GDID ANNUAL REPORT 2024/25

9. PRIOR MODIFICATIONS TO AUDIT REPORTS

The below table illustrates the nature of non-compliance in the financial year in which the matters were initially raised and the progress made in clearing and/or resolving the matter.

Nature of qualification, disclaimer, adverse opinion and matters of non-compliance Effective and appropriate steps were not taken to prevent irregular expenditure as disclosed in notes to the financial statements, as required by section 38(1)(c)(ii) of the PFMA (1999, as amended) and Treasury Regulation 9.1.1

Financial year in which it first arose

Progress made in clearing / resolving the matter The Department managed to terminate all lease agreements that had expired and caused irregular expenditure. This ensured that irregular expenditure on these facilities is discontinued.

2013/2014

10. INTERNAL CONTROL UNIT The Internal Control unit is responsible for ensuring a sound internal control environment, aiding the Department in implementing effective governance frameworks, and promoting a compliance-driven culture within the Department. The unit aided the Department in creating an Audit Improvement Plan (AIP) to address internal control deficiencies identified during audits by Gauteng Audit Services and the Auditor General of South Africa. This unit also drives the Department’s clean audit readiness process through the operation clean audit committee (OPCA). During the financial year 2024/25, the Internal Control Unit was tasked with the responsibility of the compliance management function to improve compliance culture in the Department. This entailed the development of a compliance universe relating to the legislative framework. The following key internal control assessments and reviews were conducted: • Review of interim and annual financial statements. • Review of the Departmental quarterly performance report against the Annual Performance Plan. • Review of the supply chain management procurement activities. • Facilitate and manage the implementation of audit action plans emanating from the audit report of the Auditor General and internal auditors. • Review of the Immovable Asset Register in line with management assertions. • Development of compliance universe.

PART

• Coordinate the various Internal audits conducted by Gauteng audit services (GAS). • Coordinate the regularity audit and performance audit conducted by the Auditor General. 11. INTERNAL AUDIT AND AUDIT COMMITTEES

Key activities and objectives of the internal audit

An internal audit is a managerial tool that serves to improve processes and internal controls within a Department. Internal Audit’s objective is to provide an assessment of the Department’s risks, control environment, and operational effectiveness. Through the Internal Control Unit, the Department sourced the service of the GAS to ensure the following services are rendered: • The Department consistently reviews its business practices. • Evaluating that risk management procedures are in place. • Implementing controls to protect against fraud and theft of the Departmental assets and service renders value for money.

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT