Interfront 2023 Annual Report

56 INTERFRONT ANNUAL REPORT 2023 Audit and Risk Committee Report The Audit and Risk Committee (the Committee) is established as an independent statutory committee in terms of section 51 (1) (a) of the Public Finance Management Act (PFMA), Treasury Regulation 27.1 as well as section 94 of the Companies Act, Act No 71 of 2008 (Companies Act). The Committee functions within an approved terms of reference and complies with the relevant legislation, regulations, and governance codes. The Committee submits this report for the financial year as required by Treasury Regulations 27.1.7 and 27.1.10 (b) and (c) issued in terms of section 51 (1)(a)(ii) and 76(4)(d) of the PFMA as well as section 94 (7) (f) of the Companies Act. Audit and Risk Committee Membership The Committee consists of four Independent Members and is chaired by Ms Doris Dondur. The Committee held six ordinary meetings for the financial year ended 31 March 2023 as required as per its approved Terms of Reference. Audit and Risk Committee Responsibility The Committee is satisfied that it has complied with its responsibilities as outlined in Section 51(1)(a)(ii) of the PFMA, Treasury Regulation 27.1.7 and section 94 (7) of the Companies Act. The Committee also reports that it has adopted and reviewed formal Terms of Reference as its Audit and Risk Committee Charter and has discharged all its responsibilities as contained therein. The Effectiveness of Internal Controls The PFMA requires the Accounting Authority to ensure that the organisation has and maintains effective, efficient, and transparent systems of financial, risk management and internal controls. The Committee reviews the effectiveness of internal controls and oversees risk management. The reviews on the effectiveness of the internal controls were conducted and covered financial, operational, compliance and risk assessment. In line with the applicable legislation, Internal Audit provides the Committee and management with reasonable assurance that the internal controls are appropriate and effective. This is achieved by evaluating internal controls to determine their effectiveness and efficiency and by developing recommendations for enhancement or improvement. The Committee has reviewed the Internal Audit findings which did not reveal any shortcomings in internal controls during the year under review.