HDA Annual Report

ANNUAL REPORT 2023/24

Compliance Function The Agency has established a compliance management system to ensure compliance with legislative requirements. Compliance obligations are monitored continuously and the status is reported to the Committee quarterly for effective oversight whilst the Agency mitigates the risk of non-compliance. The Committee thoroughly considered compliance with the enabling legislation such as the HDA Act, and the PFMA throughout the year. The focus was also on compliance with the OHS Act considering the high safety and security risk for employees who are on project sites. The Committee is satisfied that management has fully implemented the approved Annual Compliance Plan which guides the compliance activities of the Agency. However, areas of improvement have been noted with compliance management for the period under review. The Committee has been consistent in its oversight responsibilities. We conducted a review of the annual financial statements, and the performance information presented by management quarterly. Where necessary special sessions with the Committee chairperson were held with management to ensure the required effort to the task is well communicated and articulated. The Committee noted the content of the financial and performance information reports that were prepared and issued during the year. The quality of reports has improved and provides meaning to the Committee clearly articulating the performance strengths and progress in addressing control weaknesses. The entity’s overall performance information remains significantly improved and is reported quarterly. The Committee is impressed with the alignment of the strategic documents as well as the accuracy of information reported to the stakeholders generally. The Agency closed off the period depicting 91% (2023: 74%) of targets achieved and reported. The Agency had 21 (2022/23: 23) targets to achieve across three programmes, but only two (2022/23: 6) targets could not be achieved. In-Year Management of Quarterly Financial and Performance Information

Evaluation of Financial Statements

The Committee has:

• Reviewed and discussed the annual financial statements to be included in the annual report with the external auditor, the executive management and the Board. Reviewed the external auditors’ final management report as well as the audit report including the management responses thereto. Reviewed the application of the accounting policies and practices. Reviewed the HDA’s compliance with legal and regulatory provisions. Reviewed the information on predetermined objectives to be included in the annual report. Reviewed the correction of material adjustments resulting from the external audit review. The Agency’s audit outcome has remained consistent with the previous financial year. All previous years’ material misstatements were addressed and corrected without exceptions. • • • • • Committee the independence and objectivity of the external auditor. The external auditor attended seven statutory meetings of the Committee and held one in committee session with the chairperson of the Committee. The 2023/24 independent audit is the second audit conducted by the Auditor-General of South Africa (AGSA). The Committee is satisfied with the audit as undertaken by the AGSA. The Committee reviewed the auditors’ management and audit reports and concurred with their overall conclusion – “Unqualified with findings” . The Committee thus accepts the audit opinion and conclusion arrived at. has reviewed • • • External Audit • The

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