Page 219 - SAMRC Annual Report 2024-2025

GOVERNANCE

INTERNAL CONTROL UNIT

The Board is responsible for the organisation’s environment across SAMRC. In addition, Internal
internal control system, its annual review and ensuring Audit report to Executive Management and the
its efficiency. As such, the Board approved certain ARIC, at least quarterly, on the status of the internal
governance functions and structures that achieve the control environment, including reporting of any
goal of effectively undertaking the ERM function and significant control issues and the status of actions to
ensuring the efficiency and effectiveness of internal address deficiencies.
control aspects within the organisation. The SAMRC’s
comprehensive risk management and internal control The outsourced Internal Audit function is completely
system is designed to identify and appropriately independent from the Executive Committee and
mitigate the emerging and significant risks of the reports functionally to the ARIC and is overseen by the
business and ensure the accuracy and reliability of Internal Audit Charter. Internal Audit has unrestricted
the SAMRC’s financial reporting, while facilitating the access to the Chairperson of the ARIC and the SAMRC
delivery and sustainability of the strategic goals. President. The Internal Audit function works closely
with the Risk Management function and engages with
Key features of the SAMRC’s financial reporting the external auditors on an ongoing basis.
internal 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, focus on the key risk exposure as approved
resource management, financial reporting and by the Board. Its audits cover internal controls and
key IT projects; risk management processes relating to the financial

• assurance on key processes and audits as part of and operational, as well as IT and compliance
the internal audit coverage; activities of the SAMRC. Internal Audit monitors
• an annual IT general control assessment and tracks the implementation of agreed control
conducted by the external auditors on the actions arising out of these audits and ARIC oversees
business applications which support the financial the progress on quarterly basis to ensure timely
close process; and implementation of actions to mitigate risks. Focus
areas are determined and updated annually using a
• a detailed review by the Audit and Risk and IT risk-based approach considering the risk assessments
Committee (ARIC) and the Board of the financial conducted in the SAMRC and ensuring the work is
statements and disclosures within the annual appropriately aligned to and coordinated with the
report.
activities of other relevant assurance providers. The
The ARIC assists the Board in overseeing the ARIC receives quarterly reports on progress against
organization through, among other things, monitoring the Internal Audit Plan and corrective actions taken
the soundness and integrity of the financial statements by management in response to audit findings.
as well as reviewing the systems of internal audit
and compliance. In addition, the ARIC oversees the Based on the results of the planned and adhoc audit
implementation of internal audit and compliance activities undertaken during the financial year, it can
systems and functions. The ARIC is therefore required be concluded that for the performed audit activities
to ensure that management has adequate controls the key internal controls were generally effective in
in place over assets, risk and financial systems, all material aspects and reported findings did not
and has systems to allow for timeous and accurate expose the SAMRC to significant risk.
financial reporting that complies with all applicable
requirements and legislation. The Auditor-General South Africa (AGSA) is
responsibility for expressing an opinion on the
Internal Audit provides objective assurance and financial statements and to report on findings
insight on the effectiveness and efficiency of risk relating to the audit predetermined objectives, and
management, internal control and governance material non-compliance with specific requirements
processes. The function provides the Audit in key applicable legislation. The AGSA is invited to
Committee with an annual assessment on the all ARIC meetings and receives copies of all relevant
efficiency and effectiveness of the internal control papers and meeting minutes.

SAMRC ANNUAL REPOR T 2024-25 217