DID ANNUAL REPORT 2022 23

Annual Report 2022-2023

Resolution No. Subject Details Response by the department Resolved (Yes/No) 16 That the Department must submit progress made in the implementation of its Yes Yes

If reasons provided are not good enough, Finance schedules meetings with the branch concerned and this is then followed up through a formal letter issued to the Branch Head with the intention to implement consequence management. Accruals are also monitored on monthly basis to ensure that there are no over commitments. Below please find Departmental Expenditure at Economic Classification as at 31st March 2022. Expenditure report 31 March 2022 Per economic classification Final Appropriation Actual Expenditure Variance Compensation of employees 1 173 087 1 151 013 22 074 98 Goods and services 942 776 932 457 10 319 99 Interest and rent on land 21 500 21 500 0 100 Provinces and municipalities 1 025 348 1025 348 0 100 Households 5 904 5 903 1 100 Buildings and other fixed structures 50 415 10 143 40 272 20 Machinery and equipment 28 409 28 464 (55) 100 Intangible assets 813 813 0 100 Payments for financial assets 768 768 0 100 Grand Total 3 249 020 3 176 409 72 611 98 Variance as a % of Final Appro priation R’000 R’000 R’000 R’000

The Department has fully implemented 86% of the AGSA action plans, while 6% of the audit action plans are on track with minor issues. All outstanding action plans will be carried over to the 2022/23 Audit Improvement Plan (AIP) and be tracked through weekly AG War Room meetings. (Refer to the attached Annexure C for the detailed progress).

Through the implementation of the Audit Improvement plan, the Department has addressed majority of the audit findings (86%). The audit action plans focused primarily on addressing the internal control deficiencies, as well as recurring findings raised during the audit to ensure that such findings do not recur during the 2021/22 audit. Management continuously keeps track of the audit issues during AG War Room, and Senior Management Team (SMT) meetings.

The integrated reporting template is circulated on monthly basis to SMS members. This is to ensure that SMS members are afforded an opportunity to provide reasons for overspending and mitigations thereof. In our monthly management meetings, the Accounting Officer further interrogates the explanation provided by management to ensure that the reasons provided are adequate to prevent any possible overspending.

assessment of the the current (2021/22) That the Department must respond to House Resolutions emanating from the oversight report of SCOPA on the report of the AGSA to the Legislature on its financial statements for the previous financial year, 2019/20, by 31 January 2022. • That the Department must submit its plan to prevent over commitments. This plan must include the assessment of its effect in the 2020/21 financial year, by 31 July 2021. That the Department must also submit quarterly assessment reports on the implementation of the plan and its impact on the 2021/22 financial year, every quarter continuing up until the end June 2022. financial year 31 January 2022. implications of its audit action plans to

audit action plan by 31

January 2022 and every

quarter thereafter until all resolutions are resolved. 17 That the Department must submit its

18 House

Resolutions

115

DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT