BANKSETA ANNUAL REPORT 2023

BANKSETA GOVERNANCE STRUCTURE INTERNAL AUDIT AND AUDIT COMMITTEES

• Annual Performance Report; • Commitments (Final); • Performance Audit;

• Marketing and Communications; • Risk and Compliance Management; • Performance Information Q1; • Discretionary Grants (incl. site visits); • Performance Bonus; • Financial Discipline (incl. Investments); • Commitments (Interim); • Performance Information Q2; • ICT – Cyber Security; • Mandatory Grants and Revenue; • Annual Performance Plan and Strategic Plan (APP and SP); • Supply Chain Management (incl. Contract Management); • Performance Information Q3; • ICT – MIS Implementation; • HR and Payroll (including consequence management); • ICT - Infrastructure Review; The BANKSETA has an independent Audit and Risk Committee that was appointed in line with the requirements of the PFMA and National Treasury. The Audit and Risk Committee has a charter approved by the Accounting Authority that guides it in fulfilling its oversight responsibilities. These oversight responsibilities include the financial reporting process, the system of internal control, risk management, corporate governance, IT governance, performance information, the audit process and the organisation’s process for monitoring compliance with laws and regulations and providing recommendations for improvement. The Committee provides the Accounting Authority with prompt and constructive reports on its findings, especially when issues are identified that could present a material risk to the Institution. • Strategy and Research; • Asset Management; and • Performance Information Q4. Key Activities and Objectives of the Audit Committee

BANKSETA is committed to applying the practices and principles of the King IV Code of Governance Practice in South Africa and complying with the prescripts of the PFMA. The Board is responsible for maintaining a sound system of internal control. Internal Audit, thus, assists BANKSETA to accomplish its objectives through a systematic and disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes articulated in its Internal Audit Charter. BANKSETA Internal Audit has been insourced since March 2016 and is managed by the Head of Internal Audit with a team of internal audit specialists. Should external expertise be required, it is sourced following a formal procurement process. The Internal Audit department helps BANKSETA accomplish its objectives by bringing a systematic, disciplined approach to evaluating and/or improving the effectiveness of risk management, internal control and governance processes in line with the International Standards for the Professional Practice of Internal Auditing. The purpose, authority, and responsibility of the internal audit activity is defined in the approved Internal Audit Charter and is consistent with the mission of Internal Audit and the mandatory elements of the International Professional Practices Framework. Internal Audit provided assurance in terms of governance, risk management and control as per the approved risk-based audit plan and reported progress to the Audit and Risk Committee quarterly. Internal Audit coverage for 2022/23 (aligned to the Rolling Three-Year Strategic Internal Audit Plan and outcomes of the risk assessment) encompassed the following: • Follow Up on Internal Audit and Auditor-General findings; • Annual Financial Statements Quality Review; Summary of Audit Work Done Key Activities and Objectives of the Internal Audit

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BANKSETA ANNUAL REPORT 2022/23