Page 124 - UniZulu Annual Report 2020

cover is implemented to mitigate insurable risks where it is cost-effective.
FINANCIAL RISK
Decisions on the level of financial risk undertaken are made by the University’s Finance Committee and enforced by the Executive Director: Finance and the Finance Division in terms of established limits by reference to the particular transaction type, and are based on an assessment, in each case, of the values and the counter-parties involved. Financial risks faced by the University include credit, liquidity, foreign currency, interest rate and investment risk. As far as these can be assessed and quantified, the respective levels of exposure and the measures taken to mitigate such risks are described in the notes to the Consolidated Annual Financial Statements.
STATEMENT ON INTERNAL AND
OPERATIONAL STRUCTURES
The systems and policies are designed to provide reasonable assurance to the University regarding an operational environment that promotes the safeguarding of the University’s assets and the preparation and communication of reliable financial and other information.
This includes documented organisational structures setting out the division of responsibilities, as well as established policies and procedures, including a Code of Ethics, which is communicated throughout the Institution to foster a strong ethical climate and the careful selection, training and development of its people. Whenever inadequate and ineffective internal controls are being pointed out by the University’s assurance providers, management has continuously worked on improving internal controls and implemented the recommendations of internal and external auditors. Effective internal control systems provide reasonable assurance concerning financial statement preparation, the effectiveness of operational activities and the safeguarding of assets.
ARCC reviewed the report on internal administrative/ operational structures and controls in the year under review at its meeting of 21 June 2021, which had a quorum.
Ms S.J. Masite
Chairperson: Audit and Risk Committee of Council
UNIVERSITY OF ZULULAND ANNUAL REPORT 2020
122