Department of Infrastructure Development Annual Report 2021-2022

ANNUAL REPORT 2021 | 2022

Compliance with the relevant laws and regulations During the year, the Audit Committee, Management, Internal Audit, and the Auditor-General of South Africa identified a number of contraventions of the enabling laws and regulations. As a result, the Audit Committee advised that an effective compliance management system be developed and implemented with the purpose of addressing concerns of non-compliance with laws and regulations. Forensic Investigations The year under review saw the conclusion of investigations into alleged financial irregularities, financial malfeasance, and fraud. Certain investigations are still in the final stages of completion. Several steps, including action against the implicated officials, were recommended and were being finalised. The remediation of root causes and the management of consequences are in various stages of execution. Evaluation of Annual Financial Statements The Audit Committee undertook the following activities related to Annual Financial Statements: • Audit Committee reviewed the draft annual financial statements prepared by the department before the submission of the annual financial statements to the external auditors for audit the audit committee meeting held on 19th May 2022 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 Auditor-General of South Africa and the Accounting Officer: - Significant financial reporting judgements and estimates contained in the annual financial statements. - Clarity and completeness of disclosures and whether disclosures made have been set properly in context. - Quality and acceptability of, and any changes in, accounting policies and practices. - Compliance with Modified Cash Standards and the PFMA requirements. - Significant adjustments and/or unadjusted differences resulting from the audit. - Reflection of unusual circumstances or events and management’s explanation for the accounting treatment adopted. - Reasons for budget variations - Reasons for major year-on-year fluctuations. - The basis for the going concern assumption, including any financial sustainability risks and issues. • Reviewed the Audit Report of the Auditor-General of South Africa; • Reviewed the Auditor-General of South Africa’s Management Report and Management’s response thereto; and • Reviewed the Department’s compliance with legal and regulatory provisions. The Audit Committee concurs with and accepts the Auditor-General of South Africa’s conclusions on the Annual Financial Statements and is of the opinion that the audited Annual Financial Statements be accepted and read together with the report of the Auditor-General of South Africa.

Evaluation of Annul Report The Audit Committee undertook the following activities related to annual report:

• Audit Committee evaluated final draft Annual Report (including performance report) the audit committee meeting held on 26th July 2022 and noted the achievement for the year under review and recommended it.

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT