Mr LJ Mahlangu - Municipal Demarcation Board

ess, as well as the identification of corrective actions
and suggested enhancements to the controls
and processes. From the various reports of the
Internal Auditors, the Audit Report on the Annual
Financial Statements and the management report
of the Auditor-General, it was noted that matters
were not reported indicating any material deficiencies
in the system of internal control or any deviations
there from. Accordingly, we can report that
the system of internal control for the period under
review was efficient and effective.
4. EVALUATION OF THE FINANCIAL STATEMENTS
The Audit and Risk Committee has:
• Reviewed and discussed the audited annual
financial statements to be included in the annual
report, with the Auditor-General and the
Accounting Officer;
• Reviewed the Auditor-General’s management
report and management’s response thereto;
• Reviewed the changes in accounting policies
and practices;
• Reviewed the entity’s compliance with legal
and regulatory provisions.
The Audit and Risk Committee concurs and accepts
the Auditor-General’s conclusions on the
annual financial statements, and is of the opinion
that the audited annual financial statements be
accepted and read together with the report of the
Auditor-General.
5. RISK MANAGEMENT
The Board has assigned oversight of the entity’s
risk management function to the Audit and Risk
Committee. The Committee fulfils an oversight
role regarding financial reporting risks, internal
financial controls, fraud risk as it relates to the financial
reporting and information technology risks
as it relates to financial reporting. The committee
is satisfied with the effectiveness of the entity’s risk
management processes.
6. INTERNAL AUDIT
43 MUNICIPAL DEMARCATION BOARD - Annual Report 2012
The Audit and Risk Committee is satisfied that the
internal audit function is operating effectively and
that it has addressed the risks pertinent to the entity
in its audit.
7. AUDITOR-GENERAL OF SOUTH AFRICA
The Audit Committee has met with the Auditor-
General South Africa to ensure that there are no
unresolved issues.
Mr Seth M Radebe CA (SA)
Chairperson: Audit And Risk Committee
31 May 2012