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HSRC Annual Report 2016/17
PART E: Annual Financial Statements
Adjustment of material misstatements
19. I identified material misstatements in the Annual Performance Report submitted for auditing. The material
misstatements were in the reported performance information for Programme 1 – Research, Development and
Innovation. As management subsequently corrected the misstatements, I did not report any material findings on
the usefulness and reliability of the reported performance information.
Report on audit of compliance with legislation
Introduction and scope
20. In accordance with the PAA and the general notice issued in terms thereof, I have a responsibility to report material
findings on the entity’s compliance with specific matters in key legislation. I performed procedures to identify
findings, but not to gather evidence to express assurance.
21. The material findings in respect of the compliance criteria for the applicable subject matters are as follows:
Expenditure management
22. Effective steps were not taken to prevent irregular expenditure amounting to R6 465 000, as disclosed in Note 27
to the Annual Financial Statements, in contravention of section 51(1)(b)(ii) of the PFMA.
Other information
23. The Human Sciences Research Council’s Accounting Authority is responsible for the other information. The other
information does not include the Financial Statements, the auditor’s report thereon and those selected programmes
presented in the Annual Performance Report that have been specifically reported on in the auditor’s report.
24. My opinion on the Financial Statements and findings on the reported performance information and compliance
with legislation do not cover the other information and I do not express an audit opinion or any form of assurance
conclusion thereon.
In connection with my audit, my responsibility is to read the other information and, in doing so, consider whether
the other information is materially inconsistent with the Financial Statements and the selected programme
presented in the Annual Performance Report or my knowledge obtained in the audit, or otherwise appears to be
materially misstated. If, based on the work I have performed on the other information obtained prior to the date
of this auditor’s report, I conclude that there is a material misstatement of this other information, I am required to
report that fact. I have nothing to report in this regard.
Internal control deficiencies
25. I considered internal control relevant to my audit of the Financial Statements, reported performance information
and compliance with applicable legislation; however, my objective was not to express any form of assurance
thereon. I did not identify any significant deficiencies in internal control.
Pretoria
29 July 2017