Page 15 - UniZulu Annual Report 2020

Financial Health/Viability
The University was able to increase its Accumulated Council controlled funds and implemented a balanced budget despite the challenges with COVID-19 and the low fee base as well as the rural location of the KwaDlangezwa Campus. The challenge into the future would be to grow the third-stream income through industry involvement and active community engagement. The University also needs to address the low fee base when compared to other universities as well as the provision of adequate student accommodation.
Report on Financial Control Inadequacies
A good system of internal controls over financial transactions provides a reasonable assurance on the reliability of information over the period being reported on, unless otherwise reported by external assurance providers, in which case any inadequacies are addressed timeously. Previous control deficiencies in the supply chain management (SCM) control environment have been addressed and audit findings related to ICT inadequacies reported by the assurance providers are actively managed. The Finance Department ensured that there were suitably qualified personnel dealing with the recording and approval of financial transactions throughout the year. The scope of reconciliations of finance accounts has expanded and reconciliations of all significant accounts are done regularly. Quarterly financial management reports were submitted to the Finance Committee of Council (FCC). A financial risk register, specifically addressing financial risks within the University’s risk register, was updated. Existing access to the ITS system for finance personnel is reviewed periodically and strict controls exist over new access granted.
Report on any Material or Immaterial but often Repeated Regulatory Penalties, Sanctions and Fines for Contraventions or Non-compliance with Statutory Obligations
No repeated regulatory penalties, sanctions and fines for contraventions or non-compliance to statutory laws were reported.
RISK MANAGEMENT
ARCC is responsible to assess all areas of risk (financial and non-financial), monitors changes in the University’s risk profile and assures that risk management is effective. The Committee establishes materiality levels and determines the University’s risk appetite. All risks are considered.
This includes consideration of their likelihood and the establishment of risk mitigation procedures. The Committee also ensures that the risk register is maintained. The ERMF forms the basis for risk management at UNIZULU. Council approved the implementation of an integrated risk management strategy as a key component of its Corporate Governance Framework needed to become more anticipatory and effective at evaluating, embracing and managing the uncertainties in the process of creating sustainable value for stakeholders. Council and management are committed to the implementation and maintenance of the Risk Management Strategy, including the integration of risk management throughout all levels of the University. This is fundamental to achieving its strategic and operational objectives. The commitment for sound risk management practices is aligned to the requirements of the reporting regulations and DHET Governance Guidelines, to which the Council has committed to adhere to as a responsible corporate institution.
ARCC reviewed the plans and work outputs of the internal and external auditors and concluded that these were adequate to address significant strategic and operational risks including financial risks facing the business. It also monitored all risks referred to it by the Risk Management Committee and the Chairperson of the committee, the Vice- Chancellor and other members of executive management report regularly to Council on risk management activities and results.
Several new policies were developed during the year under review. A Whistle-Blowers system is in place and is continuously being promoted through awareness campaigns. Occupational Health and Safety (OHS) has also been incorporated into UNZULU’s risk management strategy. Several initiatives have been undertaken to ensure that UNIZULU is compliant in terms of the Occupational Health and Safety Amendment Act, No. 181 of 1993 (the OHS Act).
Council, as responsible for the total process of risk management, is of the opinion that effective risk management systems are in place and that independent and objective reviews of the risk management processes within the Institution are being conducted. Council maintained a reporting system that enabled it to monitor changes in UNIZULU’s risk profile and gain an assurance that risk management was effective. UNIZULU has maintained an updated Strategic Risk Register and Operational Register within all faculties and departments. Council is not aware of any key risk current, imminent or forecasted that may threaten the sustainability of UNIZULU.
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UNIVERSITY OF ZULULAND ANNUAL REPORT 2020