Interfront 2025 Annual Report

85 GOVERNANCE 11 Internal Control Unit Interfront does not operate a dedicated internal control unit. Instead, it follows an integrated approachby embedding internal control responsibilities throughout theorganisation. This approach is structured around five interrelated components, as defined by internationally recognised best practice, which collectively contribute to sound internal control and effective governance. MONITORING ACTIVITIES INFORMATION & COMMUNICATION CONTROL ACTIVITIES RISK ASSESSMENT CONTROL ENVIRONMENT 5 INTERRELATED COMPONENTS OF INTERNAL CONTROL CONTROL ENVIRONMENT The control environment sets the tone at the top and forms the foundation for all other internal control components. It encompasses the integrity, ethical values, and competence of Interfront’s people; management’s philosophy and operating style; the way management assigns authority and responsibility; and the attention and direction provided by the Board of Directors and its committees. RISK ASSESSMENT Interfront identifies and analyses risks relevant to the achievement of its strategic and operational objectives. This includes assessing both internal and external risks that may impact performance, compliance, and reporting. Risk assessments are regularly reviewed to ensure that emerging risks are identified and appropriately managed. CONTROL ACTIVITIES These are the policies and procedures that help ensure management directives are carried out. They include approvals, authorisations, verifications, reconciliations, and segregation of duties designed to mitigate risk and ensure accuracy and completeness in operations and reporting. INFORMATION AND COMMUNICATION Relevant and timely information is identified, captured, and communicated in a form and timeframe that enables employees to fulfil their responsibilities. Interfront promotes open communication channels across all levels of the organisation and ensures that key information reaches the appropriate parties, including management and the Board. MONITORING ACTIVITIES Ongoing monitoring and separate evaluations are conducted to assess the effectiveness of internal controls over time. Monitoring is integrated into day- to-day operations and is supported by management reviews, internal audit processes, and feedback from assurance providers, such as the Auditor-General of South Africa (AGSA). By embedding these five components into its operations, Interfront ensures a robust internal control framework that supports the achievement of its objectives, enhances accountability, and upholds the principles of good corporate governance.