National Revenue Fund receivable and National Revenue Fund payable
ICASA collects licence fees as contemplated by the Electronic Communications Act (ECA). In terms of section 15(3) of the Independent Communications Authority of South Africa Act, 2000 (Act No. 13 of 2000), the authority is required to pay all fees received and held on their behalf to the National Revenue Fund (NRF) within 30 days after receipt of such revenue.
I was unable to obtain sufficient, appropriate audit evidence to confirm the National Revenue Fund receivable and resulting payable balance amounting to R792 969 029 (2011: R898 483 250) and R801 163 475 (2011: R905 416 558), respectively, as disclosed in notes 15 and 21 to the annual financial statements. Due to the lack of controls over the invoicing and collection of licence fee revenue, the entity’s records did not permit the application of alternative audit procedures and, consequently, I was unable to determine whether any adjustments to the National Revenue Fund Receivable and resulting payable figures were necessary.
Furthermore, as a result of the above, I was also unable to confirm whether the financial instrument disclosure note as disclosed in note 29 to the annual financial statements required any adjustments.