ACTIVITIES

Reports related to internal audits conducted by the in-house and outsourced internal auditors are reviewed quarterly, and management’s responses and conclusions to the various audit findings are reviewed and measured for appropriateness. We are satisfied with the content and quality of the quarterly reports prepared and issued by the internal auditors during the year under review.

Engagement with management was conducted in a robust and transparent manner where discussions were held on the progress of key issues related to financial reports, internal controls and financial risk exposure. Sufficient time was spent confirming that all information provided was balanced, understandable and provided the necessary information for the Board to assess the PPECB’s position and performance, objectives and strategy. All reports are critically assessed for consistency, and all business and regulatory requirements are met.

The following key activities were performed:

• Considered the integrity of the quarterly financial statements
• Reviewed accounting policies and practices, including compliance with accounting and reporting standards
• Reviewed management’s assessment of going concern and longer-term viability
• Reviewed the internal controls in relation to financial reporting
• Advised the PPECB Board of the Committee’s assessment of the financial statements
• Confirmed the fairness, comprehensibility, and completeness of the statements and that they provide the necessary information for decision making

• Monitored the effectiveness of the PPECB’s risk management and internal control system, with a specific focus on ICT risks
• Assessed management’s response to significant audit findings and recommendations
• Evaluated the quality, efficiency and effectiveness of the internal audit function
• Assessed the performance of the internal and external auditors and the Chief Financial Officer
• Discussed significant matters arising from the internal audit
• Considered and noted compliance with applicable external legal and regulatory requirements
• Monitored the expertise and resources of Nexia SAB&T to perform their duties effectively

• Assessed the independence and objectivity of PKF Cape Town
• Reviewed and approved the engagement letter for PKF Cape Town’s annual audit
• Considered the annual external audit plan and monitored the execution and results of the audit
• Monitored the expertise and resources of PKF Cape Town to perform their duties effectively

• Performed its statutory duties as prescribed in the Act and by the PPECB Board
• Reviewed the Audit Committee charter
• Considered progress in respect of the Fraud Plan
• Monitored compliance with applicable laws, regulations and accounting standards

The PPECB has an in-house internal audit division, which is enhanced by a co-sourced internal audit model to ensure optimal efficiency of this function. Nexia SAB&T was appointed as the internal audit co-sourced department, whose annual audit plan was guided by the PPECB’s risk register, as well as previous internal and external audit reports. The primary role of the internal audit function, through its assurance and enquiry activities, is to safeguard value by protecting the PPECB’s assets, reputation and sustainability in relation to its goals and strategic objectives.

The responsibility and scope of the audit function is approved annually by the Audit Committee. The internal audit function reports functionally to the Chairperson of the Audit Committee and administratively to the Chief Financial Officer. Official meetings are held with internal audit throughout the year to confirm that the function is executed effectively and objectively.

The Audit Committee was satisfied with the content and quality of the quarterly reports prepared and issued by the internal auditors of the PPECB. The Board also considered the suitability of Nexia SAB&T as the PPECB’s auditors and their availability of capacity to monitor and guide management and the Board on ICT risks. In line with the PFMA and the King IV Report on Corporate Governance requirements (King IV), internal audit provides the Audit Committee and management with assurance that the PPECB’s internal controls are appropriate and effective. This was achieved by means of a risk management process, as well as the identification of corrective actions and opportunities for improvement to the controls and processes.

Based on assurance obtained throughout the year, the Audit Committee confirmed that the system of internal control employed by the PPECB for financial and risk management was considered effective, efficient and transparent.

All whistleblowing reports are reviewed by the Audit Committee. The Audit Committee considered the independent investigations undertaken by management, as well as the various findings, follow-up actions and conclusions of such reports, and confirmed all measures were appropriate.

Technological Advancements: We have monitored the impact of emerging technologies, such as data analytics, on the financial operations. We aim to leverage these advancements to enhance financial reporting, internal controls, and risk management.

Regulatory Changes: We have stayed abreast of regulatory developments and changes that affect financial reporting and disclosure requirements. We work closely with management to ensure timely compliance and address any potential impact on the entity’s financial position.

Sustainability Reporting: We have recognised the growing importance of sustainability reporting and have encouraged the integration of Environmental, Social, and Governance (ESG) factors into financial reporting to provide a more comprehensive view of the PPECB’s performance.