Interfront 2023 Annual Report

43 GOVERNANCE PART Introduction Corporate governance embodies the processes and systems by which Interfront is directed, controlled and held to account. In addition to legislative requirements based on the Companies Act, Interfront applies corporate governance through the precepts of the Public Finance Management Act (PFMA), in tandem with the principles contained in the King IV Report on Corporate Governance (King IV Report). Parliament, the Executive Authority and the Board of Interfront are responsible for corporate governance. Portfolio Committees Parliament exercises its role by evaluating the performance of public entities through the interrogation of their annual financial statements and other relevant documents that have to be tabled, as well as any other documents tabled from time to time. The Standing Committee on Public Accounts (SCOPA) reviews the annual financial statements and the audit reports of the external auditor. The Portfolio Committee exercises oversight over the service delivery performance of public entities. It does so by reviewing the non-financial information contained in the annual reports of public entities and is concerned with service delivery and enhancing economic growth. As a wholly owned subsidiary of SARS, Interfront’s strategic planning, budgeting, risk and reporting are incorporated into those of SARS and form part of the public accountability processes of SARS. Executive Authority Oversight by the Executive Authority rests on the prescripts of the PFMA. The PFMA governs and gives authority to the Executive Authority for oversight powers. The Executive Authority also has the power to appoint and dismiss the Board and must ensure that the appropriate mix of executive and non- executive directors are appointed and that directors have the necessary skills to guide Interfront. The Minister of Finance appointed the Interfront Board at incorporation. Subsequent renewals and replacements of Boardmembershavebeenapproved by the Commissioner of SARS in the capacity of Shareholder, in terms of section 68(1) of the Companies Act and Interfront’s Memorandum of Incorporation (MOI).