Interfront 2024 Annual Report

A B D E GOVERNANCE 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 the 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 significant shortcomings in internal controls during the year under review. 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 was adequate and effective and that 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 the 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 three-year strategic and annual plans. The entity has a risk committee that is composed of EXCO members 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 regard to the implementation of the risk mitigating actions at its quarterly meetings.