Umsobomvu Youth Fund Annual Report 2006 - Nyda

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eport ofthe auditcommitteeincomestatementsfor the year ended31 March 2006Report of the Audit Committee interms of regulation 27.1.8 of thePublic Finance Management Act,1 of 1999, as amendedThe Audit Committee reports that it has adopted appropriateformal terms of reference as its Audit Committee charter, andhas regulated its affairs in compliance with this charter, and hasdischarged all of its responsibilities contained therein.In the conduct of its duties, the Audit Committee has, inter alia,reviewed the following:• The effectiveness of the internal control systems, based onthe reports of Management, internal and external audit.• The effectiveness of internal audit.• The risk areas of the entity’s operations to be covered in thescope of internal and external audits.• The adequacy, reliability and accuracy of financial informationprovided to Management and other users of suchinformation.• Any accounting and auditing concerns identified as a result ofinternal and external audits.• The entity’s compliance with legal and regulatory provisions.• The activities of the internal audit function, including its annualwork programme, co-ordination with the external auditors,the reports of significant investigations and the responses ofManagement to specific recommendations; and• Where relevant, the independence and objectivity of theexternal auditors.• Ensure that transactions undertaken are recorded in theGroup’s records.The Audit Committee has evaluated the Company and Groupfinancial statements of the Fund for the year ended 31 March2006 and based on the information provided to the AuditCommittee, considered that they comply, in all material respects,with the requirements of the Companies Act, 61 of 1973, asamended, and the Public Finance Management Act, 1 of 1999, asamended, Public Audit Act and International Financial ReportingStandards. The Audit Committee concurs that the adoption ofthe going concern assumption in framing the annual financialstatements is appropriate. The Audit Committee, at a dulyconstituted Board Audit Committee Meeting held on 17 July2006, has therefore recommended the adoption of the annualfinancial statements and Group financial statements by theBoard of Directors.Ms Dumo MotauChairperson31 July 2006Nothing has come to the attention of the Audit Committee,other than the significant matters referred to in the Directors’report, to indicate that a material breakdown in the functioningof the internal controls, procedures and systems has occurredduring the year under review.In the opinion of the Audit Committee, and based on work doneby internal audit, the internal controls and laid-down proceduresof the Umsobomvu Youth Fund (the Fund) are considered to beappropriate in all material respects to:• Meet the business’s objectives of the Fund;• Ensure the Group’s assets are adequately safeguarded andUmsobomvu Youth Fund 2006 Financial Statements40
eport of theindependentauditorsReport of the Independent Auditors tothe Minister of LabourWe have audited the annual financial statements of UmsobomvuYouth Fund and the Group set out on pages 42 to 81 for theyear ended 31 March 2006. The annual financial statements ofUmsobomvu Youth Fund and the Group are the responsibilityof the accounting authority. Our responsibility is to express anopinion on these financial statements based on our audit.We conducted our audit in accordance with InternationalStandards on Auditing. Those standards require that we planand perform the audit to obtain reasonable assurance that thefinancial statements are free of material misstatement. Theaudit was also planned and performed to obtain reasonableassurance that our duties in terms of sections 27 and 28 of thePublic Audit Act, 25 of 2004 read with General Notice 544 of2006, issued in Government Gazette no. 28723 on 10 April 2006and General Notice 808 of 2006, issued in Government Gazetteno. 28954 on 23 June 2006 have been complied with.An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the annual financialstatements, assessing the accounting principles used andsignificant estimates made by Management and evaluating theoverall financial statement presentation.Without qualifying our audit opinion we draw your attention tothe following:• The transactions of Umsobomvu Youth Fund and the Groupthat came to our attention during the audit, were in all materialrespects in accordance with the mandatory functions ofUmsobomvu Youth Fund, as determined by law or otherwise,except for the matter detailed in the Directors’ report onpage 42, relating to the investment in Hi-Tech TransformerMaintenance (Pty) Ltd.• The above matter may constitute non-compliance with Section54(2) of the Public Finance Management Act and we have, interms of Sections 44(2) and 44(3) of the Auditing ProfessionAct, reported the matter to the Management of UmsobomvuYouth Fund and to the Independent Regulatory Board forAuditors.Ernst & YoungRegistered AuditorsJohannesburg31 July 2006balancesheetsat 31 March 2006We believe that our audit provides a reasonable basis for ouropinion.In our opinion the financial statements fairly present, in allmaterial respects, the financial position of Umsobomvu YouthFund and the Group at 31 March 2006, and the results oftheir operations and cash flows for the year then ended inaccordance with International Financial Reporting Standardsand in the manner required by the Companies Act, 61 of 1973in South Africa and the Public Finance Management Act, 1 of1999, as amended.Umsobomvu Youth Fund 2006 Financial Statements41
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Umsobomvu Youth Fund Annual Report 2006 - Nyda

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