Interfront Annual Report 2022

PART E: FINANCIAL INFORMATION 72 2. REPORT BY THE BOARD OF DIRECTORS (CONT.) Interfront adheres to the statutory duties and responsibilities set out in the Companies Act and the PFMA. The entity confirms and acknowledges its responsibility for compliance with the Code of Corporate Practices and Conduct (‘Code’) laid out in the King Report on Corporate Governance for South Africa (2016). The Board members discuss the responsibilities of management in this respect and monitor the entity’s compliance with the code at Board meetings. The salient features of the entity’s adoption of the Code can be found in Part C: Governance in this report. Board of Directors The Board: • Retains full control over the entity, its plans and strategy. • Acknowledges its responsibilities as to strategy, compliance with internal policies, external laws and regulations, effective risk management and performance measurement, transparency and effective communication, both internally and externally by the entity. • Is of a unitary structure comprising: o Two independent, Non-Executive Directors, of which one serves as the Chairperson. o Non-Executive Directors, employed by the Shareholder. o Executive Directors. Chairperson and Managing Director The Chairperson is an independent, Non-Executive Director (as defined by the Code). The roles of Chairperson and Managing Director are separate, with responsibilities being divided between them in such a manner that no individual has unfettered powers of discretion. Remuneration The remuneration of the Acting Managing Director/ Financial Director and the Director of Operations, who are the only two Executive Directors of the entity, was determined by the controlling entity upon appointment and the Board will determine the increase in remuneration within limits. Executive Meetings Non-Executive Directors have access to all members of the entity’s management team. Details of the Board members and their meeting attendance are disclosed in Part C: Governance . Internal Audit As permitted by the PMFA, the entity has outsourced its internal audit function to the Internal Audit Function of SARS. Controlling Entity Interfront’s controlling entity is the South African Revenue Service (SARS), established by the South African Revenue Service Act of 1997. Auditors In line with the requirements of the Public Audit Act, No. 25 of 2004 (PAA) and paragraph 84(3)(b) of the Companies Act, the AGSA will continue in office for the next financial period. Annual Financial Statements The financial statements set out on page 81 to 111, which have been prepared on the going concern basis, were approved by the Board on 31 July 2022.