The 2003-04 Annual Report of the Office of the Auditor-General

1
The 2003-04 Annual Report of the Office of the
Auditor-General

• Presented by
• Shauket Fakie, Auditor-General
• Terence Nombembe, CEO
• To the Ad-Hoc Committee on Auditor-General
• November 2004

2
Auditor-General

• A Chapter 9 institution, mandated by section 188
  of the Constitution to audit and report on the
  accounts, financial statements and financial
  management of
• National and provincial state departments
• Municipalities
• Any other entities required by legislation to be
  audited by the Auditor-General.

3
Auditor-General

• History / Background
• Independence
• Accountability / Governance
• Strategy

4
Auditor-General

• Key stakeholders
• Public Accounts Committees
• Audit Commission
• Staff Management Board

5
Governance Audit Commission

• Oversight body Audit Commission dissolved in
  April 2004.
• Approved the budget for 2004-05
• Approved Annual Report for 2002-03
• Remuneration of the Auditor-General - 2003.
• Reviewed strategic, financial, people and risk
  management as well as audit reporting and
  quality.

6
Governance Audit Commission

• New oversight body in terms of the Public Audit
  Act.
• This Annual Report was approved by the
  Auditor-General and a temporarily constituted Ad
  Hoc Audit Committee.

7
Governance SMB

• Appointed by the Auditor-General in consultation
  with the Audit Commission.
• Reviewed compensation policy, performance
  assessment, the Code of Ethics and the rotation
  of audit portfolios.
• Management reported on the corporate balanced
  scorecard, employment equity, the restructuring
  of Corporate Services and the impact of the
  Public Audit Bill.

8
Governance Exco

• Six corporate executives
• Chaired by the CEO, who is also the Deputy
  Auditor-General
• 4 primary focus areas outlined
• Scanning the external and internal environment
  from a strategic perspective
• Providing effective day-to-day leadership
• Inspiring the people of the OAG
• Accounting to its primary stakeholders.

9
Governance Exco

• Conducts work through the following six
  committees
• Strategy and Balanced Scorecard Committee,
• Finance Committee,
• Risk Management Committee,
• People Management Committee,
• Information and Communications Technology
  Steering Committee,
• Audit Product Committee.

10
Governance Auditors

• External auditors
• financial statements were prepared in alignment
  with the Statements of Generally Accepted
  Accounting Practice.
• Internal auditors
• this function is outsourced
• control self-assessment (CSA) tool

11
Auditing framework

• Auditing standards
• South African Auditing Standards
• Quality assurance
• Public Accountants and Auditors Board
• Audit services
• Regularity, performance and sustainable
  development audits and special investigations
• Audit reports
• For the information of legislators, government
  departments, investors and the general public.

12
Staff compliment of 1 400
13
Key successes

• Delivering timely, relevant audit reports
• Facilitating public accountability
• Individual Reports
• General Report on Audit Outcomes
• Activity Report
• General Report on Local Government
• Enhancing credibility and strategic role in
  Africa and internationally

14
Organisational strategic goal
Mental picture of future core business the
way we want it to be
Vision
Effort required to produce excellent output
results (CPU)
People Process Product
K S F
Tangible
Intangible
POUCH
IMPACT/OUTCOME
STAKE HOLDERS RELATIONSHIP
15
Strategic overview
PEOPLE Strategic alignment
16
Strategic overview

• OAG strategic path