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Overview• Performance• Financial performance• Cost containment• Strategy of the ASB 2015 - 2019• Letter dated 23 July 2014
Mandate of ASB• Promote transparency in and effective
financial management of REAL
• Set Standards of GRAP as required by financial management legislation
• Prepare and publish guidelines and directives
• Recommend implementation dates to MoF after Auditor-General consulted
Presidential outcomes
We contribute to the following:
9 – The achievement of a responsive, accountable, effective and efficient local government system
12 – An efficient and effective development oriented public service
• Influence development of international standards• Set Standards of GRAP • Facilitate the implementation of Standards of
GRAP• Monitor the application of Standards of GRAP• Realise the potential of our people • Communicate with our stakeholders• Manage ASB efficiently, effectively and
economically
Objectives
Entities applying GRAP• Parliament and (some) provincial legislatures;
• municipalities, municipal entities, any other entities under the ownership control of a municipality & boards, commissions, companies, corporations & funds
• national and provincial public entities
• constitutional institutions
• trading entities
• Public FET Colleges
Entities that need to adopt
• Some provincial legislatures
• National and provincial departments
• Transitional provisions and other transitional arrangements will need to be developed
• Use experience gained in IPSASB project
Influence development of international standards
• Member of IPSASB• Member of 4 international task based groups• Concurrent exposure of international exposure
drafts• Submitted 11 comment letters on international
exposure drafts• With SAICA commented on 4 more• Support to IPSASB secretariat on Project on First
Time Implementation
Set Standards of GRAP• Biannual improvements to GRAP
• Amendment to GRAP 23 – services in kind
• ED Accounting by Principals and Agents
• Standard on Statutory Receivables
• Standard on Service Concession Arrangements
• Interpretation on Service Concession Arrangements: Where a grantor controls a significant residual interest in an asset
Facilitate the implementation of Standards of GRAP
• Developed transitional provisions for:
– Statutory receivables
– Service concessions
– Changes in measurement bases following the adoption of GRAP
• GRAP reporting framework
• Developed Directives for implementation by SARS and FET colleges
Monitor the application of the Standards of GRAP
• First post-implementation review completed• Objective:
– To assess whether users of financial statements use the information in the financial statements
– To identify improvements based on user and preparer input
• Outcome: Several new projects added to ASB work programme for 2014/15
Monitor the application of the Standards of GRAP
• SCOA for municipalities
• Articles for E&Y(International), SAIGA, SAICA & IMFO
Realise the potential of our people
• Technical staff are all CA(SA)s
• Focus on staff development
• Coaching
• Retention of key staff
• 66% of costs are staff remuneration
Communicate with our stakeholders
• Newsletter
• Articles for journals
• Reached all nine provinces
• Reached users through the PIR
• Preparers in national departments are not participating
Manage the ASB in an efficient effective and economic way
• Good governance• Clean audit• Internal audit identifies some housekeeping
issues, but no significant issues:– Number of training days omitted from
quarterly report– Improvements needed to business continuity
plan & disaster recovery plan• Implementation of ICT policy framework
Cost drivers• 6 employees of which 4 are CA(SA)s• Continuous training• Remuneration increases can exceed CPI• Four board meetings per year with at least 3 technical
documents per meeting• Board members paid SAICA rates• Board members are also members of MANCO• Extensive stakeholder consultation • International involvement• Small office with very little flexible costs
Summarised results 2014
(R’000)2013
(R’000)Budget (R’000)
Transfer payment 9 951 9 096 11 200Other income 219 143 110Revenue 10 170 9 239 11 310Staff remuneration 6 675 6 275 7 421Board remuneration 306 461 620Travel 867 662 886Training 207 249 232Communication 84 74 154Printing & Publishing 111 102 111Administration 1 703 1 358 1 722Expenditure 9 954 9 697 11 147
Cost containmentSince 2008– Renegotiated lease escalation from 10% pa to 8% pa– Renegotiated cost of all services
In 2014– Renegotiated lease escalation from 8% pa to 5.5% pa– SAICA pays travel cost for workshops done on their
behalf– Cancelled all subscriptions except use of IPSAS &
professional membership fees
Cost containment beyond 2014
• Proposed cut in transfer payment of R 438 000 for 2015/16 & R657 000 in 2016/17
• Can only accommodate if no training, travelling & printing is incurred
• Filled vacancy in September 2014
Strategy going forward
• Review legislative mandate
• Establish project group to identify barriers to GRAP implementation by National & Provincial Departments
• Business as usual
Letter dated 23 July 2014
• Mechanism to consult with Members of Parliament
• Clarification of mandate
• Capacity building by inclusion in relevant curricula of HEIs
Contact details
CEO: Erna Swart
Tel: (011) 697-0660
Fax: (011) 697-0666
Website: www.asb.co.za
Email: [email protected]