SACAA Annual Report 2022_23

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maintains effective, efficient and transparent system of financial, risk management and internal control. The Audit and Risk Committee is responsible for overseeing risk management and ensuring that the internal audit function is independent and has the necessary resources, authority and skills to discharge its responsibility effectively . Reviews on the effectiveness of the internal controls were conducted and they covered financial, operational, compliance and risk assessments. During the year under review, the Committee conducted the following activities: Reviewed and recommended the following matters to the Board for approval: • Quarterly risk reports containing potential and emerging risks and opportunities aligned to the SACAA’s vision and mission and reportable incidents; • Quarterly PFMA compliance reports; • Quarterly finance and materiality reports; • Quarterly performance management reports; • SACAA’s policies on fraud and corruption, bank and cash, investment, telephone & cell phones and security; • The risk assessment and risk management, including fraud risks and information technology risks; • The Medium-Term Expenditure Framework for the ensuing periods; • The draft Annual Report 2022/23 Revision of the Delegation of Authority and legal compliance report • Review of the supply chain, other financial, risk, internal audit, fraud and legal compliance policies; and • Cyber Security Strategy amongst others.

Ms T Phewa (Appointed on 01 June 2022)

5 out of 5

Work of the Committee in 2022/23 The Audit and Risk Committee is established as a statutory committee in terms of the PFMA. The Committee submits this report for the financial year ended 31 March 2023, as required by Treasury Regulations 27.1.7 and 27.1.10(b) and (c) issued in terms of section 51(1)(a)(ii) and 76(4)(d) of the PFMA. During the period under review, the Committee is satisfied that it has fulfilled its statutory duties and responsibilities as required by the PFMA and Treasury Regulations, as well as various additional responsibilities assigned to it by the Board. The Committee’s activities are also guided by its Terms of Reference which are annually reviewed and approved by the Board. The effectiveness of internal control and risk management Internal Audit provides the Audit and Risk Committee with reasonable assurance that the internal controls are adequate and effective across all significant areas of the entity. This is achieved by means of compiling a Risk-based Internal Audit Plan, as well as ensuring that management put adequate management corrective actions in the final internal audit reports and in addition Internal Audit suggests enhancements to the control environment and processes when conducting individual audits. From the various reports of both the internal and external auditors, we noted that matters which indicated any deficiencies in the system of internal control have been brought under management’s attention and corrective measures have been implemented. Accordingly, we can report that the systems of internal control over financial reporting for the period under review was adequate and effective. Section 51(1)(a)(i) of the PFMA states that the Accounting Authority must ensure that the SACAA

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