WHEREAS section 13(1A) Public Audit Act, 2004, ("the PAA") requires AGSA to annually consult NT on the frequency, nature and scope of audits that AGSA must perform in terms of section 4(1) or (2) or opts to perform in terms of section 4(3) of the PAA, it order to facilitate the determination of audit fees in terms of section 23 of the PAA;

AND WHEREAS section 23(1) of the PAA provides that AGSA determines the basis for the calculation of audit fees to be recovered from auditees in respect of audits referred to in section 11, after having consulted the NT;

AND WHEREAS section 23(6) of the PAA provides that if the audit fee of an auditee, other than a department, exceeds one percent of the total current and capital expenditure of such auditee for the relevant financial year, and NT was consulted on the basis for the calculation of audit fees to be recovered from auditees and is of the opinion that the auditee has financial difficulty to pay such excess, such excess is to be defrayed in terms of the Public Audit Excess Fee Act, 2019 (Act No. 20 of 2019) as a direct charge against the National Revenue Fund ("the NRF");

NOW THEREFORE the Parties wish to record their agreement in this Memorandum of Agreement ("Memorandum") as required by section 23(7) of the PAA on—