housing - National Housing Finance Corporation

REPORT OF THE AUDIT AND RISK COMMITTEE
The Audit and Risk Committee (“the Committee”)
reports that it has discharged all of its responsibilities
set out in its Terms of Reference.
In the conduct of its duties, the Committee has reviewed
the following:
u the effectiveness of the internal control systems;
u the effectiveness of Internal Audit;
u the risk areas of the operations to be covered in the
scope of internal and external audits;
u the adequacy, reliability and accuracy of financial
information provided to management and other
users of such information;
u any accounting and auditing concerns identified as a
result of internal and external audits;
u compliance with legal and regulatory provisions;
u the activities of the Internal Audit function, including
its annual work programme, coordination with the
External Auditors, the reports of significant
investigations and the responses of management to
specific recommendations; and
In the opinion of the Committee, the internal controls
and procedures of the NHFC are considered to be
appropriate in all material respects to:
u meet the business objectives of the NHFC;
u ensure the Group’s assets are adequately
safeguarded; and
u ensure that transactions undertaken are recorded in
the Group’s records.
The Committee has evaluated the annual financial
statements of the NHFC for the year ended 31 March
2006 based on the information provided to it and is of
the view that they comply, in all material respects, with
the requirements of the Companies Act, the Public
Finance Management Act and IFRS. The Committee
concurs that the adoption of the going concern
premise in framing the annual financial statements is
appropriate.
The Committee, at its meeting of 27 June 2006,
recommended these annual financial statements to
the Board for appoval.
u where relevant, the independence of, and objectivity
of the external auditors.
Nothing has come to the attention of the Committee to
indicate that a material breakdown in the functioning of
the internal controls, procedures and systems has
occurred during the year under review.
Mr S A Tati
Chairman
NHFC ANNUAL REPORT 2006 25