DID ANNUAL REPORT 2023_24

Annual Report 2023-2024

Audit Committee Responsibility The Audit Committee reports that it has executed its responsibilities arising from Section 38(1)(a) of the PFMA and Treasury Regulation 3.1.13. The Audit Committee also reports that it has adopted appropriate formal terms of reference as its Audit Committee Charter, regulated its affairs in compliance with this Charter, and has discharged all its responsibilities as contained therein. The effectiveness of Internal Control The overall assessment of the internal control environment is adequate but ineffective in some areas, based on the results of the Internal Audit’s audits and follow-up reviews. The management of the Department continues to be committed to implementing the necessary corrective actions to achieve the desired improvement in the internal control environment. The Audit Committee will monitor the Department’s efforts to improve the effectiveness of controls in the following areas: • The Department should focus on improving the effectiveness of controls in the following areas: • Property Management - Lease Adminstration & Revenue • Occupational Health Safety Audit; Management should also implement corrective actions to address the findings raised by the Auditor-General on time. Information and Communication Technology (ICT) Governance Based on the findings of the audits conducted by both the Gauteng Audit Services and the Auditor General, the Department should strengthen the adequacy and effectiveness of internal controls pertaining to ICT governance, business continuity, and ICT general controls in the next financial year. Internal Audit The Accounting Officer is obliged, in terms of the PFMA, to ensure that the Department has a system of internal audit under the control and direction of the Audit Committee. In the case of the Gauteng Provincial Government (GPG), the Internal Audit Function is shared among Entities and departments in the Province and is accountable to the Audit Committee. The Internal Audit team executed and substantially completed the risk-based audit plan. The Audit Committee is confident that the Internal Audit Plan has a clear alignment with the key risks, sufficient coverage of information systems, and a good balance among the various audit categories, i.e., risk-based, mandatory, performance, computer, and follow up audits. The coordination between Internal Audit and the Auditor-General to provide assurance services has been strengthened over the past year. The Committee views this as a key step towards attaining a fully-functioning integrated assurance system. The Audit Committee will continue to review the Internal Audit function’s assigned capacity and resources as it impacts the level of their output. • Infrastructure Projects Delivery : Construction- Education • Infrastructure Projects Delivery : Construction- Health • Expenditure Management (Payment of Suppliers/ Litigation)

The following audits were covered by Internal Audit during the period under review:

87

DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT