Page 35 - KZN Film A Report

Corporate Governance
Introduction
Corporate governance embodies processes and systems by which public entities are directed, controlled and held to account. In addition to legislative requirements based on a public entity’s enabling legislation, corporate governance with regard to public entities is applied through the prescripts of the Public Finance Management Act (PFMA) and run-in tandem with the principles contained in the King’s Report on Good Corporate Governance which have been used in this report to clarify issues related to leadership, ethics, performance reporting, governance and stakeholder relationships.
The KZN Film Commission process for appointing members to the Board is documented in its legislative framework and whose functionality is concluded by the Department of Economic Development, Tourism and Environmental Affairs. In the process of appointing Board members, the organisation identifies vacancies based on a skills gap analysis, the diversity strategy of the Board and expertise needed.
Portfolio Committees
The Entity reports to the Economic Development, Tourism and Environmental Affairs Portfolio as well as the Finance Portfolio Committee and the Standing Committee on Public Accounts (SCOPA). KZNFC Board attended one meeting during the financial year at the invitation of the Finance Portfolio Committee to present its budget.
Executive Authority
The Executive Authority of the Entity is the MEC for the Department of Economic Development, Tourism and Environmental Affairs.
The Accounting Authority
The appointment of the Accounting Authority is made in terms of the KZN Film Commission Act.
A new Chairman was appointed during the reporting period. All appointed Board members are non-executive members, excluding the appointment of the CEO, which is a non-executive appointment in terms of the enacting legislation.
All Board members were appointed in alignment with the terms of the enacting legislation of the Organisation.
The KZNFC Board retains effective management of the Organisation, including oversight of the assessment of performance of KZNFC.
The KZNFC Board comprises independent non-executive members and industry representatives, who are qualified, skilled and knowledgeable, thus effectively able to discharge their duties.
In terms of the enacting legislation, the Board is responsible for ensuring that the following focus areas are effective and implemented by management, wherever appropriate:
• To establish a policy-based governance system. The Board has the responsibility of developing a governance system for the business.
• To provide oversight on the performance of the Organisation
• To protect the interests of all stakeholders of the Organisation as a fiduciary duty (individually and collectively as Board members)
• To play a role in the recruitment of the CEO
• To provide strategic direction to the organisation. The Board has a strategic function in determining the vision, mission and goals of the Organisation. These are determined in consultation with the CEO and the
executive team.
The details of the Board members appointed by the MEC for Economic Development, Tourism and Environmental Affairs, including an indication of their attendance at meetings and remuneration paid during the financial year, are contained in the Annual Financial Statements. Refer to page 59 to 104.
Risk Management
KZNFC’s primary objective is to create, preserve and realise value for the Organisation. KZNFC’s approach to risk management seeks to identify risks and opportunities in the macro-environment, internally in the organisation, as well as issues that impact our stakeholders.
During the reporting year, KZNFC hosted a risk workshop with input from the executive and the management team, together with the risk officer to map the strategic and operational risks facing the organisation. The workshop also served to clarify KZNFC’s appetite and thresholds for risk. The result was a newly prioritised risk register, which was continuously monitored and reported on by the compliance and risk officer.
KZN FILM COMMISSION ANNUAL REPORT 2020/2021
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