BANKSETA ANNUAL REPORT 2023

AUDIT AND RISK COMMITTEE REPORT • The Auditor-General South Africa (AGSA) audit and management reports, with due consideration of the responses provided by Management; and • The audited financial statements as well as the information on predetermined objectives to be included in the annual report for any significant adjustments resulting from the audit and reported to the Accounting Authority. AGSA’s Report

The ARC notes with concern the regression in the audit outcome to a qualified audit opinion despite the assurances received from Management prior to submission. The ARC concurs with the conclusions of the AGSA on the annual financial statements and is of the opinion that the audited annual financial statements may be read together with the audit report of the AGSA. Conclusion The ARC implores the Management team to enhance the overall quality assurance processes associated with the annual financial statements and performance information. In addition, an adequate audit action plan addressing the root causes needs to be developed and monitored, underpinned by a culture of accountability, to ensure effective implementation and most importantly an improved audit outcome for the 2023/24 financial year. We would like to express our appreciation to the Accounting Authority, CEO and Management as well as all the assurance providers for their continued support.

Dr. P. Dala Chairperson BANKSETA Audit and Risk Committee Date: 15 August 2023

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PART C: GOVERNANCE | BANKSETA ANNUAL REPORT 2022/23