{"id":6079,"date":"2021-03-10T21:07:37","date_gmt":"2021-03-10T21:07:37","guid":{"rendered":"https:\/\/www.africa-press.net\/south-africa\/?p=6079"},"modified":"2021-03-10T18:18:49","modified_gmt":"2021-03-10T18:18:49","slug":"national-skills-fund-lodges-dispute-over-ag-disclaimer-report","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/south-africa\/all-news\/national-skills-fund-lodges-dispute-over-ag-disclaimer-report","title":{"rendered":"National Skills Fund lodges dispute over AG disclaimer report"},"content":{"rendered":"<p><span style=\"color: #ff6600\"><strong><a href=\"https:\/\/www.africa-press.net\/\">Africa-Press<\/a> &#8211; <a href=\"https:\/\/www.africa-press.net\/south-africa\">South-Africa<\/a>. <\/strong><\/span>Cape-Town &#8211; THE Nationals Skills Fund (NSF) has lodged a dispute with the Office of the Auditor-General over the disclaimer it received in an audit report in the 2019\/20 financial year.<\/p>\n<p>This emerged on Tuesday night when the fund appeared before the standing committee on public accounts (Scopa) to explain the delay in submitting the report to Parliament.<\/p>\n<p>The fund is joining the growing list of government institutions, among them the National Treasury and Department of Water and Sanitation, that have lodged disputes and even taken the AG\u2019s office to court over the audit outcomes.<\/p>\n<p>Scopa chairperson Mkhuleko Hlengwa said they did not take the late submission of the report to the national legislature lightly.<\/p>\n<p>\u201cThe submission on the eve of the meeting raises eyebrows. The situation moved from bad to worse. Why was there a delay?\u201d Hlengwa asked.<\/p>\n<p>NSF chief executive Mvuyisi Macikama responded that the delay was mainly due to a dispute they lodged with the offices of auditor-general and the accountant-general.<\/p>\n<p>\u201cWe are not in agreement with matters they are raising. That relate to the expenditure, in respect of the AG indicating that the supporting document was not sufficient.\u201d<\/p>\n<p>He said others related to the treatment of accruals, commitments and earmarked funds, disclosures to related parties and matters of principle agent arrangement between the NSF and Sars.<\/p>\n<p>Hlengwa said the dispute covered many areas.<\/p>\n<p>\u201cIt means the entire audit report is disputed\u2026 A disclaimer speaks to things that are not well or not being present,\u201d he said.<\/p>\n<p>Macikama said they submitted the report after the AG informed them that, even if the dispute was partially resolved, the report would remain and an addendum would be issued on the resolved matters and be sent to stakeholders.<\/p>\n<p>\u201cIt was on that basis the NSF moved ahead without resolving issues it presented as disputes,\u201d he said.<\/p>\n<p>ANC MP Sakhumzi Somyo said the disclaimer was an indication of a broken structure.<\/p>\n<p>Hlengwa agreed that it spoke to the collapse of systems.<\/p>\n<p>\u201cIt means you are not in the ICU but en route to the mortuary,\u201d he said. \u201cWe will get the AG in and interrogate the annual report and come for a hearing.\u201d<\/p>\n<p>Hlengwa said that, when it came to disclaimers, something had to give and a forensic investigation could be needed.<\/p>\n<p>ANC MP Sisisi Tolashe agreed, adding that a forensic investigation would help.<\/p>\n<p>In the AG\u2019s annual report it said sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial statements could not be obtained.<\/p>\n<p>\u201cI was unable to obtain sufficient appropriate audit evidence that skills development funding expenses for the current and previous year had been properly accounted for, as evidence that the services had been received could not be provided.<\/p>\n<p>\u201cThis was due to inadequate project monitoring and expenditure approval processes.\u201d<\/p>\n<p>The report also found:<\/p>\n<p>* Adjustments in the financial statement could not be determined whether it was necessary to the skills development funding expenses stated at R2.5 billion.<\/p>\n<p>* Adjustments could not be determined whether it was necessary to the TVET college infrastructure assets stated at R1 billion.<\/p>\n<p>* No determination could be made that any adjustment was necessary to the accruals from non-exchange transactions stated at R665.1 million.<\/p>\n<p>*The entity did not have adequate systems to maintain records of commitments and earmarked funds, and an adjustment stated at R17.7 billion could not deemed as necessary.<\/p>\n<p>* The budget was materially underspent by R1.8 billion.<\/p>\n<p>Hlengwa said the list of disputes cited was problematic as they indicated the extended of the problems in the NSF.<\/p>\n<p>\u201cIt is the first time I heard a long list where there is a dispute. That is what draws my attention to this dispute.\u201d<\/p>\n<p>Hlengwa said Higher Education and Training Minister Blade Minister would have to consider instituting an investigation before Scopa considered the report.<\/p>\n<p>\u201cI doubt the responses we will receive will be genuine. I don\u2019t think the AG gives willy-nilly a disclaimer,\u201d he said.<\/p>\n<p>Nzimande said he too was concerned about the disclaimer NSF obtained.<\/p>\n<p>He undertook to co-operate with Scopa when the NSF was held accountable by the national legislature.<\/p>\n<p><b>Political Bureau<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Africa-Press &#8211; South-Africa. Cape-Town &#8211; THE Nationals Skills Fund (NSF) has lodged a dispute with the Office of the Auditor-General over the disclaimer it received in an audit report in the 2019\/20 financial year. This emerged on Tuesday night when the fund appeared before the standing committee on public accounts (Scopa) to explain the delay [&hellip;]<\/p>\n","protected":false},"author":84,"featured_media":6078,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,8,12],"tags":[274,315,275],"class_list":["post-6079","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-homepage-english","category-policy","tag-africa-press","tag-africa-press-south-africa","tag-south-africa-2"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.1 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>National Skills Fund lodges dispute over AG disclaimer report - South Africa<\/title>\n<meta name=\"description\" content=\"Cape-Town - THE Nationals Skills Fund (NSF) has lodged a dispute with the Office of the Auditor-General over the disclai ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/national-skills-fund-lodges-dispute-over-ag-disclaimer-report\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"National Skills Fund lodges dispute over AG disclaimer report\" \/>\n<meta property=\"og:description\" content=\"Cape-Town - 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