DID ANNUAL REPORT 2022 23

Annual Report 2022-2023

9. PRIOR MODIFICATIONS TO AUDIT REPORTS The Department has established an internal control function to ensure effective and efficient management of audit queries and implementation of action plans to respond and address audit matters, queries, control weaknesses raised by the Auditor-General South Africa (AGSA).

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.

Matters raised by the AGSA Nature of qualification, disclaimer, adverse opinion and matters of non compliance The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework as required by section 40(1)(b) of the PFMA (1999, as amended). Material misstatements of some disclosure items identified by the auditors in the submitted financial statements were corrected, resulting in the financial statements receiving an unqualified audit opinion Some contractual obligations and money owed by the Department were not settled within 30 days or an agreed period, as required by section 38(1)(f) of the PFMA (1999, as amended) and Treasury Regulation 8.2.3

Financial year in which it first arose Progress made in clearing / resolving the matter

2013/14

The Department has significantly improved the quality of the financial statements submitted for audit. During the audit of 2021/2022 financial statements did not have material misstatements, this is due to the improved control environment culture cultivated through the AG War room, stringent review of financial statements by both Finance team and internal control unit. The Department has established a Payment War Room to fast-track payment of suppliers within 30 days. This process has assisted the department to improve the payment of suppliers within 30 days considerably. The department achieved 100% payment of suppliers within 30 days between August 2022 to December 2022.

2013/14

117

DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT