RTIA Annual Report E-Book

The ARC has raised concern that the work of Internal Audit in terms of control, governance, and risk management is hampered by slow implementation of the agreed action plans for findings raised. This emanates from a number of issues of which the root cause is the limited human resources. The delay in proclamation of the AARTO Act resulted in the agency not fully implementing the APP and the related budget. In-Year Management and Monthly/Quarterly Reports The RTIA has reported to the National Treasury and the Department of Transport in accordance with the requirements of the PFMA. The ARC provided management with recommen dations to improve the quality of performance information and financial reporting. Evaluation of Financial Statements The ARC has: • Reviewed the unaudited financial statements with due consideration of the management assurance provided (supported by a Generally Recognised Accounting Practice (GRAP) review by a service provider engaged by management) as well as the independent assurance from Internal Audit which included a scope limitation. During the review the ARC raised specific concerns in relation to the financial position, high risk of recurring audit findings, quality of the unaudited annual financial statements. Reviewed changes in accounting policies and practices; Reviewed the AGSA audit and management reports; Reviewed and discussed the audited financial statements to be included in the annual report, with management and reported to the Accounting Authority; Reviewed the information on predetermined objectives to be included in the annual report and raised specific concern with accuracy and reliability of the performance information; • • • •

• Reviewed compliance with legal and regulatory provisions; and Reviewed the audited financial statements for any significant adjustments resulting from the audit report. The ARC recommend the unaudited AFS and APR for approval to the board on 31 May 2024. AGSA Audit Report The ARC notes with concern the consecutive qualified audit opinion from AGSA especially in relation to the AARTO assets and liabilities. Overall the agency maintained the same rating on overall audit outcomes with improvement realized on expenditure management. The agency has developed a turnaround strategy to improve on the audit outcome. Consequence Management Material Finding AGSA also issued material finding on non-implementation of consequence management emanating from irregular expenditure and fruitless and wasteful expenditure for transactions that were identified and disclosed in the financial period (2021/22). The AGSA’s finding is premised on management not submitting the evidence that there were investigations conducted and that the disciplinary letters written to affected officials were not sufficient. The ARC will oversee the implementation of the Irregular Expenditure Framework to avoid such findings in future. Internal Control Overall Assessment The AGSA did identify material non-compliance and internal control deficiencies with legislation on financial management processes. • •

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Road Traffic Infringement Agency • Annual Report 2023/24