COGTA ANNUAL REPORT 2020

1. INTRODUCTION The Department is committed to effectively and efficiently implement risk management processes and procedures, as well as tomaintain high standards of good governance. As prescribed by the Public Finance Management Act (PFMA), the Department contributes to the Gauteng Provincial Government Risk Management Framework in carrying out all governance responsibilities. 2. RISK MANAGEMENT The Department has an approved Risk Management Policy, Strategy, and Implementation plan in place to guide the Department in the implementation, management, and monitoring of risks and action plans at all levels. Strategic and operational risk assessments are undertaken at least annually in an attempt to satisfactorily identify new and emerging risks. Risk Reports or registers for each of the above-mentioned categories are in place and are monitored for progress in implementing action plans designed to mitigate these risks. Progress in themanagement of all risks is reported on a quarterly basis to the RiskManagement Committee (RMC), which is chaired by an Independent Chairperson and the Audit Committee. The RMC was fully functional throughout the Financial Year 2019/20 and advised Executive Management whenever necessary on the management of existing risks, identification and assessment of emerging risks, including progress as well as reported on implementation of action plan. As part of Departmental strategic risk assessment, the following risks were identified for the 2019/20 Financial Year: • Failure or delay to fill vacant posts; • Ineffective support provided to the municipalities; • Loss of institutional memory and knowledge; • Non-compliance with the Occupational Health and Safety act; • Failure to adapt to technological changes (digital displacement); • Lack of credible information received from municipalities; • Violent Community protests resulting in bad

reputation for Local government/ Cooperative Governance;

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Fragmented service delivery; and

Business disruption. 3. FRAUD AND CORRUPTION The Department conducted Fraud Risk assessment for the period under review. The Fraud Prevention Plan is in place as a control measure. The implementation of actions planned to address recommendations is monitored regularly. Internal fraud cases are identified, reported and presented to the Head of Department. Awareness campaigns were conducted. Allegations of fraud and corruption through the National Anti-Corruption Hotline are referred to the Gauteng Provincial Forensic Audit unit for investigations, thereafter reported to the Head of Department. 4. MINIMISING CONFLICT OF INTEREST Senior Management, Middle Management, Finance, and Supply Chain Management officials are required to disclose their financial interest on an annual basis. Furthermore, an audit is done on a quarterly basis by the Gauteng Audit Services to identify any areas of potential conflict of interests. Thereafter, recommendations from the report are implemented. Training on Ethics Management in the Public Sector was rolled out during the Financial Year. 5. CODE OF CONDUCT The Department is implementing the Public Service Code of Conduct as applicable in the entire Public Service. The Code forms part of CoGTA’s internal induction programme. Every employee receives a copy of the Code of Conduct, and accordingly accepts and binds his or herself to the Code. CoGTA follows the process as outlined in the Disciplinary Code and Procedures as per Resolution 1 of 2003 in cases of any breach of the Code of Conduct.

G A U T E N G P R O V I N C I A L G O V E R N M E N T I C O- O P E R A T I V E G O V E R N A N C E A N D T R A D I T I O N A L A F F A I R S ANNUAL REPORT 2019/20 66