127363 Gauteng Sports 2020.indb

GAUTENG DEPARTMENT OF SPORT, ARTS, CULTUREAND RECREATION: VOTE 12

Audit Committee Responsibility The Audit Committee reports that it has complied with its responsibilities arising from section 38(1)(a) of the PFMA and Treasury Regulation 3.1.13. The Audit Committee also reports that it has adopted appropriate formal terms of reference as its Audit Committee Charter, has regulated its affairs in compliance with this Charter and has discharged all its responsibilities as contained therein. The effectiveness of internal control The Audit Committee acknowledges management’s efforts to strengthen internal controls in the Department. From the various reports of the internal auditors, management and audit reports of the Auditor General of South Africa, it was noted that matters were reported indicating de ¿ ciencies in the system of internal controls in areas pertaining to ¿ nancial reporting, asset management, reporting on pre-determined objectives and compliance with laws and regulations and in some cases resulted on repeat ¿ ndings. In some instances, the system on internal control for the period under review was found to be adequate but ineffective and there is room for improvement in so far as addressing internal audit ¿ ndings timeously and implementation of consequence management. Some of the issues/concerns raised by Internal Audit during year were raised by the AGSA, The Audit Committee is of the view that management should continue strengthening the internal control environment with the development and implementation of systems across the internal control universe. Management should also improve its ¿ nancial reporting controls to ensure that risks of material misstatement to the ¿ nancial statements are minimised. Information and Communication Technology (ICT) Governance The Audit Committee notes the Auditor-General’s ¿ ndings relating to the lack of controls pertaining to user access management, information Security Management, information technology service continuity and information technology governance. The Department has been instructed to ensure that signi ¿ cant attention is allocated to resolving these de ¿ ciencies in the next ¿ nancial year and the Committee will exercise greater oversight over these de ¿ ciencies. Internal Audit The Accounting Of ¿ cer is obliged, in terms of the PFMA, to ensure that the Department has a system of internal audit under the control and direction of the Audit Committee. In the case of the Gauteng Provincial Government (GPG), the Internal Audit Function is shared amongst Entities and departments in the Province. The Internal Audit team managed to execute and complete substantial all original approved risk-based audit projects within the allocated budget hours and timeframes. The Audit Committee is satis ¿ ed that the Internal Audit plan represents a clear alignment with the key risks, has adequate information systems coverage, and a good balance across the different categories of audits, i.e. risk-based, mandatory, performance, computer and follow-up audits. The coordination of efforts between internal audit and AGSA have been enhanced further during the year in the provision of assurance services. The Committee believes this is an important step towards a fully effective combined assurance system. It was noted that a QualityAssurance Review (external assessment) was performed by an external independent reviewer during the year and Internal Audit was assessed to be Generally Conformant with the International Standards for Professional Practice of Internal Auditing. The Audit Committee will continue to monitor the capacity and the resources allocated to the Internal Audit function. Risk Management The Audit Committee is responsible for the oversight of the risk management function. The risk management committee reports to the audit committee on the department’s management of risk. The committee has

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ANNUAL REPORT 2019/20