SACAA Annual Report 2022_23

PART C I Governance

Financial reporting In addressing our key objective, which is to assist the entity through the Board, in ensuring the integrity of its financial statements, we reviewed the audited financial statements with both management and the external auditor, concentrating on: • Compliance with financial reporting standards and governance reporting requirements; • Significant financial reporting judgments and estimates to be made in applying accounting policies; • The appropriateness of and any changes to accounting policies; • Significant adjustments resulting from the audit; • Compliance with legal requirements and accounting standards; • Reasons for year on year fluctuations; • The procedures and controls around estimates that are key to applying accounting policies; and • Whether the annual report and accounts, taken as a whole, is fair, balanced and understandable and provides information necessary for stakeholders to assess the entity’s business model, strategy and performance. The Committee focuses on ensuring the integrity of the SACAA’s financial reporting and improving the financial controls framework and assessed the fair presentation of the financial statements. Internal audit The Internal Audit Department is responsible for providing professional, independent and objective assurance on the adequacy and effectiveness of the internal control environment across all the significant areas of the SACAA’s operations and assist the SACAA ine achieving its set objectives. Key activities of Internal Audit are: • to develop and implement a three year Risk -based Internal Audit Plan which takes into

Reviewed and approved the following quarterly reports: • Information and Communication Technology; • Combined assurance reports; • Materiality reports; • Legal compliance, litigation and fraud incidents; and • Oversight on capex projects. Evaluation of the annual financial statements The Audit and Risk Committee reviewed the annual financial statements for the 2022/23 Financial Year of the SACAA and is satisfied that they comply with the accounting standards and that the accounting policies used are appropriate and consistent. The annual financial statements were reviewed with the following focus: • Significant financial reporting judgments and estimates contained in the annual financial statements; • Clarity and completeness of disclosure and whether disclosures made have been set properly in context; • Quality and acceptability of, and any changes in accounting policies and practices; • Compliance with accounting standards and legal requirements; • Significant adjustments and/or unadjusted differences resulting from the audit; • Reflection of unusual circumstances or events and management’s explanation for the accounting treatment adopted; • Reasons for major year-on-year fluctuations; • Asset valuations and revaluations; • Calculation and levels of general and specific provisions; • Write-offs and reserve transfers; and • The basis for the going concern assumption.

122 I Annual Report 2022/23 I Governance