GDID ANNUAL REPORT 2024/25

2 • Activities of the IAF The following internal audit work was completed during the year under review: - Follow up Audit on Government Immovable Asset Management - Records Management (i.e. Records Care) - Litigations Management - Property Management – Lease Administration and - Revenue (Includes District Areas) - Supply Chain Management - Follow-Up: AG Significant Findings - Infrastructure Projects Delivery: Maintenance/ Upgrades and Additions – Education (Includes District Areas) - Risk Management - Review of Annual Performance Report - Audit of the performance of the Department against predetermined objectives Q1 - Audit of the performance of the Department against predetermined objectives Q2 - SAP ESS & PERSAL leave reconciliation - Data Analysis – ETHICS / FIN / HR (1 Jan 2024 – 30 June 2024) - Patch Management Review - 2025-26 IT risk assessment - Data Analysis – ETHICS / FIN / HR (1 July 2024 - 31 December 2024 • Effectiveness of risk management Progress on the Departmental risk management was reported to the Audit Committee on a quarterly basis. The Audit Committee commends the effort made by the Department to improve its risk management processes, although some areas still require improvement. Management should take full responsibility for the entire Enterprise Risk Management Process and continue to support the Chief Risk Officer to enhance the performance of the Department. The Department should enhance its decision-making processes to be embedded with risk management considerations. • Effectiveness of the Internal Audit Function (IAF) Gauteng Audit Services derives its mandate from the Internal Audit Charter, PFMA, and the Treasury Regulations. The PFMA Section 38 (1) requires that the Accounting Officer for a Department, trading entity or constitutional institution, must ensure that that Department, Trading Entity or Constitutional Institution has and maintains a system of internal audit under the control and direction of an Audit Committee complying with and operating in accordance with regulations and instructions prescribed in terms of sections 76 and 77. Treasury Regulations 3.2 require that each institution to which these Regulations apply must have an Internal Audit Function. The Internal Audit Function strengthens the Department’s ability to create, protect, and sustain value by providing Management and, ultimately, the Audit Committee with independent, risk-based, and objective assurance, advice, insight, and foresight. Audit Committee concluded that Internal Audit performance and effectiveness is satisfactory: - Reviewed and approved the annual Internal Audit plans and evaluated the independence, effectiveness and performance of the internal audit function; - Considered the reports of the Internal Auditors on the Department’s systems of internal control; - Reviewed issues raised by Internal Audit and the adequacy of corrective action taken by management in response thereto

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT