. Universities financial management had improved over the past 3 years. In 2009/10 financial year, 87% of universities had unqualified audits, 13% with qualified audits, in 2010-11, 91% had unqualified audits, 9% with qualified audits, in 2011/12, 87% had unqualified audits, 9% with qualified audits and 4% with disclaimer. . The challenge for the AG was that there was no legislation framework in reporting requirements for universities. In 2012, 22 universities submitted reports on time and 1 university submitted reports after 31 July 2012. . The challenges identified during the audit process included: lack of policies and systems, objectives not measurable, objectives not achieved, selective reporting and misalignment in objectives. . In terms of supply chain management: internal control deficiencies were identified and procurement was not competitive. Certain annual reports did not include self assessment of achievement of set objectives. . In terms of FET colleges' audits: in 2009, 33 FET colleges received unqualified audits, 12 qualified audits, 3 disclaimers and 2 outstanding audits. In 2010, 36 received unqualified audits with no finding, 7 qualified audits, 1 disclaimer and 6 outstanding audits. . There was no legal requirement for FET colleges to report on predetermined objectives and change of legislation was required. In 2012, 31 FET colleges submitted reports on time and 19 did not submit their reports by 31 July 2012. The nature of findings in FET colleges included: no internal audit function, no risk assessment performed and procurement was not competitive. 4.4 University Education