GDID ANNUAL REPORT 2024/25

• Adequacy, reliability, and accuracy of financial and performance information 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. • Accounting and auditing concerns identified as a result of internal and external audits The Audit Committee held separate in-committee meetings with Management, Auditor General of South Africa and Internal Audit were there was a need, to address findings raised by the auditors. Management mitigated action plans for audit findings and where audit findings are still not implemented, Management have put measures in place to resolve them with due dates. • Compliance with legal and regulatory provisions During the year, the Audit Committee, Management, Internal Audit, and Auditor-General of South Africa identified a number of instances of non-compliance with enabling laws and regulations. As a result, the Audit Committee suggested the establishment and implementation of an effective compliance management system to address issues of non compliance with laws and regulations. • The quality of the in-year management and monthly/quarterly reports submitted in terms of legislation 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 should fully comply with section 40(1) of the PFMA, in so far as management’s review and monitoring of financial reports and performance information reports • Combined Assurance The Combined assurance framework does exist within the Department. Management quarterly reported to the Audit Committee on the coordinated approach that integrate the Risk Management and assurance activities within the Department to optimise the effectives if controls. • Evaluation of the annual financial statements Prior to submission to the AGSA for auditing purposes, the Audit Committee reviewed and recommended the Department’s Annual Financial Statements on the 26 May 2025. The Audit Committee agrees with and accepts the Auditor-General of South Africa’s conclusions regarding the Annual Financial Statements and recommends that the audited Annual Financial Statements be accepted and read alongside the Auditor-General’s report. • External Audit The Auditor General of South Africa as an independent assurance provider attended all Audit Committee Meeting during the financial year and participated in the process. The Audit Strategy and Engagement Letter were presented and endorsed by the Audit Committee including the audit fees. The Auditor General of South Africa engaged the Audit Committee to provide progress update on the audit prior to finalisation of the Audit and Management Reports for the Department. • Auditor-General’s Report The overall audit outcome of the Department of Infrastructure Development is unqualified with findings. This is the same as the previous year’s audit outcome. The Audit Committee note the audit outcome, therefore encourage the Department to put mitigating action plan in place in effort to address all areas identified in Auditor-General’s Report and Management Report.

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT