<On firm’s letterhead>
Report of Factual Findings to meet the requirements specified in the Incubation SupportProgramme (ISP) Guidelines
The Programme Manager:Incubation Support Programme (ISP)
The Enterprise Development
Department of Trade and Industry
Private Bag X84,
Pretoria
0001
Dear Sir/ Madam
Factual Findings Report of the Independent Registered Auditor <or Independent External Accounting Professional> 1 of <insert name of Entity> to
the Department of Trade and Industry in respect of the <ISP>Grant Claim for the <insert stage of claim> for the claim period from <insert date > to
<insert date>
At the request of the Department of Trade and Industry (the dti) and in accordance with the ISP Guidelines we have performed the procedures agreed with
the Programme Manager and set out below with respect to the information contained in the Claim Form of <insert name of Entity>(the Company2)for the claim
period3 from <…> to <.>. Our engagement was undertaken in accordance with the International Standard on Related Services ISRS 4400 – Engagements to
Perform Agreed-Upon Procedures Regarding Financial Information.
Our procedures were performed solely to assist the Programme Manager in evaluating whether the Claim Form is in accordance with the Programme
Guidelines and Approval Letter dated <…..>.
The responsibility for determining the adequacy or otherwise of the procedures agreed to be performed is that of the Programme Manager. We have initialled
the completed Claim Form and other accompanying schedules 4 as set out on pages <…> to <…> for identification purposes only.
An Independent External Accounting Professional (the “AccountingProfessional”) who is a member in good standing of any the following professional bodies: the South African Institute
of Chartered Accountants (SAICA); the South African Institute of Professional Accountants (SAIPA) and the Association of Chartered Certified Accountants(ACCA).
1
2Or
Close Corporation or Co-Operative
3
A claim to fall within the dti approved period for the project.
4
The auditor or accounting professional clearly identifies any “unaudited” schedules attached which are initialled for identification purposes only.
Entity:
Initial: ____________________
Auditor / Accounting Professional Name:
Initial: ____________________
Incubation Support Programme (ISP)- Audit procedures
Page 1
Procedures and Findings
Our procedures performed and corresponding findings thereon are set out in the table below:
Procedures
1
Inspect the signed approval letterbetween the applicant and the dti.
2
Inspect the signed approval letter
between the applicant and the dtiand comparethe name on the approval letter
to the name of the entity submitting the claim.
Inspect that the applicant is either a:
 registered legal entity in South Africa;
 registered higher of further education institution;or
 licensed registered science council,
by for example by inspecting the memorandum of incorporation or articles of
association of the applicant.
3
4
Inspect that the approved Incubator is a registered legal entity in South Africa
5
Inspect valid tax clearance certificates and check if it’s in the name of the
incubator per the approval letter.
6
Inspect the incubator’s certificate of incorporation and agree to the incubator’s
registration number to the SARS tax clearance certificate.
7
Inspect the Credit Order Instruction and ensure that the bank details relate to the
incubators primary bank account.
8
Confirm that the approved incubator is not receiving funding from seda, for the
same project.
Confirm that seda funded assets are not being used on ISP projects and visa
Findings
Entity:
Initial: ____________________
Auditor / Accounting Professional Name:
Initial: ____________________
Incubation Support Programme (ISP)- Audit procedures
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10
versa.
Agree the claim to the submitted cashflow projections and quarterly report per the
business plan.
For the first quarter grant claim, inspect evidence that an advisory board is in
place and that the private sector partner has made a contribution to the financial
requirements of the incubator in line with its business plan.
Proof of an Advisory board would include: letter of appointment of board
members, minutes of meetings, calendar meetings etc.
Proof of private sector partner contribution would include: bank statement
showing the contributions made by the private sector contributor.
11
12
Where the private sector partner contribution is in the form of an asset, inspect
that assets valuation report and determine if the amount per the valuation report
is in-line with theagreed private sector partner contribution.
For subsequent claims, inspect the invoices received from the applicant and
ensure that the invoices received substantiate the prior claim made by the
applicant.
Substantiate the prior claim made by:
 Casting all invoices received and agreeing the total of the invoices to the
total amount per the first claim form;
 Verify that all costs being claimed are “qualifying costs” as per the ISP
guidelines and that “non-qualifying costs have been excluded; and
 Recalculating the claim amount taking into consideration the cost sharing
support ratio’s per the approval letter.
13
Inspect supporting documentation for evidence that the assets actually have been
acquired e.g: invoices, contracts, proof of delivery, liquidation order, auctioneer’s
report and evidence of payment to the supplier.
Entity:
Initial: ____________________
Auditor / Accounting Professional Name:
Initial: ____________________
Incubation Support Programme (ISP)- Audit procedures
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14
Inspect the proof of delivery for evidence of the date of purchase and that the
assets were acquired after the approval of the grant.
15
Inspect the commencement date of the grant, per the grant approval letter, and
determine if all invoices being claimed are for the period after the approval
date.
16
For the invoicesbeing used as source documentation, ensure:
 that the name on the invoice or including other forms of supporting
documentation for example: liquidation report, auctioneers report, is the same
as the approved applicant;
 that the amount on the invoice agrees to the claim form;
 that the invoicesare accompanied by proof of payment, (e.g. bank statement)
and that the amounts per the invoices agree to the amounts per the bank
statements;
 that there are no duplicate invoices; and
 the invoices relate to activities per the business plan of the applicant
If invoices relate to assets purchased, indicate whether these purchased assets
are new or used assets.
17
*Where applicable perform sampling on the population to obtain results that are
representative of the population using acceptable sampling techniques.
Where qualifying expenditure relates to tangible assets, perform a physical
verification of the asset.
18
Inspect minutes of meeting of the advisory board.
19
If the applicant/incubator is leasing a building, inspect the lease agreement
between the applicant/incubator and the landlord.
20
Inspect confirmation that training was provided by the applicant/incubator,
evidence of training undertaken could be in the form of training manuals and
Entity:
Initial: ____________________
Auditor / Accounting Professional Name:
Initial: ____________________
Incubation Support Programme (ISP)- Audit procedures
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22
23
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training attendance register.
Inspect any other documentation required to be submitted as set out in the grant
approvalletter with the applicant.
Inspect the quarterly and annual performance reports submitted by the applicant/
incubator.
Inspect thegrant approval letter for the total grant approved. Verify whether the
total amount claimed has not exceeded the approved amount or R10 million
(including VAT) per year.Further, report back on any used funds.
Obtain a list of incubates and confirm the following:
 Number of incubates
 Whether the incubates has been registered as legal entities
 Number of employees created by the incubates
Sampling techniques* refers to sampling methods that are generally accepted and recognised within the accounting and auditing profession.
Where sampling methods have been used, the auditor is to document the method used and conclusions obtained.
Because the above procedures do not constitute an audit of financial information, a review of financial information or other assurance engagement on nonfinancial information conducted in accordance with International Standards on Auditing, International Standards on Review Engagements and International
Standards on Assurance Engagements other than Audits or Reviews of Historical Financial Information, we do not express any assurance on the validity or
accuracy of the attached Grant Claim.
Had we performed additional procedures or had we performed an audit or review, or other assurance engagement in respect of the completed Claim Form
and other accompanying schedules for the period ended <….> other matters might have come to our attention that would have been reported to you.
Restriction on use and distribution
Our report is prepared solely for the purpose set out in the first paragraph to assist the Programme Manager in evaluating whether, or not, the attached Claim
Form for Stage <insert Stage> is in accordance with the Programme Guidelines and Approval Letter dated <…..>.
Our report may not be suitable for another purpose and is not be distributed to or used by any other parties other than as provided for in the Programme
Guidelines and Approval Letter.
Registered Audit Firm
Entity:
Initial: ____________________
Auditor / Accounting Professional Name:
Initial: ____________________
Incubation Support Programme (ISP)- Audit procedures
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<Name of individual Registered Auditor>
Capacity: <Sole Practitioner, Partner, Director>
Registered Auditor
<Registration Number>
OR
Where the factual findings report is provided by an independent external accounting professional who is not a registered auditor:
Independent External Accounting Professional’s firm
<Name of individual accounting professional >
Capacity: <Sole Practitioner, Partner, Director>
<Chartered Accountant (SA) / Professional Accountant (SA) / Certified Chartered Accountant5>
<Membership Number>
Entity:
Initial: ____________________
Auditor / Accounting Professional Name:
Initial: ____________________
Incubation Support Programme (ISP)- Audit procedures
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