CAV Annual Report 2021

“SUPPORT THE GROWTH OF THE AEROSPACE, DEFENCE AND ADVANCED MANUFACTURING INDUSTRIES”

1.11. BOARD INDUCTION Newly appointed members of the Board receive induction. The induction process includes an information pack that is provided to each member and attendance of a session regarding the operations of the CAV to enable them to obtain a good understanding of the core business of the organisation. 1.12. ATTENDANCE OF BOARD AND SUBCOMMITTEE MEETINGS The attendance of Board and Subcommittee meetings is vital. Board and Subcommittee members must contribute meaningfully and constructively to the business of the organisation and to the discussions at meetings. This enables informed and credible decision-making. 1.13. COMPLIANCE WITH LAWS AND REGULATIONS Assurance of compliance with and the effectiveness of systems of internal control is obtained through regular management reviews, internal audit reviews and testing of certain aspects of the internal financial control systems by the external auditors during the course of their statutory examinations. 1.14. CONFLICTS OF INTEREST Members of the Board are advised, on an on-going basis, to declare any interests that could potentially conflict with those of the CAV. Where the Board believes that a conflict exists regarding a specific item under consideration, the conflict is clearly recorded in the Board minutes and, if considered appropriate by the rest of the Board, the Board member concerned is required to recuse themselves whilst the item is considered and discussed. 1.15. MINIMISING CONFLICTS OF INTEREST CAV’s procurement process requires that all staff complete a declaration of interest form. All Supply Chain Management employees and others involved in supply chain activities sign the declaration (whether or not they have anything to declare) at each meeting. Care is taken to prevent conflict of interest within the procurement unit. Should conflict exists, the affected official is excused from the process. Suppliers and Service Providers also declare their interest by completing the necessary documentation. Procurement personnel renew their declaration of interest annually.

1.16. EXTERNAL AUDIT

A2A Kopano Inc. was appointed as the auditor for the 22020/21 financial year. 1.17. INTERNAL AUDIT Mandate CAV’s Internal Audit is an independent and objective assurance and consulting function that is guided by a philosophy of adding value to improve the operations of the company. It assists CAV in accomplishing its objectives by bringing a systematic and disciplined approach to evaluating and improving the effectiveness of the company’s governance, risk management and control processes. Internal Audit’s Responsibilities The internal auditor performed its duties according to an Internal Audit Charter (IAC), Annual Audit Plan and Strategy whichwas approved in the 2020/21 financial year. The Internal Audit function operates under the direction of the Audit and Risk Committee, which approve the scope of the work to be performed. The Internal Audit reports were presented to the Audit & Risk Committee. As a critical assurance provider within the combined assurance framework of the business, internal and external audits co-ordinate efforts and ensure that there is an optimal level of overlap between these assurance providers. During the 2020/21 financial year, the internal audit successfully conducted internal audit assignments based on a “risk-based audit approach”, which is outlined in the approved internal audit plan. The Internal Audit function is governed by the Companies Act, PFMA, King IV, Treasury Regulations, International Standards for the Professional Practice of Internal Auditing (IIA Standards) and the Code of Ethics of the Institute of Internal Auditors. Conclusion The Board believes that good corporate governance is a dynamic process that requires on-going review and improvement. As such, CAV will continue to regularly review and update its governance practices and structures.

CENTURION AEROSPACE VILLAGE NPC I ANNUAL REPORT I 2020/21

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