3. PPECB Annual Report 2009-2010

audit committeestatement of responsibilityThe Audit Committee reports that it has complied with its responsibilities arising from Section 38(1)(a) ofthe Public Finance Management Act 1 of 1999 and Treasury Regulations 3.1.13. The Audit Committeealso reports that it has updated and adopted appropriate formal terms of reference as its Audit CommitteeCharter, and have executed its affairs in compliance with this charter and has discharged all its responsibilitiesas contained therein.All weaknesses in internal control reported by the internal and external auditors to the Audit Committeehave been considered for their significance and potential for financial losses and, based on these reports,the Audit Committee is of the opinion that whilst there are some control issues that have been reportedand are receiving attention, generally the effectiveness of the internal controls are adequate.The Audit Committee reviews the performance of the external auditors and the level of audit serviceprovided and has recommended to the Board of Directors the continued appointment ofPriceWaterhouseCoopers for the Financial Year. In the period under review the Committee has reviewedthe scope of the interim review and year end audit including the Materiality level. Auditor independenceis discussed and confirmed at each meeting.Evaluation of Financial StatementsThe Audit Committee has:Reviewed and discussed the audited annual financial statements to be included in the Annual Reportwith the external auditors.Reviewed the external audit management letter and management’s responses thereto.Considered matters such as consistency of accounting policies and practices.Reviewed compliance with legal and regulatory provisions.We concur with and accept the annual financial statements, and are of the opinion that the auditedfinancial statements should be accepted and read together with the report of the external auditors.The Audit Committee has therefore recommended the adoption of the annual financial statements by theBoard of Directors at their meeting held on 19 May 2010.29 / 07 / 2010A RabeChairperson of the Audit CommitteeDatePPECB | annual report | 2009 - 2010 63