CAV Annual Report 2021

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

assurance function. The internal auditor had unrestricted access to the CEO, the CFO and the Chairperson of the audit and risk committee. The engagement partner of the internal audit firm reported the findings of the internal audit work to the Committee/ Board on a regular basis. The committee was responsible for monitoring and reviewing the scope and the effectiveness of the Internal Audit function. The engagement partner had direct access to the Audit and Risk Committee/Board, primarily through its Chairperson. Internal auditors performed the internal audits in line with the three year rolling internal audit plan, approved by the audit and risk committee. During the year, the internal audit conducted assurance review on policies and procedures, efficiency of internal controls, project mana- gement, human resources, finance and supply chain management and performance information process. The audit review, confirming that the company has an effective audit function, identified areas for improving efficiency and streamlining the audit process. The internal audit takes a risk-based approach to audit planning. A formal report on the key findings of these audits was submitted to the udit and risk committee/Board summarising the results of the internal audits activities and management’s progress in addressing the control measures. This enables the Audit and Risk Committee/Board to ensure that action was taken to address areas of concern. The internal audit charter was also approved by the Committee during the period under review. Internal Financial Controls Internal financial controlsarebasedonestablishedpoliciesand procedures. Management is responsible for implementing internal financial controls, ensuring that personnel are suitably qualified, that appropriate segregation exists between duties, and that there is suitable independent review. These areas are monitored by the Board through the Audit & Risk Committee and are independently assessed by Internal Audit. Processes are in place to monitor internal control effectiveness, identify and report material breakdowns, and ensure that timely and appropriate corrective action is taken. A high-level review of the design, implementation and effectiveness of the Company’s internal financial controls was performed as per the internal audit plan. The review

was aimed at providing comfort on financial reporting controls, which are relied on in preparing the annual financial statements. Based on information and explanation given by management and the Internal Auditors, and discussions with the Independent External Auditors on the result of their audit, the Committee believes the system of internal control for the review period was adequate, efficient and effective. Based on the assessment of the system of internal financial controls and reporting procedures conducted by internal audit, as well as information and explanations given by executives and discussions held with the external auditors on the results of their audit, the committee is of the opinion that the Entity’s system of internal financial controls and reporting procedures is effective and forms a basis for the preparation of reliable financial statements in respect of the year under review. Risk Management Effective risk management is fundamental to the activities of the CAV. It is the intention of the CAV Board to achieve an appropriatebalancebetween conformance andperformance in its activities, and continue to build and enhance the risk management capabilities that assist in delivering on its mandate. Responsibility and accountability for risk management resided at all levels within the CAV during the year under review from the Board and cascaded to CAV Management. The assessment, evaluation and measurement of risk were an on-going process that was integrated into the activities of the CAV. This process included identifying risks and taking corrective action where required. The Committee/Board fulfils an oversight role on financial reporting risks, internal financial controls, compliance risks, fraud risks and information technology risks as these relate to financial reporting. Evaluation of financial statements The Committee/Board performed the following: • reviewed and discussed the audited financial statements to be included in the annual report, with the Auditor- General representatives, External Auditor, Internal Auditor, Management and the Board; • reviewed the External Auditor’s management report and the management’s responses thereto;

CENTURION AEROSPACE VILLAGE NPC I ANNUAL REPORT I 2020/21

45