FASSET ANNUAL REPORT

RISK MANAGEMENT STEERING COMMITTEE

of responsibilities within a clearly defined framework, an effective accounting system and adequate segregation of duties. In addition, all the necessary structures, policies and procedures are in place and updated where necessary to ensure full compliance with various requirements, frameworks and standards, including compliance with the King IV Code of Corporate Governance, which includes placing greater emphasis on IT governance in recognition of the increasingly prominent role of IT as a strategic enabler for organisations. The Board is of the opinion, based on the information and explanations given by management, the Audit and Risk Committee and the Auditor-General of South Africa (AGSA), that the system of internal control provides reasonable assurance and that the financial records may be relied on for the preparation of the Annual Financial Statements. However, the Board acknowledges that weaknesses in internal control identified during the audit were a reflection of the previous financial year’s challenges. It should also be acknowledged that any internal controls can provide only reasonable, and not absolute, assurance against material misstatement or loss. INTERNAL AUDIT ANDAUDIT COMMITTEES As indicated above, the Audit and Risk Committee (ARC) has oversight responsibilities for financial management, internal controls, risk management and monitoring of risk related policies and planning; compliance with laws, regulations, and ethics; accounting and financial reporting; responsibilities related to internal and external audit functions; and IT governance. COMPLIANCEWITH LAWS AND REGULATIONS

The organisation has established a Risk Management Steering Committee with an independent Chairperson, reporting to the Audit and Risk Committee. The Committee is chaired by Mr Vernon Makani and meets once a quarter. The Chairperson is remunerated in terms of National Treasury Board Remuneration guidelines and was remunerated R418 337.00 for the year under review. The main responsibilities of the committees include: i. Develop policies and procedures related to risk management; ii. Evaluate the effectiveness of mitigating strategies to address the material risks of FASSET; iii. Review processes in place or recommend processes to enable complete, timely, relevant, accurate and acceptable risk disclosure; iv. Report to the Audit and Risk Committee any material changes to the risk profile of FASSET; v. Review the Fraud Prevention Policy for review and recommendation to the Audit and Risk Committee and approval by the Board; vi. Evaluate the effectiveness of the implementation of the fraud prevention policy; vii. Reviewing policy documents which should incorporate compliance with laws, regulations, ethics, policies and procedures; and rules regarding conflict of interest; and viii. Review any material findings and recommendations by assurance providers on the system of risk management and monitor that appropriate action is instituted to address the identified weaknesses. INTERNAL CONTROL UNIT The Audit and Risk Committee monitors audit reviews and all internal controls implemented by FASSET management. FASSET’s systems and internal controls include a delegation

FASSET’s Legislative Compliance Framework is reviewed quarterly by the Audit and Risk Committee and the Board.

FASSET Annual Integrated Report 2020/21

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