Oversight Responsibility in the Public Sector Presented by: Erna Swart

1. Oversight Responsibility in the Public SectorPresented by: Erna Swart

2. Disclaimer The views and opinions expressed in this presentation are those of the individual. Official positions of the ASB on accounting matters are determined only after extensive due process and deliberation.

3. Improving public accountability • ASB established to address Constitutional requirement for public accountability • Financial statements play a key role in providing information to: • assess entities’ stewardship over resources provided; and • hold government accountable for REAL

4. Consistent and comparable information • Critical that information in financial statements is relevant, credible and consistent across entities • Accounting standards ensure that information reported in financial statements: • is comparable between different entities; • and enhances accountability and decisionmaking

5. What is the ASB’s role in the public sector?

6. Role and function of ASB • Set Standards of GRAP as required by legislation to: • Prescribe a single set of principles to report consistently across entities; • Facilitate decision-making and accountability by a defined group of users • Standard setting process must be transparent

7. Our relationship with other stakeholders Approve effective dates for Standards of GRAP Minister of Finance 2 Responsible for implementation of the Standards of GRAP set by the Board Audit against Standards of GRAP set by the Board National Treasury 3 Auditor-General 4 ASB Representation on Board & Trilateral Representation on Board & Trilateral Set Standards of GRAP 1

8. Setting Standards to meet information needs of users When ASB develops Standards it considers what information a defined group of users will need to exercise accountability and decision-making Users includes resource providers, recipients of government’s services, and their respective representatives

9. Setting Standards to meet information needs of users • In setting Standards ASB considers • Best practices • Capacity of relevant institutions • Amendments to IPSASs • Fundamental issues • Simplification • Alternative treatments • Statutory authority

10. Phase I - Research and develop proposed Standard Secretariat Phase VIII – Application & implementation (ASB: accounting forum, FAQs, review and amendment (improvements project) Secretariat Phase II – Focused stakeholder consultation and amendments to proposed Standard Project groups (technical experts & subject experts A transparent due process Phase VII – Consult on effective date Propose effective date Develop transitional provisions Phase III – Approve Exposure Draft Trilateral parties Board - AGSA and OAG represented Board - AGSA and OAG represented Phase IV – Public consultation Project groups (technical experts & subject experts Phase VI – Approval of Standard Workshops (treasuries, professional bodies, PAGs, CFO Forums) roundtables Phase V – Focused consultation on comments and amend Standard

11. Standards developed to date • Improving public accountability through development of: • 36 Standards of GRAP • 17 Interpretations of Standards of GRAP • 1 Guideline (will be replaced by GRAP 32) • 9 Directives

12. Other projects • Bi-annual Improvements project • Annual update of GRAP Reporting Framework • Post-implementation of GRAP 16 and GRAP 17 • Think piece on materiality

13. Contact details Tel: (011) 697-0660 Fax: (011) 697-0666 Website: www.asb.co.za Email: info@asb.co.za