SMD

1. INTRODUCTION The Department continued demonstrating its commitment towards the maintenance of the highest standards of governance in managing limited public finances and resources that the Department was entrusted with during the 2023/24 financial year. In demonstrating this commitment, the Department has put governance structures in place to ensure good governance and effective, efficient and economical use of state resources in the following areas: Risk Management, Anti-Fraud and Corruption, Minimising Conflicts of Interest, Code of Conduct, Health, Safety and Environmental issues, Portfolio Committee, Audit and Risk Committee (ARC), and B-BBEE Compliance Performance Information. RISK MANAGEMENT The DSBD has developed and implemented the Risk Management Policy and Strategy. To support the implementation of the Policy and Strategy, the Risk and Integrity Management Implementation Plan has been developed to guide the execution of risk and ethics activities. During the reporting period, the Department conducted a strategic risk assessment and 19 strategic risks have been identified and monitored on a quarterly basis. The Risk and Ethics Management Committee (REMC), which consists of internal executive managers and external members has been established and it is functional to provide an oversight role on the effectiveness of risk management processes, provision of guidance on the management of strategic risks and ensuring the effectiveness of the internal control system. The Risk and Ethics Management Charter has been developed and the Chairperson of the REMC reports to the Audit and Risk Committee (ARC). During the reporting period, the DSBD achieved a risk maturity level 5 score. The score indicates the level at which DSBD has implemented risk management processes. However, to strengthen risk management processes, the Department has developed the business continuity management policy, combined assurance plan and monitored the implementation of the compliance management universe. 2.

3. FRAUD AND CORRUPTION The DSBD has developed and implemented the Fraud Prevention, Anti-corruption and Whistle Blowing Policy. The Department has adopted and promoted a zero-tolerance stance on fraud and corruption. In terms of the Whistle Blowing Policy, the DSBD encourages citizens and officials to report any fraudulent activities relating to the Department to the Public Service Commission through the National Anti corruption Hotline (0800 701 701). In 2023/24 reporting period, DSBD has also conducted the awareness sessions on the departmental website and virtually to emphasise the significance of having the strong fraud and corruption preventative mechanisms, as well as to promote the utilisation of the anti-corruption hotline to report fraud and corruption allegations. Furthermore, the DSBD has developed and monitored the fraud and corruption risk register during the reporting period. The pro-active identification of risks assisted the Department to put together mitigating measures to prevent the fraud risks. From the Risk and Integrity Management’s perspective, conflict of interest is managed through the implementation of the Public Service Regulation (2016) as amended, and Ethics Management Directives from the Department of Public Service and Administration (DPSA). In addition, the DSBD has developed the policies on remunerative work outside the public service, doing business with organ of state, financial disclosure and lifestyle audit. During 2023/24 financial disclosure period, all SMS and other designated officials have disclosed their financial interest within the stipulated timelines. Non-compliance is dealt with in accordance with the Public Service Regulations and chapter 7 of the SMS Handbook. 4. MINIMISING CONFLICT OF INTEREST

Part C • GOVERNANCE • Department of Small Business Development

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