140945 Limpopo Gambling Board AR DRAFT 7

6. Internal Control Unit

LGB has an Internal Control Unit in place reporting to the Chief Financial Officer. The Internal Control Unit is at the centre of coordinating assurance and governance activities to assist the Entity to maintain a system of internal controls that are effective and efficient. The Entity has developed a procedure manual, reviewed annually or as and when necessary, ensuring there are adequate processes in place. These procedures were designed to prevent unwanted, irregular, fruitless and wasteful expenditures. The focus of the Unit is to ensure that the Entity maintains the audit opinion and complies with the relevant laws and Regulations, such as the Limpopo Gambling Act No. 3 of 2013, Public Finance Management Act No. 1 of 1999 and the Treasury Regulations. The Entity developed action plans to ensure that the findings on the Auditor-General’s 2020-21 Final Report do not recur. Progress reports on implementation of developed action plans were submitted on a quarterly basis to the Limpopo Provincial Treasury. 7. Internal Audit and Audit and Risk Committee

Objective and Role of Internal Audit

7.1

The Internal Audit of the Entity is outsourced to SAB & T Nexia. Internal Audit (IA) function is an independent, objective assurer and consulting activity designed to add value and improve LGB’s operations. The objective of the IA function is to assist LGB to accomplish its objectives by bringing a systematic and disciplined approach to evaluating and improving the effectiveness of Risk Management, controls and governance processes.

The Internal Audit function reviews the following: • The reliability and integrity of financial and operational information; • Compliance with laws, regulations, policies and contracts; • Safeguarding of assets; • The economical and efficient use of resources; • Establishment of operational goals and objectives; and • Appropriateness of processes for the achievement of objectives.

The primary role of the IA function is to assist the Entity, Audit and Risk Committee, and Executive Management in the effective discharge of their duties and responsibilities.

The IA, through engagement with the internal stakeholders, formulated a three-year rolling plan incorporating an annual plan which was approved by the Audit and Risk Committee. The IA head reports at each Audit and Risk Committee meeting.

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