DATE OF PUBLICATION: Friday, 26 February 2010
INTERNAL QUESTION PAPER NO 4 of 2010
Mrs J F Terblanche (DA) to ask the Minister of Home Affairs:
Whether each of the listed aspects under the headings Departmental Revenue, Capital Assets and Payables (details furnished) which lead to the qualified Auditor-General’s report for the 2008-09 financial year were dealt with; if not, why not, in each case; if so, what are the relevant details, in each case?
Yes. Each of the aspects that led to the qualified Auditor-General’s report for the 2008/09 financial year were dealt with, although some might re-appear in the current audit, as the interventions were only implemented towards the third quarter of the financial year (2009/10).
In an attempt to mitigate the risks, associated with the potential repetition of the issues raised, the Department has, firstly, strengthened the governance structures, in terms of financial management in the Department. This includes, adequate representation at the Bid Adjudication Committee (BAC), and the resuscitation of the Departmental Budget Committee, Transport Committee, and the Loss Control Committee.
Furthermore, in order to track progress of the resolution of the issues raised, the Department established a Back to Basic Project, comprising of members of the following Branches, namely, Finance and Supply Chain Management, Human Resources, Information Services, as well as, the following Chief Directorates, namely, Internal Audit and Legal Services. Members of the project meet once a week, and the project is chaired by the Acting Chief Financial Officer to properly address issues which were raised.
As part of the monitoring and evaluation of the progress, in terms of the issues raised, an audit finding action plan monitoring tool has, also, since, been developed. Progress in the resolution of the issues raised, is reported to the Office of the Accountant-General on a monthly basis, and to the Auditor-General, on a weekly basis, to track the progress on the resolution of the issues.
Details in the resolution of the matters raised are, as follows:
1. Departmental Revenue
1.1 Inability to substantiate the accuracy of amounts, and completeness of transactions recorded for revenue collection from enabling supporting documents processed, due to lack of audit trails of application forms processed.
The Department has reviewed the Departmental Revenue System descriptions for core business processes (Civic and Immigration Services) to ensure a proper audit trail with regard to availability of supporting documents for implementation with effect from 1 May 2010;
The Department implemented the Integrated Receipting Engine (IRE) to 100 revenue administering offices which contributes to 80% of local revenue, and have, further, established a revenue support team to ensure compliance with revenue management practices within the 20% remaining offices which, are, still, utilising the manual system of collecting revenue. New cash registers have been procured, and distributed.
A Memorandum of Understanding (MOU) between the Department, and the Department of International Relations and Cooperation (DIRCO) has been signed to address operational arrangements
for transactions administered by DIRCO in Foreign Offices for implementation for the 2010/11 financial year.
1.2 Lack of integrated accounting system for processing immigration fines, and penalties, in terms of Section 50 of the Immigration Act, to facilitate the occurrence, completeness, and accuracy of income from immigration fines and penalties.
A system description for section 50(3), and section 50(1) fines, have been compiled, and cross matched with financial processes. Furthermore, the IRE has been piloted in some of the identified ports of entries to ensure completeness of revenue.
The Department has integrated the Penalty Case System with the Basic Accounting System (BAS) to ensure compliance with revenue management processes, and immigration regulations.
2. Capital Assets
Completeness, and accuracy of the fixed asset register that includes assets not included in the asset register, asset included in the asset register, but not verifiable and unsubstantiated fair value adjustment.
The Department has developed and implemented an asset management system, and, also, reviewed the asset management policy together with a procedure manual. Furthermore, the fair values have been compiled, and submitted to the Auditor-General.
3.1 Clearance of repatriation deposit suspense account, and immigration control account, due to non availability of supporting documents.
The Department has put processes in place to collect documents to support revenue collected. In addition, some immigration forms will be printed in duplicate, or triplicate to ensure proper control, and accountability.