Independent Auditor’s Report to Parliament on the Perishable Products Export Control Board
Report on the audit of the financial statements
Opinion
We have audited the financial statements of the Perishable Products Export Control Board (the entity) set out on pages 94 to 115, which comprise the statement of financial position as at 31 March 2025, statement of financial performance, statement of changes in net assets, cash flow statement and statement of comparison of budget and actual amounts for the year then ended, as well as notes to the financial statements, including a summary of significant accounting policies.
1. In our opinion, the financial statements present fairly, in all material respects, the financial position of the Perishable Products Export Control Board as at 31 March 2025 and its financial performance and cash flows for the year then ended in accordance with the Standards of Generally Recognised Accounting Practice (GRAP) and the requirements of the Public Finance Management Act 1 of 1999 (PFMA).
Basis for opinion
We conducted our audit in accordance with the International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report.
We are independent of the entity in accordance with the Code of professional conduct for auditors of the Independent Regulatory Board for Auditors (IRBA) and other independence requirements applicable to performing audits of financial statements in South Africa. We have fulfilled our other ethical responsibilities in accordance with the IRBA code and in accordance with other ethical requirements applicable to performing audits in South Africa. The IRBA code is consistent with the corresponding sections of the International Ethics Standards Board for Accountants’ International code of ethics for professional accountants (including International Independence Standards).
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of the accounting authority for the financial statements
The accounting authority is responsible for the preparation and fair presentation of the financial statements in accordance with the GRAP and the requirements of the PFMA; and for such internal control as the accounting authority determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the 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 appropriate governance structure 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 financial statements
Our objectives are to obtain reasonable assurance about whether the 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 financial statements.
A further description of our responsibilities for the audit of the financial statements is included in the annexure to this auditor’s report. This description, which is located on page 89, forms part of our auditor’s report.
Report on the audit of the annual performance report
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 programmes presented in the annual performance report. The accounting authority is responsible for the preparation of the annual performance report.
We selected the following programmes presented in the annual performance report for the year ended 31 March 2025 for auditing. We selected programmes that measure the entity’s performance on its primary mandated functions and that are of public interest.
| Programme | Page Number | Purpose |
|---|---|---|
Operational | 140-141 | The purpose of the programme is mandate compliance and to deliver an effective and efficient service to all PPECB stakeholders. The programme is further committed to ensure achievement of the PPECB’s strategic objectives. |
Food Safety | 140-141 | The purpose of this programme is to ensure compliance to standards regarding food hygiene and food safety as promulgated in notice 707 of 13 May 2005. This is in line with the following European Commission (EC) directives; EC 178/2002, and EC 1525/1998 including the relevant Codex principles. The purpose of this is to enable South Africa continuous penetration of international markets and therefore increase its market share with regards to safe and quality foods. |
We evaluated the reported performance information for the selected programmes against the criteria developed from the performance management and reporting framework, as defined in the general notice. When an annual performance report is prepared using these criteria, it provides useful and reliable information and insights to users on the entity’s planning and delivery on its mandate and objectives.
We performed procedures to test whether:
- the indicators used for planning and reporting on performance can be linked directly to the entity’s mandate and the achievement of its planned objectives
- all the indicators relevant for measuring the entity’s performance against its primary mandated and prioritised functions and planned objectives are included
- the indicators are well defined to ensure that they are easy to understand and can be applied consistently, as well as verifiable so that we can confirm the methods and processes to be used for measuring achievements
- the targets can be linked directly to the achievement of the indicators and are specific, time bound and measurable to ensure that it is easy to understand what should be delivered and by when, the required level of performance as well as how performance will be evaluated
- the indicators and targets reported on in the annual performance report are the same as those committed to in the approved initial or revised planning documents
- the reported performance information is presented in the annual performance report in the prescribed manner and is comparable and understandable
- there is adequate supporting evidence for the achievements reported and for the reasons provided for any over- or underachievement of targets
We performed the procedures for the purpose of reporting material findings only; and not to express an assurance opinion or conclusion.
We did not identify any material findings on the reported performance information for the selected programmes.
Other matters
We draw attention to the matters below.
Achievement of planned targets
The annual performance report includes information on reported achievements against planned targets and provides explanations for over- or under achievements.
The table that follows provides information on the achievement of planned targets and lists the key indicator that were not achieved as reported in the annual performance report. The reasons for any underachievement of targets are included in the annual performance report on pages 140 to 143.
Programme 2
Targets achieved of indicators selected for auditing (included in Programme 2): 50%
Budget spent: 91%
| Key indicator not achieved | Planned target | Reported achievement |
|---|---|---|
| Programme 2 - OPERATIONAL SERVICES: % of container inspection conducted via the TITAN 2.0© | 80% | 63% |
Material misstatements
We identified a material misstatement in the annual performance report submitted for auditing. The material misstatement was in the reported performance information for Programme 2. Management subsequently corrected the misstatement, and we did not include any material finding in this report.
Report on compliance with legislation
In accordance with the PAA and the general notice issued in terms thereof, we must audit and report on compliance with applicable legislation relating to financial matters, financial management and other related matters. The accounting authority is responsible for the entity’s compliance with legislation.
We performed procedures to test compliance with selected requirements in key legislation in accordance with the findings engagement methodology of the Auditor-General of South Africa (AGSA). This engagement is not an assurance engagement. Accordingly, we do not express an assurance opinion or conclusion.
Through an established AGSA process, we selected requirements in key legislation for compliance testing that are relevant to the financial and performance management of the entity, clear to allow consistent measurement and evaluation, while also sufficiently detailed and readily available to report in an understandable manner. The selected legislative requirements are included in the annexure to this auditor’s report.
We did not identify any material non-compliance with the selected legislative requirements.
Other information in the annual report
The accounting authority is responsible for the other information included in the annual report. The other information referred to does not include the financial statements, the auditor’s report and those selected programmes presented in the annual performance report that have been specifically reported on in this auditor’s report.
Our opinion on the financial statements, the report on the audit of the annual performance report and the report on compliance with legislation do not cover the other information included in the annual report and we do not express an audit opinion or any form of assurance conclusion on it.
Our responsibility is to read this other information and, in doing so, consider whether it is materially inconsistent with the financial statements and the selected programmes presented in the annual performance report, or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
We did not receive the other information prior to the date of the auditor’s report. When we do receive and read this information, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and request that the other information to be corrected. If the other information is not corrected, we may have to retract the auditor’s report and re-issue an amended report as appropriate. However, if it is corrected this will not be necessary.
Internal control deficiencies
We considered internal control relevant to our audit of the financial statements, annual performance report and compliance with applicable legislation; however, our objective was not to express any form of assurance on it.
We did not identify any significant deficiencies in internal control.
PKF Cape Town
M Louw
Partner
Registered Auditor
28 July 2025
Bellville