The Standing Committee on the Auditor-General has today expressed appreciation with the manner in which the Office of the Auditor-General (AG) is conducting its work.
The committee received a performance briefing from the Office of the AG for the 2019/20 financial year and was impressed with the report given. The committee was also pleased to hear from the Office of the AG's audit committee that the overall control environment and risk management processes is satisfactory, which means the system of internal controls at the Office of the AG is adequate and effective to provide reasonable assurance that its business objectives will be met.
The committee also agreed to retain the current external auditors for the Office of the AG to conduct the external audit for the 2019/20 financial year. The committee took this decision after it was assured by the audit committee that Crowe JHB is independent and is not conflicted in any way as required by section 39 (2) of the Public Audit Act.
The committee also discussed the proposal by the audit committee to transfer R4.9 million for the special audit service reserve to the general reserve, that will be utilised to liquidate some of the AG's old debt. The committee was informed that there has not been any movement of any amount into this reserve since the audit committee was created in late 2005. The committee has recommended that background information be supplied to it on the reasons for the existence of the special audit service reserve funds. Such information will assist the committee to make an informed decision in this regard. There was a commitment from the AG to provide the committee with a plan of the utilisation of such funds.