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South Africa Act or statute

Parliament of the Republic of South Africa

Public Audit Amendment Act, 2018

This section identifies the Public Audit Amendment Act, 2018 and states that it amends the Public Audit Act, 2004. This section amends Section 1 of the Public Audit Act, 2004 by inserting a definition of “accounting…

Treasury consultationamendmentaudit committeeaudit feesaudit follow-upaudit oversightaudit processaudit regulationaudit reportsaudit terminologyauditingauditor conductauditor dutiesauditscompliancecompliance reportingconsultationconsultation processcorrective actiondebt certificatedebt recoverydefinitionsEmployment lawemployment conditionsemployment remunerationfinancial difficulty assessmentfinancial reportingfinancial statementsgovernancegovernment fundinginvestigationslegislative arrangementlegislative reportingprofessional regulationpublic auditpublic audit administrationpublic audit servicespublic financepublic sector auditpublic sector compliancepublic sector oversightpublic-sector governancepublic-sector remunerationregulatory complianceremedial actionremunerationremuneration committeeremuneration oversightreportingrulemakingstatutory amendmentstatutory drafting
Jurisdiction
South Africa
Structure
44 provisions
Citation
Act 5 of 2018
Dates
updated 20 Nov 2018
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Dates
updated 20 Nov 2018

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01

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“This section identifies the Public Audit Amendment Act, 2018 and states that it amends the Public Audit Act, 2004.”

This section identifies the Public Audit Amendment Act, 2018 and states that it amends the Public Audit Act, 2004. This section amends Section 1 of the Public Audit Act, 2004 by inserting a definition of “accounting authority.” This amendment inserts a new definition into Article 1 of the principal Act. This section defines several terms used in the Act, including “accounting entity,” “accounting officer,” “material irregularity,” and “this Act.” The Auditor-General’s discretion under subsection (3) applies to specified public entities and other institutions that meet prescribed criteria.

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No. 42045

This section identifies the Public Audit Amendment Act, 2018 and states that it amends the Public Audit Act, 2004.

Section 2

Section 23 of the principal Act is hereby amended—

The amendment says an excess audit fee may be defrayed from the National Treasury’s vote if the fee is above 1% of the auditee’s current and capital expenditure, the Treasury was consulted, and it believes the auditee has financial difficulty.…

Section 10

No. 42045

Gazette header for No. 42045, dated 20 November 2018.

Section 20

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Source record from www.parliament.gov.za · updated 20 Nov 2018

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Substitution 15Amendment 13Provision 12Commencement 3
§ 2No. 42045Substitution

This section identifies the Public Audit Amendment Act, 2018 and states that it amends the Public Audit Act, 2004.

2 No. 42045 GOVERNMENT GAZETTE, 20 NOVEMBER 2018 Act No. 5 of 2018 Public Audit Amendment Act, 2018 GENERAL EXPLANATORY NOTE: [ ] Words in bold type in square brackets indicate omissions from existing enactments. Words underlined with a solid line indicate insertions in existing enactments. (English text signed by the President) (Assented to 18 November 2018) ACT To amend the Public Audit Act, 2004, so as to delete certain definitions and to insert new definitions; to provide for certainty regarding the discretion of the Auditor- General with regard to certain audits; to authorise the Auditor-General to undertake performance audits and to provide audit or audit related services to an international association, body, institution or organisation; to provide for the Auditor-General to refer suspected material irregularities arising from an audit performed under this Act, to a relevant public body for investigation; to empower the Auditor-General to take appropriate remedial action; to provide for the Auditor-General to issue a certificate of debt where an accounting officer or accounting authority failed to recover losses from a responsible person and to instruct the relevant executive authority to collect the debt; to provide for the establishment, powers and functions of a remuneration committee; to provide for consultation between the Independent Commission for the Remuneration of Public Office-bearers and the remuneration committee; to provide for additional reporting requirements; to provide for the defraying of certain excess audit fees as a direct charge against the National Revenue Fund; to revise the provisions relating to the appointment of an audit committee for the Auditor-General; to provide that the Auditor-General makes regulations on specific issues; to substitute certain expressions; and to provide for matters connected therewith. BE IT ENACTED by the Parliament of the Republic of South Africa, as follows:— Amendment of section 1 of Act 25 of 2004, as amended by section 14 of Act 22 of 2014
Section 2Verify source
§ 1Section 1 of the Public Audit Act, 2004 (Act No. 25 of 2004) (hereinafter referredAmendment

This section amends Section 1 of the Public Audit Act, 2004 by inserting a definition of “accounting authority.”

1. Section 1 of the Public Audit Act, 2004 (Act No. 25 of 2004) (hereinafter referred 5 to as the ‘‘principal Act’’), is hereby amended— (a) by the insertion before the definition of ‘‘audit’’ of the following definition: ‘‘ ‘accounting authority’ means a body or person defined as an accounting authority in the Public Finance Management Act, or any body or person designated as an accounting authority in terms of any other law, as the case may be; 10 This gazette is also available free online at www.gpwonline.co.za Wysigingswet op Openbare Oudit, 2018 Wet No. 5 van 2018 GOVERNMENT GAZETTE, 20 NOVEMBER 2018 No. 42045 3 ALGEMENE VERDUIDELIKENDE NOTA: [ ] Woorde in vet druk tussen vierkantige hakies, dui skrappings uit bestaande verordenings aan. Woorde met bestaande verordenings aan. ’n volstreep daaronder, dui invoegings in (Engelse teks deur die President geteken) (Goedgekeur op 18 November 2018) WET Tot wysiging van die Wet op Openbare Oudit, 2004, ten einde sekere omskrywings te skrap en nuwe omskrywings in te voeg; om voorsiening te maak vir sekerheid rakende die diskresie van die Ouditeur-generaal ten opsigte van sekere oudits; die Ouditeur-generaal te magtig om prestasie-oudits te onderneem en oudit- of ouditverwante dienste aan ’n internasionale vereniging, instansie, instelling of organisasie te verskaf; voorsiening te maak vir die Ouditeur-generaal om wesenlike onreëlmatighede wat vermoedelik voortspruit uit ’n oudit wat ingevolge hierdie Wet uitgevoer is vir ondersoek na ’n tersaaklike openbare instansie te verwys; die Ouditeur-generaal te bemagtig om gepaste regstellende stappe te doen; voorsiening te maak dat die Ouditeur-generaal ’n skuldsertifikaat uitreik waar ’n rekenpligtige beampte of rekenpligtige gesag versuim het om verliese van ’n verantwoordelike persoon te verhaal en die betrokke uitvoerende gesag opdrag te gee om die skuld in te vorder; voorsiening te maak vir die instelling, bevoegdhede en funksies van ’n vergoedingskomitee; voorsiening te maak vir oorlegpleging tussen die Onafhanklike Kommissie vir die Vergoeding van Staatsamptenare en die vergoedingskomitee; voorsiening te maak vir bykomende verslagdoenings- vereistes; voorsiening te maak vir die afhandeling van sekere oortollige ouditgelde as ’n direkte las teen die Nasionale Inkomstefonds; die bepalings met betrekking tot die aanstelling van ’n ouditkomitee vir die Ouditeur-generaal te hersien; voorsiening te maak dat die Ouditeur-generaal regulasies uitvaardig oor spesifieke aangeleenthede; sekere uitdrukkings te vervang; en voorsiening te maak vir aangeleenthede wat daarmee verband hou. DAAR WORD BEPAAL deur die Parlement van die Republiek van Suid-Afrika, soos volg:— Wysiging van artikel 1 van Wet 25 van 2004, soos gewysig deur artikel 14 van Wet 22 van 2014
Section 1Verify source
§ 1Artikel 1 van die Wet op Openbare Oudit, 2004 (Wet No. 25 van 2004) (hierna dieAmendment

This amendment inserts a new definition into Article 1 of the principal Act.

1. Artikel 1 van die Wet op Openbare Oudit, 2004 (Wet No. 25 van 2004) (hierna die 5 ‘‘Hoofwet’’ genoem), word hierby gewysig— (a) deur na die omskrywing van ‘‘provinsiale tesourie’’ die volgende omskrywings in te voeg: ‘‘ ‘rekenpligtige beampte’ ’n persoon omskryf as ’n rekenpligtige beampte in die Wet op Openbare Finansiële Bestuur of die Wet op 10 This gazette is also available free online at www.gpwonline.co.za
Section 1Verify source
§ 4No. 42045Substitution

This section defines several terms used in the Act, including “accounting entity,” “accounting officer,” “material irregularity,” and “this Act.”

4 No. 42045 GOVERNMENT GAZETTE, 20 NOVEMBER 2018 Act No. 5 of 2018 Public Audit Amendment Act, 2018 4 (b) by the substitution for the definition of ‘‘accounting entity’’ of the following definition: ‘‘ ‘accounting entity’ means an accounting entity referred to in section 188(1)(c) of the Constitution;’’; (c) by the insertion before the definition of ‘‘auditee’’ of the following definition: ‘‘ ‘accounting officer’ means a person defined as an accounting officer in the Public Finance Management Act or the Municipal Finance Management Act, or any person designated as an accounting officer in terms of any other law, as the case may be;’’; (d) by the insertion after the definition of ‘‘audit fees’’ of the following definition: ‘‘ ‘Auditing Profession Act’ means the Auditing Profession Act, 2005 (Act No. 26 of 2005);’’; (e) by the insertion after the definition of ‘‘authorised auditor’’ of the following 5 10 definition: ‘‘ ‘Constitution’ means the Constitution of the Republic of South Africa, 1996;’’; 15 (f) by the insertion after the definition of ‘‘Deputy Auditor-General’’ of the following definition: ‘‘ ‘executive authority’ means the executive authority as provided for in any relevant legislation applicable to an auditee;’’; 20 (g) by the insertion after the definition of ‘‘legislature’’ of the following definition: ‘‘ ‘material irregularity’ means any non-compliance with, or contra- vention of, legislation, fraud, theft or a breach of a fiduciary duty identified during an audit performed under this Act that resulted in or is likely to result in a material financial loss, the misuse or loss of a material public resource or substantial harm to a public sector institution or the general public;’’; (h) by the insertion after the definition of ‘‘oversight mechanism’’ of the following definition: ‘‘ ‘prescribed’ means prescribed by regulation made in terms of section 52;’’; (i) (j) by the deletion of the definition of ‘‘Public Accountants’ and Auditors’ Act’’; by the insertion after the definition of ‘‘relevant legislature’’ of the following definition: ‘‘ ‘remuneration committee’ means the remuneration committee estab- lished in terms of section 5(2)(bA);’’; and (k) by the substitution for the full stop at the end of the definition of ‘‘supreme audit institution’’ of a semi colon and the insertion after that definition of the following definition: ‘‘ ‘this Act’ includes the regulations.’’. Amendment of section 4 of Act 25 of 2004
Section 4Verify source
§ 2Section 4 of the principal Act is hereby amended—Substitution

The Auditor-General’s discretion under subsection (3) applies to specified public entities and other institutions that meet prescribed criteria.

2. Section 4 of the principal Act is hereby amended— (a) by the insertion after subsection (3) of the following subsection: ‘‘(3A) The discretion of the Auditor-General as contemplated in subsection (3) applies to any public entity contemplated in subsection (3)(a) and any other institution contemplated in subsection (3)(b) that meets prescribed criteria.’’; and (b) by the substitution for subsection (4) of the following subsection: ‘‘(4) In the event of any conflict between [a provision of] this section and any other legislation, [existing when this section takes effect, the provision of] this section prevails.’’. 25 30 35 40 45 50 This gazette is also available free online at www.gpwonline.co.za Wysigingswet op Openbare Oudit, 2018 Wet No. 5 van 2018 GOVERNMENT GAZETTE, 20 NOVEMBER 2018 No. 42045 5 5 Munisipale Finansiële Bestuur, of enige persoon wat ingevolge ’n ander wet as ’n rekenpligtige beampte aangewys is, na gelang van die geval; ‘rekenpligtige entiteit’ ’n rekenpligtige entiteit waarna in artikel 188(1)(c) van die Grondwet verwys word; ‘rekenpligtige gesag’ ’n instansie of persoon wat as rekenpligtige gesag in die Wet op Openbare Finansiële Bestuur, of enige instansie of persoon wat as rekenpligtige gesag ingevolge enige ander wet, aangewys is, na gelang van die geval;’’; (b) deur nà die omskrywing van ‘‘ouditgelde’’ die volgende omskrywing in te voeg: ‘‘ ‘Auditing Profession Act’ die ‘‘Auditing Profession Act, 2005’’ (Wet No. 26 van 2005);’’; (c) deur na die omskrywing van ‘‘geouditeerde’’ die volgende omskrywing in te voeg: 5 10 ‘‘ ‘Grondwet’ die Grondwet van die Republiek van Suid-Afrika, 1996;’’; 15 (d) deur na die omskrywing van ‘‘Adjunk-ouditeur-generaal’’ die volgende omskrywing in te voeg: ‘‘ ‘uitvoerende gesag’ die uitvoerende gesag soos bepaal in enige tersaaklike wetgewing wat van toepassing is op ’n geouditeerde;’’; 20 (e) deur na die omskrywing van ‘‘wetgewer’’ die volgende omskrywing in te voeg: ‘‘ ‘wesenlike onreëlmatigheid’ enige nie-nakoming of oortreding van wetgewing, bedrog, diefstal of skending van ’n fidusiêre plig wat geïdentifiseer is tydens ’n oudit wat kragtens hierdie Wet uitgevoer is, wat ’n wesenlike finansiële verlies, misbruik van of verlies aan ’n wesenlike openbare hulpbron of wesenlike skade aan ’n openbare sektor-instelling of die algemene publiek, tot gevolg gehad het of waarskynlik tot gevolg sal hê;’’; 25 (f) deur ná die omskrywing van ‘‘toesighoudingsmeganisme’’ die volgende omskrywing in te voeg: 30 ‘‘ ‘voorgeskryf’ voorgeskryf deur regulasie wat ingevolge artikel 52 uitgevaardig is;’’; (g) deur die omskrywing van ‘‘Wet op Openbare Rekenmeesters en Ouditeurs’’ te skrap; 35 (h) deur die volgende omskrywing na die omskrywing van ‘‘tersaaklike wetgewer’’ in te voeg: ‘‘ ‘vergoedingskomitee’ die vergoedingskomitee ingestel artikel 5(2)(bA);’’; en ingevolge (i) deur na die omskrywing van ‘‘grondwetlike instelling’’ die volgende omskrywing in te voeg: 40 ‘‘ ‘hierdie Wet’ ook die regulasies.’’. Wysiging van artikel 4 van Wet 25 van 2004
Section 2Verify source
§ 2Artikel 4 van die Hoofwet word hierby gewysig—Amendment

This provision amends Article 4 of the Principal Act by extending the Auditor-General’s discretion to certain public entities and other institutions that meet prescribed criteria, and by making this article prevail over conflicting legislation.

2. Artikel 4 van die Hoofwet word hierby gewysig— (a) deur ná subartikel (3) die volgende subartikel in te voeg: ‘‘(3A) Die diskresie van die Ouditeur-generaal soos beoog in sub- artikel (3) is van toepassing op enige openbare entiteit in subartikel (3)(a) beoog en enige ander inrigting in subartikel (3)(b) beoog wat aan voorgeskrewe maatstawwe voldoen.’’; en (b) deur subartikel (4) deur die volgende subartikel te vervang: ‘‘(4) In die geval van enige botsing tussen [’n bepaling van] hierdie artikel en enige ander wetgewing [wat bestaan wanneer hierdie artikel in werking tree,] is [die bepalings van] hierdie artikel deurslag- gewend.’’. 45 50 This gazette is also available free online at www.gpwonline.co.za
Section 2Verify source
§ 6No. 42045Amendment

This text only identifies Section 6 and the Gazette/Act heading; it does not state a substantive rule in the provided excerpt.

6 No. 42045 GOVERNMENT GAZETTE, 20 NOVEMBER 2018 Act No. 5 of 2018 Public Audit Amendment Act, 2018 Amendment of section 5 of Act 25 of 2004 6
Section 6Verify source
§ 3Section 5 of the principal Act is hereby amended—Substitution

The Auditor-General may provide certain audit-related services, conduct audits and investigations, refer suspected material irregularities for investigation, and take remedial action, subject to listed limits and disclosure requirements.

3. Section 5 of the principal Act is hereby amended— (a) by the substitution for subsection (1) of the following subsection: ‘‘(1) The Auditor-General may, at a fee, and without compromising the role of the Auditor-General as an independent auditor[, provide]— (a) provide audit related services to an auditee referred to in section 4(1) or (3) or other body, which is commonly performed by a supreme audit institution on condition that— (i) no services may be provided in respect of any matter that may subsequently have to be audited by the Auditor-General; (ii) such service will not directly result in the formulation of policy; and (iii) there must be full and proper disclosure of such services in terms of section 10(1)(b)[.]; (3) (aA) perform an appropriate audit of any institution referred to in section 4(1) or to determine whether appropriate and adequate measures have been implemented to ensure that resources are procured economically and utilised efficiently and effectively; (aB) provide audit and audit related services commonly performed by an independent audit institution to an international association, body, institution or organisation on condition that— (i) such service does not— (aa) compromise the efficiency; (bb) put an undue strain on the resources; or (cc) detract from the constitutional functions, of the Auditor-General; and (ii) there must be full and proper disclosure of such services in terms of section 10(1)(b); (b) provide advice and support to a legislature or any of its committees outside the scope of the Auditor-General’s normal audit and reporting functions; (c) provide comments in a report on any responses by an auditee to reported audit findings, or responses by an auditee to a report of any legislature arising from its review of an audit report; or (d) carry out an appropriate investigation or special audit of any institution referred to in section 4(1) or (3), if the Auditor-General considers it to be in the public interest or upon the receipt of a complaint or request.’’; (b) by the insertion after subsection (1) of the following subsections: ‘‘(1A) The Auditor-General may, as prescribed, refer any suspected material irregularity identified during an audit performed under this Act to a relevant public body for investigation, and the relevant public body must keep the Auditor-General informed of the progress and the final outcome of the investigation. (a) (b) (1B) The Auditor-General has the power to— take any appropriate remedial action; and issue a certificate of debt, as prescribed, where an accounting officer or accounting authority has failed to comply with remedial action, as set out in Part 1A of this Chapter.’’; and (c) by the substitution for subsection (2) of the following subsection: ‘‘(2) In addition to subsections (1), (1A) and (1B), the Auditor-General [may]— (a) may co-operate with persons, institutions and associations, nation- ally and internationally; 5 10 15 20 25 30 35 40 45 50 This gazette is also available free online at www.gpwonline.co.za Wysigingswet op Openbare Oudit, 2018 Wet No. 5 van 2018 GOVERNMENT GAZETTE, 20 NOVEMBER 2018 No. 42045 7 Wysiging van artikel 5 van Wet 25 van 2004 7
Section 3Verify source
§ 3Artikel 5 van die Hoofwet word hierby gewysig—Provision

The Auditor-General may provide certain audit and advisory services, and may refer material irregularities for investigation and take corrective action, but only subject to stated limits and disclosure requirements.

3. Artikel 5 van die Hoofwet word hierby gewysig— (a) deur subartikel (1) deur die volgende subartikel te vervang: ‘‘(1) Die Ouditeur-generaal kan, teen betaling en sonder om die rol van die Ouditeur-generaal as onafhanklike ouditeur in die gedrang te bring— (a) aan ’n geouditeerde bedoel in artikel 4(1) of (3), of aan ’n ander liggaam, ouditverwante dienste verskaf wat normaalweg deur ’n opperste ouditinstelling uitgevoer word, op voorwaarde dat— (i) geen dienste verskaf mag word in verband met ’n aangeleentheid wat moontlik later deur die Ouditeur-generaal geouditeer moet word nie; (ii) sodanige diens nie regstreeks die formulering van beleid tot gevolg sal hê nie; en (iii) volledige en behoorlike openbaarmaking van sodanige dienste moet wees ingevolge artikel 10(1)(b) sal geskied[.]; (aA) ’n toepaslike oudit van enige inrigting doen waarna verwys word in artikel 4(1) of (3) om te bepaal of toepaslike en toereikende maatreëls in werking gestel is om te verseker dat hulpbronne ekonomies verkry word en doeltreffend en doelmatig aangewend word; (aB) oudit- en ouditverwante dienste verskaf wat gewoonlik deur ’n onafhanklike ouditinstelling vir ’n internasionale vereniging, instansie, instelling of organisasie gedoen word, op voorwaarde dat— (i) sodanige dienste nie— (aa) die doeltreffendheid van die Ouditeur-generaal kompro- 5 10 15 20 25 mitteer nie; (bb) onnodige druk op die hulpbronne van die Ouditeur- generaal plaas nie; of (cc) afbreuk doen aan die grondwetlike funksies van die 30 (ii) daar Ouditeur-generaal nie; en ingevolge artikel 10(1)(b) volledige en behoorlike openbaarmaking van sodanige dienste moet wees; (b) raad en steun verleen aan ’n wetgewer of enige van sy komitees buite die bestek van die Ouditeur-generaal se normale ouditerings- en rapporteringsfunksies; (c) kommentaar lewer in ’n verslag oor enige reaksies van ’n geouditeerde op gerapporteerde ouditbevindings of op ’n verslag van ’n wetgewer voortspruitend uit dié se hersiening van ’n ouditverslag; of ’n gepaste ondersoek of spesiale oudit doen van ’n instelling bedoel in artikel 4(1) of (3) indien die Ouditeur-generaal dit in die openbare belang ag, of nà ontvangs van ’n klagte of versoek.’’; (d) (b) deur na subartikel (1) die volgende subartikels in te voeg: ‘‘(1A) Die Ouditeur-generaal mag, soos voorgeskryf, enige wesenlike onreëlmatigheid wat tydens ’n oudit kragtens hierdie Wet gedoen is, verwys na ’n tersaaklike openbare instansie vir ondersoek, en die tersaaklike openbare instansie moet die Ouditeur-generaal op hoogte hou van die vordering en die finale uitslag van die ondersoek. (1B) Die Ouditeur-generaal het die bevoegdheid om— (a) enige gepaste regstellende stappe te doen; en (b) ’n skuldsertifikaat uit te reik, soos voorgeskryf, waar ’n reken- pligtige beampte of rekenpligtige gesag versuim het om te voldoen aan regstellende stappe, soos uiteengesit in Deel 1A van hierdie Hoofstuk.’’; en (c) deur subartikel (2) deur die volgende subartikel te vervang: ‘‘(2) [Daarbenewens kan die Ouditeur-generaal] Die Ouditeur- generaal, benewens subartikels (1), (1A) en (1B)— (a) kan nasionaal en internasionaal met persone, verenigings saamwerk; instellings en 35 40 45 50 55 60 This gazette is also available free online at www.gpwonline.co.za
Section 3Verify source
§ 8No. 42045Amendment

The Auditor-General may appoint advisory structures, must establish a remuneration committee, must appoint its chairperson, and may do other things needed to carry out the role effectively.

8 No. 42045 GOVERNMENT GAZETTE, 20 NOVEMBER 2018 Act No. 5 of 2018 Public Audit Amendment Act, 2018 8 (b) may appoint advisory and other structures outside the administra- tion of the Auditor-General to provide specialised advice to the Auditor-General; [and] (bA) must establish a remuneration committee, consisting of not less than three and not more than five members of which the majority may not be in the employ of the Auditor-General, and who must be suitably qualified and experienced in human resource practices, including remuneration practices, to make recommendations to— (i) the Independent Commission on the salary, allowances and benefits of the Auditor-General; and (ii) the Auditor-General on the conditions of employment, the remuneration, allowances and benefits of the employees of the Auditor-General contemplated in section 34; (bB) must appoint a chairperson of the remuneration committee from the members contemplated in paragraph (bA), who must not be in the employ of the Auditor-General; and (c) may do any other thing necessary to fulfil the role of Auditor- 5 10 15 General effectively.’’. Insertion of Part 1A in Chapter 2 of Act 25 of 2004
Section 8Verify source
§ 4The following part is hereby inserted in Chapter 2 after Part 1 of the principal Act:Provision

The Auditor-General must check whether audit recommendations on material irregularities were implemented, and if not, take remedial action that can include a directive and a certificate of debt.

4. The following part is hereby inserted in Chapter 2 after Part 1 of the principal Act: 20 ‘‘Part 1A: Remedial Action Taking remedial action 5A. (1) The Auditor-General must, within a reasonable time after the issuing of an audit report in terms of section 20, follow up on whether the accounting officer or accounting authority has implemented the recommen- dations contained in the audit report relating to any material irregularity, within the time-frame stipulated in the audit report. (2) If the accounting officer or accounting authority has failed to implement the recommendations contained in the audit report referred to in subsection (1), the Auditor-General must take appropriate remedial action to address the failure to implement the recommendations. (3) Where a material irregularity resulted in a financial loss to the State, and the accounting officer or accounting authority failed to implement the recommendations contained in the audit report referred to in subsection (1), the remedial action taken by the Auditor-General in terms of subsection (2) must include a directive to the accounting officer or accounting authority to determine the amount of the loss, if not yet determined, and to recover such loss as required in terms of any applicable legislation, from the responsible person. Failure to comply with specific remedial action 5B. (1) Subject to subsections (4) and (5), where the accounting officer or accounting authority has failed to implement the remedial action referred to in section 5A(3), the Auditor-General must issue a certificate of debt, as prescribed, to the accounting officer or accounting authority requiring the accounting officer or accounting authority to repay the amount specified in the certificate of debt to the State. (2) The Auditor-General must submit a copy of the certificate of debt, referred to in subsection (1), to the responsible executive authority to collect the amount specified in the certificate of debt from the accounting officer or accounting authority in terms of the debt recovery process applicable to the executive authority. 25 30 35 40 45 50 This gazette is also available free online at www.gpwonline.co.za Wysigingswet op Openbare Oudit, 2018 Wet No. 5 van 2018 GOVERNMENT GAZETTE, 20 NOVEMBER 2018 No. 42045 9 9 (b) kan raadgewende en ander strukture buite die administrasie van die Ouditeur-generaal aanstel om die Ouditeur-generaal van gespesialiseerde raad te dien; [en] (bA) moet ’n vergoedingskomitee instel wat uit minstens drie en hoogstens vyf lede bestaan waarvan die meerderheid nie in diens toepaslik van die Ouditeur-generaal mag wees nie en wat gekwalifiseerd moet wees en ondervinding moet hê in menslike hulpbronpraktyke, met inbegrip van vergoedingspraktyke, om aanbevelings te doen aan— (i) die Onafhanklike Kommissie oor die salaris, toelaes en voordele van die Ouditeur-generaal; en (ii) die Ouditeur-generaal die vergoeding, toelaes en voordele van die werknemers van die Ouditeur-generaal soos beoog in artikel 34; diensvoorwaardes, oor die (bB) moet ’n voorsitter van die vergoedingskomitee aanstel uit die lede soos in paragraaf (bA) beoog, wat nie in diens van die Ouditeur- generaal mag wees nie; en (c) kan enige ander ding doen wat nodig is om die rol van die Ouditeur-generaal op doeltreffende wyse te vervul.’’. Invoeging van Deel 1A in Hoofstuk 2 van Wet 25 van 2004
Section 4Verify source
§ 4Die volgende deel word hierby in Hoofstuk 2 na Deel 1 van die Hoofwet ingevoeg:Provision

The Auditor-General must check whether recommendations in an audit report were implemented, take corrective steps if they were not, and in some cases issue a debt certificate and help recover losses.

4. Die volgende deel word hierby in Hoofstuk 2 na Deel 1 van die Hoofwet ingevoeg: ‘‘Deel 1A: Regstellende stappe Doen van regstellende stappe 5A. (1) Die Ouditeur-generaal moet binne ’n redelike tydperk ná die uitreiking van ’n ouditverslag ingevolge artikel 20 nagaan of die rekenpligtige beampte of rekenpligtige gesag die aanbevelings vervat in die ouditverslag met betrekking tot enige wesenlike onreëlmatigheid in werking gestel het binne die tydraamwerk soos uiteengesit in die ouditverslag. (2) Indien die rekenpligtige beampte of rekenpligtige gesag versuim het om die aanbevelings vervat in die ouditverslag bedoel in subartikel (1) in werking te stel, moet die Ouditeur-generaal gepaste toepaslike regstellende stappe doen om aandag te skenk betreffende die versuim om die aanbevelings in werking te stel. (3) Waar ’n wesenlike onreëlmatigheid ’n finansiële verlies vir die Staat tot gevolg gehad het en die rekenpligtige beampte of rekenpligtige gesag versuim het om die aanbevelings vervat in die ouditverslag waarna in subartikel (1) verwys word, in werking te stel, moet die regstellende stappe deur die Ouditeur-generaal ingevolge subartikel (2) ’n lasgewing aan die rekenpligtige beampte of rekenpligtige gesag insluit om die bedrag van die verlies te bepaal, indien dit nog nie bepaal is nie, en om sodanige verlies te verhaal van die verantwoordelike persoon, soos vereis ingevolge enige toepaslike wetgewing. Versuim om te voldoen aan bepaalde regstellende stappe 5B. (1) Behoudens subartikels (4) en (5), waar die rekenpligtige beampte of rekenpligtige gesag versuim het om die regstellende optrede bedoel in artikel 5A(3) in werking te stel, moet die Ouditeur-generaal ’n skuld- sertifikaat uitreik, soos voorgeskryf, aan die rekenpligtige beampte of rekenpligtige gesag, wat vereis dat die rekenpligtige beampte of reken- pligtige gesag die bedrag wat in die skuldsertifikaat gespesifiseer word aan die Staat moet terugbetaal. (2) Die Ouditeur-generaal moet ’n afskrif van die skuldsertifikaat, waarna in subartikel (1) verwys, aan die verantwoordelike uitvoerende gesag voorlê om die bedrag wat in die skuldsertifikaat gespesifiseer is, van die rekenpligtige beampte of rekenpligtige gesag in te vorder ingevolge die skuldherstelproses van toepassing op die uitvoerende gesag. 5 10 15 20 25 30 35 40 45 50 55 This gazette is also available free online at www.gpwonline.co.za
Section 4Verify source
§ 10No. 42045Amendment

The executive authority must keep the Auditor-General updated on progress in collecting the amount owed, and the Auditor-General must consider written representations and, if still intending to issue a certificate of debt, allow an oral representation and consider the advisory structure’s written recommendations before issuing it.

10 No. 42045 GOVERNMENT GAZETTE, 20 NOVEMBER 2018 Act No. 5 of 2018 Public Audit Amendment Act, 2018 10 (3) The executive authority must keep the Auditor-General informed of progress made in collecting the amount due by the accounting officer or accounting authority. (4) The Auditor-General, in determining whether to issue a certificate of debt in terms of subsection (1), must consider the written representations, as prescribed, received from the accounting officer or accounting authority, and may have due regard to— (a) the progress or outcome of an investigation conducted by the Auditor-General in terms of section 29; the progress or outcome of any investigation contemplated in section 5(1A); or any other relevant factor. (b) (c) (5) If the Auditor-General still intends to issue the certificate of debt after the Auditor-General the consideration of the written representations, must— (a) afford the accounting officer or accounting authority an opportunity to make an oral representation, as prescribed, to an advisory structure, established for this purpose in terms of section 5(2)(b); and (b) consider the written recommendations of the advisory structure referred to in paragraph (a) before issuing the certificate. (6) The Auditor-General must submit a copy of the certificate of debt issued in terms of subsection (1) to the relevant legislature for tabling in the relevant legislature.’’. 5 10 15 20 Amendment of section 7 of Act 25 of 2004, as amended by section 15 of Act 22 of 2014 25
Section 10Verify source
§ 5Section 7 of the principal Act is hereby amended by the substitution for subsectionSubstitution

The Independent Commission must consult specified finance/remuneration bodies and consider their recommendations when dealing with the Auditor-General’s salary, allowances, and benefits.

5. Section 7 of the principal Act is hereby amended by the substitution for subsection (1A) of the following subsection: ‘‘(1A) The Independent Commission must, when investigating or considering the salary, allowances and benefits of the Auditor-General, consult with— (a) (b) the Cabinet member responsible for finance; and the remuneration committee contemplated in section 5(2)(bA) and consider any recommendations made by the remuneration committee.’’. 30 Amendment of section 10 of Act 25 of 2004
Section 5Verify source
§ 6Section 10 of the principal Act is hereby amended—Substitution

This section amends section 10 of the principal Act by changing wording in subsection (1).

6. Section 10 of the principal Act is hereby amended— (a) by the substitution in subsection (1) for paragraph (b) of the following 35 paragraph: ‘‘(b) the categories of services provided in terms of section 5(1)(a), (aA) and (aB);’’; (b) by the deletion in subsection (1) of the word ‘‘and’’ at the end of paragraph (c); and (c) by the substitution in subsection (1) for the full stop at the end of paragraph (d) of a semi colon and by the addition after paragraph (d) of the following paragraphs: ‘‘(e) any matters referred for investigation in accordance with section 5(1A); any remedial action taken in terms of section 5A(2); and (f) (g) any certificate of debt issued in terms of section 5B(1).’’. Amendment of section 12 of Act 25 of 2004
Section 6Verify source
§ 7Section 12 of the principal ActSubstitution

This section amends section 12 of the principal Act by changing paragraph (b) of subsection (3).

7. Section 12 of the principal Act is hereby amended by the substitution in subsection (3) for paragraph (b) of the following paragraph: ‘‘(b) after consulting the oversight mechanism, issue a code of conduct for authorised auditors, [prescribing] setting out—’’. 40 45 50 This gazette is also available free online at www.gpwonline.co.za Wysigingswet op Openbare Oudit, 2018 Wet No. 5 van 2018 GOVERNMENT GAZETTE, 20 NOVEMBER 2018 No. 42045 11 11 (3) Die uitvoerende gesag moet die Ouditeur-generaal in kennis stel van vordering wat gemaak is deur die rekenpligtige beampte of rekenpligtige gesag met die invordering van die bedrag wat geskuld word. (4) Die Ouditeur-generaal moet, waar bepaal moet word of ’n skuld- sertifikaat ingevolge subartikel (1) uitgereik moet word, die skriftelike vertoë, soos voorgeskryf, ontvang van die rekenpligtige beampte of rekenpligtige gesag oorweeg, en mag— (a) die vordering of resultate van die ondersoek wat deur die Ouditeur- 5 generaal ingevolge artikel 29 ingestel is; (b) die vordering of resultate van enige ondersoek wat in artikel 5(1A) 10 beoog word; of enige ander tersaaklike faktor, (c) behoorlik in ag neem. (5) Indien die Ouditeur-generaal steeds van plan is om die skuldsertifikaat uit te reik na oorweging van die skriftelike vertoë, moet die Ouditeur-generaal— (a) die rekenpligtige beampte of rekenpligtige gesag ’n geleentheid bied om, soos voorgeskryf, ’n mondelinge voorlegging te doen aan ’n raadgewende struktuur wat ingevolge artikel 5(2)(b) vir dié doel ingestel is; en (b) die skriftelike aanbevelings van die raadgewende struktuur bedoel in paragraaf (a) oorweeg voordat die sertifikaat uitgereik word. (6) Die Ouditeur-generaal moet ’n afskrif van die skuldsertifikaat ingevolge subartikel (1) uitgereik aan die betrokke wetgewer vir tertafel- legging in die tersaaklike wetgewer voorlê.’’. 15 20 25 Wysiging van artikel 7 van Wet 25 van 2004, soos gewysig deur artikel 15 van Wet 22 van 2014
Section 7Verify source
§ 5Artikel 7 van die Hoofwet word hierby gewysig deur subartikel (1A) deur dieProvision

The Independent Commission must consult the finance minister and the remuneration committee, and consider the committee’s recommendations, when looking at the Auditor-General’s salary, allowances, and benefits.

5. Artikel 7 van die Hoofwet word hierby gewysig deur subartikel (1A) deur die volgende subartikel te vervang: ‘‘(1A) Die Onafhanklike Kommissie moet by die ondersoek of oorweging van 30 die salaris, toelaes en voordele van die Ouditeur-generaal, oorleg pleeg met— (a) die kabinetslid wat verantwoordelik is vir finansies; en (b) die vergoedingskomitee soos beoog in artikel 5(2)(bA) en enige aanbevelings van die vergoedingskomitee oorweeg.’’. Wysiging van artikel 10 van Wet 25 van 2004 35
Section 5Verify source
§ 6Artikel 10 van die Hoofwet word hierby gewysig—Amendment

This section amends Article 10 of the principal Act by changing listed paragraphs and adding new ones.

6. Artikel 10 van die Hoofwet word hierby gewysig— (a) deur in subartikel (1) paragraaf (b) deur die volgende paragraaf te vervang: ‘‘(b) die kategorieë dienste wat verskaf word ingevolge artikel 5(1)(a), (aA) en (aB);’’; (b) deur in subartikel (1) die woord ‘‘en’’ aan die einde van paragraaf (c) te skrap; 40 en (c) deur in subartikel (1) die punt aan die einde van paragraaf (d) deur ’n kommapunt te vervang en deur die volgende paragrawe ná paragraaf (d) by te voeg: ‘‘(e) enige aangeleenthede bedoel vir ondersoek ingevolge artikel 5(1A); enige regstellende stappe gedoen ingevolge artikel 5A(2); en (f) (g) enige skuldsertifikaat uitgereik ingevolge artikel 5B(1).’’. 45 Wysiging van artikel 12 van Wet 25 van 2004
Section 6Verify source
§ 7Artikel 12 van die Hoofwet word hierby gewysig deur in subartikel (3)Amendment

This section amends Article 12 of the principal Act to replace paragraph (b) in subsection (3).

7. Artikel 12 van die Hoofwet word hierby gewysig deur in subartikel (3) paragraaf (b) deur die volgende paragraaf te vervang: 50 ‘‘(b) na oorlegpleging met die toesighoudingsmeganisme ’n gedragskode vir gemagtigde ouditeurs uitvaardig, [met voorskrifte rakende] wat uiteen- sit—’’. This gazette is also available free online at www.gpwonline.co.za
Section 7Verify source
§ 12No. 42045Amendment

12 No. 42045 GOVERNMENT GAZETTE, 20 NOVEMBER 2018 Act No. 5 of 2018 Public Audit Amendment Act, 2018 Amendment of section 13 of Act 25 of 2004 12

12 No. 42045 GOVERNMENT GAZETTE, 20 NOVEMBER 2018 Act No. 5 of 2018 Public Audit Amendment Act, 2018 Amendment of section 13 of Act 25 of 2004 12
Section 12Verify source
§ 8Section 13 of the principal Act is hereby amended—Substitution

The Auditor-General must consult the National Treasury every year on the audit matters in subsection (1)(b).

8. Section 13 of the principal Act is hereby amended— (a) by the substitution in subsection (1) for paragraph (b) of the following paragraph: ‘‘(b) the frequency, nature and scope of such audits; and’’; and 5 (b) by the insertion after subsection (1) of the following subsection: ‘‘(1A) The Auditor-General must consult the National Treasury annually on the matters referred to in subsection (1)(b) to facilitate the determination of audit fees in terms of section 23.’’. Amendment of section 20 of Act 25 of 2004
Section 8Verify source
§ 9Section 20 of the principal Act is hereby amended—Substitution

This amendment requires audit reports to include required opinions and statements, and at minimum to cover specified audit findings. Audit reports may also include recommendations.

9. Section 20 of the principal Act is hereby amended— (a) by the substitution for subsection (2) of the following subsection: ‘‘(2) An audit report must reflect such opinions and statements as may be required by any legislation applicable to the auditee which is the subject of the audit, [but] and must reflect [at least] an opinion, [or] conclusion or findings on— (a) [whether] the [annual] financial statements of the auditee [fairly present, in all material respects, the financial position at a specific date and results of its operations and cash flow for the period which ended on that date] in accordance with the applicable financial reporting framework and legislation; [the auditee’s] compliance with any applicable legislation relating to financial matters, financial management and other related matters; and [the] reported [information relating to the] performance of the auditee against its predetermined objectives.’’; and (b) (c) (b) by the addition after subsection (3) of the following subsection: ‘‘(4) An audit report may contain recommendations to address any matter raised in subsection (2).’’. Amendment of section 23 of Act 25 of 2004
Section 9Verify source
§ 10Section 23 of the principal Act is hereby amended—Substitution

The amendment says an excess audit fee may be defrayed from the National Treasury’s vote if the fee is above 1% of the auditee’s current and capital expenditure, the Treasury was consulted, and it believes the auditee has financial difficulty. The Auditor-General and the National Treasury must also agree in writing on the annual consultation date.

10. Section 23 of the principal Act is hereby amended— (a) by the substitution for subsection (6) of the following subsection: ‘‘(6) [If] Subject to subsection (7), if— (a) (b) the audit fee of an auditee, other than a department as defined in section 1 of the Public Finance Management Act, exceeds one percent of the total current and capital expenditure of such auditee for the relevant financial year [,]; and the National Treasury— 10 15 20 25 30 35 (i) was consulted, as required by subsection (1); and (ii) is of the opinion that the auditee has financial difficulty to pay 40 such excess, such excess [must] is to be defrayed [from the National Treasury’s vote, provided that the National Treasury is of the view that the auditee has financial difficulty to settle the cost. This excludes national and provincial departments] in terms of the Act that authorises the defrayment of the excess as a direct charge against the National Revenue Fund.’’; and (b) by the addition after subsection (6) of the following subsection: ‘‘(7) (a) The Auditor-General and the National Treasury must agree in writing on— (i) the annual date of consultation contemplated in section 13(1A) and subsection (1); 45 50 This gazette is also available free online at www.gpwonline.co.za Wysigingswet op Openbare Oudit, 2018 Wet No. 5 van 2018 GOVERNMENT GAZETTE, 20 NOVEMBER 2018 No. 42045 13 Wysiging van artikel 13 van Wet 25 van 2004 13
Section 10Verify source
§ 8Artikel 13 van die Hoofwet word hierby gewysig—Provision

The Auditor-General must consult the National Treasury every year about the matters in subarticle (1)(b) to help set audit fees under article 23.

8. Artikel 13 van die Hoofwet word hierby gewysig— (a) deur in subartikel (1) paragraaf (b) deur die volgende paragraaf te vervang: ‘‘(b) die frekwensie, aard en die omvang van sodanige oudits bepaal; en’’; en (b) deur ná subartikel (1) die volgende subartikel in te voeg: ‘‘(1A) Die Ouditeur-generaal moet die Nasionale Tesourie jaarliks raadpleeg oor die aangeleenthede bedoel in subartikel (1)(b) om die vasstelling van ouditgelde ingevolge artikel 23 te fasiliteer.’’. Wysiging van artikel 20 van Wet 25 van 2004
Section 8Verify source
§ 9Artikel 20 van die Hoofwet word hierby gewysig—Provision

Audit reports must cover required opinions and findings on the audited entity’s financial statements, compliance matters, and reported performance; they may also include recommendations.

9. Artikel 20 van die Hoofwet word hierby gewysig— (a) deur subartikel (2) deur die volgende subartikel te vervang: ‘‘(2) ’n Ouditverslag moet ’n weerspieëling lewer van die menings en uitsprake wat vereis word deur enige wetgewing van toepassing op die geouditeerde en wat die onderwerp van die oudit uitmaak, [maar] en moet [minstens] ’n mening, [of] gevolgtrekking of bevindinge weer- spieël oor— (a) [die vraag of] die finansiële [jaarstate] state van die geouditeerde [in al die wesenlike aspekte ’n redelike beeld gee betreffende die finansiële posisie op ’n spesifieke datum en resultate van sy bedrywighede en kontantvloei vir die tydperk wat op daardie datum geëindig het] ooreenkomstig die toepaslike finansiële [raamwerk] verslagdoeningsraamwerk en wetgewing; [die geouditeerde se] nakoming van wetgewing van toepassing op finansiële aangeleenthede, finansiële bestuur en ander verwante aangeleenthede; en [die] gerapporteerde [inligting in verband met die] prestasie van die geouditeerde aan die hand van vooraf neergelegde doelwitte.’’; en (b) (c) (b) deur die volgende subartikel na subartikel (3) by te voeg: ‘‘(4) ’n Ouditverslag mag aanbevelings bevat sodat aandag geskenk kan word aan enige aangeleentheid wat in subartikel (2) geopper word.’’. Wysiging van artikel 23 van Wet 25 van 2004
Section 9Verify source
§ 10Artikel 23 van die Hoofwet word hierby gewysig—Provision

The Auditor-General and the National Treasury must agree in writing on the annual consultation date, and the provision also sets a 1% audit-fee threshold rule with an exception for certain departments.

10. Artikel 23 van die Hoofwet word hierby gewysig— (a) deur subartikel (6) deur die volgende subartikel te vervang: ‘‘(6) [Indien] Behoudens subartikel (7), indien— (a) die ouditgelde van ’n geouditeerde, behalwe ’n departement soos omskryf in artikel 1 van die Wet op Openbare Finansiële Bestuur, een persent van die totale lopende en kapitaalbesteding van sodanige geouditeerde vir die tersaaklike boekjaar oorskry; en— (b) die Nasionale Tesourie— (i) geraadpleeg is, soos vereis deur subartikel (1); en (ii) van mening is dat die ouditeur finansiële probleme ervaar ten einde sodanige oorskot te vereffen, moet sodanige oorskot [uit die Nasionale Tesourie se begrotingspos wees, met dien verstande dat die Nasionale Tesourie van mening is dat die geouditeerde finansiële probleme ervaar ten einde die koste te vereffen. Dit sluit nasionale en provinsiale departemente in] ingevolge die Wet wat die betaling van die dekking as ’n direkte las teen die Nasionale Inkomstefonds magtig, gevorder word.’’; en (b) deur die volgende subartikel na subartikel (6) by te voeg: ‘‘(7) (a) Die Ouditeur-generaal en die Nasionale Tesourie moet skriftelik ooreenkom op— (i) die jaarlikse datum van oorlegpleging in artikel 13(1A) en subartikel (1) bedoel; 5 10 15 20 25 30 35 40 45 50 55 This gazette is also available free online at www.gpwonline.co.za
Section 10Verify source
§ 14No. 42045Commencement

If the Auditor-General and National Treasury do not reach a written agreement within six months, the oversight mechanism must set the consultation date, financial-difficulty criteria, and funding estimate process. Those matters may later be amended in writing by the Auditor-General and National Treasury.

14 No. 42045 GOVERNMENT GAZETTE, 20 NOVEMBER 2018 Act No. 5 of 2018 Public Audit Amendment Act, 2018 14 (ii) (iii) the criteria to be applied to determine whether an auditee has financial difficulty as contemplated in subsection (6)(b)(ii); and a process to determine an estimate of the funds required annually as a direct charge for the audit fees referred to in subsection (6), read with the Act that authorises the excess as a direct charge against the National Revenue Fund. (b) If the Auditor-General and the National Treasury fail to conclude a written agreement within six months after the commencement of this subsection, the oversight mechanism must, after consultation with the Auditor-General and National Treasury, determine the annual date of consultation, the criteria to determine whether an auditee has financial difficulty and the process to determine the estimate of funds as referred to in paragraph (a). (c) The annual date of consultation, the criteria to determine whether an auditee has financial difficulty or process agreed to in terms of paragraph (a) or determined by the oversight mechanism in terms of paragraph (b), may be amended in writing by the Auditor-General and the National Treasury.’’. 5 10 15 Amendment of section 27 of Act 25 of 2004
Section 14Verify source
§ 11Section 27 of the principal Act is hereby amended by the substitution forSubstitution

An auditor appointed under section 25(1)(b) must carry out the functions of office as auditor under the Auditing Profession Act and other applicable law.

11. Section 27 of the principal Act is hereby amended by the substitution for 20 subsection (1) of the following subsection: ‘‘(1) An auditor appointed in terms of section 25(1)(b) must perform the functions of office as auditor in terms of [section 20 of] the [Public Accountants’ and Auditors’] Auditing Profession Act and any other applicable legislation.’’. Amendment of section 34 of Act 25 of 2004
Section 11Verify source
§ 12Section 34 of the principal Act is hereby amended by the substitution forSubstitution

Employees appointed under this section are subject to terms and conditions set by the Auditor-General, and their pay and benefits are also determined by the Auditor-General.

12. Section 34 of the principal Act is hereby amended by the substitution for subsection (3) of the following subsection: ‘‘(3) (a) Persons appointed [as employees] in terms of this section are employed subject to the terms and conditions of employment determined by the Auditor- General, and must be paid the remuneration, allowances and benefits determined by the Auditor-General, subject to section 35 and after considering the recommen- dations of the remuneration committee. (b) Terms and conditions of employment contemplated in paragraph (a) must be consistent with the basic values and principles set out in section 195 of the Constitution.’’. 25 30 35 Amendment of section 40 of Act 25 of 2004
Section 12Verify source
§ 13Section 40 of the principal Act is hereby amended by the substitution forSubstitution

The Deputy Auditor-General must establish an audit committee and appoint its members, consulting the Auditor-General when appointing them.

13. Section 40 of the principal Act is hereby amended by the substitution for subsection (1) of the following subsection: ‘‘(1) The [Deputy] Auditor-General must— (a) establish an audit committee contemplated in section 43(3)(b)(ii); and (b) appoint the members of the audit committee [in consultation with the 40 Auditor-General].’’. Amendment of section 41 of Act 25 of 2004
Section 13Verify source
§ 14Section 41 of the principal Act is hereby amended by the substitution forSubstitution

This provision amends section 41 so that financial statements must follow international best practice.

14. Section 41 of the principal Act is hereby amended by the substitution for subsection (2) of the following subsection: 45 ‘‘(2) The financial statements must be in accordance with [South African Statements of Generally Accepted Accounting Practice or other] international best practice [approved by the oversight mechanism].’’. This gazette is also available free online at www.gpwonline.co.za Wysigingswet op Openbare Oudit, 2018 Wet No. 5 van 2018 GOVERNMENT GAZETTE, 20 NOVEMBER 2018 No. 42045 15 15 (iii) (ii) die maatstawwe wat toegepas moet word ten einde te bepaal of ’n ouditeur finansiële probleme ervaar soos beoog in subartikel (6)(b)(ii); en ’n proses ten einde ’n raming te bepaal betreffende die fondse wat jaarliks benodig word as ’n direkte las vir die ouditfooie waarna in subartikel (6) verwys word, saamgelees met die Wet wat die oorskot as direkte las teen die Nasionale Inkomstefonds magtig. (b) Indien die Ouditeur-generaal en die Nasionale Tesourie versuim om binne ses maande na die inwerkingtreding van hierdie subartikel ’n skriftelike ooreenkoms aan te gaan, moet die toesighoudende meganisme, na oorlegpleging met die Ouditeur-generaal en die Nasionale Tesourie, die jaarlikse datum vir oorlegpleging bepaal, en die kriteria om vas te stel of ’n geouditeerde finansiële probleme ervaar en die proses ten einde die geraamde fondse te bepaal na verwys in paragraaf (a). (c) Die jaarlikse datum van oorlegpleging, die kriteria om te bepaal of ’n geouditeerde finansiële probleme ervaar of die proses waarvolgens ingevolge paragraaf (a) ooreengekom is of wat deur die toesighoudende meganisme ingevolge paragraaf (b) bepaal is, kan skriftelik deur die Ouditeur-generaal en die Nasionale Tesourie gewysig word.’’. 5 10 15 20 Wysiging van artikel 27 van Wet 25 van 2004
Section 14Verify source
§ 11Artikel 27 van die Hoofwet word hierby gewysig deur subartikel (1) deur dieProvision

An auditor appointed under article 25(1)(b) must carry out the duties of an auditor under the Audit Profession Act and any other applicable law.

11. Artikel 27 van die Hoofwet word hierby gewysig deur subartikel (1) deur die volgende subartikel te vervang: ‘‘(1) ’n Ouditeur aangestel ingevolge artikel 25(1)(b), moet die ampspligte van ouditeur uitvoer ingevolge [artikel 20 van] die Wet op [Openbare Reken- meesters- en Ouditeurs] die Ouditberoep en enige ander toepaslike wetgewing.’’. 25 Wysiging van artikel 34 van Wet 25 van 2004
Section 11Verify source
§ 12Artikel 34 van die Hoofwet word hierby gewysig deur subartikel (3) deur dieProvision

People appointed under this article must follow service conditions set by the Auditor-General, and their pay, allowances, and benefits are also set by the Auditor-General.

12. Artikel 34 van die Hoofwet word hierby gewysig deur subartikel (3) deur die volgende subartikel te vervang: ‘‘(3) (a) [Behoudens artikel 35 word persone as werknemers] Persone ingevolge hierdie artikel aangestel, is onderhewig aan die diensvoorwaardes wat deur die Ouditeur-generaal bepaal word en word die besoldiging, toelaes en voordele betaal wat die Ouditeur-generaal bepaal, onderworpe aan artikel 35 en ná oorweging van die aanbevelings van die vergoedingskomitee. 30 (b) Diensvoorwaardes beoog in paragraaf (a) moet ooreenstem met die basiese 35 waardes en beginsels uiteengesit in artikel 195 van die Grondwet.’’. Wysiging van artikel 40 van Wet 25 van 2004
Section 12Verify source
§ 13Artikel 40 van die Hoofwet word hierby gewysig deur subartikel (1) deur dieAmendment

This provision amends section 40 so that the Auditor-General must establish an audit committee and appoint its members.

13. Artikel 40 van die Hoofwet word hierby gewysig deur subartikel (1) deur die volgende subartikel te vervang: ‘‘(1) Die [Adjunk-ouditeur-generaal] Ouditeur-generaal moet— 40 (a) (b) ’n ouditkomitee beoog in artikel 43(3)(b)(ii) instel; en [in oorleg met die Ouditeur-generaal] die lede van die ouditkomitee aanstel.’’. Wysiging van artikel 41 van Wet 25 van 2004
Section 13Verify source
§ 14Artikel 41 van die Hoofwet word hierby gewysig deur subartikel (2) deur dieProvision

Financial statements must comply with international best practice, as approved by the oversight mechanism.

14. Artikel 41 van die Hoofwet word hierby gewysig deur subartikel (2) deur die 45 volgende subartikel te vervang: ‘‘(2) Die finansiële state moet in ooreenstemming wees met [die Suid- Afrikaanse Verklaring oor Algemeen Aanvaarde Rekenpligtige Praktyk of ander] internasionale beste praktyk [deur die toesighoudingsmeganisme goedgekeur].’’. 50 This gazette is also available free online at www.gpwonline.co.za
Section 14Verify source
§ 16No. 42045Amendment

Section heading only; no substantive rule text is provided.

16 No. 42045 GOVERNMENT GAZETTE, 20 NOVEMBER 2018 Act No. 5 of 2018 Public Audit Amendment Act, 2018 Amendment of section 52 of Act 25 of 2004 16
Section 16Verify source
§ 15Section 52 of the principal Act is hereby amended—Commencement

The Auditor-General must make specified regulations within 90 days after commencement, and must submit those regulations to the Speaker for tabling in the National Assembly after consulting the oversight mechanism.

15. Section 52 of the principal Act is hereby amended— (a) by the insertion after subsection (1) of the following subsection: ‘‘(1A) The Auditor-General must, within 90 days of the date of commencement of the Public Audit Amendment Act, 2018, make regulations on— (a) the criteria to be considered in determining how to exercise his or her discretion contemplated in section 4(3); the nature and category of matters in respect of which an investigation or special audit contemplated in section 5(1)(d) may be carried out; the criteria for the referral of matters contemplated in section 5(1A); the process, time-frames and form for the written and oral representations contemplated in section 5B(4) and (5); and the form and content of the certificate of debt issued in terms of section 5B(1).’’; and (b) (c) (d) (e) (b) by the substitution for subsection (2) of the following subsection: ‘‘(2) The Auditor-General must, after consultation with the oversight mechanism, submit any regulations made in terms of [subsection] subsections (1) and (1A) to the Speaker for tabling in the National Assembly.’’. Amendment of certain expressions in Act 25 of 2004
Section 15Verify source
§ 16The principal Act is hereby amended—Substitution

The principal Act is amended by replacing two expressions with new expressions.

16. The principal Act is hereby amended— (a) by the substitution for the expression ‘‘Public Accountants’ and Auditors’ Act’’, wherever it occurs in the principal Act, of the expression ‘‘Auditing Profession Act’’; and (b) by the substitution for the expression ‘‘executive authority within the meaning of the Public Finance Management Act’’, wherever it occurs in the principal Act, of the expression ‘‘executive authority’’. Amendment of arrangement of sections
Section 16Verify source
§ 17The arrangement of sections of the principal Act is hereby amended by theShort title

This provision amends the principal Act by inserting a new Part 1A called “Remedial Action” after section 5.

17. The arrangement of sections of the principal Act is hereby amended by the insertion after the reference to the heading to section 5 of the following Part: ‘‘Part 1A: Remedial Action 5A Taking remedial action 5B Failure to comply with specific remedial action’’. Short title and commencement 18. (1) This Act is called the Public Audit Amendment Act, 2018, and subject to subsections (2) and (3), comes into operation on a date fixed by the President by proclamation in the Gazette. (2) Section 5 of this Act will come into operation on the date when the Determination of Remuneration of Office-Bearers of Independent Constitutional Institutions Laws Amendment Act, 2014 (Act No. 22 of 2014), comes into operation or on the date contemplated in subsection (1), whichever date is the later. (3) Section 10 of this Act will come into operation when the Act envisaged in section 23(6) of the principal Act (as to be amended by this Act) takes effect. 5 10 15 20 25 30 35 40 45 This gazette is also available free online at www.gpwonline.co.za Wysigingswet op Openbare Oudit, 2018 Wet No. 5 van 2018 GOVERNMENT GAZETTE, 20 NOVEMBER 2018 No. 42045 17 17 Wysiging van artikel 52 van Wet 25 van 2004
Section 17Verify source
§ 15Artikel 52 van die Hoofwet word hierby gewysig—Commencement

The Auditor-General must issue regulations within 90 days after commencement, and then table the regulations with the Speaker after consulting the oversight mechanism.

15. Artikel 52 van die Hoofwet word hierby gewysig— (a) deur na subartikel (1) die volgende subartikel in te voeg: ‘‘(1A) Die Ouditeur-generaal moet binne 90 dae ná die datum van die inwerkingtreding van die Wysigingswet op Openbare Oudit, 2018, regulasies uitvaardig oor— (a) die maatstawwe wat oorweeg moet word ten einde te bepaal hoe om sy of haar diskresie beoog in artikel 4(3) uit te oefen; (b) die aard en kategorie van aangeleenthede ten opsigte waarvan ’n ondersoek of spesiale oudit beoog in artikel 5(1)(d) uitgevoer mag word; (c) die maatstawwe vir die verwysing van aangeleenthede beoog in artikel 5(1A); (d) die proses, tydraamwerke en vorm vir die skriftelike en mondelinge vertoë beoog in artikel 5B(4) en (5); en (e) die vorm en inhoud van die sertifikaat van skuld uitgereik ingevolge artikel 5B(1).’’; en (b) deur subartikel (2) deur die volgende subartikel te vervang: ‘‘(2) Na oorlegpleging met die toesighoudingsmeganisme moet die Ouditeur-generaal [subartikel] regulasies wat subartikels (1) en (1A) uitgevaardig is, aan die Speaker voorlê vir tertafellegging in die Nasionale Vergadering.’’. ingevolge enige 5 10 15 20 Wysiging van sekere uitdrukkings in Wet 25 van 2004
Section 15Verify source
§ 16Die Hoofwet word hierby gewysig—Amendment

This section amends the principal Act by replacing two specified phrases wherever they appear.

16. Die Hoofwet word hierby gewysig— (a) deur die uitdrukking ‘‘Wet op Openbare Rekenmeesters en Ouditeurs’’, waar dit ook al voorkom, deur die uitdrukking ‘‘Wet op die Ouditberoep’’ te vervang; en (b) deur die uitdrukking ‘‘uitvoerende gesag binne in die betekenis van die Wet op Openbare Finansiële Bestuur’’, waar dit ook voorkom, deur die uitdrukking ‘‘uitvoerende gesag’’ te vervang. 25 30 Wysiging van rangskikking van artikels
Section 16Verify source
§ 17Die rangskikking van artikels van die Hoofwet word hierby gewysig deur dieAmendment

This section amends the Act’s article arrangement by inserting a new Part after section 5, and sets when the Act, section 5, and section 10 start to operate.

17. Die rangskikking van artikels van die Hoofwet word hierby gewysig deur die invoeging van die volgende Deel ná die opskrif by artikel 5: ‘‘Deel 1A: Regstellende Stappe 5A Doen van regstellende stappe 5B Versuim om te voldoen aan bepaalde regstellende stappe’’. Kort titel en inwerkingtreding 18. (1) Hierdie Wet heet die Wysigingswet op Openbare Oudit, 2018, en, onderhewig aan subartikels (2) en (3), tree in werking op ’n datum deur die President by proklamasie in die Staatskoerant bepaal. (2) Artikel 5 van hierdie Wet tree in werking op die datum waarop die Wysigingswet op Wette Rakende Bepaling van Besoldiging van Ampsbekleërs van Onafhanklike Grondwetlike Instellings, 2014 (Wet No. 22 van 2014), in werking tree of op die datum beoog in subartikel (1), welke datum ook al die laaste is. 35 40 (3) Artikel 10 van hierdie Wet tree in werking wanneer die Wet beoog in artikel 23(6) 45 van die Hoofwet (soos gewysig deur hierdie Wet) van krag word. This gazette is also available free online at www.gpwonline.co.za
Section 17Verify source
§ 18No. 42045Provision

This text only shows Gazette publication details for No. 42045 dated 20 November 2018.

18 No. 42045 GOVERNMENT GAZETTE, 20 NOVEMBER 2018 This gazette is also available free online at www.gpwonline.co.za STAATSKOERANT, 20 NOVEMBER 2018 No. 42045 19 This gazette is also available free online at www.gpwonline.co.za
Section 18Verify source
§ 20No. 42045Provision

Gazette header for No. 42045, dated 20 November 2018.

20 No. 42045 GOVERNMENT GAZETTE, 20 NOVEMBER 2018 This gazette is also available free online at www.gpwonline.co.zaPrinted by and obtainable from the Government Printer, Bosman Street, Private Bag X85, Pretoria, 0001Contact Centre Tel: 012-748 6200. eMail: info.egazette@gpw.gov.zaPublications: Tel: (012) 748 6053, 748 6061, 748 6065
Section 20Verify source

Legislative relationships

8 referenced instruments

Names are derived from the stored provision headings and citation-enrichment layer. Treat this as a research index and verify each relationship against the source text.

A–F

4 instruments

  • Article 10 of the principal Act

    Section 6

  • Article 12 of the principal Act

    Section 7

  • Auditor- 5 10 15 General effectively.’’. Insertion of Part 1A in Chapter 2 of Act

    Section 8

  • Constitution.’’. 25 30 35 Amendment of section 40 of Act

    Section 12

N–S

4 instruments

  • Principal Act

    Sections 2, 6, 7, 16

  • Public Audit Act, 2004

    Sections 1, 2

  • Public Finance Management Act

    Sections 10, 16

  • Remuneration of Office-Bearers of Independent Constitutional Institutions Laws Amendment Act, 2014

    Section 17

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