25 October 2016
Chairperson: Ms N Mafu (ANC)
Meeting Summary
The Community Scheme Ombud Service (CSOS), presented their 2015/16 Annual Report to the Committee.
CSOS reported that the Act was in place and there had been sign-off on the regulations that would now allow CSOS to begin working in earnest.
Dispute resolution processes had been finalised and offices were set up in three provinces, risk framework completed, audit and risk committees established and effective, and no fraud had been found.
One of three targets had been completed in the area of resolving community schemes and it was confident that with the new legislation it would be able to work effectively. Target achievement in each area was listed. Challenges included budget constraints, delays in the approval of the legislation and agreements. .Current assets amounted to R10.3 million, non current assets to R9.3 million and current liabilities at R4.2 million. CSOS received a government grant and there was revenue from exchange transactions. There was a deficit which arose as a result of an over-budgeting of R13.4 million on personnel, depreciation of R3.1 million and over expenditure of R4 million. Levy income initially budgeted for had led to a deviation of R20.8 million.
CSOS had received an unqualified audit but there were findings by the Auditor-General, largely related to past capacity issues. CSOS expected to be able to start generating own income and the coming year would be one of expansion.
Members asked about the irregular expenditure and asked how this would be solved. They were not happy at 33% achievement and pointed out that two indicators were not achieved because management had not ensured that the targets and indicators were realistic. They felt that the explanations were not convincing and did not explain the poorer audit results than in the previous year. They asked about loss of staff and the impact of this, and asked that the Department work together with CSOS to resolve the issues.
Click on link below for full presentation
