Department of Infrastructure Development Annual Report 2021-2022

ANNUAL REPORT 2021 | 2022

Internal Audit The Accounting Officer 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 and is accountable to the Audit Committee. The Internal Audit team was able to execute and finish the majority of risk-based audit projects within the budgeted hours and timelines. The Audit Committee is satisfied that the Internal Audit plan has a clear alignment with the principal risks, has enough coverage of information systems, and strikes a good balance among the various types of audits, i.e. risk-based, required, performance, computer, and follow-up audits. During the past year, the coordination of efforts between internal audit and the Auditor-General of South Africa to provide assurance services has been increased. The Committee considers this a crucial step toward a fully effective joint assurance system. A Quality Assurance 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. 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 Audit Committee has reviewed the risk register and risk committee reports and is generally satisfied with the maturity level of the risk management process; nevertheless, enhancements to processes and policies to address the Department’s significant risk exposures are still required. Furthermore, management should ensure that the strategic register for the department is completed on time so that risk mitigation plans may be implemented. Management should continue to accept full responsibility for the entire Enterprise Risk Management Process and support the Chief Risk Officer in improving the Department’s performance even further. The Audit Committee would like to observe ongoing progress in risk management maturity within the Department. 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. Despite the improvements achieved over the previous year, the Audit Committee notes that the Auditor General of South Africa has raised a finding on the lack of effective monitoring of processing controls to ensure that the reported performance information is complete and accurate. The Audit Committee intends to provide increased oversight on this issue in order to achieve the desired improvements. The Audit Committee reviewed the quality, accuracy, uselessness, reliability and appropriateness of quarterly and annual financial reporting and the Audit Committee is satisfied with the content and quality of financial and non-financial quarterly reports prepared and submitted by the Accounting Officer of the department during the year under review and confirms 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 ensure better compliance with section 40(1) of the PFMA, in so far as management’s review and monitoring of financial reports and performance information reports. The Audit Committee will continue to review the Internal Audit function’s assigned capacity and resources. The quality of quarterly reports submitted in terms of the PFMA and the Division of Revenue Act

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT