Specialized Audit
specilSpecialised audit services
SECTION 2: SPECIALISED AUDIT SERVICES 2003-04
This section of the report includes information on audits conducted over and above the regularity audits. These include the following: • Forensic audits • Performance audits • Integrated audits • Performance information reviews For an explanation of each type of audit, please refer to my 2003-04 Activity Report. It is important to highlight that some of the forensic and performance audits result in a report to management and are not therefore tabled in Parliament.
2.1
2.1.1
Forensic audits
Forensic audits at provincial government departments and public entities
During the 2003-04 financial year the following forensic audits conducted at a provincial government department and public entity were reported on to Parliament and the Provincial Legislature: Table 6. Forensic audit reports issued 2003-04 Report number RP179/ 2003 Cost R Department/ Entity Focus areas Key findings
410 000 Transnet
The sale of non- • Prices lower than market-related for nonferrous scrap metal were agreed to in the ferrous scrap contract with a company which resulted metal in a loss to Transnet. • Certain calculation and other errors occurred on some invoices issued to the company, resulting in a loss to Transnet. • Certain narrations appeared on Transnet weighbridge certificates that resulted in lesser weights being recorded on invoices issued to the company, also causing a loss of income for Transnet. The appointment • Consultants for various projects at the of consultants department were not appointed in accordance with the Tender Board Regulations. • In various instances no agreements were entered into between the department and the consultants. Therefore, the correctness of payments made to the consultants could not be verified and it could not be determined if both parties met their contractual obligations.
PR 26/ 2004
1 010 000 Northern Cape Department of Transport, Roads and
SECTION 2: SPECIALISED AUDIT SERVICES 2003-04
This section of the report includes information on audits conducted over and above the regularity audits. These include the following: • Forensic audits • Performance audits • Integrated audits • Performance information reviews For an explanation of each type of audit, please refer to my 2003-04 Activity Report. It is important to highlight that some of the forensic and performance audits result in a report to management and are not therefore tabled in Parliament.
2.1
2.1.1
Forensic audits
Forensic audits at provincial government departments and public entities
During the 2003-04 financial year the following forensic audits conducted at a provincial government department and public entity were reported on to Parliament and the Provincial Legislature: Table 6. Forensic audit reports issued 2003-04 Report number RP179/ 2003 Cost R Department/ Entity Focus areas Key findings
410 000 Transnet
The sale of non- • Prices lower than market-related for nonferrous scrap metal were agreed to in the ferrous scrap contract with a company which resulted metal in a loss to Transnet. • Certain calculation and other errors occurred on some invoices issued to the company, resulting in a loss to Transnet. • Certain narrations appeared on Transnet weighbridge certificates that resulted in lesser weights being recorded on invoices issued to the company, also causing a loss of income for Transnet. The appointment • Consultants for various projects at the of consultants department were not appointed in accordance with the Tender Board Regulations. • In various instances no agreements were entered into between the department and the consultants. Therefore, the correctness of payments made to the consultants could not be verified and it could not be determined if both parties met their contractual obligations.
PR 26/ 2004
1 010 000 Northern Cape Department of Transport, Roads and