SMD

Annual Report 2023/2024

12. AUDIT COMMITTEE REPORT The report outlines the activities of the Audit and Risk Committee (ARC) for the period ending 31 March 2024 and is informed by the minutes of ARC meetings held during the 2023/24 financial year. The term of office for the ARC ended in March 2024. Audit Committee responsibility During the 2023/24 financial year the ARC complied with its responsibilities arising from Section 38 (1) (a) (ii) of the Public Finance Management Act (PFMA, 1999) and Treasury Regulation 3.1. The ARC adopted appropriate formal terms of reference as its Audit Committee Charter, regulated its affairs in compliance with the Charter and discharged responsibilities as contained therein. Composition of the Audit and Risk Committee (ARC), meetings and attendance The ARC consisted of three independent non-executive members who collectively had sufficient qualifications and experience to fulfil their duties. The Acting Director-General served as an executive member of the Committee. Six meetings were held to consider the Audit Assurance, Financial Information, Information Communication Technology, Human Resources, Risk Management, Compliance, Governance and Performance Management for the DSBD. The independent non-executive members attended the six meetings of the ARC for the 2023/24 financial year. The management team and representatives from the Internal Audit attended ARC meetings. The Committee also met with Internal Auditors, without management being present. The effectiveness of internal control In the period under review the following activities were undertaken by the ARC towards the achievement of its mandate: % Approved the Internal Audit Charter and the risk-based audit plan for 2024/25. % Reviewed Internal Audit quarterly progress reports against the 2023/24 Audit Plan. % Reviewed the quarterly financial and performance information of the Department, including interim financial statements. % Reviewed quarterly reports on the implementation of risk and ethics management. % Reviewed the quarterly reports on implementation and compliance matters relating to Corporate Governance of Information and Communication Technology, Human Resource Management, and donor funding. % Reviewed the effectiveness of financial controls and received assurance from management and internal audit. % Reviewed significant issues raised by the Internal Audit. In-year management and monthly/quarterly reports The department submitted monthly and quarterly reports to National Treasury as required by the PFMA (1999). Monitoring and reviews of financial, information communication technology, human resources, risk management, compliance, governance, and performance information were completed during the year under review. Performance management The ARC reviewed the Department’s performance through the quarterly reports submitted by management and audited by Internal Audit. The ARC reviewed reports presented by management and reports from internal audit to provide oversight on internal controls.

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Department of Small Business Development • GOVERNANCE • Part C