Accounting Standards Board Annual Report 2006

1. Accounting Standards BoardAnnual Report 2006

2. Contents • Progress on standard setting • Relationship with Accountant-General & Auditor-General • Corporate Governance • Compliance with duties ito PFMA • Reporting on Performance • Underutilisation of grant • Work programme • Work accomplished

3. Progress on standard setting • Framework • 3 Standards of GRAP and 8 Standards of GAMAP approved by Minister • 8 Standards submitted to Minister for approval • 3 Standards ready for submission to Minister for approval • 4 International exposure drafts undergoing concurrent exposure • 6 Local exposure drafts issued for comment • 3 Discussion papers issued for comment

4. Relationship with Accountant-General & Auditor-General • Accountant-General responsible for implementation • Auditor-General responsible for assessment of compliance • Accounting Standards Board responsible for setting standards • Regular trilateral meetings • Capacity to implement • Common approach to implementation issues • Setting priorities

5. Corporate Governance • Share audit committee and internal audit function with National Treasury • Internal controls appropriate to size of organisation

6. Compliance with duties ito. PFMA • Exercised due & utmost care to protect assets & records • Acted with fidelity, honesty, integrity & in best interest of ASB • No disclosures were needed to executive authority • Prevented any prejudice to financial interests of the state

7. Compliance with Duties ito PFMA • Complied with responsibilities ito PFMA • Did not obtain any personal gain or improper benefit • Disclosed all interests • There were no conflicts of interest • Maintained appropriate financial, risk management and internal controls • Audit committee & internal audit functioned effectively

8. Compliance with Duties ito PFMA • Appropriate procurement & provisioning system was maintained • No irregular expenditure • No fruitless & wasteful expenditure • No losses from criminal conduct • All expenditure complied with operation policies • Working capital was managed efficiently & economically

9. Compliance with Duties ito PFMA • Did manage & safeguard assets • Complied with legislation re taxes, levies, pension & audit commitments • No disciplinary steps were required against employees • Submitted all reports, returns, notices & other info required • Complied with legislation

10. Compliance with Duties ito PFMA • Prepared & submitted budget ito PFMA • Budget was approved • Did not budget for a deficit • Maintained expenditure control • Submitted financials in accordance with timetable • Complied with all delegations • Used all resources to effectively, efficiently & economically

11. Performance Reporting

12. Performance Reporting

13. Performance Reporting

14. Performance Reporting

15. Performance Reporting

16. UNDEREXPENDITURE

17. Explanation of material variances • 3 vacancies on board & 1 vacancy on management committee exist - under-expenditure on costs of local meeting expenses, meetings with stakeholders & project group expenses. • One of 3 IPSASB meetings was hosted by South Africa, resulting in a saving in travel expenses. 2 board members attended, while we budgeted for greater attendance. • Attended 1 regional meeting where the World Bank paid the accommodation. • Remuneration partly based on incentives. • Budgeted for an executive development programme, but due to time constraints, the CEO did not attend such a programme.