Page 127 - DSD ANNUAL REPORT 2022-2

PART C: GOVERNANCE

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12 AUDIT COMMITTEE REPORTINTERNAL AUDIT AND AUDIT COMMITTEE REPORT

Key activities and objectives of the internal audit Attendance
The department has an Internal Audit Unit, which is an independent The department’s Audit Committee is appointed in terms of section
assurance function within the department that follows a risk-based 38 (1) (a) (ii) of the Public Finance Management Act, 1999 (Act 1
approach in providing members of management and the Audit of 1999) and Treasury Regulations 3.1.1 to 3.1.8 as revised. The
Committee with assurance on the adequacy and effectiveness of Audit Committee operated in accordance with the aforementioned
governance, performance, risk management and internal control regulations as well as the provisions prescribed in terms of sections
processes. The 2022-2024 rolling three-year strategic internal 76 (4) (d) and 77 of the Public Finance Management Act and its
audit plan and 2021/22 operational plan were primarily based on approved Audit Committee Charter. The primary purpose of the Audit
the departmental strategic risk assessment although the plan was Committee is to assist the Accounting Officer of the Department in
still impacted by the Covid-19 related operational risks as these fulfilling his responsibilities to ensure that the Department has and
had adversely affected the department’s strategic objectives. maintains effective, efficient and transparent systems of financial,
risk management, governance, and internal control by providing
Summary of audit work done oversight.
The Committee approved the rolling three-year strategic plan
including the operational plan for the year-ending 31 March 2022 The department’s Committee entirely consists of independent
comprising of sixteen (16) assurance audit projects. Of the sixteen non-executive members, bringing the following set of skills to
(16) approved projects, thirteen (13) assurance audit projects were the Committee, namely financial, monitoring and evaluation,
concluded during the 2021/22 financial year and three audits were information technology, risk management, corporate governance
deferred to 2022/2023 financial year due to various reasons. Chief and legal. The Audit Committee was scheduled to meet six times in
amongst challenges that attributed to the deferral of the three the financial year under review to discuss matters pertaining to the
audits in question are as follows: Department as stipulated in the Audit Committee Charter and the
• Inadequate staff capacity; Treasury Regulations. The Committee met seven times in 2021/22
• New working arrangements due to Covid-19 pandemic i.e. financial year as a result of pertinent matters that needed to be
working from home to minimise risks of spreading the virus dealt with around the issues of internal control, risks management
amongst employees; and fraud related matters.
• Personnel infections impacting on availability of process and
internal audit staff; The Committee is satisfied that it has met its responsibilities as
• Regular closing of the department offices for sanitisation; stipulated in the charter. The Committee has received and reviewed
and the internal audit and external audit reports, met management
• Covid-19 restriction impacting on traveling to other Provinces. collectively or individually to review their progress on key issues
relating to internal controls, risk management and governance
The completed audits covered financial, governance, performance processes and other relevant matters concerning the department.
and Information Technology audits and were performed in The Audit Committee was fully functional and comprised of six (6)
accordance with the International Standards for the Professional members who are non-departmental officials as at 31 March 2022.
Practice of Internal Auditing (ISPPIA). The table below indicates a list of members, qualifications and a
record of attendance of meetings during the 2021/22 financial year:
Audit Committee Report
We are pleased to present our report for the financial year ended
31 March 2022 which is in accordance with the paragraphs 3.1.9
to 3.1.13 of the Treasury Regulations of 1999, amended in 2005
and sections 3.1.9 to 3.1.13 of the Public Finance Management Act,
1999, amended in 30 April 2015.
Audit Committee Responsibility, Membership and

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