Upload
satin
View
47
Download
0
Tags:
Embed Size (px)
DESCRIPTION
BRIEFING TO SCOPA. INTERGRATING THE WORK OF OAG TO THE SCHEDULE OF SCOPA. National Treasury: Republic of South Africa 22 March 2006. Contents. Purpose & Mission Stakeholders Functions & Powers Structure & specific functions Role of Scopa Conclusion. Purpose of the OAG. - PowerPoint PPT Presentation
Citation preview
INTERGRATING THE WORK OF OAG TO THE SCHEDULE OF SCOPA
National Treasury: Republic of South Africa22 March 2006
BRIEFING TO SCOPA
Contents
• Purpose & Mission
• Stakeholders
• Functions & Powers
• Structure & specific functions
• Role of Scopa
• Conclusion
Purpose of the OAG
• ACCOUNTABILITY THROUGH TRANSPARENCY
• To achieve accountability by promoting To achieve accountability by promoting
transparency and effective management in transparency and effective management in
respect of revenue, expenditure, assets and respect of revenue, expenditure, assets and
liabilities in SA public sector.liabilities in SA public sector.
• Contribute to the enhancement of service delivery Contribute to the enhancement of service delivery
capability of govtcapability of govt
OAG Mission StatementTo provide Financial Management information and provide regulatory services to empower oversight bodies to ensure public transparency through accountability.
To empower team members to become the leading knowledge repository in best practice risk management, internal audit, financial reporting and accounting services across the South African Public Sector.
To provide a learning environment with fair and non-discriminatory practices, thereby becoming the employer of choice for finance professionals.
To strive for clean audit reports in public sector.
OAG
Nat & ProvDepartments
Training institutions
Local Govt & SALGA
Auditor- General
Parliament &Its committees Public Entities
ConstitutionalInstitutions
Global stakeholders
Standard setters &Professional bodies
Stakeholders in brief
STAKEHOLDERS (2)STAKEHOLDERS (2)
Central Government 6 depts and 7 public entities
Financial and Admin Services 7 depts and 20 public entities
Social Services 7 depts and 85 public entities
Justice and Protection Services 5 depts and 11 public entities
Economic Services and Infrastructure 9 depts and 90 public entities
Provincial Governments Avg. 10 depts and on average 8 PE per Province
Local Governments – 284 municipalities
Functions and powers of NT (1) Promote Government’s Fiscal Policy Framework
Coordinate Intergovernmental Financial and Fiscal Relations
Manage the Budget Process
Control the Implementation of the Annual Nation Budget
Facilitate Implementation of the Division of Revenue Act
Monitor Implementation of Provincial Budgets
Promote and Enforce effective management i.r.o. revenue,
expenditure, assets and liabilities
Prescribe uniform Treasury Norms and Standards
Enforce the PFMA and any prescribed norms &
standards (GRAP & SCOA) in National Departments
Monitor and assess implementation of PFMA in
provincial departments and public entities
Functions and powers of NT (2)
Assist Departments in building capacity for efficient,
effective and transparent financial management
Investigate any system of financial management and
internal control
Intervene by taking appropriate steps to address a
serious or persistent material breach of the PFMA
May do anything that is necessary to fulfill its
responsibilities
Functions and powers of NT (3)
Prescribe uniform Treasury Norms and Standards
Issuing of Treasury Regulations
Audit coms, internal audit and internal controls (CH 3 of TR) Revenue and expenditure management (part 4 of TR) Asset Management (Chapter 10 of TR) Management of debtors (Chapter 11 of TR) Money & property held in trust (Chapter 14 of TR) Banking, cash management and investment (Chapter 15 of
TR) Accounting and reporting requirements (part 7 of TR) Government payroll deductions (chapter 23 of TR) OtherIssuing of Treasury Instructions (Practice Notes)Issuing of Frameworks
Enforce the PFMA and prescripts
Ensure that Departments meet reporting requirements
Ensure that financial statements are compiled in
accordance with standards set for purposes of compiling
consolidated statements
Conduct regular surveys on compliance with PFMA and
Treasury Regulations (appointment of CFO, effective
internal audit units, etc)
Follow-up on issues in audit reports regarding internal
controls, accounting, reporting and asset management
Assist in capacity building
Issued best practice guidelines (internal controls)
Prepare guidelines concerning standards for GRAP
Facilitate knowledge sharing
Facilitate & Provide training on relevant topics IT systems, GRAP, IA & RM function
Training strategy for development of FM, IA & RM staff
Investigate any system of FM & IC
Conduct investigations regarding the effectiveness of internal
audit functions
Regular visits to departments to determine whether internal
control and financial management systems are effective
Commission investigations regarding revenue and
expenditure management systems
Request support from Auditor-General to conduct
investigations regarding Internal Control Systems
Interventions where PFMA is breached
Report to Cabinet on the extent of failure by an
institution and stating steps to rectify
Ensure that accounting officer initiate disciplinary
proceedings against officials
Ensure that executive authority initiate
appropriate disciplinary proceedings against
accounting officers
Structure of the OAG
• 4 Chief Directorates
– Internal Audit
– Risk Management
– National Accounts
– Accounting Services
Functions: Internal Audit • Develop internal audit policy framework
• Assist departments with internal audit capacity building
• Provide support and guidance on internal audit practices
• Influence the state of governance through participating on oversight and governance structures
• Review and report on status of internal audit and audit committees in govt.
Functions: Risk Management
• Develop uniform risk management policy framework
• Provide support and guidance on development of risk management strategies and policies
• Assist departments build capacity and attain operational excellence in risk management.
• Influence the state of governance through participating on oversight and governance structures
• Evaluate the state of risk management in government and report to various stakeholders
Functions: National Accounts
• Train stakeholders on reporting format for financial and
non-financial information
• Consolidate government’s annual financial information
• Manage National Revenue and RDP Funds
• Provide support and guidance on financial reporting
• Assist in capacity building in departments
• Support the implementation of new policies
Functions: Accounting Services
• Develop broad accounting policies
• Investigate the appropriate reporting basis for govt
• Prescribe the reporting frameworks annually
• Spearhead financial management reforms
• Facilitate discussions on accounting standards in govt
• Facilitate implementation of the GRAP standards
• Advise on the implementation of GRAP standards
OAG Challenges
• Capacity within OAG to respond to demand
• Staff retention
• Capacity of stakeholders
• Accessibility of critical & strategic stakeholders
• Sufficient buy-in
• Skills availability
• Information systems
• Strengthening governance & oversight
Mitigating strategies
• Recruitment
• Internship, TOPP and talent pool
• Marketing of OAG services
• Strengthen stakeholder relationships
• Continued professional development/education
• Knowledge-sharing initiatives
• Participate in the IFMS project
• Formalise OAG link to SCOPA & PCs
Governance StructuresLegislative Authority Executive Authority Judicial Authority
President Deputy President Ministers National Council of Provinces
(90 Delegates) Deputy Ministers
Constitutional CourtSupreme Court of AppealHigh CourtsMagistrates’ Courts
Judicial Service Commission
National Level
Provincial Level
Local Level
Provincial Government
Provincial Legislature
Premier Members of Executive Council
Executive Council
Executive Authority
Legislative Authority
6 Metro’s 39 District Councils 239 Municipalities
National Assembly (350 – 400 Members)
Parliament Cabinet
Role of SCOPACommittee should continue to fulfill its important role of
“Protector of the Public Purse”Consider Annual Reports focusing on:• Issues raised in reports of the
Auditor-General/External Audits• Interrogation and evaluation of instances of
unauthorised expenditure• Pronounce on unauthorised expenditure timeously• Interrogation of instances relating to Irregular and
Fruitless and Wasteful Expenditure
Role of SCOPA (2)
• Risk Management, Financial management, Internal Control (Including Internal Audit) and Personnel Management Systems
• Supply Chain Management (particularly large tenders and PPP deals)
• Disposal of significant assets and major financial or related losses suffered
• Corporate Governance issues within Departments and Entities
• Consolidated Financial Statements of Government
Role of the Portfolio CommitteesPortfolio Committees should consider Annual Reports focusing on: • Technical quality of Annual Reports produced by
Departments and Entities• Actual performance (non financial ) against targets
specified in Budgets and Strategic Plans• Quality of performance information as highlighted by
an audit of performance information• The Economy, Efficiency and Effectiveness on
Service Delivery• Impact of under- or over-expenditure on Service
Delivery
Link Between PCs and SCOPA
• Oversight process should give a complete picture of entities performance
• Committees of Parliament should not work in silos
• SCOPA should bring key issues to the attention of Portfolio Committees
• Portfolio Committees should share info with SCOPA
• Primary linkage should run from Portfolio Committee to SCOPA
Proposed interface• Regular (Quarterly?) meeting between SCOPA and
National Treasury• Participate in Oversight Hearings and Supply
Information (Reporting requirements, Accounting Policies, etc)
• Respond to SCOPA Resolutions of a general nature regarding financial management (AG recommendations)
• Submission of Quarterly Consolidated Internal Audit Reports (Including Risks Identified)
Proposed interface (2)
• Reports on Unauthorised Expenditure– Approval/Non approval– Additional Funding/Available Funds
• Interaction with SCOPA regarding Consolidated Financial Statements
• Review & prioritisation of audit issues
THANK YOU