Bills passed by Houses - to be submitted to President for assent .. 2256 2.
Public Accounts 2257 2.
Women, Children and People with Disabilities 2261 3.
Government Employees Pension Law Amendment Bill, 2011, submitted by the Minister of Finance.
Referred to the Standing Committee on Appropriations and the Select Committee on Appropriations.
Proclamation No 35 published in Government Gazette No 34356 dated 20 June 2011: Fixing of a date on which section 36(1) shall come into operation, in terms of the Revenue Laws Second Amendment Act, 2008 (Act No 61 of 2008).
Government Notice No R. 506 published in Government Gazette No 34363 dated 17 June 2011: Amendment of Rules (DAR/90), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
Government Notice No R. 507 published in Government Gazette No 34363 dated 17 June 2011: Amendment of Schedule No 2 (No 2/336), in terms of the Customs and Excise Act, 1964 (Act No 91 of 1964).
Seventh Report of the Committee on Public Accounts on the Report of the Auditor General on the annual report and financial statements of the Department of Defence and Military Veterans for the 2009/10 financial year, dated 22 June 2011.
The Committee on Public Accounts (the Committee) heard evidence on and considered the contents of the Annual Report and the Report of the Auditor-General on the 2009/10 financial statements of the Department of Defence and Military Veterans (the Department).
The Department did not disclose any financial information on tangible and intangible assets for both the current and prior year, contrary to the requirements of the financial reporting framework set by the National Treasury.
Due to historic inherent problems, the Department did not maintain a proper asset register, supported by relevant documentation, to enable the Auditor-General to quantify the misstatements of tangible and intangible assets.
A project plan to address the asset register deficiencies was in process. However, existence, rights and obligations, completeness and valuation with regard to tangible and intangible assets could not be verified.
The Committee recommends that the Accounting Officer ensures that: a) Management implements a barcoding system that will ensure that all tangible assets are identifiable. b) A verifiable asset register, which contains asset descriptions, dates on which they were acquired, as well as serial numbers, is created and updated on a monthly basis. c) A dedicated asset management component is established within the department to manage assets according to the National Treasury guidelines. d) All assets are classified according to the Standard Chart of Accounts (SCOA). e) There is improvement to the current system, or implementation of a new system, to ensure that asset values are in line with the accounting policy. f) All assets are valued as prescribed by the National Treasury. g) A proper system of record-keeping is implemented to ensure that documentation is readily available. h) Monthly reconciliations between the Financial Management System (FMS) and logistical system relating to additions and disposals of assets are performed. i) Policies and procedures relating to assets are amended to ensure that assets are counted annually before the end of each financial year.
Department: a) The short-term plan to focus on the utilisation of the existing systems, the Operating Support Information System (OSIS) and the Computerised Aided Logistical Management Information System (CALMIS), to establish an asset register, and compliance with modified cash basis accounting. b) The long-term plan to focus on the implementation of a single integrated defence logistics information management system, including a single asset register, as well as integration to Integrated Financial Management Systems (IFMS) to enable the department to comply with accrual basis of accounting.
The Auditor-General identified that: The corresponding figures for the year ended 31 March 2009 have been restated as a result of errors discovered during the year under review.
The Committee recommends that the Accounting Officer ensures that: The financial statements and other information included in the annual report are checked and reviewed for completeness and accuracy prior to audit. All amendments to financial statements and information should be done before the annual audit commences.
The Auditor-General identified that: Irregular expenditure amounting to R1 billion occurred, mainly comprising of: housing allowances, new military dispensation, and performance awards which were paid during the year under review without following proper approval processes as prescribed in section 55 of the Defence Act (No.42 of 2002), and section 2 of the Public Service Act (No.103 of 1994).
Appropriate disciplinary measures are taken against employees who were responsible for incurring irregular expenditure in terms of section 38(1)(h)(iii) of the Public Finance Management Act (No.1 of 1999) (PFMA).
The Department implements effective, efficient and transparent financial and risk management processes. c The Department strengthens its internal control systems in order to avoid incurring further irregular expenditure.
The Auditor-General identified that: For the three tested programmes, the validity, accuracy and completeness of the reported targets could not be established as sufficient appropriate audit evidence could not be provided for audit purposes.
The Committee recommends that the Accounting Officer ensures that: a The planned and reported performance targets are specific, measurable and time-bound. b The accomplishment of predetermined objectives and targets is monitored on a continuous basis. c In future, relevant supporting evidence is made available.
The Auditor-General identified the following: a) The Department did not comply with section 55 of the Defence Act (No.42 of 2002) regarding the approval of salaries relating to the latest military dispensation, housing allowances for uniformed members, and performance awards. b) The Department did not comply with the approval process prescribed in section 2 of the Public Service Act (No.103 of 1994) regarding these payments. c) The Department did not comply with section 38(1)(a)(ii) of the PFMA, as an internal audit function was not fully operational for the year under review. d) The Department did not have an approved fraud prevention plan as required by Treasury Regulation 3.2.1.
The Committee recommends that the Accounting Officer ensures that: a The Department adheres to the applicable laws and regulations: including the PFMA, Treasury Regulations, Defence Act, Public Service Act, and appropriate disciplinary measures are taken against officials who do not comply with laws and regulations. b The Department has an effective audit committee that promotes independence, accountability and effective risk assessment. c The Department has a risk management strategy, which must include a fraud prevention plan.
The Auditor-General identified the following: a Management did not have approved policies and procedures to guide management at the lowest level to ensure compliance with National Treasury disclosure requirements with regard to the recording and disclosure of various categories of tangible and intangible assets. b The Department did not have the necessary key controls in place to effectively manage performance against predetermined objectives. c The Department did not effectively monitor compliance with laws, regulations and policies.
The Committee recommends that the Accounting Officer ensures that: a There is oversight responsibility over financial reporting and internal control, and appropriate disciplinary measures are taken against individuals who fail to exercise this responsibility. b The Department has the necessary key controls in place to manage performance effectively, against predetermined objectives. c There is ongoing monitoring of compliance with laws, regulations and policies.
The Auditor-General identified the following: a The Department did not have an approved fraud prevention plan. b The internal audit function was not fully operational for the year under review.
The Head of Internal Audit was not appointed.
The Department has a fraud prevention plan that is reviewed on a continuous basis, and appropriate disciplinary measures are taken against individuals who do not adhere to it.
The internal audit function is fully operational throughout the year and assists in maintaining efficient and effective controls. The internal audit function should evaluate the controls on a continuous basis, and develop recommendations for improvement.
The Department appoints the Head of Internal Audit as a matter of urgency.
The Committee notes that there was a performance audit conducted on the Department's use of consultants during the year under review. The Committee will, in due course, consider the findings of the said performance audit.
The Committee further recommends that the Executive Authority submits a progress report on the implementation of the above recommendations to the National Assembly within 60 days after the adoption of this report by the House.
National Youth Fund -To establish a mechanism to enable the NYDA to raise funds for purposes of advancing and implementing programmes aimed at improving the livelihoods of the youth.
Governance -To ensure that NYDA operations comply with applicable legislation and regulations governing a schedule 3A institution.
89 089 jobs would be created through various NYDA programmes ranging from business consultancy vouchers, business opportunities support services and mentorship programmes.
The National Youth Development Agency would enrol 8 000 youth to rewrite grade 12 exams through its matric rewrite programme. The organisation would provide 293 900 youth with various skills covering critical areas such as business management, life and job preparedness skills.
The NYDA would provide over 1,6 million youth with group career guidance.
The objective is to provide support to young people. The organisation would ensure that 3 500 young people would be supported with Business Consultancy Vouchers, business opportunities services and mentorship in 2011/12, 11 000 in 2012/13 and 12 100 in 2013/14. NYDA would ensure that 2 500 new companies owned by young people would be registered with CIPRO through business support voucher issuance in 2011/12, 5 500 in 2012/13 and 6 050 in 2013/14. The organisation will create 2 000 jobs through Business Consultancy Vouchers, business support services and mentorship programmes for financial year 2011/12, 11 000 jobs for financial year 2012/13 and 12 100 jobs for 2013/14. 430 jobs would be created through social enterprises financing for 2011/12, 3 600 jobs for 2012/13 and 5 040 for 2013/14. 280 jobs would be created through SMEs financing for 2011/12, 2 420 jobs for 2012/13 and 2 662 jobs for 2013/14. The organisation would create 9 000 jobs through Micro finance lending in 2011/12, 13 337 jobs in 2012/13 and 17 380 jobs in 2013/14.
The objective is to facilitate and implement technical, entrepreneurship and life skills training programmes. 500 youth would be provided with technical skills training in 2011/12, 1 650 in 2012/13 and 2 750 in 2013/14. 10 000 young people would be provided with job preparedness training in 2011/12, 27 000 in 2012/13 and 37 800 in 2013/14. The organisation would provide 2 000 young people with life skills training in 2011/12, 27 000 youth in 2012/13 and 37 800 in 2013/14.
The goal is to ensure access to information by youth about various interventions aimed at improving the living conditions of young people including information and career guidance to young people. For 2011/12, 1 000 000 for 2012/13 and 1 100 000 for 2013/2014. 140 000 interactions with young people would be made through the NYDA call centre for 2011/2012, 155 000 for 2012/2013 and 170 000 for 2013/2014. The NYDA would publish 20 publication beneficiaries stories for 2011/12, 2012/13 and 2013/2014 per year. KPA 2: economic participation: number of loans in year 1 = 9 000, year 2 = 38 375, value of loans in year 1 = R40 million, year 2 = R96,8 million.
The Committee reiterated its concern regarding the matric rewrite programmes. The Committee queried as to which Provinces were covered with regards to 8 000 matriculants in the rewrite programme. In addition, the NYDA was questioned whether it had a relationship with the Department of Education in terms of the matric rewrite programme.
The Committee was unclear as to what criteria were used to attain the various targets articulated by the NYDA by terms of geographical location within provinces and gender.
Report of the Portfolio Committee on Science and Technology on the Science and Technology Laws Amendment Bill [B 5 - 2011], dated 22 June 2011.
The Portfolio Committee on Science and Technology, having considered the subject of the Science and Technology Laws Amendment Bill [B 5 - 2011] (National Assembly - sec 75), referred to it and classified by the Joint Tagging Mechanism as a section 75 Bill, reports the Bill with amendments [B5A - 2011].