Interfront 2023 Annual Report

MANAGEMENT IS RESPONSIBLE FOR THE ESTABLISHMENT AND MAINTENANCE OF AN EFFECTIVE SYSTEM OF GOVERNANCE RELATING TO, INTER ALIA , RISK MANAGEMENT AND THE PREVENTION AND DETECTION OF FRAUD AND INTERNAL CONTROLS.” 57 GOVERNANCE PART Through the Committee’s analysis of the audit reports and engagement with the management team, the Committee reports that the system of internal controls for the period under review were adequate and effective and the risks were found to be at an acceptable level. In-Year Management and Monthly and Quarterly Reports The public entity has reported monthly and quarterly, through its shareholder, SARS, to National Treasury, as required by the PFMA. The Committee has reviewed the quarterly management reports of the organisation, as part of the reports provided by the shareholder and is satisfied with the adequacy of information provided by the organisation and to its shareholder. Risk Management Management is responsible for the establishment and maintenance of an effective system of governance relating to, inter alia, risk management and the prevention and detection of fraud and internal controls. Internal Audit was guided by the prevailing section of governance systems which determines the risk profile provided by management in identifying critical audit areas and management’s inputs in the formulation of its 3-year strategic and annual plans. The entity has an Enterprise Risk Management committee that is composed of EXCOmembers and senior management to fulfil the risk management responsibilities. A risk register is updated quarterly to ensure that all the major risks including emerging risks facing the organisation are effectively managed. The Committee monitors the risk register and management’s progress with regards to the implementation of the risk mitigating actions at its quarterly meetings. The Effectiveness of Internal Audit Internal Audit is responsible for reviewing and providing assurance on the adequacy and effectiveness of the internal control environment across all the significant areas of the organisation and its operations.