Our Services

Financial statements preparation

At Hozac, we specialise in the preparation of financial statements for government entities with a clear focus on meeting the requirements of the Auditor General of South Africa (AGSA). Our unique approach to Annual Financial Statements preparation is designed to guarantee a clean audit report within a reasonable and efficient timeframe. This is achieved through our meticulous 4-legged approach, which encompasses filing, review, verification, and skill transfer.

We recognise the critical importance of meeting specific criteria for account balances and disclosures to successfully pass the AGSA audit. Our rigorous process ensures that these key components adhere to essential assertions, including existence, rights and obligations, accuracy, valuation and allocation, classification, and presentation. Additionally, for classes of transactions and disclosures, we emphasise meeting criteria related to occurrence, accuracy, cut-off, classification, presentation, and completeness.

Count on our team to deliver comprehensive and meticulous financial statement preparation, setting the stage for a successful audit process and ensuring compliance with AGSA requirements.

Performance information

Legislation mandates that government institutions report on their predetermined objectives and undergo auditing of their annual performance reports. The purpose of auditing predetermined objectives is to assess the usefulness and reliability of the reported performance against predetermined objectives in the annual performance report, based on predetermined criteria. This ensures that the performance information reported is valid, accurate, and complete in all material respects.

The annual report should provide a fair representation of the entity’s state of affairs, business operations, financial results, performance against predetermined objectives, and financial position at the end of the respective financial year.

The performance information related to predetermined objectives is subject to audit by the Auditor General as per section 20(2) of the Public Audit Act No. 25 of 2004.

At Hozac, we have developed a unique model to support organizations in passing AGSA tests and obtaining a clean audit for performance information reporting. Our approach includes a 4-legged process: evaluating compliance with the framework for managing program performance information, conducting readiness reviews, providing internal assistance, and offering skill transfer trainings.

By partnering with us, you can ensure that your organization meets the required standards for reporting on performance information and obtains a clean audit from the Auditor General.

Compliance with the regulations

Numerous government institutions, spanning from the national and provincial levels to local spheres, encounter challenges in achieving clean audit outcomes. In response to this prevalent issue, we have devised a solution-based strategy to effectively address and resolve these challenges.

Supply Chain management and compliance with other legislations

Supply chain management has emerged as a critical focus area in audits conducted by the AGSA, often posing a significant risk for government institutions in obtaining clean audit outcomes. In response, we have developed a solution-based strategy addressing this challenge through our comprehensive 4-legged approach, which encompasses supply design, supply chain examination, supply chain mapping, and skills transfer.

• Supply Design: Effective systems within the supply chain are paramount. Without adequate systems in place, organisations may be caught off-guard during AGSA audits, leading to recurring issues. We work with municipalities and government institutions to proactively identify gaps within their supply chain management, tailor reporting to facilitate ongoing detection and prevention of flaws, and strengthen overall SCM capabilities.
• Supply Chain Examination: We conduct thorough evaluations to identify legislative gaps and areas likely to draw the attention of the AGSA. Our procedures include ensuring the completeness of procurement documentation and maintaining a robust paper trail to prepare organisations for AGSA scrutiny.
• Supply Chain Mapping: Our team supports municipalities and public sector institutions in developing efficient filing systems and documentation controls to streamline the audit process, minimising unnecessary audit findings resulting from information non-submission or inadequate documentation related to procurement processes, such as deviations.
• Transfer of Skills: We provide comprehensive training and skill transfer to municipalities and other public sector institutions, covering areas such as filing practices, navigating new Supply Chain Management Regulations, and enhancing audit preparation skills.

We recognise that for supply chain management to pass AGSA audits, organisations must ensure that their procurements align with strategic sections of the Finance Management Act, SCM policies, and regulations. Our holistic approach aims to strengthen supply chain management practices and pave the way for successful AGSA audits.