DMR AUDIT – WHAT TO EXPECT
So, today we were called to task by the DMR in one of their Audits. Fortunately, the site we are working on has a strong focus on the implementation of their SLP and the subsequent supporting portfolio of evidence of all their development initiatives as well as procurement spend. The audit had the following format:
Firstly a presentation to DMR on our HR, HRD, LED and Procurement targets and feedback with regards to the year to date actuals. Of interest was that they wanted to understand the progress made from the previous audit conducted in the fourth quarter of the previous financial year and our progress since that audit. We had to indicate what decisions were made across the board with regards to targets not met during the previous reporting period and to what extend we have taken cognisance of our previous results in the presentation of our current progress.
Further, not only did they request the details of our learnerships, bursaries and interships per labour sending area, they also wanted to know the race and gender break down of each. Of particular interest was the fact that they required names, and positions of each of our development candidates, inclusive of our employment equity strategies employed at the mine through which we are addressing our employment equity targets.
During the audit it became clear that even though we had to push hard to achieve our development targets through our local community members, it was critical to consider going further afield if we realised that targets will not be achieved if we do not consider the district and provincial areas within which the mine is situated – a guideling mooted was that if the mine cannot fullfill their targets during the first six months of the financial year, then candidates from further afield should be considered.
In terms of the HDSA’s in management they required each actual to be presented in terms of the name, job title, job description, paterson broad band (D1,2,3,4), gender and racial grouping. All our WiM actuals had to be presented in terms of their names, job titles and a short job description.
From a housing perspective a lot of questions were asked about how the employees lived i.e whether they are accommodated in formal or informal housing, RDP houses, hostels etc and even though the mine paid living out allowances to all employees, it was deemed inadequate as a measure to ensure an acceptable housing policy.
The need for thorough baseline studies and up to date information with regards to living arrangements of the workforce was emphasised throughout this conversation. Of interest was the cursory manner in which the SMME mentoring was dealt with, however great detail was required in terms of the HDSA procurement and the exact services, consumables and capital spend calculated, as far as a request to know exactly what services/capital/consumables was procured from every HDSA category.
They were not interested in engaging with the LED projects through the slide presentation and the balance of the audit was spend in the communities where they actively engaged with the various projects and project beneficiaries. Even though I believe our audit went well and that no compliance risks were identified, the detail required during this audit was far more than experience in any of the previous audits I have been involved in.