a) The Accounting Authority did not submit the financial statements for auditing within two months after the end of the financial year as required by section 55(1) of the PFMA; b) The audit committee did not function as per the requirements of section 77 of the PFMA and Treasury Regulation 27.1 in that the audit committee was not constituted correctly and half of the audit committee members consisted of executive members appointed by the accounting authority; and c) The Accounting Authority submitted financial statements for auditing that were not prepared in all material aspects in accordance with generally accepted accounting practices and supported by full and proper records as required by section 55(1) (a) and (b) of the PFMA. Material misstatements identified by the AGSA were not all subsequently corrected adequately which resulted in the financial statements receiving a qualified audit opinion in contravention of section 55 (2)(a).