDEX

Review of DHA 2015/16 APP

Audit findings 2015/16 APP

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Audit findings 2015/16 APP

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The Framework for Strategic Plans and Annual Performance Plans states: For each indicator, complete a technical indicator definition, which should be posted on the institution’s website along with the Annual Performance Plan.

Audit findings 2015/16 APP

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Other key matters

Questions?