ANNUAL REPORT 2012 - University of South Africa

UNISA ANNUAL REPORT 2012
Report on Internal Administration/
Operational Structures and Controls
The University of South Africa
maintains systems of internal
control over financial reporting
and the safeguarding of assets
against the unauthorised acquisition
and use or disposal of such
assets. The systems of internal
control are established to support
the achievement of the university’s
strategic objectives as defined in
the strategic plan Unisa 2015
Revisited. They are intended to
either mitigate the risks as defined
in the university’s risk universe to
an acceptable level or eliminate
them. The systems of internal
control are also reviewed and
improved to be in line with best
practices.
Among other specific objectives, the
university systems of internal control
are intended to support the following
goals:
n the achievement of the university’s
objectives in an effective, efficient,
economical, socially responsible
and ethical manner
n the provision of accurate and timely
financial information in accordance
with financial reporting standards
n the safeguarding of assets and
information
n the improvement of quality
n the compliance with legislation and
regulations
n the infusion of an ethical culture
into the operational activities of
staff members.
During the 2012 review process,
specific systems of internal control
were identified as being in need of
revision in terms of design and
functionality, acknowledging that the
original design did not ensure that
the above specific objectives were
met. These included bank and cash,
financial structure and general ledger
maintenance, and examination and
assessment processes. The identified
control weaknesses (with recommendations)
have been raised with the
portfolio managers and will receive
attention in 2013 by the Directorate
of Compliance to evaluate progress
on achievement.
As part of the systems of internal
control there are documented organisational
structures setting out the
division of responsibilities, as well as
policies and procedures. However,
there are structures which are not
always correctly reflected, responsibilities
are in some instances not well
defined and divided, and policies and
procedures are not always updated
annually and approved by Council.
Acknowledging this shortcoming,
during 2012 there was a dedicated
focus on ensuring that policies were
reviewed; however, an outcome of
the process was the recognition that,
given the number of policies applicable
at Unisa, this was an impractical
demand to be conducted on an
annual basis. Accordingly, the
Management Committee agreed on
the standard that a policy must be
reviewed at least every three years
of its life cycle. Unisa has a manual
available on its intranet, where
approved policies and procedures are
listed (with content). The Unisa policy
environment is an organic space and
ongoing review and independent
assessment may (and does) identify
issues/principles which require
documentation in the form of a
policy and procedure to guide staff
members in their conduct and institutional
principles. These are accordingly
added to the compendium
of policies already in place. The
university’s structure and reporting
lines are also included on the website.
The university has a Code of Ethics
and Conduct that is communicated
throughout the organisation to foster
a strong ethical climate and the
selection, training and development
of its people. Training and development
are reasonably sufficient to
improve staff members’ abilities,
but the selection of staff members is
occasionally exposed to challenges.
The Code of Ethics and Conduct
was critically reviewed and is being
updated. 2013 should see the revised
code being submitted to Council for
approval. The fundamental change
in the code is that while the content
remains similar, there is a shift from a
regulatory rules-based instrument to
one which focuses more clearly on
values and integrity for compliance
and is aligned with the stated
university values. The revised code
will be submitted to Council in 2013.
Notwithstanding that the code has
never been formally signed off by
all staff members, it remains a constituent
of the policy and conduct
matrix applicable to all employees
at the university. The declarations of
interest were implemented in 2012
to all members of extended management;
the implementation to the
remaining staff complement will take
place in 2013.
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