127363 Gauteng Sports 2020.indb

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

reviewed the risk register and the reports from the risk committee and is generally satis ¿ ed with the improved maturity level of the risk management process, however improvements to certain processes and policies to address the key risk exposures to the Department is still required. The Audit Committee would like to see the continued improvement in the maturity of risk management including the ¿ nalisation of the appointment of the

Chairperson of the Risk Committee. Performance Management

The review of effectiveness and functionality of the performance management system (which includes analysis of management prepared quarterly performance reports and related internal audit reports) by Audit Committee revealed a need to strengthen current performance management and reporting system. The Audit Committee notes that the AGSA ¿ nding on the lack of appropriate evidence to support performance targets that are reported which led to a quali ¿ ed opinion. The Committee has instructed management to develop and implement a correction plan to address the root cause of this ¿ nding by the Auditor-General. The quality of quarterly reports submitted in terms of the PFMA and the Division of Revenue Act The Audit Committee reviewed the quality, accuracy, uselessness, reliability and appropriateness of quarterly and annual ¿ nancial reporting and the Audit Committee is satis ¿ ed with the content and quality of ¿ nancial and non- ¿ nancial quarterly reports prepared and submitted by the Accounting Of ¿ cer of the department during the year under review and con ¿ rms that the reports were in compliance with the statutory reporting framework. The Audit Committee would like to commend the department for reporting monthly and quarterly to Treasury as is required by the PFMA. The Audit Committee recommends that the department should ensure better compliance with section 40(1) of the PFMA, in so far as management’s review and monitoring of ¿ nancial reports and performance information reports. Compliance with the relevant laws and regulations A number of non-compliance with the enabling laws and regulations were noted by Audit Committee, Management, Internal Audit and AGSA during the year. As result, the Audit Committee recommended development and implementation of an effective compliance management system with an objective of addressing the issues of non-compliance with laws and regulations. Forensic Investigations Investigations into alleged ¿ nancial irregularities, ¿ nancial misconduct and fraud were completed during the year under review. Certain investigations are still in the process of ¿ nalisation. Various measures were recommended including taking action against the identi ¿ ed of ¿ cials and this was in the process of ¿ nalisation. The recommendations are at various stages of implementation. Evaluation of Annual Financial Statements The Audit Committee undertook the following activities related to Annual Financial Statements: • Audit Committee reviewed the draft annual ¿ nancial statements prepared by the department before the submission of the annual ¿ nancial statements to the external auditors for audit the audit committee meeting held on 19 June 2020 and recommended them for audit. • Reviewed and discussed the following matters relating to the audited Annual Financial Statements to be included in the Annual Report, with the AGSA and the Accounting Of ¿ cer: o Signi ¿ cant ¿ nancial reporting judgements and estimates contained in the annual ¿ nancial statements. o Clarity and completeness of disclosures and whether disclosures made have been set properly in context. o Quality and acceptability of, and any changes in, accounting policies and practices. o Compliance with Modi ¿ ed Cash Stanards and the PFMA requirements. o Signi ¿ cant adjustments and/or unadjusted differences resulting from the audit. o Re À ection of unusual circumstances or events and management’s explanation for the accounting treatment adopted.

188

2019/20 ANNUAL REPORT