Page 226 - SAMRC AnnualReport 2025-26

INTERNAL CONTROL UNIT

The SAMRC has established and sustained a strong assurance approach and are focused on adding
control environment, featuring a comprehensive value to the control environment while rendering
internal control system that helps manage enterprise independent assurance to the ARIC and to the
risks and supports the consistent achievement of Board on, inter alia: the effectiveness of internal
objectives. This system is built on the principle that financial control; the effectiveness of internal
a certain level of risk is acceptable within a cost- control over operational and compliance activities;
effective internal control framework. It also utilises the adequacy of governance systems, including the
monitoring tools and mitigation strategies to swiftly “tone at the top“; the effectiveness of the combined
address any shortcomings as they arise. assurance process and risk management process.

The Board is responsible for the internal control A combined assurance model is applied to provide
system, which includes clearly defined delegations a coordinated approach to all assurance activities.
of authority, financial management policies, IT The model aims to optimize the assurance coverage
controls, and assurance processes. The Audit and obtained from management, internal assurance
Risk and IT Committee (ARIC) assists the Board by providers and external assurance providers on the
overseeing financial reporting integrity, internal strategic risk facing the SAMRC.
audit, compliance, and risk management systems. Internal audit provides annual assessments to
As such, the Board approved certain governance the Audit Committee and quarterly updates to
functions and structures to effectively undertake Executive Management and ARIC, including reports
the risk management function and to ensure the on major control issues and progress addressing
efficiency and effectiveness of internal control deficiencies across SAMRC.
within the organisation.
The Board, via the ARIC, is satisfied that an effective
The ARIC supports the Board by monitoring risk management process is in place and that no
financial statement integrity, overseeing internal significant failings or weaknesses were identified
audit and compliance systems, and ensuring in the system of internal control during the period
adequate management controls over assets, risk, under review.
and financial systems. The ARIC also ensures timely,
accurate financial reporting in line with applicable The Auditor-General South Africa (AGSA) is
requirements and legislation. responsible for expressing an opinion on the
financial statements and reporting on findings
The SAMRC makes use of an outsourced internal relating to the audit of predetermined objectives,
audit function which is closely aligned with the risk and material non-compliance with specific
management function and reports independently requirements in key applicable legislation. The
to the ARIC. The internal audit plans, as approved AGSA is invited to all ARIC meetings and receives
by the ARIC, are designed following a risk-based copies of all relevant papers and meeting minutes.

224 SA M R C A N N U A L R EP O R T 2 0 2 5 / 2 0 2 6