CCMA ANNUAL REPORT

Commission for Conciliation, Mediation and Arbitration Annual Report 2022/23

11. INTERNAL AUDIT Internal Audit helps the organisation accomplish its objectives by bringing a systematic, disciplined approach when evaluating and improving the effectiveness and efficiency of risk management, control and governance processes. Internal Audit at CCMA is an independent, objective assurance and consulting function designed to add value and improve the organisation’s operations. Internal Audit in line with the PFMA (1999, as amended) and the King IV Report on Corporate Governance, the Chief Audit Executive provides the ARC and management with objective, relevant and reasonable assurance, thereby contributing to the effectiveness of governance, risk management and control processes. Internal Audit reports functionally to the ARC and administratively to the Director and has the responsibility for reviewing and providing assurance on the adequacy of the internal control environment across all the organisation’s operations. The Chief Audit Executive has direct access to the Committee primarily through its chairperson. The purpose, authority, and responsibility of the Internal Audit function are formally defined in the Internal Audit Charter, which is reviewed and approved by the ARC. The Committee considered and approved the Internal Audit Charter, the Internal Audit function’s annual audit plan and the three-year strategic rolling plan. The ARC is responsible for ensuring that the Internal Audit function is independent and has the necessary resources, standing and authority within the CCMA to enable the department in discharging its duties. Furthermore, the ARC oversees co-operation between the internal, external auditors and combined assurance forum and serves as a link between the Governing Body and these two functions. Internal Audit executes its work according to the International Standards for the Professional Practice of Internal Auditing (Standards) and Treasury Regulations. Through execution of the annual audit plan, Internal Audit assists the organisation in achieving its objectives by evaluating and developing recommendations for the enhancement or improvement of the processes through which objectives and values are established and communicated, the accomplishment of objectives is monitored, accountability is ensured, and corporate values are preserved. Internal Audit also provides optimal audit coverage by considering the scope of work of the external auditors and other assurance providers as per the Combined Assurance Framework. Internal Audit’s activities are measured against the approved internal audit plan and the Chief Audit Executive tables progress reports in this regard to the ARC on a quarterly basis and as and when there is a need. The Internal Audit department contributes to the Optimised Governance level outcome and Good Governance output as per the 2022/23 Annual Performance Plan. In contributing to the outcome, the department completed all planned audits and allocated ad-hoc activities for the period under review. There has been an increase in the level of assurance as requested by stakeholders. Management takes accountability for implementing the agreed upon action plans in order to improve the control environment and Internal Audit conducts follow-up reviews to ascertain the status of implementation. An Internal Audit Findings Tracking Register is in place and it was monitored on a monthly basis for the progress made by Management in implementing the action plans that had been agreed upon during audit engagements. The ARC, Internal Audit and Management reviewed the annual audit plan throughout the 2022/23 financial year to ensure that key risk areas are adequately considered. The audit projects executed were balanced to enable Internal Audit to have a fair view of the state of the control environment within the organisation.

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