DID ANNUAL REPORT 2023_24

Annual Report 2023-2024

9. PRIOR MODIFICATIONS TO AUDIT REPORTS 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.

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 Effective steps were not taken to prevent fruitless and wasteful 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

2013/2014

The Department has implemented a procurement process for leasing of office accommodation for the office buildings whose contracts have expired and is reported as irregular expenditure. At year end the procurement process was at bid evaluation stage. • The Department has established a governance structure called the Payment War Room to fast track payment of suppliers within 30 days. • In addition, payment of suppliers has been included in the performance agreements of all senior managers. As a result of this interventions the Department achieved a performance of 100% payment of suppliers within 30 days. • Accounting Officer held bilateral meetings with client departments to discuss project performance and litigations matters that required intervention.

2013/2014

10. INTERNAL CONTROL UNIT The Internal Control function within 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 and the AGSA. The Internal Control Unit is also the driver of the clean audit readiness within the department. During the 2023/24 financial year, 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 audits. The following internal control assessments and reviews were conducted: • Review of interim and annual financial statements; • Review of the Departmental quarterly performance report against the Annual Performance Plan; • Facilitate and managing the implementation of audit action plans emanating from the audit report of the Auditor General and internal auditors; • Review of Immovable Asset Register in line with management assertions; • A clean audit strategy was developed, to ensure the Department works towards achieving a clean audit by evaluating and monitoring all the clean audit key performance areas; and

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT