EXECUTIVE SUMMARY/SUBMISSION COVER SHEET
SUBMISSION TO THE STANDING COMMITTEE ON AUDITOR GENERAL

Date of meeting: 16 May 2007

Business Unit Requesting the Submission: Finance.

Title of the Submission: AG Audit tariff 2007/08.

Brief introduction and background
The Auditor General has increased its audit tariffs for the period 2007/08 by 4% from the previous year (refer to annexure A – column 6 and 7). During the last interaction with the committee, the AG explained its approach to audit tariffs determination and responded to IRBA comments as well (Annexure C)

For the purpose of clarity kindly find attached annexures:
Annexure A for 2007/08 budget year
Annexure B for 2006/07 budget year (for comparison)
Annexure C AG response to IRBA comments
Draft research document by SAICA (for context)

Although the audit tariffs as indicated in column 6 and 7 of annexure A increased by 4%, the actual increase in total package as indicated in column 1 will move in terms of the salary adjustments with effect from 1^st April 2007. The salary increase based on actual  performance evaluation range from  6% to 8%.Please also refer to note 2.1.3 of the AG budget and strategic plan 2007/08.

The AG will be able to elaborate further to the committee on these documents.

Purpose of submission/Decision required:
To discuss with SCoAG the AG audit tariffs approach for 2007/08 for impact and comment by SCoAG.

Financial implications: None

Human resources implications: None.

Legal implications: None.

Other Institutions/Committees that have considered this submission: None

Presentation: No

Time required: As required by AG and SCoAG

Attachments:
Annexure A 2007/08 budget tariffs
Annexure B 2006/07 budget tariffs
Annexure C AG response to IRBA comments
Draft research document by SAICA

Approval

Signature:  
Paul Mosaka
(Who hereby confirms that all the documents have been verified)
Capacity: Business Executive Finance
Date: 16 May 2007

Signature:  
Wally Van Heerden
(Who hereby confirms that all the documents have been verified)
Capacity: Chief Operating Officer
Date: 16 May 2007