DID ANNUAL REPORT 2022 23

Annual Report 2022-2023

Report of the auditor-general to the Gauteng Provincial Legislature on vote no. 15: Gauteng Department of Infrastructure Development Report on the audit of the financial statements

Opinion

1. I have audited the financial statements of the Gauteng Department of Infrastructure Development set out on pages 180 to 231, which comprise the appropriation statement, statement of financial position as at 31 March 2023, statement of financial performance, statement of changes in net assets and cash flow statement for the year then ended, as well as notes to the financial statements, including a summary of significant accounting policies. 2. I n my opinion, the financial statements present fairly, in all material respects, the financial position of the Gauteng Department of Infrastructure Development as at 31 March 2023 and its financial performance and cash flows for the year then ended in accordance with the Modified Cash Standards (MCS) prescribed by National Treasury and the requirements of the Public Finance Management Act 1 of 1999 (PFMA) and the Division of Revenue Act 5 of 2022 (Dora). 3. I conducted my audit in accordance with the International Standards on Auditing (ISAs). My responsibilities under those standards are further described in the responsibilities of the auditor-general for the audit of the financial statements section of my report. 4. I am independent of the department in accordance with the International Ethics Standards Board for Accountants’ International code of ethics for professional accountants (including International Independence Standards) (IESBA code) as well as other ethical requirements that are relevant to my audit in South Africa. I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA code. Basis for opinion

5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Emphasis of matter

6. I draw attention to these matters below. My opinion is not modified in respect of these matters.

Significant uncertainty relating to contingent liabilities

7. W ith reference to note 17.1 to the financial statements, the department is the defendant in various lawsuits amounting to R317 579 000 (2022: R343 414 000). The ultimate outcome of the matters cannot presently be determined and no provision for any liability that may result has been made in the financial statements.

Underspending on the budget

8. A s disclosed in the appropriation statement, the department materially underspent the budget by R112 753 000 on the following programmes:

• administration, underspending of R30 849 000 • public works, underspending of R55 815 000

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT