CGE ANNUAL REPORT

2022/23 ANNUAL REPORT

the CGE to incur irregular, fruitless, and wasteful expenditure remain unresolved. Management have made commitments to address the deficiencies by obtaining the required approval to address the non-compliance matters. The ARC had observed with concern the decline in performance against performance indicators on strategic objectives. The changes in the person who occupies the position of CEO had an unfavourable impact on the organisational performance. We report that meaningful progress has been made in establishing internal controls over risk management systems and processes. The progress achieved had attended to the development of risk mitigation strategies & plans, risk registers and assignment of resources to monitor and report on risk management activities. We of the opinion that steps taken are sufficient to improve the risk maturity of the organisation in the upcoming year 2023/2024. We shall monitor the progress toward the realisation of an enterprise-wide risk management system at the CGE in the upcoming financial year. Instances of non-compliance with legislations were identified and communicated in the report by the Auditor General. The non-compliance matters pertain to the preparation of fairly presented financial statements and the prevention of irregular, fruitless, and wasteful expenditure. Except for the deficiencies described in this section of our report, we are satisfied with the key controls implemented over financial and performance management & reporting at the CGE during the period under review. 3.4. Internal Audit The ARC reviewed the internal audit quarterly reports to ensure that internal audit activities were conducted in terms of the approved risk based annual and three-year rolling plan. Internal audit has discharged its responsibilities in terms of the approved charter and executed the plan accordingly. The ARC applaud management for creating the human resource capacity needed for internal audit through the in-sourcing strategy. We are pleased to report that the implementation of this strategy caused the internal audit to realise its annual plan and conclude on the audit tasks. 3.5. Risk Management Management is responsible for proactively identifying, evaluating, managing, and monitoring all significant risks faced by the CGE. The CGE has developed a risk management controls with a view to safeguard its staff, assets, corporate credibility, and reputation. As noted in the earlier sections, satisfactory progress has been achieved to establish an effective risk management system at the CGE. The CGE was able to compile a risk register which listed the priority risk at both strategic and operational levels for the year 2023/2024. 3.6. In-year management and quarterly report The ARC has reviewed the content and quality of the quarterly financial and performance reports of the CGE during the year under review in compliance with the statutory reporting framework. The Committee notes the continuous improvement in the quality of quarterly financial reports submitted by management. We had observed a decline in the quality of reports on non- financial performance,

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