DSD’S NEW AUDIT COMMITTEE AIMS FOR CONTINUOUS IMPROVEMENT

By Cuma Pantshwa

• The Department of Social Development’s new audit committee was presented with the Auditor-General’s 2023/24 findings to understand the strengths and challenges in the department’s operational and financial performance.
• As part of their induction process, the committee focused on how to build a department “we all aspire to work for”.
• The audit committee’s main objective is to ensure a clean audit and drive continuous improvement, laying the foundation for better governance and service delivery.

Accountability took centre stage at the Department of Social Development’s audit committee induction, currently underway in Pretoria.

The session on 11 March 2025 began with the Auditor-General’s presentation of the 2023/24 audit findings, highlighting both strengths and challenges in the department’s operational and financial performance.

Towards a cleaner, more efficient department

Discussions focused on strengthening accountability by identifying operational inefficiencies, policy gaps, and compliance issues.

The ultimate goal is to clean up the department, ensure compliance, and remove blockages to build a department that, as one speaker put it, “we all aspire to work for”.

The audit committee’s key objective is to ensure a clean audit and drive continuous improvement, laying the foundation for better governance and service delivery.

Under review were social grants disbursements and ICT systems – starting with a deep dive into social grant disbursement and overall financial performance thereof.

The social grant disbursement and financial performance revealed:

• 99.47% of the department’s total budget was spent, with 96.45% allocated to social assistance.
• The department recorded a savings of R1.5 billion, primarily due to efficiencies in the Child Support Grant, with an amount of R792 million, and in the Social Relief of Distress, with an amount of R591 million.
• The South African Social Security Agency’s benefits administration and support programme oversees the full grant administration process, from application to approval and beneficiary maintenance.

IT audit and Integrated Justice System project challenges

A robust discussion unfolded around the Auditor-General’s IT findings from the past two years, with the audit committee raising concerns about weaknesses in ICT systems and controls.

Key issues identified included:

• Missed milestones due to procurement delays and bottlenecks with the State Information Technology Agency (SITA), causing some projects to stall or not be implemented in the current year.
• Legislative amendments were required before some projects could commence, further delaying progress.
• Operational inefficiencies in ICT pose a risk to security and data management, highlighting the need for stronger backup systems.
• Unclear user access policies increase the risk of unauthorised system access, posing a significant security threat.
• Integration challenges in the Integrated Justice Systems were noted, with poor ICT infrastructure affecting operational efficiency and overall service delivery.

Dr Mdu Zakwe, a member of the audit committee, emphasised the need for active management and stronger controls in partner collaborations, particularly in the department’s engagement with SITA.

He called for a thorough review of the Service Level Agreement to ensure accountability and efficiency.

“We need to do a deep dive into the Service Level Agreement with SITA. We all need to look at how tight that agreement is drafted,” he stated, stressing the importance of clear terms, performance monitoring, and accountability measures to prevent delays and inefficiencies.

The follow up session also aims to crystallise plans to accelerate the Integrated Justice System projects, which were flagged in the last report for delays.

Acting Director General, Peter Netshipale welcomed the members inputs stressing that ICT modernisation and system integration remain crucial to the department’s success.

He also highlighted the ongoing challenges in the evolving ICT landscape, particularly in identity security and fraud prevention.

“The ICT team will present their systems for us to interrogate. We acknowledge there are challenges in this ever-evolving landscape – despite all the means testing exercises that are conducted, systems evolve but cybersecurity is a top priority”  he noted, underscoring the need for continuous system enhancements to safeguard sensitive information.

A call for consistency and continuous improvement

The audit committee chairperson Cedric Boltman emphasised that the committee’s core mandate is to clean up, improve, and ensure consistency. The discussions reinforced a commitment to:

• Reducing inefficiencies.
• Enhancing financial accountability.
• Strengthening governance structures.

The session reaffirmed the need for strong leadership, adherence to policies, and a culture of continuous improvement to ensure a more efficient and accountable Department of Social Development.