Page 113 - Fasset_AR_2023_E

FASSET | Annual Integrated Report 2022/23

Report of the Auditor-General to Parliament on the Financial and
Accounting Services Sector Education and Training Authority
Report on the Audit of the Financial Statements

National Treasury Instruction Note No. 4 of 2022-23: PFMA Compliance and Reporting
Framework

10. On 23 December 2022, the National Treasury issued Instruction Note 4 of 2022—23, which came into
effect on 3 January 2023, in terms of section 76(1)(b), (e) and (f), 2(e) and (4)(a) and (c) of the PFMA. The
instruction note deals with the PFMA compliance and reporting framework and addresses, among others, the
disclosure of unauthorised expenditure, irregular expenditure and fruitless and wasteful expenditure. Irregular
expenditure and fruitless and wasteful expenditure incurred in prior Financial Years and not yet addressed no
longer need to be disclosed in the disclosure notes to the annual Financial Statements. Only the current year
and prior year figures are disclosed in note 28 to the Financial Statements of FASSET. Movements in respect
of irregular expenditure and fruitless and wasteful expenditure also no longer need to be disclosed in the
notes to the Annual Financial Statements. The disclosure of these movements (e.g. condoned, recoverable,
removed, written off, under assessment, under determination and under investigation) is now included as
part of the other information in the Annual Report of the department. I do not express an opinion on the
disclosure of irregular expenditure and fruitless and wasteful expenditure in the annual report.

Responsibilities of the Accounting Authority for the Financial Statements
11. The accounting authority is responsible for the preparation and fair presentation of the Financial Statements
in accordance with the standards of GRAP and the requirements of the PFMA and the SDA, and for such
internal control as the accounting authority determines is necessary to enable the preparation of Financial
Statements that are free from material misstatement, whether due to fraud or error.

12. In preparing the Financial Statements, the accounting authority is responsible for assessing the public entity’s
ability to continue as a going concern; disclosing, as applicable, matters relating to going concern and
using the going concern basis of accounting unless the appropriate governance structure either intends to
liquidate the public entity or to cease operations, or has no realistic alternative but to do so.

Responsibilities of the Auditor-General for the Audit of the Financial Statements
13. My objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free
from material misstatement, whether due to fraud or error; and to issue an Auditor’s Report that includes my
opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an Audit conducted
in accordance with the ISAs will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of these Financial Statements.

14. A further description of my responsibilities for the Audit of the Financial Statements is included in the
annexure to this Auditor’s Report.

Report on the Audit of the Annual Performance Report

15. In accordance with the Public Audit Act 25 of 2004 (PAA) and the general notice issued in terms thereof, I
must Audit and report on the usefulness and reliability of the reported performance against predetermined
objectives for selected programmes presented in the Annual Performance Report. The accounting authority is
responsible for the preparation of the Annual Performance Report.

Make the future count. | 105