HDA Annual Report

ANNUAL REPORT 2023/24

Effectiveness of Internal Control • The Committee considered all the reports issued by both the internal and external auditors and has noted the weaknesses identified in the system of internal controls. • The Committee observed major improvements in the management of irregular, fruitless and wasteful expenditure. The implementation of a Condonation Committee to deal with all the previously identified irregular transactions has been effective and is demonstrated by the reported implementation and execution of consequence management. • Management demonstrated progress in addressing previously identified audit findings and has resolved 83% of external audit findings and 59% of internal audit findings, respectively. • The Committee is also satisfied with the adopted aggressive anti-corruption strategy to curb the frequency and magnitude of fraud and corruption. • The Committee reports continuous progress and improvements noted in the system of internal control for the period under review. Effectiveness of Internal Audit The PFMA obligates the Accounting Authority to ensure that the Agency has a system of internal audit under the control of the Audit and Risk Committee. • The Agency continues to apply the co-sourced internal audit model and OMA Chartered Accountants Inc. is the service provider. In conjunction with the Chief Audit Executive (CAE), they ensure a strengthened and well-capacitated Internal Audit. • The Committee approved a three-year risk-based Strategic Internal Audit Plan and an Annual Audit Coverage Plan for the period 1 April 2023 to 31 March 2024. • Internal Audit has reported quarterly to the Committee the audits finalised and the status of corrective action taken by management on both the internal and external audit findings. • Based on the audit work performed for the year under review, Internal Audit has concluded on the control environment as “Needs Improvement”. This status remains consistent with that reported in the previous year.

The table below depicts the areas considered with their resultant ratings:

Opinion

Focus Areas

2023/24

2022/23

Performance Information – Performance against Objectives Adequate

Adequate

Information and Communication Technology – Security Controls

Adequate

Needs Improvement

Project Funding Review

Needs Improvement Needs Improvement

Supply Chain and Contract Management

Needs Improvement

Inadequate Inadequate

SAGE 300 AccPac Application Control and Financial Discipline Review

Inadequate

Corporate Governance

Needs Improvement N/A Needs Improvement N/A

Performance Management Systems

Land Assembly

Consulting Engagement

Inadequate

The Committee reviewed all the Internal Audit reports and is satisfied with the activities of the Internal Audit function, including its coordination with the external auditors, risk management and their recommendations.

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