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Report of the Audit and Risk Committee
Year ended on 31 March 2011
Report of the Audit and Risk Committee as required by Treasury Regulations 27.1.7 and 27.1.10 and S(51)
(1)(a) (ii) of the Public Finance Management Act (No 1 of 1999), as amended by Act 29 of 1999.
The committee is pleased to present its report for the fi nancial year ended 31 March 2011.
Committee members and
attendance
The committee consists of the members
as stated on page 102 of this report.
In accordance with its approved Terms
of Reference, the committee met twice
during the year under review (i.e. 29
June 2010 and 10 February 2011).
Schedule of attendance is shown on
page 103 of this report.
The committee’s
responsibility
The committee has adopted formal
Terms of Reference in its charter in line
with the requirements of S(51) (1) (a)
of the PFMA and Treasury Regulations
27.1.7 and 27.1.10 and has
discharged all of its responsibilities
for the year, in compliance with the
charter.
The effectiveness of
internal control
Through the review of the internal
audit activity, the committee is
satisfi ed that an adequate system of
internal control is in place to mitigate
risks to an acceptable level. These
controls have been effective during
the period under review. The system
is designed to manage, rather than
eliminate, the risk of failure and to
maximise opportunities to achieve
business objectives. This can provide
only reasonable but not absolute
assurance.
Internal audit
The committee has evaluated the
internal control environment and
based on the information provided
has assessed the internal controls as
effective to mitigate related risks.
Risk management
The committee is satisfi ed that
the CSIR has an ongoing risk
management process, focused on
identifying, assessing, managing
and monitoring all known forms of
signifi cant risks across all operations
and Group companies. This has been
in place for the year under review
and up to the date of approval of the
Annual Financial Statements.
Evaluation of financial
statements
The committee has evaluated the
Annual Financial Statements of the
CSIR Group for the year ended 31
March 2011, and based on the
information provided to the Audit
and Risk Committee considers that it
complies, in all material respects with
the requirements of the various Acts
governing disclosure and reporting
on the Annual Financial Statements.
The committee therefore recommends
the adoption of the Annual Financial
Statements and the associated reports
by the CSIR Board.
Phillip Benadè
Chairperson of the Audit and Risk Committee
Date: 30 June 2011
105 CORPORATE GOVERNANCE