OMBUD COUNCIL ANNUAL REPORT 2024/25

PART F: FINANCIAL INFORMATION

9. Based on our professional judgement, we determined final materiality for the separate financial statements as follows:

Final materiality amount

R260 000

Basis for determining materiality

1% of Revenue, as disclosed in note 11 to the financial statements adjusted for non -recurring items that are not representative of normal business/activity levels. Revenue is an appropriate quantitative indicator of materiality as it is a key indicator of the operational performance and any misstatements in revenue can directly impact the perception of business performance and viability.

Rationale for benchmark applied

OTHER MATTER 10. We draw attention to the matter below. Our opinion is not modified in respect of this matter.

PREVIOUS PERIOD AUDITED BY PREDECESSOR AUDITORS 11. The financial statements for the previous reporting period were audited by the predecessor auditors in terms of section 4(3) of the Public Audit Act, 2004 (Act No. 25 of 2004). An unmodified audit opinion was expressed. RESPONSIBILITIES OF THE ACCOUNTING AUTHORITY FOR THE FINANCIAL STATEMENTS 12. The Accounting Authority, is responsible for the preparation and fair presentation of the financial statements in accordance with Generally Recognised Accounting Practice (GRAP) and the requirements of the Public Finance Management Act (PFMA) and for such internal control as the Accounting Authority determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. 13. In preparing the separate financial statements, the Accounting Authority is responsible for assessing the entity’s ability to continue as a going concern; disclosing, as applicable, matters relating to going concern; and using the going concern basis of accounting unless the Accounting Authority either intends to liquidate the entity or to cease operations, or has no realistic alternative but to do so. RESPONSIBILITIES OF THE AUDITOR FOR THE AUDIT OF THE SEPARATE FINANCIAL STATEMENTS 14. Our objectives are to obtain reasonable assurance about whether the separate financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with the ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these separate financial statements. 15. A further description of our responsibilities for the audit of the separate financial statements is included in the annexure to this auditor’s report. This description, which is located at page 68 to 69, forms part of our auditor’s report. REPORT ON THE AUDIT OF THE ANNUAL PERFORMANCE REPORT 16. In accordance with the Public Audit Act 25 of 2004 (PAA) and the general notice issued in terms thereof; we must audit and report on the usefulness and reliability of the reported performance against predetermined objectives for the selected programme presented in the annual performance report. The Accounting Authority is responsible for the preparation of the annual performance report. 17. We selected the following programme presented in the annual performance report for the year ended 31 March 2025 for auditing. We selected a programme that measures the entity’s performance on its primary mandated functions and that is of significant national, community or public interest.

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OMBUD COUNCIL ANNUAL REPORT 2024/25