10.6.2 Compliance with laws and regulations Strategic planning and performance management: The accounting officer did not establish adequate procedures for quarterly reporting performance to the executive authority to facilitate effective performance monitoring, evaluation and correction as required by TR 3.2 and section 38(1)(a)(i) of the PFMA. Annual financial statements: The financial statements submitted for auditing did not comply with section 40(1)(a) and (b) of the PFMA.