Page 50 - KZN Film Annual Report 2023/2024

KWAZULU-NATAL FILM COMMISSION
The Audit and Risk Committee continuously monitors the implementation of risk management to ensure that the mitigation actions are achieved within a reasonable time. The Internal audit reviews the progress made to date in order to provide further assurance to the Committee confirming that risks are being managed and mitigated appropriately.
Internal Control Unit
KZNFILM is guided by the principles set out in the Public Finance Management Act (PFMA). This means that the entity needs to implement and maintain efficient and effective corporate governance and internal control systems. Systems of internal control are designed to provide cost-effective assurance that assets are safeguarded and that liabilities and working capital are efficiently and effectively managed. During the year under review, the Internal Audit function was outsourced to Morar Inc.
In line with the PFMA and King IV, the Internal Audit team provided the Audit and Risk Committee and management with assurance that internal controls are appropriate and effective. The following internal audits were undertaken during the year under review:
• External Bursary Review
• Human Resource and Performance Management Review
• Risk Management Audit
• Flood Relief Procurement
• Performance Management – Quarter 1 and Quarter 2
• Budget Review
• High-Level Review of the 2023/2024 Interim Financial
Statements and Final Annual Financial Statements
• Supply Chain and Expenditure Management Review
• Follow up on Previous Year Internal Audit and External
Audit Findings
• Protection of Personal Information Act (POPIA)
Compliance
• Review of the Annual Financial Statements for the Year
Ended 31 March 2024
• Performance Information – Quarters Three and Four
The Audit and Risk Committee (ARC)
The functions of the ARC are: -
• To examine and review the Annual Financial Statements
and interim financial reports with management and the external auditors before filing with regulators, and to consider whether such documentation is complete and consistent with information known to members of the Committee and reflects appropriate accounting principles.
• Review the effectiveness of the entity’s risk management & related policies and internal control system, including information technology security and control.
• Review the risk management framework for identifying, assessing, monitoring and managing significant risks.
• Review the effectiveness of the internal audit function,
including compliance with The Institute of Internal Auditors’ International Standards for the Professional Practice of Internal Auditing.
• Review the external Auditors’ proposed audit scope and approach, including coordination of audit efforts with internal audit.
• The Committee shall serve as a performance Committee and report to the board on all matters relating to performance management.
• Oversight of IT operations and risks.
• Oversight of Fraud Prevention and misconduct.
• Review the Fraud Prevention Plan implemented to
prevent and detect fraud.
• Review risk management and related policies; and
• Review compliance with the prescribed accounting
framework.
The Annual Report contains a report by the ARC committee indicating their assessment of these matters.
ANNUAL REPORT 2023/2024 48