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Briefing by the AGSA on highlights (financial and non-financial) performance of the Department of Rural Development and Land Reform (DRD&LR) For the year ended 31 March 2010 12 October 2010. Reputation promise/mission.
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Briefing by the AGSA on highlights (financial and non-financial) performance of the Department of Rural Development and Land Reform (DRD&LR) For the year ended 31 March 2010 12 October 2010
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.
Agenda discussion points • Highlights on the performance (financial and non-financial) of DRD&LR • Highlights on the performance (financial and non-financial) of the Ingonyama Trust Board
Tangible capital assets • Findings • Could not confirm the completeness and valuation of, rights and obligations regarding immoveable assets • Milestones as per National Vesting Master Plan not achieved • Recommendations • Implementation of the milestones as per the National Vesting Master Plan, • Surveying of all un-surveyed state land (Deadline as per National Vesting Master Plan – March 2012) and • Vesting of state land (Deadline as per National Vesting Master Plan – March 2014)
Material losses through criminal conduct • Findings • R53.301 million losses incurred as a result of fraudulent activities identified through forensic investigations in 3 Land Reform LRAD projects in KZN. (Fictitious beneficiaries, duplicate payments, property registered incorrectly in the name of fictitious beneficiaries) • Non-compliance with laws and regulations (section 38(1)(a)(i) of the PFMA (Adequacy of policies and procedures, database of beneficiaries receiving grant funding and adequate monitoring to detect fictitious beneficiaries) • Recommendations • Improvement of internal controls to prevent and detect irregularities, • Extension of investigations to other LRAD projects (Department indicated intention of the services by the SIU), • Finalisation of investigations currently in progress (32 investigations ongoing at 31 July 2010) • Updating the fraud risk register and fraud prevention plan as required in terms of the TR 3.2.1
Highlights on the non-financial performance of DRD&LR cont … • Lack of effective, efficient and transparent system and internal controls regarding performance management which does not describe how the processes of performance planning, monitoring, measurement, review and reporting will be conducted, organised and managed, as required in terms of section 38(1)(a)(i) and (b) of the PFMA. • Performance indicators and targets do not always comply with the SMART principles (specific, measurable, attainable, realistic and time-bound). Findings for Programme 4 and 5 (Targets were not Specific and Measurable) • Reported targets for Programme 5 not reliable – Lack of suppourting documentation • Leadership – No oversight on reporting and controls relating to pre-determined objectives / Implementation of prior year audit recommendations (Repetition of audit findings). • Based on the phased in approach to the audit of predetermined objectives, an audit opinion was not expressed in the audit report on the report on predetermined objectives during the 2009/10 financial period.
Summary of financial information for DRD&LR – PFMA Section 32
