Department of Agriculture, Forestry and Fisheries Presentation to the Portfolio Committee

1. Department of Agriculture, Forestry and Fisheries Presentation to the Portfolio Committee 10 October 2011

2. Agenda • Welcome • Reputation Promise • Group Structure • Auditor’s of DAFF & its Entities • Audit Outcomes • Feedback on Key Controls • Concerns • Initiatives from AGSA to drive audit outcomes

3. Reputation promise/mission The Auditor-General of South Africa has a constitutional mandate and, as the Supreme Audit Institution (SAI) of South Africa, it exists to strengthen our country’s democracy by enabling oversight, accountability and governance in the public sector through auditing, thereby building public confidence.

4. Agenda • Welcome • Reputation Promise • Group Structure • Auditors of DAFF & its Entities • Audit Outcomes • Feedback on Key Controls • Concerns • Initiatives from AGSA to drive audit outcomes

5. Group Structure Department of Agriculture, Forestry and Fisheries Department of Agriculture, Forestry and Fisheries Schedule 3 B National Government Business Enterprises Schedule 3 A National Public Entities Agricultural Research Council Ncera Farms (Pty) Ltd National Agricultural Marketing Council Onderstepoort Biological Products Marine Living Resource Fund Perishable Product Export Control Board

6. Agenda • Welcome • Reputation Promise • Group Structure • Auditors of DAFF & its Entities • Audit Outcomes • Feedback on Key Controls • Concerns • Initiatives from AGSA to drive audit outcomes

7. Auditor’s of DAFF and its Entities Auditor General of South Africa (AGSA) Section 4(3) Audits which the AGSA has opted not to perform PriceWaterhouseCoopers (PWC) Department of Agriculture, Forestry and Fisheries Perishable Product Export Control Board Onderstepoort Biological Products Ncera Farms (Pty) Ltd Agricultural Research Council National Agricultural Marketing Council Marine Living Resource Fund

8. Agenda • Welcome • Reputation Promise • Group Structure • Auditors of DAFF & its Entities • Audit Outcomes • Feedback on Key Controls • Concerns • Initiatives from AGSA to drive audit outcomes

9. Audit Outcomes • Summary- 3 Years • Summary 2011 vs 2010 • Detailed Audit Outcomes Per Entity • Department of Agriculture, Forestry and Fisheries • Agricultural Research Council • National Agricultural Research Council • Onderstepoort Biological Products Ltd • Ncera Farms (Pty) Ltd • PPECB

10. Audit Outcomes – 3 Years

11. Audit Outcomes 2011 Department of Agriculture, Forestry and Fisheries Financially Unqualified with findings on Compliance and AoPO Onderstepoort Biological Products Financially Qualified with findings on Compliance and AoPO Financially Unqualified with findings on Compliance Agricultural Research Council National Agricultural Marketing Council Financially Unqualified with no findings on Compliance and AoPO Marine Living Resource Fund Financially Unqualified with findings on Compliance Perishable Product Export Control Board Financially Unqualified with no findings on Compliance and AoPO Financially Unqualified with findings on Compliance and AoPO Ncera Farms (Pty) Ltd

12. Audit Outcomes Comparison 2011 Vs 2010 Department of Agriculture, Forestry and Fisheries Unchanged Onderstepoort Biological Products Regressed Unchanged Agricultural Research Council National Agricultural Marketing Council Unchanged Marine Living Resource Fund Unchanged Perishable Product Export Control Board Unchanged Unchanged Ncera Farms (Pty) Ltd

13. Audit Outcomes • Summary- 3 Years • Summary 2011 vs 2010 • Detailed Audit Outcomes Per Entity • Department of Agriculture, Forestry and Fisheries • Agricultural Research Council • National Agricultural Research Council • Onderstepoort Biological Products Ltd • Ncera Farms (Pty) Ltd • PPECB

14. Department of Agriculture, Forestry and Fisheries

15. The Department: Way Forward

16. The Department: Way Forward

17. Audit Outcomes • Summary- 3 Years • Summary 2011 vs 2010 • Detailed Audit Outcomes Per Entity • Department of Agriculture, Forestry and Fisheries • Agricultural Research Council • National Agricultural Research Council • Onderstepoort Biological Products Ltd • Ncera Farms (Pty) Ltd • PPECB

18. Agricultural Research Council

19. Agricultural Research Council- Way Forward

20. Audit Outcomes • Summary- 3 Years • Summary 2011 vs 2010 • Detailed Audit Outcomes Per Entity • Department of Agriculture, Forestry and Fisheries • Agricultural Research Council • National Agricultural Marketing Council • Onderstepoort Biological Products Ltd • Ncera Farms (Pty) Ltd • PPECB

21. National Agricultural Marketing Council • Unqualified Audit Opinion • There were no significant findings on predetermined objectives • There were no material non compliance with laws and regulations applicable to the NAMC.

22. NAMC - Way Forward

23. Audit Outcomes • Summary- 3 Years • Summary 2011 vs 2010 • Detailed Audit Outcomes Per Entity • Department of Agriculture, Forestry and Fisheries • Agricultural Research Council • National Agricultural Marketing Council • Onderstepoort Biological Products Ltd • Ncera Farms (Pty) Ltd • PPECB

24. Onderstepoort Biological Products Ltd

25. Onderstepoort Biological Products Ltd

26. Onderstepoort Biological Products Ltd- Way Forward

27. Audit Outcomes • Summary- 3 Years • Summary 2011 vs 2010 • Detailed Audit Outcomes Per Entity • Department of Agriculture, Forestry and Fisheries • Agricultural Research Council • National Agricultural Marketing Council • Onderstepoort Biological Products Ltd • Ncera Farms (Pty) Ltd • PPECB

28. Ncera Farms (Pty) Ltd

29. Ncera Farms (Pty) Ltd - Way Forward

30. Audit Outcomes • Summary- 3 Years • Summary 2011 vs 2010 • Detailed Audit Outcomes Per Entity • Department of Agriculture, Forestry and Fisheries • Agricultural Research Council • National Agricultural Marketing Council • Onderstepoort Biological Products Ltd • Ncera Farms (Pty) Ltd • PPECB

31. PPECB • Financial Unqualified • No Findings on Predetermined Objectives • No Findings on Compliance with Laws and Regulations

32. PPECB - Way Forward

33. Agenda • Welcome • Reputation Promise • Group Structure • Auditors of DAFF & its Entities • Audit Outcomes • Feedback on Key Controls • Concerns • Initiatives from AGSA to drive audit outcomes

34. Key Controls Documents • Department of Agriculture, Forestry and Fisheries • OBP Ltd • Agricultural Research Council • National Agricultural Marketing Council • Marine Living Resource Fund • Perishable Product Export Control Board • Ncera Farms (Pty) Ltd

35. Agenda • Welcome • Reputation Promise • Group Structure • Auditors of DAFF & its Entities • Audit Outcomes • Feedback on Key Controls • Concerns • Initiatives from AGSA to drive audit outcomes

36. Concerns • DAFF • AoPO • Filling of Vacant Posts • Internal Audit Capacity • Improving the efficiency and effectiveness of internal audit • Compliance with laws and regulations (Supply Chain) • Onderstepoort Biological Products Ltd • Record Keeping • AoPO • Filling of Vacant Posts, CEO and CFO • Establishment/Capacitating an internal audit unit • Compliance with laws and regulations (Supply Chain)

37. Concerns-Contd • Ncera Farms (Pty) Ltd • AoPO • Filling of Vacant Posts, CEO and CFO • Formation of Internal Audit and audit committee • ARC • Compliance with laws and regulations (Supply Chain)

38. Agenda • Welcome • Reputation Promise • Group Structure • Auditors of DAFF & its Entities • Audit Outcomes • Feedback on Key Controls • Concerns • Initiatives from AGSA to drive audit outcomes

39. Initiatives from AGSA to drive audit outcomes • Quarterly Key Control Dashboard Review • AoPO workshops have been conducted for the following entities • DAFF • OBP Ltd • Agricultural Research Council • High Level Overview of DAFF Strategic Plan performed in March/April 2011 • Regular interactions with officials for all entities

40. Questions?