Committee Business and Planning

- The Committee requested the Secretariat and the Auditor-General's Office to compile a report on a number of executive replies received and a number of those not yet tabled.
- It was further agreed that a formal reminder letter be submitted to Madame Speaker concerning the late tabling of Executive replies.
- Members were further reminded to submit themes/topics that they want to be discussed at the hearing with the Auditor-General and the Director-General of the National Treasury on 25 August 2004.
- Members were also requested to submit input with regard to the budget of the Committee. The structure of the budget will be finalised at the next plenary.

Ms L Mabe (ANC) asked for clarity on how the Business Plan would be developed.

The Chairperson replied that in the next two weeks there would be a draft business plan based on the old one but also if there were any specific items that members would like to include they must indicate to the secretariat. The Committee would comprehensively debate on that at a preliminary level.

- It was reported that a letter from the Accounting Standard Board regarding the nomination of Mr. Vincent Smith as a member was received.

Mr E Trent(DA) raised the issue of the nomination of Mr V Smith on the Accounting Standard Board

The Chair replied that he had received a letter which acknowledged the procedures followed and confirming nomination of Mr Smith and that a shortlist of candidates would be submitted to the Minister of Finance who was likely to make appointments in November. It is then that the Committee would be informed of any successful appointments.

Report-back by Work-Groups
Group 1
Mr P Gerber (Cluster convenor ) made a report- back on the resolutions approved by their group which would be tabled for adoption at the next plenary meeting:

Insurance Sector Education and Training Authority (INSETA), Banking Sector Education and Training Authority (Bank-SETA), Chemical Industries Education and Training Authority (CHIETA), Corporation for Public Deposits, Clothing, Textile, Footwear, and Leather Sector Education and Training Authority (CFTL-SETA), Accounting Standards Board, Bala Farms, Construction Education and Training Authority (CETA), Council for Geoscience, Diplomacy, Intelligence, Defence and Trade Education and Training Authority (DIDTETA), Energy Sector Education and Training Authority (ESETA), Education, Training and Development Practices Sector Education Training Authority (ETDP-SETA).and Media, Advertising, Printing, Packaging and Publishing Sector Education and Training Authority (MAPPP-SETA).

He indicated that other SETAs resolutions would be finalised next week and the Group would also, during that meeting consider reports on Public Works, Department of Trade and Industry and Foreign Affairs.

The Group proposed that they commission a researcher to conduct a survey of all SETAs based on concerns arising from SCOPA's review of the annual reports of SETAs during the past two years. Areas of concern for SCOPA included:
- Salaries and allowances
- Accommodation costs per square metre
- Administration costs
- Unspent funds (including investment of unspent funds, return on investments and risks and investment portfolios)
- Governance issues which includes compliance with PFMA requirements and King II principles
- Issuing of certificates

Mr Gerber continued that the reference and information sources for this could be the replies to SCOPA questionnaires, previous SCOPA resolutions, the Annual Report of all SETAs for 2002/3 and 2003/4, Portfolio Committee reports on SETAs, skill capacity of the Board members and operational objectives.

The Committee agreed in principle to the proposal.

The Group further proposed the Committee should consider rotating the Committee Researcher between the two Groups.

Group 2:
Ms L Mabe (ANC) reported that the Group had categorized the report as follows:
Special Investigating Unit - Preliminary Category B. The Goup would send questions to the Unit.

Public Protector - The report is classified as Category B. The Group had raised concerns over staff contracts and bonuses for public officials.

The Legal Aid Board was classified as Category C. The Group were concerned about the reoccurrence of fraudulent claims and the manner in which re-adjustments are reflected in financial statements.

The National Prosecuting Authority report was categorised as B. The Group would send questions to the Accounting Officer.

Local Government and the Municipal Demarcation Board would be classified as Category A and so the Group proposed a hearing on this report.

Education was under Category B and the concerns were unauthorized expenditure on conditional grants and non-compliance with the DORA (Division of Revenue Act).

Arts and Culture was under Category B and the concerns were that the Department did not have the internal audit committee, lack of support documentation, lack of inspections, incomplete asset register.

Public Service was under Category C.

Parliament is categorized as A. The concerns are: internal control, fixed asset register, auditing of R4,1 m on Parliamentary Association, stock control on gift shop, financial management legislation for Parliament and travel vouchers.

Ms Mabe referred to the unauthorized expenditure of Parliament which had an over-expenditure of 18,4 million due to travel voucher fraud. The group was concerned that Parliament was not part of the Public Finance Management Act and it gave an impression that they were not accounting in the same way other department accounted. The cluster group was of the view that there was a need for a written letter to Parliament to remind it to account for its actions.

With regard to SAMDI, the cluster group asked for clarity on circumstances that led on the dismissal of a Chief Director and reinstatement as well as on contingency plans they had on leave. They were not satisfied with the replies from SAMDI, as a result it could not recommend to the plenary to authorize the unauthorized expenditure.

Training

The Group proposed that SCOPA should investigate the possibility of members attending accredited financial training. This would enable members to attain formal qualifications (recognition) while serving on SCOPA, and be able to utilize their experience in other sectors. The Committee agreed to the proposal.

Group 2 would, at the next plenary meeting table a written Research proposal on accumulated leave by civil servants.

The following documents were tabled:

• Progress Report on the PFMA.
• Statements of the National Revenue, Expenditure and Borrowing as at 31 January 2004 issued by the Director-General of the National Treasury.
• Progress Report: SAPS.
• Presidency.

Meeting adjourned.

PRESENT

Gerber, Mr. P

Smith, Mr. V

Mashiane, Ms. L

Mabe, Ms. L

Ndou, Mr. S

Trent, Mr. E

Van Dyk, Dr. S

Woods, Dr. G

Wang, Mr. C

Madikiza, Mr. G

Beukman, Mr. F (Chairperson)

Kannemeyer, Mr. B (ANC)

Koornhof, Dr. G (ANC)

Tobias, Ms. T (ANC)

Mr. Botes, C

Ms. Keto, Z