Brand-South Africa - Annual report 2015 - 2016

and south africa Annual Report 2015/2016
The Audit and Risk Committee Charter was updated to reflect
King III principles. As part of the regulatory framework of the
Memorandum of Agreement, a number of complementary
and supporting documents were revised to enhance
governance, namely the Delegation of Authority, Strategic
and Business Plans, Auditor-General’s Plan, Internal Audit
Strategic Plan, Quarterly Management Reports, Board Charter,
Board Committee Charters, Internal Audit Charter, PFMA and
Corporate Governance Checklist, and Conflict of Interest Policy.
In addition, a Materiality and Significance Framework was
approved in the financial year under review. Through this
process, stakeholders may derive assurance that Brand South
Africa is being adequately managed.
Chairperson and Chief Executive Officer
The Chairperson is a non-executive and independent trustee
(as defined in King III). The Board and its committees held
meetings and performed their fiduciary responsibilities in
line with the PFMA. The Board of Trustees, under the ultimate
responsibility of the Chairperson, created sufficient space to
maintain a continuous overview of organisational effectiveness,
organisational efficiency, Board performance and Board
conformance.
The roles of Chairperson and CEO are separate, with
responsibilities divided between them, so that no individual has
unlimited powers of discretion. The CEO attends meetings of the
Board, Marketing Committee, Human Capital/ Remuneration and
Social & Ethics Committee, and the Audit and Risk Committee
of Brand South Africa and reports on the activities of Brand
South Africa. The CEO is responsible for ensuring that strategies
and decisions of the Board are implemented through the daily
business activities.
Audit and Risk Committee
For the period under review, the Chairperson of the Audit and
Risk Committee was Mr Geoff Rothschild. The committee met
six times during the financial year to review matters necessary
to fulfil its role.
5. INTERNAL CONTROL SYSTEMS AND
PROCEDURES
To meet its responsibility with respect to providing reliable
financial information, Brand South Africa maintains financial
and operational systems of internal control. These controls are
designed to provide reasonable assurance that transactions
are concluded in accordance with management’s authority and
the assets are adequately safeguarded against material loss of
unauthorised acquisition, use, or disposal. These transactions
are properly authorised and recorded.
The Audit and Risk Committee and the Board held all their
scheduled meetings for the year. All documents that were
tabled for approval were approved and implemented by
the management team. There were no material deficiencies
identified in the internal controls in this financial year.
6. RISK MANAGEMENT
A risk management workshop was held on 11 November
2015, in which new strategic risks were identified and their
inherent risk and residual risk ratings assessed. These risks
were the responsibility of management, while the Board was
accountable for ensuring that management had an effective
risk management system in place to mitigate the risk exposure.
The Risk Management Plan was used to implement the Internal
Audit Plan and the Strategic Plan.
7. COMMITMENTS, CONTINGENCIES AND
LEGAL PROCEEDINGS
The commitments, contingencies and legal proceedings of
Brand South Africa are discussed in notes 25 and 26 to the
Financial Statements.
8. FRUITLESS AND WASTEFUL AND
IRREGULAR EXPENDITURE
During the period under review, Brand South Africa did not
incur wasteful expenditure of R150 278, mainly attributable
to the late receipt of tranche for the first quarter. There was
no irregular expenditure incurred in the financial year under
review, as defined in the PFMA. Expenditure details are reflected
in notes 35 and 36 of the Financial Statements.
9. FINANCIAL MANAGEMENT
Brand South Africa received funds allocated in line with the
Medium Term Expenditure Framework (MTEF). The baseline
funding from the Department of Communication was
R173 160 000 (2014/15: R167 686 000) resulting in an increase
of 3%. No additional amounts above the baseline were received
from the Department of Communication in the current year.
Total other income for the year was R231 926 (2014/15:
R2 016 929), excluding interest earned from the call account.
This amount is made up of partnership income with related
parties. The quarterly management reports were submitted
to the Department of Communication before funds were
transferred to Brand South Africa as per the approved MoA.
The accumulated surplus of R14 217 225 (2014/15: (R9 131 721))
at the financial year-end of 2015/16 was subsequently approved
for retention. This retention of accumulated surplus was used
to finance the disclosed deficit of R14 217 225 (2014/15:
(R9 131 721)).
10. CHANGES TO THE BUSINESS PLAN
During the period under review, all changes to the approved
2015/16 Business Plan were approved by the Executive
Authority.
Khanyisile Kweyama
Chairperson: Board of Trustees
Brand South Africa
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