DID ANNUAL REPORT 2022 23

Annual Report 2022-2023

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

2013/14

Compliance reviews are conducted through Internal auditors (Gauteng audit services), Probity auditors and internal control unit to ensure that the Department complies with procurement regulations. This process has assisted the Department in ensuring that non

compliance is detected, prevented, and corrected timeously.

10. INTERNAL CONTROL UNIT The Internal Control function within the DID is tasked with the responsibility of maintaining sound internal control environment, assisting the department to implement effective governance frameworks, and facilitation of compliance driven culture within the organisation. The Internal Control unit assisted the Department in developing an Audit Improvement Plan (AIP) to address internal control deficiencies identified during audits conducted by both Gauteng Audit Services (GAS) and the AGSA. During the 2022/23 financial period, the Internal Control Unit supported the Department in developing and implementing audit action plans designed to strengthen internal control structures and processes for financial reporting, supply chain management, and performance management in response to findings and recommendations of the Auditor-General and Internal audit. The following internal control assessments were also conducted: • Assessment of integrity and reliability of financial and non-financial reports; • Compliance reviews with all applicable legislations, policies, and procedures; • Review of interim and Annual Financial Statements and performance reports; and • Review of Immovable Asset Register to ensure rights and ownership, completeness, classification, accuracy, valuation and presentation and disclosure of immovable assets. 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 is rendered: • Consistently reviewing departmental business practices. • Evaluating that risk management procedures are in place. • Implementing controls to protect against fraud and theft of the departmental assets and service rendered value for money.

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT