Home  »  Articles   »   MOA Between Auditor-General and National Treasury in Place

Articles
MOA Between Auditor-General and National Treasury in Place

October 14, 2020

Auditor-General

A Memorandum of Agreement (MOA) between the auditor-general (AG) and national treasury is in place.

The AG published the MOA in Government Gazette 43800.

The MOA focuses on the criteria to be applied by treasury to form an opinion on whether an auditee has financial difficulty to pay the excess contemplated in section 23(6) of the Public Audit Act.

Section 23(6) stipulates that where the audit fee of an auditee exceeds one percent of the total current and capital expenditure of such auditee for the relevant financial year and treasury holds the view that the auditee has financial difficulty to pay such excess, then the excess is to be defrayed as a direct charge against the National Revenue Fund.

It also outlines a process to determine an estimate of the funds required annually for the audit fees to be defrayed as a direct charge against the National Revenue Fund in terms of section 1 of the Public Audit Excess Fee Act, 2019.

Section 1 stipulates that the excess of any audit fee is a direct charge against the National Revenue Fund.

The MOA stipulates that the parties must annually consult each other on or before 1 July of each year in accordance with the Audit Fees Regulations.

The MOA deals with the criteria to be applied to determine whether an auditee has financial difficulty; process to determine an estimate of the funds required annually as a direct charge and general principles.