Page 177 - Department of Social Development Annual Report 2021

PART C: GOVERNANCE

11: AUDIT COMMITTEE REPORT

Key activities and objectives of the internal audit Audit Committee Responsibility, Membership and
Attendance
The department has an Internal Audit Unit, which is an
independent assurance function within the department The department’s Audit Committee is appointed in terms
that follows a risk-based approach in providing members of section 38 (1) (a) (ii) of the Public Finance
of management and the Audit Committee with assurance Management Act, 1999 (Act 1 of 1999) and Treasury
on the adequacy and effectiveness of governance, Regulations 3.1.1 to 3.1.8 as revised. The Audit
performance, risk management and internal control Committee operated in accordance with the
processes. The 2021-2023 rolling three-year strategic aforementioned regulations as well as the provisions
internal audit plan and 2020/21 operational plan were prescribed in terms of sections 76 (4) (d) and 77 of the
impacted on by the Covid-19 related operational risks Public Finance Management Act and its approved Audit
and the risk adjusted strategic risk register as these had Committee Charter. The primary purpose of the Audit
adversely affected the department’s strategic objectives. Committee is to assist the Accounting Officer of the
Department in fulfilling his responsibilities to ensure
Summary of audit work done that the Department has and maintains effective,
efficient and transparent systems of financial, risk
The Committee approved the rolling three-year strategic management, governance, and internal control by
plan including the operational plan for the year-ending providing oversight.
31 March 2021 comprised of fifteen (15) assurance audit
projects. Of the fifteen The Committee is satisfied that it has met its
(15) approved projects, ten (10) assurance audit projects responsibilities as stipulated in the charter. The
were concluded and with another four (4) new Committee has received and reviewed the internal audit
assignments which replaced some of the initially and external audit reports, met management to review
planned audits also concluded by 31 March 2021. The their progress on key issues relating to internal controls,
Committee approved a deferral of one audit namely, risk management and governance processes.
review of adequacy and effectiveness of the controls
around the Occupational Health and Safety (OHS). Some The Audit Committee was fully functional and comprised
of the replacement audits were to respond to the of seven (7) members who are non-departmental officials
challenges arising from the pandemic in order to provide as at 31 March 2021. The table below provides details of
real time assurance to management in an effort to the members, qualifications and their attendance of
improve people safety. Challenges faced by the internal meetings:
audit function included the following:
• Inadequate staff capacity;
• New working arrangements due to Covid-19
pandemic i.e. working from home to minimise risks
of spreading the virus amongst employees;
• Personnel infections impacting on availability of
process and internal audit staff;
• Regular closing of the department offices for
sanitisation;
• Covid-19 restriction impacting on traveling to other
Provinces.

The completed audits covered compliance, financial,
governance, performance and Information Technology
audits and were performed in accordance with the
International Standards for the Professional Practice of
Internal Auditing (ISPPIA).

Audit Committee Report

We are pleased to present our report for the financial
year ended 31 March 2021 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.

DEPARTMENT OF SOCIAL DEVELOPMENT ANNUAL REPORT 2020/21 177