Chief Financial Officer

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DAC
ANNUAL REPORT 2005/06
DAC DAC DAC DAC DAC
24 October 2006

• Chief Financial Officer

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PROGRAMME PERFORMANCE
Programme Main Appropriation R000 Adjusted Appropriation R000 Actual Amount Spend R000 Over/Under Expenditure R000
1. Administration 51,699 71,558 71,548 10
2. Arts and Culture Society 197,944 194,894 194,716 178
3. National Language Service 67,757 58,870 58,549 21
4. Cultural Development and International Development 165,995 159,843 159,763 80
5. Heritage Promotion 526,564 548,595 536.893 11,702
6. National Archives, Records, Meta- Information and Heraldic Services 72,740 75,184 75,180 4
Total 1,082,699 1,108,944 1,096,949 11,995
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PROGRAMME PERFORMANCE (Continue)
The surplus relates to 1,08 of actual
expenditure against the voted funds for the
2005/2006 financial year. The majority of this
underspending is due to ongoing capital works
projects linked to the Public Entities.
(R10,493,363.42).
The details of the surplus are as
follows R000 Current expenditure
296 Capital Works projects in process
10,493 Transfer payments Khoi San
Project 1,171 Ad hoc transfer -
second payments 35 Total
11,995
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ACTUAL EXPENDITURE
Department of Arts and Culture
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ACTUAL EXPENDITURE PER PROGRAMME
4
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ACTUAL EXPENDITURE PER PROGRAMME
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REPORT OF THE AUDITOR GENERAL

• Unqualified Audit Report.
• Emphasis of Matter
• 1. Inadequate asset management
• - Asset descriptions/barcodes were
  incorrectly
• recorded in the asset register
• - Asset locations in the asset register is
• incomplete/inaccurate
• - Research expenditure, professional fees
  and storage
• costs are captured in the asset register
• - Assets physically identified cannot be
  located on the
• asset register.

Department of Arts and Culture
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REPORT OF THE AUDITOR GENERAL (Continue)
2. Supply chain management (SCM) - The
required number of quotations were not always
obtained - Irregular expenditure of
R3,351,308 which is disclosed in note 21
to the annual financial statements was
incurred as no formal agreement exist between
DAC and the service provider and no proper
procurement process was followed -
Evidence pertaining to monitoring and evaluating
of contracts, which is a pre-requisite
for approval of payment, could not be
submitted for audit purposes.
Department of Arts and Culture
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REPORT OF THE AUDITOR GENERAL (Continue)
3. Validity of non-financial performance
information could not be verified -
The department does not have a proper policy and
procedure framework to manage the
process to finalise their performance
information as it was not submitted for
audit purposes. (No quarterly reports
for the period ended 31 December 2005 and 31
March 2006 could not be submitted for
audit purposes).
Department of Arts and Culture
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