Interfront Annual Report 2022

PART C: GOVERNANCE 50 7. RISK MANAGEMENT Interfront’s Risk Management Policy was adopted in 2018 and will be reviewed in the 2022/2023 period to accommodate the addition of the Tax team and the associated business risks. Interfront has a Risk Management Forum comprising EXCO and senior members of the Interfront management team. The Committee meets on a regular basis and before each new financial year to review the Risk Register for inclusion in the Annual Performance Plan. The Risk Register is presented to the Interfront Board at least twice every financial year and on occasions when a new, emerging risk has been identified. The Risk Register is also presented to the Interfront/SARS Audit and Risk Committee on a quarterly basis for the members’ input and review. Interfront’s main risk over the last few financial years has been the retention of management and staff, which is also one of our annual performance targets, as set out in Section B: Performance Information . As a subsidiary of SARS, Interfront aligns, where possible, with the annual salary increase and bonuses payable to SARS staff. The pressure on the fiscus and the associated budget cuts create a challenge to keep up with commercial entities, especially in the scarce skills market, where highly skilled employees are offered extremely competitive salaries and benefits. The zero per cent increases for staff on level 7 and above during the 2020/2021 financial year had a negative impact on Interfront’s staff retention rate, and this carried over into the 2021/2022 financial year. As a result of the Board’s efforts to combat the risk, including market adjustments to critical and scarce skills staffing, the turnover rate declined towards the end of quarter three of the year. It is necessary to monitor the effectiveness of mitigation measures over time, manage risks continually, and find new ways to increase long-term staff retention. A new strategic outcome-orientated goal was agreed to for the 2022/2023 financial year, i.e., to establish a broader customer base with the performance indicator of expanding the footprint and services of Interfront within SARS to assist in realising SARS Vision 2024 and to explore other opportunities outside of SARS, with SARS as a strategic reference. Pursuing this objective will allow Interfront to become more competitive in the commercial field and increase its self-sufficiency. 6. REMUNERATION OF BOARD MEMBERS National Treasury regulates the remuneration level for Interfront’s independent, non-executive Board and Committee members and approval is granted by the Minister of Finance. Mr Mustaq Enus-Brey, an independent, Non-Executive Director, Chairperson of the Interfront Board, and member of the Remuneration, Social and Ethics Committee, is remunerated as Chairperson and as a member of a Board sub- committee. Mr Stewart van Graan, an independent, Non-Executive Director, is remunerated as a member of the Board. The remuneration paid to the Executive Directors is set out in Part E: Financial Information. No fees or remuneration is payable by Interfront to the Non-Executive Directors who are also employees of the Shareholder. Name Member’s Fees Committee Fees Total Mustaq Enus-Brey R21 909 R6 018 R27 927 Stewart van Graan R8 019 R2 916 R10 935