CAV Annual Report 2021

3. AUDIT AND RISK COMMITTEE REPORT

“Knowledge has a beginning but no end” Geeta Iyendgar

The Board is pleased to present this report for the financial year ended 31 March 2021 to the Members of CAV. This report is in compliance with the requirements of the Companies Act of South Africa, No.71 of 2008, as amended, (the Act), and the King IV Report on Corporate Governance ™ for South Africa 2016 (King IV™). Committee Mandate and Functioning The Board assumed responsibility of the Audit & Risk Committee since new members were being added to the Committee and the Board recognises its important role as part of the risk management and corporate governance processes and procedures of the CAV. The Committee operates in accordance with an approved terms of reference. The terms of reference guides the Committee in terms of its objectives, authority and responsibilities, both statutory and those assigned by the Supervisory Board. The Committee fulfilled its responsibilities in accordance with its terms of reference during the 2021 financial year. The Committee and then the Board undertook a full review of the cost and scope of the audit function performed by the independent auditors. A new external auditor, A2A Kopano Inc was appointed for the 2020/21 financial year. The audit budget was approved based on the value proposition. There were no non-audit services delivered during the audit. In terms of the Companies Act, it is confirmed that the same audit partner has not served as the designated auditor of the Entity for more than five consecutive financial years. The external and internal auditors as well as the representative from the Office of the Auditor -General responsible for the Entity’s audit had unrestricted access to the audit and risk committee and the Board and attended all the audit and risk committee and the Board meetings by invitation during the year. The Board was satisfied that the integrated annual report presents fairly and provides a fair, balanced and understandable assessment of the entity’s financial position as at 31 March 2021, and the results of its operations for the year then ended.

External auditors

Appointment and independence The appointment of A2A Kopano Inc., as the External Auditors of the entity for the financial year 2020/21, was confirmed and approved by the Office of the Auditor-General of South Africa. The Board is satisfied with the independence and objectivity of A2A Kopano Inc., the external auditors. It has met with the external auditors to ensure there were no unresolved issues. The scope, independence and objectivity of the auditor were reviewed. The Board considered the annual audit plan and related scope of work, determined the terms of engagement and fees of the external auditors. We believe that the transparent audit appointment, non-audit services and the confirmation of the independence of both A2A Kopano Inc. and the audit team are adequate safeguards to ensure that the audit process is both objective and effective. A2A Kopano Inc. provided an audit opinion in accordance with the Companies Act and King IV ™. In terms of the Companies Act, their responsibility is to the Members of the Entity. In addition, they have professional responsibilities to report irregularities, in terms of section 45 (1) of the Auditing Profession Act, 2005. The audit was conducted in accordance with the International Standards on Auditing (ISA) and the auditors’ objective was to provide a comprehensive service to the Entity. The auditors have a statutory responsibility to report to the Members’ whether, in their opinion, the financial statements fairly present the financial position, results of operations and cash flow information of the Entity, in conformity with IFRS and in the manner required by the Companies Act. Internal Audit The execution of the internal audit function was outsourced to Nexia SAB&T as a service provider who was appointed to report to management and the Audit & Risk Committee/ Board with the responsibility for reviewing and providing assurance on the adequacy of the internal control environment. The internal auditor performs an independent

CENTURION AEROSPACE VILLAGE NPC I ANNUAL REPORT I 2020/21

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