Department of Infrastructure Development Annual Report 2021-2022

ANNUAL REPORT 2021 | 2022

Executive Members In terms of the GPG Audit Committee Charter, officials listed hereunder are obliged to attend meetings of the Audit Committee:

Compulsory Attendees

Number of Meetings Attended

Dr. Thulani A Mdadane (Accounting Officer)

04

Mr. Moloko Matloha (Acting Chief Financial Officer)

02

Mr. Rhulani Phelembe (Acting Chief Financial Officer)

03

Mr. Phumzile Ntsizi (Acting Chief Risk Officer)

05

Mr. Kweyama Velile (Chief Audit Executive)

05

The Audit Committee is satisfied that the Department adhered to the provisions of the GPG Audit Committee Charter. The members of the audit committee held meetings with the accounting officer, senior management of the department, internal audit function and the Auditor-General of South Africa collectively and individually, on matters related to governance, internal control and risk in the department, throughout the reporting period. The Chairperson also held a meeting with the honorable Member of the Executive Committee Ms. T Motara to report on governance, internal control, risk, performance and financial information and other relevant matters concerning the department. 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 deficiencies in the system of internal controls in areas pertaining to financial reporting, asset management, reporting on pre-determined objectives, material misstatement in the financial statement and compliance with laws and regulations and in some cases resulted on repeat findings. In some areas, the system on internal control for the period under review was determined to be adequate but ineffective and there is opportunity for improvement in so far as addressing internal audit findings timeously and implementation of consequence management. Some of the issues/concerns raised by Internal Audit during year were raised by the Auditor-General of South Africa, The Audit Committee believes that management should continue strengthening the internal control environment through the development and implementation of systems across the internal control universe. Additionally, Management enhance its financial reporting controls to reduce the likelihood of material misstatement to the financial statements. Information and Communication Technology (ICT) Governance The Department should strengthen the adequacy and effectiveness internal controls Auditor-General of South Africa around ICT governance, business continuity and ICT general controls. The Department has been urged to devote significant resources to addressing these weaknesses in the next financial year and exercise enhanced oversight on ICT governance. According to the internal audit report, management should also focus on addressing the results of the user account management review.

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT