Page 186 - SAMRC Annual Report 2023-24

INTERNAL CONTROL UNIT

The SAMRC has a comprehensive risk management taken promptly. Its audits cover internal controls and
and internal control system in place. The system is risk management processes relating to the financial
designed to identify and appropriately mitigate the and operational, as well as IT and compliance
emerging and significant risks of the business and activities of the SAMRC. The outsourced Internal
ensure the accuracy and reliability of the SAMRC’s Audit function reports functionally to the ARIC and
financial reporting, while facilitating the delivery and is overseen by the Internal Audit Charter, which sets
sustainability of the strategic goals. out the purpose, scope and authority of the Internal
Audit function and is reviewed annually. Internal Audit
The Board acknowledges that they are ultimately has unrestricted access to the Chairperson of the
responsible for the organisation’s system of internal ARIC and the SAMRC President. The Internal Audit
financial control and place considerable importance function works closely with the Risk Management
on maintaining a strong control environment. Key function and engages with the external auditors on
features of the SAMRC’s financial reporting internal an ongoing basis.
controls include:
The work of Internal Audit focuses primarily on
• clearly defined delegations of authority and lines areas that present the greatest risk to the SAMRC.
of accountability; This is achieved by following a risk-based assurance
• policies and procedures governing financial approach, focusing on the key risk exposure as
resource management, financial reporting and approved by the Board. An Internal Audit Plan is
key IT projects; prepared annually and set on a three-year rolling
• assurance on key processes and audits as part of basis. Focus areas are determined and updated
the internal audit coverage; annually using a risk-based approach considering
• an annual IT general control assessment the risk assessments conducted in the public entity
conducted by the external auditors on the and ensuring the work is appropriately aligned
business applications that support the financial to and coordinated with the activities of other
close process; and relevant assurance providers. The SAMRC captures
• a detailed review by the Audit and Risk and IT and tracks all internal and external audit findings,
Committee (ARIC) and the Board of the financial mitigating actions and responsibilities and is
statements and disclosures within the annual followed up quarterly by Internal Audit. The ARIC
report. receives quarterly reports on progress against the
Internal Audit Plan and corrective actions taken by
The ARIC is required to ensure that management management in response to audit findings.
has adequate controls in place over assets, risk and
financial systems, and has systems to allow for timely Based on the results of the planned and adhoc audit
and accurate financial reporting that complies with activities undertaken during the financial year, it can
all applicable requirements and legislation. The be concluded that for the performed audit activities
ARIC therefore plays a key role in the assurance the key internal controls were generally effective in
process and effectiveness of the risk management all material aspects and reported findings did not
process at the SAMRC. expose the SAMRC to significant risk.

Internal audit and The Auditor-General South Africa (AGSA) is
audit committees responsible for expressing an opinion on the financial
statements and to report on findings relating to the
The Internal Audit function is a key element of the audit predetermined objectives, and material non-
organisation’s internal control. Its role is to provide compliance with specific requirements in the key
assurance that the SAMRC’s risk management and applicable legislation. The AGSA is invited to all
internal control systems are well designed and ARIC meetings and receives copies of all relevant
operate effectively and that any corrective action is papers and meeting minutes.

184 SAMRC ANNUAL REPOR T 2023-24