2017 PUBLIC ENTITIES AFS SUBMISSION PROCESS AND …. Annual... · 2017 PUBLIC ENTITIES AFS SUBMISSION PROCESS AND TEMPLATE UPDATE NATIONAL TREASURY | 07 March 2017. 2017 ENTITIES

2017 PUBLIC ENTITIES AFS SUBMISSION PROCESS AND TEMPLATE UPDATE

NATIONAL TREASURY

| 07 March 2017

2017 ENTITIES AFS SUBMISSION PROCESS

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1. GROUP INSTRUCTIONS FOR 2017

• NT annually issues GRAP AFS template

• Template to be completed for period 1 April 2016 – 31 March 2017

• Current Year AFS Template is based on the 2016 template but with minor updates

• Templates will be issued out of RollupSheets (Consolidation tool) and pre-populated with entity name + code


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1. GROUP INSTRUCTIONS FOR 2017(Cont)

• Templates will be emailed to each individual entity separately

• Please Note: Template will NOT be published on OAG website for download

• All entities as listed in the updated PFMA Listing will be required to complete this template & submit as per the PFMA sec 40 requirements


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2. GROUP INSTRUCTIONS - INTER-ENTITY

• GRAP requirement (GRAP 6.41)

• All inter-entity transactions and balances within the group need to be eliminated on consolidation.

• Transactions and balances with those entities on the entities list in the inter-entity worksheet to be recorded.

• Each entity will be required to complete the inter-entity worksheet in this regard for both current year 2016/17 amounts and prior year 2015/16 amounts.


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2. GROUP INSTRUCTIONS - INTER-ENTITY (Cont)

• Entities should ensure that they have no differences between each other to allow for accurate elimination and may share their amounts with other entities to achieve this.

• The worksheet to be used is included in the AFS template

• Amounts captured on both INTER-ENTITY worksheets must be tested by the entities’ external auditors as part of their audit of the AFS template.


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2. GROUP INSTRUCTIONS – INTER ENTITY (Cont)

2016 Finding "The transactions and balances identified by entities transacting with each other did not match up and indicated material discrepancies . These discrepancies impact the statement of financial performance with R29,6 billion and the statement of financial position with R87 billion ”.

• Share your information with other entities, follow up on discrepancies.

• Ensure validity, completeness and accuracy.

• Confirmation of inter-entity balances and transactions


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3. GROUP INSTRUCTIONS - CONVERSION JOURNALS

• GRAP requirement (GRAP 6.45)

• Uniform policies for like transactions & similar events

• NT adopted GRAP compliant acc policies(as posted)

• Aligns entity’s own policies to NT Group Acc Policies


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Entities using GRAP

• Identify difference in accounting policy > adj journal entry

• Journal per line items in the SCOA

• If final AFS figures change > update your journal entries

• NT will pass journals on final consolidation

• Do not process on your AFS template, only in conversion worksheet


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Entities using IFRS or SA GAAP

• Sch 2 & 3B GBE’s to identify differences in accounting policy > adj journal entry

• Journal per line items in the SCOA

• If final AFS figures change > update your journal entries

• NT will pass journals on final consolidation

• Do not process on your AFS template, only in conversion worksheet


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Entities with different financial y/e using IFRS/SA GAAP

• Waterboards with June year end

• Further additional requirements to be separately communicated

• Consultation with AG and other external auditors

Note: JE’s on Conversion Worksheet must also be tested by external auditors


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4. UNCORRECTED MISSTATEMENTS

• Adjust for all audit misstatements, including immaterial misstatements

• Prior to sign off of the audit report on the annual financial statements.

• Unadjusted errors – document in the Uncorrected Misstatements worksheet.

• These unadjusted errors are NOT to be adjusted in the AFS template


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5. ANNEXURE 7

• Purpose: Used for remuneration research purposes.

• Capture the current year remuneration of executive and non-executive management.

• Included in AFS, not separate doc

• Not part of the AFS template and is not subject to external audit


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6. EXTERNAL AUDIT SIGN-OFF TEMPLATE (Annexure C)

• Similar to 2016, AGSA and other firms aware

• Purpose : Testing whether AFS template agrees to audited AFS

• Testing inter-entity and testing conversion journals

• Confirming unadjusted audit differences (misstatements)

• Do not need full audit opinion for consol purposes

• Sign-off submitted to management of entity

• Final document will be issued by end of March 2017


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7. TIMELINES AND SUBMISSIONS – 31 MAY 2017

No. Document name Hard Copy Soft Copy (Electronic

on CD) Due Date

1. GRAP AFS Template

Printout of the following:

Cover Sheet (signed)

Statement of Financial Position

Statement of Financial Performance

Statement of Cash Flows

Statement of Changes in Net

Assets

MS Excel 31 May 2017

2. Inter-entity template Printout signed by management MS Excel (Part of AFS

Template)

31 May 2017

3. Conversion journals Printout signed by management MS Excel (Part of AFS

Template)

31 May 2017

5.

Annexure 7 - Remuneration of

executive and non-executive

management

Printout signed by management MS Excel (Part of AFS

Template)

31 May 2017

5.

Certified normal AFS submitted

for external audit

Printout of complete document signed by

management MS Excel or PDF

31 May 2017


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7. TIMELINES AND SUBMISSIONS - 31 JULY 2017

No. Document name Hard Copy Soft Copy

(Electronic on CD) Due Date

1. FINAL AFS Template

Printout of the following:

Cover Sheet (signed)

Statement of Financial Position

Statement of Financial Performance


Statement of Changes in Net

Assets

MS Excel (entire

document) 31 July 2017

2. FINAL Inter-entity template Printout signed by management MS Excel (Part of AFS

Template)

31 July 2017

3. FINAL Conversion journals Printout signed by management

MS Excel (Part of AFS

Template) 31 July 2017

4. FINAL Uncorrected

Misstatements Printout signed by management

MS Excel (Part of AFS

Template) 31 July 2017

5. FINAL normal Audited annual

financial statements

Printout of complete document signed by

management MS Excel preferably 31 July 2017

6. Annexure C – External Audit

signoff on AFS Template Copy of signed original

Scanned document

(PDF) 31 July 2017

7.

External auditor’s audit report

on normal annual financial

statements

Copy of signed original Scanned document

(PDF) 31 July 2017


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8. WAY FORWARD

• Test the draft 2017 template

• Email any errors / issues you identify during the testing

process

• Email any suggestions for improvements on the template

or places we can add a check or verification.

• Email new entities or delisted entities to NT

• Please send all the above information by Friday 17

March 2016 to [email protected]

• NT to test the template again, run it by AGSA, finalise and

issue to entities by end March 2017.

THANK YOU………..QUESTIONS

2017 AFS TEMPLATE UPDATE

2017 AFS Template Update

Before you start working on your template know the following:

1. Must read the instructions

2. Do things in the right order

3. Workbook and worksheets are locked

4. Do not delete rows or columns or highlight cells

5. Fill in as much information as possible in the input cells

6. Remember to save your work

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2017 AFS Template(Summary of changes) (1)

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• Cover page – drop down for selection of AGSA or other firm.

Linked to inter-entity sheet to highlight payments to AGSA

• Checklist – summary of checks relating to additional notes added

• Cash Flow Statement – minor formatting and formula changes

• Cash Flow Statement – additional rows inserted for purchases and

proceeds for assets under CF from investing activities

• Note 2: Recon doubtful debt provision _ formula in cell D87 inserted to

ensure closing balance is carried forward as opening balance


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Notes 67 & 68: Irregular and Fruitless&Wasteful Exp updates

• “Prior period error” and “As restated” rows inserted to restate the

misstated Opening Bal.

• Added, “Add: Irregular Expenditure and Fruitless and Wasteful

Expenditure – prior year” in the notes

• Added more wording like “add/less” for guidance how to complete

the note

• Updated closing balance formulas for current and prior years

• New Note 70: Operational commitments inserted

• New categories inserted in not 72 and 73

• Formulas inserted on Note 76.1 for financial assets carried

at amortised cost

• Updated the impairment loss/reversal column in Notes 33-38

aligning it to the wording in the PER and Note 58

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Inter-entity worksheet

• Auditor-General of South Africa, row 16 below will be highlighted green if you are audited by AGSA (cover page)

• Includes prior period to have accurate comparatives

• Recommendation - implement a system to track transactions and balances

• Make use of supplier database / customer database

• Amounts captured must be tested by external auditors

2017 AFS Template Update – Instruction Sheet

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Hyperlinks available

to assist entities to

navigate easier from

the instruction sheet

to the relevant

pages of the

template.

2017 AFS Template Update – Cover Page

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FINANCIAL YEAR-END: 2016

ENTITY NAME:

ENTITY CODE:

GROUPING

POSITION NAME EMAIL TELEPHONE

CFO

Financial Manager

Accountant

Other

Other

EXTERNAL AUDITOR (Select other if n/a)

FIRM / PRACTICE NAME

POSITION NAME EMAIL TELEPHONE

Senior Manager

Audit Manager

Other

Other

NATIONAL TREASURY PUBLIC ENTITY CONSOLIDATION TEMPLATE

PUBLIC ENTITY CONTACT DETAILS

EXTERNAL AUDITORS CONTACT DETAILS

SUBMISSION SIGN-OFF

TEST TEMPLATE

EN001

NATIONAL

Auditor-General of South Africa

AGSA

2017 AFS Template Update – Checklist Page

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Formatting and summary of checks contained in checklist sheet.

NATIONAL TREASURY PUBLIC ENTITY CONSOLIDATION TEMPLATE

TEMPLATE CHECKLIST

TEST TEMPLATE

2 - OTHER REQUIRED WORKSHEETS CHECKLIST EN001

No. Description CURRENT YEAR 2017 PRIOR YEAR 2016

2.1 Check that both inter-entity worksheets have been completed correctly and no

amounts recorded against entities own name No amounts recorded for 2017 No amounts recorded for 2016

2.2 Check that conversion journals worksheet has been completed correctly (if

applicable) and that the journals balance and make sense N/A N/A

2.3 Check that the uncorrected misstatements worksheet has been completed

correctly (if applicable) and that the journals balance and make sense N/A N/A

2.4 Annexure 7 Completed NOT Completed

2.5 Public Entity contact details completed NOT Completed

2.6 External Auditors contact details completed NOT Completed

3 - SUMMARY OF CHECKS IN NOTES EN001

Note. Note Heading CURRENT YEAR 2017 PRIOR YEAR 2016

2 Trade and other receivables from exchange transactions

- Ageing of Trade & Other Receivables from Exchange Transactions (D50 &

E50) - -

- Summary of Debtors by Classification (row 66 & 81) - -

- Reconciliaiton fo the doubtful debt provision (D95 & E95) - -

7 Inventories

- Carrying value of inventory (D137 & E137) - -

2017 AFS Template Update – Mapping

Sheet MAPPING

DESCRIPTIONS

Not changed from last year

INCOME

Debit amounts as positive

Credit amounts as

negative

EXPENSE

Debit amounts as positive,

Credit amounts as

negative

Capture amounts to the

nearest cent (no rounding)

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2017 AFS Template Update - Mapping

Sheet Income & Expenditure Mapping

MAPPING

DESCRIPTIONS


CURRENT ASSETS


Credit amounts as negative

NON-CURRENT ASSETS




nearest cent (no rounding

to nearest rand)

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2017 AFS Template Update – Mapping Sheet

MAPPING

DESCRIPTIONS


CURRENT LIABILITIES



NON-CURRENT

LIABILITIES


Credit amounts as negative,


nearest cent (no rounding to

nearest rand)

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2017 AFS Template Update – Mapping Sheet

Mapping

Net Assets to the

Statement of Financial

Position

Mapping descriptions -

Not changed from last

year


nearest cent (no rounding

to nearest rand)

Debits entered as positive

Credits entered as

negative

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2017 AFS Template Update - SCOA

“Totals” table at the top of

SCOA page should

balance to Rnil after

mapping

Incorrect mapping MUST

be fixed where SCOA

does not balance

Cannot edit or change

anything on SCOA, only

on TB mapping

Cannot capture journals

entries on SCOA page,

only on Adjusting Journals

page

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Populated by SCOA and

Notes

Net Assets

• Accumulated Surplus

/(Deficit) – Populated

from Statement of

Changes in Net Assets

• All other equity items –

Populated from SCOA

No editing is possible

Financial Position Balance

check on the CHECKLIST

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Populated by SCOA and

Notes

Entities with minority

interest –

capture amounts in the

green space row 66 in

line with entities own

AFS.

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TEST TEMPLATE

STATEMENT OF FINANCIAL PERFORMANCE

FOR THE YEAR ENDED 31 MARCH 2017

TOTAL EXPENSES - -

OTHER GAINS / (LOSSES) - -

Gain / (Loss) on sale of assets 57 - -

Impairment (Loss) / Reversal of impairment loss 58 - -

Gain / (Loss) on fair value adjustment 59 - -

Gain / (Loss) on revaluation of assets 60 - -

Gain / (Loss) on sale of shares - -

Inventories: Reversal of write-down to net realisable value - -

Inventories: Write-down to net realisable value - -

Share of surplus/ (deficit) of joint venture using equity method 18 - -

Share of surplus/ (deficit) of associate 19 - -

CONTINUING OPERATIONS SURPLUS/ (DEFICIT) BEFORE TAX - -

TAXATION 61 - -

CONTINUING OPERATIONS SURPLUS/ (DEFICIT) AFTER TAX - -

DISCONTINUED OPERATIONS SURPLUS/ (DEFICIT) AFTER TAX 62 - -

TOTAL SURPLUS / (DEFICIT) FOR THE PERIOD NET OF TAX - -

SURPLUS / (DEFICIT) FOR THE PERIOD NET OF TAX - -

Attributable to:

Owners of the controlling entity - -

Minority interest


Not populated by SCOA

Entities must capture

amounts (rounded to

R'000) in the green

spaces in line with the

Statement of Changes

in Net Assets from own

AFS.

Surplus/(Deficit) for year

is pulled from SOFP

Total of net assets

should agree to SCOA

(Net Assets + I&E) and

Statement of Financial

Position(Net Assets)

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Not populated by SCOA.

Entities must capture

amounts (rounded to

R'000) in the green

spaces in line with the


from own AFS.

Note 63 is your Net Cash

Flows from operating

activities note – complete

this first

Cash Flow Balance check

on the CHECKLIST

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• Everything populated from SCOA and light green cells manual input

• Complete all relevant light green highlight areas

(Capture amounts to nearest thousand)

• Check that sub-notes agree to main notes, check that note agrees to POS, PER, CFS or NA

• Mapping sheets – remain exactly the same, entities can copy & paste last year’s figures and descriptions and will work fine

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COMPLETION OF NOTES:

• Note the order of notes, these have remained the same as prior year:

– Notes A = financial position notes

– Notes B = Asset notes (33 – 38)

– Notes C = all financial performance notes

– Notes D = all non-financial statements notes

– Notes E = financial instruments notes


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INTER-ENTITY FOR CURRENT AND PRIOR YEAR


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CONVERSION JOURNALS FOR CURRENT AND PRIOR YEAR


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UNCORRECTED MISSTATEMENTS

RECOMMENDATIONS

• Go through instructions before attempting the template

• Follow the correct procedures when completing the template

• Ensure the template is accurate and complete

• Make sure the SCOA balances

• Include as much information as possible

• Communicate any changes to the template with NT and

equally importantly with the external auditors

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OAG Support

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Name of OAG representative within NT Province Cluster

Star Kafu

Telephone: 012 315 5794

Email: [email protected]

KZN & NW Justice

John Watson

Telephone: 012 315-5590


NC & FS Economic Services

Keitumetse Malebye

Telephone: 012 315 5989/5281


EC & MP Finance & Admin

Thokozile Motsweni

Telephone : 012 315 5233

[email protected]

WC Central Government

Thomas Matjeni/Nthua Motlhala

Telephone : 012 315 5792

[email protected]

GP

Social Services

mailto:[email protected]



































THANK YOU………..QUESTIONS

Documents

2017 PUBLIC ENTITIES AFS SUBMISSION PROCESS AND …. Annual... · 2017 PUBLIC ENTITIES AFS SUBMISSION PROCESS AND TEMPLATE UPDATE NATIONAL TREASURY | 07 March 2017. 2017 ENTITIES