BANKSETA AR 31 AUGUST

BANKSETA GOVERNANCE STRUCTURE

Key Activities and Objectives of the Internal Audit

• Maintaining transparency in its approach to risk through formal and informal communication and monitoring of all key risks, and balancing the cost of managing the risk with the anticipated benefit. Risk management practices are adapted to encompass best practices, specific circumstances and mandate. BANKSETA is committed to fight the scourge of fraud, corruption, and unethical behaviour and has no tolerance to corruption. The Board approved the Whistleblowing and Anti-Corruption Policy in the financial year. BANKSETA has a dedicated 24/7 hotline service and panel of forensic service to investigate reported allegations. BANKSETA is committed to preventing incidents of fraud, corruption, and unethical conduct through continuous awareness sessions to employees and ensuring deterrence through implementing consequence management as well as recommendations from investigation reports. The BANKSETA anti-fraud hotline is managed by an independent service provider with specific reporting processes. All reported cases are maintained in the fraud case register. Fraud reporting is a standard agenda item for the Audit and Risk Committee and Board governance structure meetings. Internal Audit 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. Fraud and Corruption

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.

Key Activities and Objectives of the Audit Committee

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 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. Summary of Audit Work Done

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PART C: GOVERNANCE | BANKSETA ANNUAL REPORT 2021/22