CCMA ANNUAL REPORT

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

19. AUDIT AND RISK COMMITTEE REPORT We are pleased to present our report for the financial year ended 31 March 2023. 19.1. ARC MEMBERSHIP

As per the approved ARC Charter, the ARC is comprised of seven (7) members: three (3) appointed Governing Body Members and four (4) independent members. During the 2022/23 financial year, an independent member of the ARC, Mr V Makaleni resigned from the ARC on 30 April 2022. One (1) independent member, Ms Y Mjiako was appointed with effect from 03 August 2022. The ARC was duly constituted during the 2022/23 financial year. 19.2. ROLES AND RESPONSIBILITIES The approved ARC Charter governs the ARC and outlines the roles and responsibilities of the ARC that must be executed in line with Section 55(1)(a) of the PFMA, Treasury Regulation 27 and the King IV Report on Corporate Governance. The work of the ARC for the 2022/23 financial year was governed by the 2022/23 ARC Work Plan, which outlined the activities of the ARC for the financial year. The ARC executed all its planned activities for the 2022/23 financial year, with no activities outstanding. The ARC discharged its roles and responsibilities on the following matters: a) Internal financial controls and internal audit; b) Accounting policies; c) Financial and non-financial performance reporting; d) Governance, risk and compliance management; e) Information and Communication Technology (ICT) Governance; and f) Any other matters delegated to the ARC by the Governing Body. 19.3. ARC MEETINGS During the year under review, eight (8) ARC meetings (ordinary and special) were convened by the ARC. 19.4. THE EFFECTIVENESS OF INTERNAL CONTROLS The ARC performed its oversight role in ensuring reliability and accuracy of financial reporting, performance management, effective governance, business continuity, and ethics management as well as risk and compliance management. Furthermore, the ARC also exercised oversight over the performance of the ICT function, activities, and risks. The ARC also applied oversight over the Internal Audit Department, which also facilitated the implementation of the combined assurance model. Through the review of Management Reports and ARC Sub-committees’ reports, namely ICT Steering Committee and Executive Risk and Compliance Management Committee, the ARC took decisive actions to address the internal control deficiencies when it was considered necessary and made appropriate recommendations where required to the Governing Body. The ARC notes that the CCMA Management maintained a clean administration for the current financial year. 19.5. GOING CONCERN The ARC obtained assurance that there were no events or conditions identified that cast significant doubt on the organisation’s ability to continue as a going concern. The ARC is satisfied that the organisation is a going concern. The ARC has recommended the consolidated Annual Financial Statements (AFS) and Annual Performance Report (APR) for approval by the Governing Body.

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