Economic Development Annual Report

Annual Report 2023/2024 Mpumalanga: Department of Economic Development and Tourism - Vote 6

• Consulting Services Transfers to other entities linked to the mandate of the Department of Economic Development and Tourism. The following were areas of concern: • Department to implement preventative controls to prevent irregular expenditure, implement consequence management and recover all losses where necessary in line with the irregular expenditure framework; • Department to efficiently use the automated systems for leave management and invoice tracking; • Slow implementation of remedial action plans to improve the audit outcome and achieve a clean audit; • Differences between legal and accounting principles in disclosing contingent liabilities to be given special attention; • Department to finalise the appointment of the Head of Department; and • Vacancy rate within the Internal Audit Activity. • In-year Management and monthly/quarterly report The Department is required to report monthly and quarterly to Treasury as is required by the PFMA. The Audit Committee is satisfied with the content and quality of the quarterly reports prepared and issued by the Department as required by the PFMA, save for the urgency in attending to the control deficiencies highlighted by the committee in the above paragraph. Risk Management The Audit Committee is responsible for the oversight of risk management. The Risk Management Committee reports to the Audit Committee on a quarterly basis on the governance and management of risk. The reports from the Risk Management Committee were quarterly reviewed and the committee concludes that the department’s processes and systems relating to fraud prevention and risk management are adequate and effective. Evaluation of Financial Statements The Audit Committee reviewed the Annual Financial Statement and Performance Information and recommended their submission to AGSA for audit after taking into account the inputs of the Provincial Treasury, Internal Audit and the Audit Committee. Compliance with laws and regulations The Audit Committee is satisfied that the department has complied with all applicable legislation. Internal Audit The Audit Committee is satisfied that the Internal Audit function operated effectively throughout the year under review and that it has addressed the risks pertinent to the department in its audits during the year and has maintained its independence.

135