DID ANNUAL REPORT 2022 23

Annual Report 2022-2023

that risk mitigation strategies exist and can be implemented efficiently.

Management is responsible for fully owning and directing the Enterprise Risk Management Process. This includes providing unwavering assistance to the Chief Risk Officer in an effort to improve the Department’s risk management performance. As the Audit Committee, we anticipate and look forward to seeing the department’s risk management efforts continue to develop and mature. Performance Management The Audit Committee’s review of the effectiveness and functionality of the performance management system (including an analysis of management-prepared quarterly performance reports and related internal audit reports) revealed the need to strengthen the current performance management and reporting system. The quality of quarterly reports submitted in terms of the PFMA and the Division of Revenue Act 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. 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 ensure better compliance with section 40(1) of the PFMA, in so far as management’s review and monitoring of financial reports and performance information reports. Compliance with the relevant laws and regulations 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. Forensic Investigations During the period under review, three new cases were reported to Provincial Forensic Services. The Audit Committee commends Management for implementing one hundred percent of the recommendations on consequence management from 2016/17 to 2019/20 but is concerned about the execution of just 25 percent of the recommendations for 2021/23 financial years. The Audit Committee is concerned that the Provincial Forensics Services lack the capacity to investigate and resolve all reported cases in a timely manner; however, the commitment by the Office of the Premier to capacitate the unit is welcomed. Prior to submission to the AGSA for auditing purposes, the Audit Committee evaluated the Department’s Annual Financial Statements. 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. Evaluation of Annual Financial Statements

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT