Brand-South Africa - Annual report 2015 - 2016

and south africa Annual Report 2015/2016
Report of
the Audit
and Risk
Committee
We are pleased to present our report for the financial year
ended 31 March 2016.
Audit and Risk committee members
and attendance
The Audit and Risk Committee (ARCO) consisted of the
members listed on page 74 and should at least meet four
times per annum, as per its approved terms of reference.
During the reporting period, six meetings were held.
Audit and Risk committee
responsibility
The ARCO reports that it has complied with its responsibilities
arising from section 55(1)(a) of the PFMA and Treasury
Regulation 27.1.
The ARCO also reports that it has adopted appropriate formal
terms of reference as its Audit and Risk Committee charter,
has regulated its affairs in compliance with this charter and
has discharged all its responsibilities as contained therein.
The effectiveness of internal
control
In line with the PFMA and the King III Report on Corporate
Governance requirements, Internal Audit provides the ARCO
and management with assurance that the internal controls
are appropriate and effective. This is achieved by means of
the risk management process, 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 Financial Statements, and
the Management Report of the Auditor-General South Africa,
it was noted that there were a number of issues reported
that indicated deficiencies in the system of internal control.
The ARCO therefore believes that the system of controls was
partially adequate and partially effective over the period under
review. Management has, however, put in place, measures to
address the identified deficiencies.
The ARCO is satisfied with the content and quality of monthly
and quarterly reports prepared and issued by the entity during
the year under review.
Evaluation of Financial Statements
The ARCO has:
• Reviewed and discussed the unaudited Financial
Statements to be included in the annual report, with
the Auditor-General
• Reviewed the Auditor-General of South Africa’s
Management Report and management’s response
thereto
• Reviewed the entity’s compliance with legal and
regulatory provisions
• Reviewed significant adjustments resulting from the
audit.
The ARCO concurs with and accepts the Auditor-General of
South Africa’s Report on the Financial Statements, and is of
the opinion that the audited Financial Statements should be
accepted and read together with the report of the Auditor-
General of South Africa.
Internal audit
The ARCO is satisfied that the internal audit function is
operating effectively and that it has addressed the risks
pertinent to the entity and its audits.
Given sibiya
Chairperson: Audit and Risk Committee
Date 12 August 2016
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