Interfront 2025 Annual Report

76 INTERFRONT ANNUAL REPORT 2025 06 Audit and Risk Committee The Audit and Risk Committee plays a critical role in ensuring the integrity of Interfront’s financial reporting and the robustness of its risk management and internal control frameworks. The committee is comprised exclusively of independent, non-executive members, none of whom hold executive roles within the organisation. This structure reinforces the committee’s objectivity and ability to provide independent oversight free from potential conflicts of interest. Committee members are appointed based on their financial acumen, relevant qualifications, and extensive experience in governance, risk management, and financial management. Collectively, they bring awealth of expertise that enables themtodischarge their responsibilities diligently, competently, and with sound judgment. The Internal Audit function, which is an essential line of defence in Interfront’s control environment, attends all committee meetings and provides ongoing assurance of the effectiveness of internal controls, governance processes, and risk management systems. The Auditor-General of South Africa (AGSA), Interfront’s external auditor, is invited to all committee meetings. AGSA presents its audit findings and reports directly to the committee, ensuring transparency, accountability, and alignment with public sector auditing standards. A core responsibility of the committee is to review the annual financial statements prior to their submission to the Board for approval. This includes assessing the appropriateness of accounting policies, reviewing key estimates and judgements, and ensuring compliance with applicable financial reporting frameworks. The committee provides a formal recommendation to the Board regarding the approval of these statements. In addition to financial oversight, the committee closely supervises the Interfront Risk Register. It regularly reviews reports on the status of key strategic and operational risks, as well as the implementation and effectiveness of mitigation actions. This enables proactive risk governance and reinforces organisational resilience. Eachyear, theAudit andRiskCommitteesubmitsadetailed report to theBoardandstakeholders outlining its assessment of the effectiveness of internal controls, risk management practices, audit findings, and other matters within its mandate. Further details of the committee’s work and conclusions can be found in the Audit and Risk Committee Report on page 95 of this Annual Report. Through its activities, the committee upholds Interfront’s commitment to good corporate governance, transparency, and financial integrity.