Download the Annual report 2011 - Unisa

Since the merger in 2006, the focus of the university has
increasingly veered toward effective, efficient, economic
use of resources — and ethics became more of a focus
point during 2008. 2011 saw a renewed and intense
ethics drive on the part of Management and this process
is set to continue concertedly through the next planning
phase, and as an ongoing institutional focus. Although
the university has not yet reached its target on effective,
efficient, economic and ethical operations, plans are in
place to introduce and embed the necessary improvement
standards – including ensuring continual policy reviews,
establishing and implementing procedures to
ensure certainty of acceptable practices, and clarifying
and/or re-defining roles and responsibilities to promote
accountability — and many have already been implemented.
Council, operating through its Audit and Enterprise Risk
Management Committee (AERMC), oversees the university’s
corporate governance, control and risk matters.
The Management of the university monitors institutional
risk, ethics and controls through the Risk, Ethics and
Controls Committee (RECC) to pay attention to recommendations
made in audit reports. All RECC reports are
submitted to and discussed at the Management Committee
and then submitted to the AERMC. Late in 2011
a Compliance Department was approved by Council to
give greater attention to the aspect of controls compliance
at the university. While compliance was monitored
in a decentralised manner in both ICT and Finance, the
institution of the Compliance Department will provide
better institutional insight into this area. The structure
of the department has been approved and positions will
be filled from 2012.
Compliance reviews were also performed by the Internal
Audit Department. A well-established internal audit
function exists that is independent and objective and
provides assurance and consulting services to the university’s
Council and Management on governance, risk
management and controls. Reports issued by the internal
audit function receive appropriate attention from the
Management Committee and the Audit and Enterprise
Risk Management Committee. Where weaknesses in
any of the controls are identified through the aforementioned
internal assurance reviews, recommendations are
made to improve control and Management develops appropriate
action plans to address the weaknesses. A
process of following up on internal audit and external
audit reports is well established and supported by the
Department: Internal Audit and the Directorate: Enterprise
Risk Management.
UNISA ANNUAL REPORT 2011
| 54 |
It must be noted, however, that the system of internal
administrative controls is effective only to the extent that
human error, noncompliance and intentional circumvention
can be prohibited or prevented in a timely manner.
The system of control is thus not entirely infallible.
As the university’s focus in 2011 was on the effective,
efficient, economic, social and ethical approach to its activities,
controls and compliance therewith were assessed.
Where weaknesses or noncompliance were
identified, these were raised with the line managers for
the controls to be reconsidered and improved. In most
instances, the levels of acquiescence and co-operation
toward ensuring a strict control environment could not
be faulted. However, in some instances implementation
was slower than required. These cases were identified
and dealt with in the follow-up audits.
Based on the findings, Unisa assessed its internal administrative
controls for the financial year ended 31 December
2011 taking cognisance of the results and findings
from the continuous and periodic internal assurance
reviews. Based on this assessment, Unisa believes that
for the financial year ended 31 December 2011 the
internal administrative controls reasonably meet the criteria
to effectively, efficiently, economically and ethically
safeguard its employees, operations, information and
assets, and to ensure accountability to its stakeholders.
Ms A Steenkamp
Executive Director: Internal Audit
Advocate V Kahla
Chairperson: Audit and Enterprise Risk
Management Committee
Unisa Council