HSRC Integrated Annual Report 2018/2019

88 / HSRC INTEGRATED ANNUAL REPORT 2018/19 PART E: ANNUAL FINANCIAL STATEMENTS REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON THE HUMAN SCIENCES RESEARCH COUNCIL (CONTINUED) as disclosed in note 27 to the annual financial statements, as required by section 51(1 )(b)(ii) of the PFMA. The irregular expenditure was related to supply chain management and was caused by non-compliance with Treasury Regulation 16A6.4 and Practice Note 4 of 2009. Other Information 21. The Accounting Authority is responsible for the other information. The other information comprises the information included in the annual report which includes the directors’ report and the audit committee’s report. The other information does not include the financial statements, the auditor’s report and the selected programme presented in the annual performance report that has been specifically reported in this auditor’s report. 22.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. 23. 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. 24. When I do receive and read the directors’ report and the audit committee’s report. If I conclude that there is a material misstatement therein, I am required to communicate the matter to those charged with governance and request that the other information be corrected. If the other information is not corrected, I may have to retract this auditor’s report and re-issue an amended report as appropriate. However, if it is corrected this will not be necessary. 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 on it. The matter reported below is limited to the significant internal control deficiencies that resulted in the finding on compliance with legislation included in this report. 26. The review and monitoring processes were not sufficient to prevent instances of irregular expenditure as required by section 51 (1 )(b)(ii) of the PFMA. Pretoria 31 July 2019