Interfront Annual Report 2022

PART E: FINANCIAL INFORMATION 70 The PFMA requires the Board to maintain adequate accounting records and to take responsibility for the content and integrity of the Annual Financial Statements and related financial information included in this report. It is the responsibility of the Board to ensure that the Annual Financial Statements fairly present the state of affairs of the entity as at the end of the financial year and the results of its operations and cash flow for the period. The external auditors were engaged to express an independent opinion on the Annual Financial Statements and were given unrestricted access to all financial records and related data. The Annual Financial Statements have been prepared in accordance with the Standards of Generally Recognised Accounting Practice (GRAP), including any interpretations, guidelines and directives issued by the Accounting Standards Board. The Annual Financial Statements are based upon appropriate accounting policies being consistently applied and supported by reasonable and prudent judgements and estimates. The Board acknowledges that it is ultimately responsible for the system of internal financial control established by the entity and places considerable importance on maintaining a strong control environment. To enable the Board to meet these responsibilities, the Board sets standards for internal control aimed at reducing the risk of error or deficit in a cost-effective manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures, and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughout the entity and all employees are required to maintain the highest ethical standards in ensuring the entity’s business is conducted in a manner that, in all reasonable circumstances, is above reproach. The focus of risk management in the entity is on identifying, assessing, managing and monitoring all known forms of risk across Interfront. While operating risk cannot be fully eliminated, the entity endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviours are applied and managed within predetermined procedures and constraints. Based on the information and explanations given by management, the Board is of the opinion that the system of internal control provides reasonable assurance that the financial records may be relied upon for the preparation of the Annual Financial Statements. However, any system of internal financial control can provide reasonable and not absolute assurance against material misstatement or deficit. The Board has reviewed the entity’s budget forecast for the year to 31 March 2023 and, in the light of this review and the current financial position, is satisfied that the entity has, or has access to, adequate resources to continue in operational existence for the foreseeable future. The Annual Financial Statements are prepared on the basis that the entity is a going concern. Although the Board is primarily responsible for the financial affairs of the entity, they are supported by the entity’s external auditors. The external auditors are responsible for independently reviewing and reporting on the entity’s Annual Financial Statements. The Annual Financial Statements have been examined by the entity’s external auditors and their report is presented on page 77. 1. BOARD’S RESPONSIBILITY AND APPROVAL OF THE ANNUAL FINANCIAL STATEMENTS The Annual Financial Statements set out on page 81 to 111 were approved by the Board on 31 July 2022 and were signed on its behalf by: Leilanie Janse van Rensburg Acting Managing Director Mustaq Enus-Brey Chairperson of the Board