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2016 ENTITIES CONSOLIDATION PROCESS
NATIONAL TREASURY
Presenter: Thokozile Motsweni, Director AS&R | 02 March 2016
2016 Public Entity Consolidation Process
2
1. TEMPLATE UPDATES FOR 2016
• AFS Template is based on 2015 but updated and enhanced
• Template will NOT be published on OAG website
• Templates will be issued out of RollupSheets (Consolidation tool) and then emailed to each entity individually
• Template will be pre-populated with entity name + code
2016 Public Entity Consolidation Process (cont)
3
2. TEMPLATE UPDATES FOR 2016
• Cover page – drop down for selection of AGSA or other firm.
Linked to inter-entity sheet to highlight payments to AGSA
• Checklist – conditional formatting redone to prevent false positives
• Mapping sheets – remain exactly the same, therefore entities can
copy & paste last year’s figures and descriptions and will work fine
• Financial Position – line item order changed
• Financial Performance – line item order changed
• Cash Flow Statement – New conditional formatting check on cash
flow statement – Note 63.
2016 Public Entity Consolidation Process (cont)
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3. TEMPLATE UPDATES FOR 2016 (continued)
• Net Assets – “Surplus / (Deficit) for the period as per Statement of
Financial Performance” now pulls straight from SOFP to prevent
capturing errors
• Notes – Note ordering has been completely changed – all financial
position notes are now on Notes A, then all assets notes are now
on Notes B, all financial performance notes on Notes C, all non-
financial statements notes on Notes D, financial instruments notes
on Notes E
• New conditional formatting check on all assets notes
2016 Public Entity Consolidation Process (cont)
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4. TEMPLATE UPDATES FOR 2016 (continued)
• All AFS face to note hyperlinks have been redone
• There are now hyperlinks from the instruction sheet to the relevant
pages of the template to assist entities
• Inter-entity worksheets – same as last year but brought forward in
document so that entities see it more and don’t leave until the end
to complete
• Conversion Journals – no changes
• Uncorrected Misstatements – no changes
2016 Public Entity Consolidation Process (cont)
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5. EXTERNAL AUDIT SIGN-OFF TEMPLATE (Annexure C)
• Similar to 2015, discussed with AGSA and big 5 firms
• Purpose : Testing whether AFS template agrees to audited AFS
• Testing inter-entity and testing conversion journals
• Confirming unadjusted audit differences (misstatements)
• Do not need full audit opinion for consol purposes
• Sign-off submitted to management of entity
• Final document will be issued before end of March 2016
2016 Public Entity Consolidation Process (cont)
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6. REQUIREMENTS FOR ENTITIES WITH 30 JUNE YEAR END
• To be finalised in consultation with the AGSA, the entities and their external auditors
2016 Public Entity Consolidation Process (cont)
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7. WAY FORWARD?
• Test the draft 2016 template
• Email any errors / issues you identify during the testing
process
• Email any suggestions for improvements on the template
or places we can add a check or verification.
• Email new entities or delisted entities to NT
• Please send all the above information by Friday 11
March 2016 to [email protected]
• NT to test the template again, run it by AGSA, finalise and
issue to entities before end of March 2016.
Submission deadlines
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8. 31 MAY 2016
No. Document name Hard Copy Soft Copy (Electronic
on CD) Due Date
1. GRAP AFS Template
Printout of the following:
Cover Sheet (signed)
Statement of Financial Position
Statement of Financial Performance
Statement of Cash Flows
Statement of Changes in Net
Assets
MS Excel 31 May 2016
2. Inter-entity template Printout signed by management MS Excel (Part of AFS
Template)
31 May 2016
3. Conversion journals Printout signed by management MS Excel (Part of AFS
Template)
31 May 2016
5.
Annexure 7 - Remuneration of
executive and non-executive
management
Printout signed by management MS Excel (Part of AFS
Template)
31 May 2016
5.
Certified normal AFS submitted
for external audit
Printout of complete document signed by
management MS Excel or PDF
31 May 2016
Submission deadlines (cont)
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9. 31 JULY 2016
No. Document name Hard Copy Soft Copy
(Electronic on CD) Due Date
1. FINAL AFS Template
Printout of the following:
Cover Sheet (signed)
Statement of Financial Position
Statement of Financial Performance
Statement of Cash Flows
Statement of Changes in Net
Assets
MS Excel (entire
document) 29 July 2016
2. FINAL Inter-entity template Printout signed by management MS Excel (Part of AFS
Template)
29 July 2016
3. FINAL Conversion journals Printout signed by management
MS Excel (Part of AFS
Template) 29 July 2016
4. FINAL Uncorrected
Misstatements Printout signed by management
MS Excel (Part of AFS
Template) 29 July 2016
5. FINAL normal Audited annual
financial statements
Printout of complete document signed by
management MS Excel preferably 29 July 2016
6. Annexure C – External Audit
signoff on AFS Template Copy of signed original
Scanned document
(PDF) 29 July 2016
7.
External auditor’s audit report
on normal annual financial
statements
Copy of signed original Scanned document
(PDF) 29 July 2016
THANK YOU………..QUESTIONS
2016 AFS Template
Before you start working on your template know the following:
1. Must read the instructions
2. Do things in the right order
3. Workbook and worksheets are locked
4. Do not delete rows or columns or highlight cells
5. Fill in as much information as possible in the input cells
6. Remember to save your work
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Template Instructions
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Cover Page
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FINANCIAL YEAR-END: 2016
ENTITY NAME:
ENTITY CODE:
GROUPING
POSITION NAME EMAIL TELEPHONE
CFO
Financial Manager
Accountant
Other
Other
EXTERNAL AUDITOR (Select other if n/a)
FIRM / PRACTICE NAME
POSITION NAME EMAIL TELEPHONE
Senior Manager
Audit Manager
Other
Other
NATIONAL TREASURY PUBLIC ENTITY CONSOLIDATION TEMPLATE
PUBLIC ENTITY CONTACT DETAILS
EXTERNAL AUDITORS CONTACT DETAILS
SUBMISSION SIGN-OFF
TEST TEMPLATE
EN001
NATIONAL
Auditor-General of South Africa
AGSA
Checklist
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Income & Expenditure Mapping
MAPPING
DESCRIPTIONS
Not changed from last year
INCOME
Debit amounts as positive
Credit amounts as
negative
EXPENSE
Debit amounts as positive,
Credit amounts as
negative
Capture amounts to the
nearest cent (no rounding)
16
Assets Mapping Income & Expenditure Mapping
MAPPING
DESCRIPTIONS
Not changed from last year
CURRENT ASSETS
Debit amounts as positive,
Credit amounts as negative
NON-CURRENT ASSETS
Debit amounts as positive,
Credit amounts as negative
Capture amounts to the
nearest cent (no rounding
to nearest rand)
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Liabilities Mapping
MAPPING
DESCRIPTIONS
Not changed from last year
CURRENT LIABILITIES
Debit amounts as positive
Credit amounts as negative
NON-CURRENT
LIABILITIES
Debit amounts as positive
Credit amounts as negative,
Capture amounts to the
nearest cent (no rounding to
nearest rand)
18
Net Assets Mapping
Mapping
Net Assets to the
Statement of Financial
Position
Mapping descriptions -
Not changed from last
year
Capture amounts to the
nearest cent (no rounding
to nearest rand)
Debits entered as positive
Credits entered as
negative
19
SCOA
“Totals” table at the top of
SCOA page should
balance to Rnil after
mapping
Incorrect mapping MUST
be fixed where SCOA
does not balance
Cannot edit or change
anything on SCOA, only
on TB mapping
Cannot capture journals
entries on SCOA page,
only on Adjusting Journals
page
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Statement of Financial Position Populated by SCOA and
Notes
Net Assets
• Accumulated Surplus
/(Deficit) – Populated
from Statement of
Changes in Net Assets
• All other equity items –
Populated from SCOA
No editing is possible
Financial Position Balance
check on the CHECKLIST
21
Statement of Financial Performance
Populated by SCOA and
Notes
Entities with minority
interest –
capture amounts in the
green space rows 65 to
66 in line with entities
own AFS.
22
Statement of Changes in Net Assets
Not populated by SCOA
Entities must capture
amounts (rounded to
R'000) in the green
spaces in line with the
Statement of Changes
in Net Assets from own
AFS.
Surplus/(Deficit) for year
is pulled from SOFP
Total of net assets
should agree to SCOA
(Net Assets + I&E) and
Statement of Financial
Position(Net Assets)
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Cash Flow Statement
Not populated by SCOA.
Entities must capture
amounts (rounded to
R'000) in the green
spaces in line with the
Statement of Cash Flows
from own AFS.
Note 63 is your Net Cash
Flows from operating
activities note – complete
this first
Cash Flow Balance check
on the CHECKLIST
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Notes to the financial statements
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• Order of notes have been changed therefore new note numbers:
– Notes A = financial position notes
– Notes B = Asset notes (33 – 38)
– Notes C = all financial performance notes
– Notes D = all non-financial statements notes
– Notes E = financial instruments notes
Notes to the financial statements (cont)
• Populated from SCOA and light green input cells
• Complete all relevant light green highlight areas
(Capture amounts to nearest thousand)
• Check that sub-notes agree to main notes, check that note agrees to POS, PER, CFS or NA
26
2016 AFS Template Training
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1.INTER-ENTITY FOR CURRENT AND PRIOR YEAR
2016 AFS Template Training (cont)
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2. INTER-ENTITY FOR CURRENT AND PRIOR YEAR
• Why? GRAP requirement (GRAP 6.41)
• Identify and disclose inter-entity transactions and balances
• Excluded: Transactions or balances with Departments or municipalities or entities not on the entities list in the Inter-entity template.
• Only numbers , nearest R1, no words , no negative(credit) numbers, no N/A and do not delete, insert or highlight any rows or columns
• Do not record amounts next to your own entity name
2016 AFS Template Training (cont)
29
3. INTER-ENTITY FOR CURRENT AND PRIOR YEAR
• Auditor-General of South Africa, row 16 below will be highlighted green if you are audited by AGSA (cover page)
• Includes prior period to have accurate comparatives
• Recommendation - implement system to track transactions and balances.
• Make use of supplier database / customer database
• Amounts captured tested by external auditors
2016 AFS Template Training (cont)
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4. INTER-ENTITY FOR CURRENT AND PRIOR YEAR
2015 Finding "The transactions and balances identified by entities transacting with each other did not match up and indicated material discrepancies . These discrepancies impact the statement of financial performance with R29,6 billion and the statement of financial position with R87 billion ”.
• Share your information with other entities, follow up on discrepancies.
• Ensure validity, completeness and accuracy.
• Confirmation of inter-entity balances and transactions
2016 AFS Template Training (cont)
31
5. CONVESRION JOURNALS FOR CURRENT AND PRIOR YEAR
2016 AFS Template Training (cont)
32
6. CONVESRION JOURNALS FOR CURRENT AND PRIOR YEAR
• Why? GRAP requirement (GRAP 6.45)
• Aligns entity’s normal AFS to Group Accounting Policies
• Identify difference in accounting policy > journal entries
• Journal per line items in the SCOA
• If final AFS figures change > update your journal entries
• NT will pass journals on final consolidation
• Do not process on your AFS template
2016 AFS Template Training (cont)
33
7. UNCORRECTED MISSTATEMENTS
2016 AFS Template Training (cont)
34
8. UNCORRECTED MISSTATEMENTS
• Adjust for all audit misstatements, including immaterial misstatements
• Prior to sign off of the audit report on the annual financial statements.
• Unadjusted errors – document in the Uncorrected Misstatements worksheet.
Other
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9. ANNEXURE 7
• Purpose: Used for remuneration research purposes.
• Capture the current year remuneration of their executive and non-executive management.
• Not part of the AFS template and is not subject to external audit
OAG Support
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Name of OAG representative within NT Province Cluster
Star Kafu
Telephone: 012 315 5794
Email: [email protected]
KZN & NW Justice
John Watson
Telephone: 012 315-5590
Email: [email protected]
NC & FS Economic Services
Keitumetse Malebye
Telephone: 012 315 5989/5281
Email: [email protected]
EC & MP Finance & Admin
Thokozile Motsweni
Telephone : 012 315 5233
WC Central Government
Thomas Matjeni/Nthua Motlhala
Telephone : 012 315 5792
GP
Social Services
THANK YOU………..QUESTIONS
