3. PPECB Annual Report 2009-2010

controlsInternal ControlInternal control is a process designed to provide reasonableassurance on the achievement of organisational objectives.The Board has ultimate responsibility for internal control.The Executive Management, as mandated by the Board, hasestablished a system of control to manage significant risks.Ongoing monitoring and reporting processes by the RiskManagement Committee provide for high-level assessmenton the status of internal controls. The Board also receiveassurances from the Audit Committee, which derives someof the information from regular internal and external reports.AuditInternal audit is outsourced to KPMG. Internal audit provides theAudit Committee and Management with reasonable assurancethat the objectives are achieved in the following areas:Effectiveness and efficiency of operations.Reliability of financial reporting.Compliance with laws and regulations.This is achieved through an independent objective appraisaland evaluation of the risk management processes, internalcontrols and governance processes as well as by identifyingcorrective actions and suggested enhancements to thecontrols and processes. The risk-based audit plan focuses onthe major risks emanating from the organisation’s internalrisk assessment process.Internal audit is fully supported by the Board and the AuditCommittee and has unrestricted access to all organisationalactivities, records, property and personnel.The external auditors are, as per statutory requirement,responsible for independently auditing and reporting on thefinancial statements in conformity with International Standardsof Auditing.The external auditors are PriceWaterhouseCoopers.Business ConductPPECB has adopted a Code of Ethical Conduct which isapproved by the Board. Compliance to this code is closelymonitored by Executive Management and the RiskManagement Committee and awareness of ethical behaviouris encouraged by regular communications with employeesand an externally monitored Fraud and Ethics Hotline. PPECBaccepts its duty to address matters of significant interest andconcern to all stakeholders, taking into account greaterdemand for accountability.looking aheadThe Board is preparing the organisation for implementation of King III requirements. PPECB continues to review andmonitor legislative and regulatory developments to ensure the business is prepared to respond appropriately. Ofsignificant interest to PPECB is the implementation of new or amended legislation relating to competition, privacyof information and consumer protection. Finally, the internal governance structures are being assessed to ensurenew requirements are being met.administrationExternal Auditors: PriceWaterhouseCoopersInternal Auditors: KPMGBusiness Address: 45 Silverboom Ave, Plattekloof, 7500Postal Address: PO Box 15289, Panorama, 7506Telephone: +27 21 930 1134Facsimile: +27 21 939 6868Website: www.ppecb.com62PPECB | annual report | 2009 - 2010