Page 76 - TKZN Annual Report 2023/2024

The internal auditors assist TKZN in identifying, evaluating and assessing significant organisational risks and they provided both the Board and the Audit and Risk Committee with an assurance pertaining to the effectiveness of internal financial controls and systems, in line with the approved Internal Audit Plan.
The external auditors are responsible for independently auditing and reporting on the financial statements in accordance with the auditing standards; and in line with the External Audit Strategy.
Compliance with laws and regulations
Monitoring of compliance with regulations is ongoing and the reporting was done on a quarterly basis to the Board through the Audit and Risk Committee. During the period under review, the entity is B-BBEE compliant and was issues with a Level 8 B-BBEE verification status.
Fraud and Corruption
TKZN is in the process of designing governance frameworks to assist it manage and minimise potential risk and fraud; including inter alia the Fraud Prevention Policy, Risk Management Policy, and update Code of Conduct and Ethics Policy. The Policies referred to highlight the roles and responsibilities of the Board and of different categories of staff regarding fraud prevention, risk management and ethical conduct in general; including processes for reporting fraudulent activities. This will also make way for Fraudulent activities (if any) to get reported through internal mechanisms as contained in the Fraud Prevention Policy, as well as through the national anti-corruption hotline that will be created. All Board and Committee meeting attendees are also required to declare if they were aware of any fraudulent activities or allegations of fraud.
Code of Conduct
TKZN has the Code of Conduct and Ethics Policy.
Minimising Conflict of Interest
Potential conflicts of interest are managed throughout TKZN through different mechanisms. Members of the Board and TKZN staff are required to complete and sign the declaration of interests at the beginning of each financial year and/or on appointment. Conflicts of interest are also declared at all Board and Board Committee meetings on matters to be dealt with in terms of the meeting Agenda.
Processes to Minimise Conflict of Interest in Supply Chain Management
Board Secretary
The Board was supported by the Board Secretary, in ensuring the existence of and the effective functioning of appropriate Board governance structure(s); in line with corporate governance best practices. The responsibilities of the Company Secretary included inter alia:
• Ensuring the Board’s compliance with all applicable legislative and governance frameworks;
• Providing guidance to the Board Structures on the procedures for the execution of their duties;
• Facilitating the development and implementation of the Board Development Plan;
• Proper coordination and attendance of Board/Committee Meetings and Strategic Sessions;
• Facilitating the Board evaluation process;
• Acting as a custodian of statutory records;
• Acting as a point of contact between TKZN ; and the Shareholder (EDTEA); and as a point of contact between the Board and
Management and staff;
• Managing resources allocated to the Board and the Secretariat; and
• Assuming the role of the Chief Risk Officer in coordinating TKZN risk management processes.
The Board Charter also makes provision for the Board to seek independent professional advice at TKZN’s expense, should this be deemed necessary.
74 TOURISM KWAZULU-NATAL ANNUAL REPORT 2023/2024