6. Non-compliance with laws and regulations The Auditor-General identified the following: a) The Department did not comply with section 55 of the Defence Act (No.42 of 2002) regarding the approval of salaries relating to the latest military dispensation, housing allowances for uniformed members, and performance awards. b) The Department did not comply with the approval process prescribed in section 2 of the Public Service Act (No.103 of 1994) regarding these payments. c) The Department did not comply with section 38(1)(a)(ii) of the PFMA, as an internal audit function was not fully operational for the year under review. d) The Department did not have an approved fraud prevention plan as required by Treasury Regulation 3.2.1.