MARINE LIVING RESOURCES FUND MLRF

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• MARINE LIVING RESOURCES FUND (MLRF)
• ANNUAL REPORT 2007/2008

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INTRODUCTION

• The Marine Living Resources Fund (MLRF) finances
  the operations of the Marine and Coastal
  Management Program
• This Program is responsible for
• Managing the development and sustainable use of
  SAs marine and coastal resources
• Protecting the integrity of SAs marine and
  coastal ecosystems
• Striving to achieve a healthy balance between
  sustainable utilisation of resources while also
  protecting and conserving these same resources

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ANNUAL REPORT SUMMARY

• This Annual Report reflects a turnaround in the
  management and administration of the MLRF.
• The turnaround strategy for the MLRF was
  developed in August 2006 in response to
• Cash Flow Problems experienced by the MLRF
• Auditor Generals Report (2002-2005) and SCOPA
  Hearing
• Lack of skills, capacity and appropriate
  financial systems
• Corrective strategies focused on corporate
  governance, risk management and compliance with
  International Accounting Standards.
• Improved results achieved 2 years ahead of
  schedule

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ANNUAL REPORT SUMMARY

• In the 2002-2005 Annual Reports (submitted for
  auditing three years late), the Auditor-General
  identified a number of concerns including
• Lack of Internal Controls
• Lack of compliance with the PFMA
• No proper accounting and fixed asset system
• Lack of Historical Data and supporting
  documentation
• Insufficient control on Debtors and Income
• Failure to adhere to the principles of Accrual
  Accounting
• Staffing Issues (capacity and skills)

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ANNUAL REPORT SUMMARY

• In the 2005/2006 audit report there were
  twenty-two qualifications resulting in the
  Auditor-General deciding not to express an
  opinion on those financial statements
• In the 2006/2007 audit report the Auditor-General
  expressed an opinion with six qualifications
• In the current audit report the Auditor-General
  expressed an unqualified audit opinion with no
  qualifications and no emphasis of matter
  affecting the audit report

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COMPARISONS BETWEEN 2005/2006, 2006/2007
2007/2008 FINANCIAL YEARS

• A comparison of the last three years audit
  findings by the Auditor-General

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FINANCIAL PERFORMANCE

• 2007/2008 also reflects a healthier financial
  position (positive accumulated surplus)
• Better finances means more sea days for research
  and compliance vessels
• Better able to fulfill mandate
• This growth allows the MLRF to build and leverage
  on a strengthened balance sheet

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FINANCIAL PERFORMANCE
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PERFORMANCE INFORMATION

• The Auditor-General reviewed the performance
  information, including performing procedures of
  an audit nature to obtain evidence about the
  performance information and related systems,
  processes and procedures
• The Auditor-General concluded that no significant
  findings have been identified as a result of
  their review of the performance information
• THANK YOU