SPECIAL REPORT
of the
AUDITOR-GENERAL

ON APPROPRIATION ACCOUNTS OUTSTANDING IN RESPECT OF THE

NATIONAL GOVERNMENT FOR 1996/97
 

1. INTRODUCTION

Appropriation Accounts and the maintenance of effective control measures and the timely submission of Appropriation Accounts for auditing are the responsibility of the Accounting Officers concerned. My responsibility is to report on these Appropriation Accounts and the matters set out in sections 4 and 5 of the Auditor-General Act, 1995 (Act No. 12 of 1995).

Timely reporting to Parliament was severely hampered in the past by some auditeesnot submitting their Appropriation Accounts within the time-frame prescribed by law. This has led to an unsatisfactorily long time-lapse between the financial year-end and the time the report was tabled in Parliament. It was for this reason and for the purpose of encouraging and facilitating effective accountability, that, in consultation with the Standing Committee on Public Accounts, I have decided that my audit reports on the various Votes of National Government Departments in respect of the 1996/97 financial year will be published and tabled separately and no longer as one combined report.

2. TIME-FRAME FOR SUBMISSION OF APPROPRIATION ACCOUNTS

According to section 14 of the Exchequer Act, 1975 (Act No. 66 of 1975) Appropriation Accounts should be submitted to the Auditor-General as soon as possible but not later than four months after the close of a financial year provided that the Auditor-General may, where in his opinion it is justifiable, grant extension for the submission thereof.

3. PURPOSE OF THE REPORT

The main purpose of this Report is to report on Appropriation Accounts outstanding as at 31 July 1997, as to the reason(s) for this and whether or not departments concerned applied for extension on or before 31 July for the submission thereof.

4. MISAPPROPRIATION ACCOUNTS ALREADY SUBMITTED

The Votes where Appropriation Accounts were submitted within the time-frameprescribed by section 14 of the Exchequer Act, 1975 (Act No. 66 of 1975) are given preference in the auditing process. These audits are, however, in the initial stages, with the result that an opinion on the quality of the Appropriation Accounts already submitted could not be formed and that it is unknown at this stage whether any Appropriation Accounts will have to be referred back to the Accounting Officer(s) concerned.

5. APPROPRIATION ACCOUNTS OUTSTANDING

(1) The following statement is a summary of the Appropriation Accounts outstanding for the financial year ending 31 March 1997 as at 31 July 1997, with reasons as to why they were still outstanding also indicating the position as at 31 August 1997 and whether or not extension for submission of Appropriation Accounts vvas requested on or before 31 July 1997:

 
 
Vote
Department
Appropriation account received on or before 31/07/97
Department applied for postponement on or before 31/07/97
Reasons why department had not submitted the Appropriation Account on or before 31 July 1997 and position as at 31 August 1997.
2 Executive Deputy President No Yes (Extension granted to 29/8/97) Lack of appropriate capacity and problems with the closure of the financial management system to a faulty data line. Appropriation Account submitted for auditing on 29/08/97
4 Parliament No No Accounting Officer requested former Accounting Officer to review the Appropriation Account. Appropriation Account submitted for auditing on 4 August 1997.
5 Agriculture No (1) No Accounting Officer was not available to sign Appropriation Account. Appropriation Account submitted for auditing on 8 August 1997.
7 Central Economic Advisory Service No No Delayed partly because of lack of expertise and other unforseen problems in the closure of the Office. Appropriation Account still outstanding at the end of August.
8 Central Statistical Services No No Various problems encountered with the Census-96 project. Appropriation Account still outstanding at the end of August 1997.
12 Environmental Affairs and Tourism No Yes (Extension granted to 31/10/97) Problems with the implementation of the Basic Accounting System (BAS), insufficiently trained and inexperienced temporary staff.
13 Finance No No Waiting for information from the pension administration i.r.o. funds 81 and 90. Appropriation Account still outstanding at the end of August 1997.
14 Foreign Affairs No Yes (Extension granted to 15/8/97) Shortage of skilled personnel. Appropriation Account still outstanding at the end of August 1997.
20 Labour No Yes (Extension granted to 8/8/97) Various problems with Basic Accounting System (BAS)
24 Public Enterprises No No No reason was given. Appropriation Account still outstanding at the end of August 1997.
26 Public Service Commission No No Accounting Officer out of town over month-end July 1997. Appropriation Account submitted for auditing on 4 August 1997.
27 Public Works No Yes (Extension granted to 8/8/97) Problems were encountered with gathering of information from the Regional Offices. Appropriation Account submitted for auditing on 8 August 1997.
29 Department of Defence No(2) No The possible incorrect entry of R249 428 referred to in footnote (2) hereunder also delayed the finalisation of the Appropriation Account which was submitted for auditing on 15 August 1997.
31 SA Revenue Services Yes(3) N/A N/A
32 Sport and Recreation No No Problems experienced with Computer Bureau Beta. Appropriation Account still outstanding at the end of August 1997.
34 Trade and Industry No Yes (Extension granted to 30/9/97) Owing to the implementation of the new Basic Accounting System (BAS) as a result of continued BAS software problems.
35 Transport No No Not enough time was allowed for Accounting Officer to sign Appropriation Account. Appropriation Account submitted for auditing on 5 August 1997.
38 SA Management Development Institute No No New institution functioning on a manual system for accounting as accounts and salary payments were still linked to the Office of the Public Sevice Commission. Appropriation Account submitted for auditing on 20 August 1997
(1) The financial statednts of the Agricult oral Credit Account and Onderstepoort Biological Products were not received on 31 July 1997 either, and no application was submitted for an extension for submission of these statements. According to the 
Accounting Officer the reason why these accounts are late is because they are being compiled according to Generally Accepted Accounting Practice and not according to the traditional method. These financial statements were still outstanding 
at the end of August 1997. 

(2) The financial statements in respect of the Special Defence Account and the Trading Account for Medical Stock were not received on 31 July 1997 and no request for extension for submission of these statements was received by 31 July 1997. Reasons given by the Department why these statements had not been submitted on or before the due date are a possible incorrect accounting entry of R249 428 in respect of the Special Defence Account, pending an investigation into the cause thereof and a difference (amount not stated) between the logistic and finance stock values in respect of the Trading Account for Medical Stock. These financial statements were submitted for auditing on 15 August 1997. 

(3) Appropriation Account received before 31 July 1997 but referred back to Department as certain information was not 
disclosed. 
(2) Although some further Appropriation Accounts and supporting statements were received after 31 July 1997, as indicated in the above statement, the situation is still not satisfactory.

6. APPRECIATI0N

A word of sincere thanks and appreciation goes to my staff for the work required to complete this report.
H E KLUEVER,
Auditor-General
Pretoria, 9/9/1997