FASSET ANNUAL REPORT

INTRODUCTION

systems by which public entities are directed, controlled and held to account.

The Financial and Accounting Services Sector Education and Training Authority (FASSET) is a public entity established in terms of the Skills Development Act No. 97 of 1998; and listed as a schedule 3A entity as per the Public Finance Management Act No. 29 of 1999 (PFMA). FASSET is governed in accordance with the FASSET Constitution as drawn up in accordance with the requirements of the Skills Development Act No. 97 of 1998, Skills Development Levies Act No. 9 of 1999, and the PFMA. FASSET complies with all applicable regulations, standards and frameworks. In addition to legislative requirements based on FASSET’s enabling legislation and the Companies Act, corporate governance is applied through the precepts of the Public Finance Management Act (PFMA) in tandem with the principles contained in the King Report on Corporate Governance. The Accounting Authority relies on the support of the Executive Committee as well as its established Board Committees which include the Audit and Risk Committee, Finance Committee, Human Resources and Remuneration Committee, and the Governance & Strategy Committee. The Accounting Authority is responsible for providing strategic direction to FASSET and ensuring that the organisation achieves its objectives and implements its strategy and SSP as approved by the Executive Authority. The Accounting Authority is accountable to the Executive Authority and Parliament. Parliament, the Executive (the Minister of Higher Education and Training) and the Board of FASSET are responsible for corporate governance. FASSET’s commitments to internal controls include a code of conduct, service level agreements, declarations of conflict of interest, and a gifts and hospitality register.

Good corporate governance is key to achieving the SETA’s vision of facilitating the achievement of world-class finance and accounting skills and it also supports the SETA’s values of good ethics, accountability and innovation. FASSET’s Accounting Authority recognises that ethical and effective leadership is the starting point of corporate governance. The tone at the top creates the foundation for good governance. Simply put, the SETA (from its leadership to its staff on the ground, both individually and collectively) expects compliance with standards of good ethics and effectiveness which enable delivery of appropriate outputs to those whom its operations impact. The SETA understands that good governance is aspirational and that practices must be continuously monitored, adapted and improved. Critically, governance practices must be aligned to and enable the achievement of FASSET’s strategy. King IV Meaningful and SETA-wide application of the King IV corporate governance practices is a key starting point in ensuring desired governance outcomes. By aligning its practices with King IV, the principles of which apply to the reporting period, the SETA’s approach and commitment to corporate governance has not changed. The Board and management continue to fully acknowledge the role of good governance across all aspects of the SETA as a vital component of sustainable value creation. The shift to King IV was managed as a project, with responsibility for each principle assigned to appropriate functional business areas. The working committees that were put in place comprised senior representatives of the strategy and planning committee (including risk), human resources (including remuneration), finance, governance, IT, internal audit, and the executive management team with the Chief Executive Officer as project champion, and the Company Secretary as the head of governance. This

Corporate governance embodies the processes and

FASSET Annual Integrated Report 2020/21

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