Page 37 - KZN Film A Report

with assurance that internal controls are appropriate and effective. The following internal audit were undertaken during the year under review:
a) Interim and Annual Financial Statements Review
b) Supply Chain Management
c) Commercialisation marketing and customer service
cycle
d) Location and Facility management
e) Performance Information
f) Revenue Management
g) Film Fund
The Audit and Risk Committee
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 that it reflects appropriate accounting principles;
• To review with management and external auditors the results of the audit, including any difficulties, encountered; and
• To review with management and the external auditors, all matters required to be communicated to stakeholders under generally recognised accounting practices.
The Audit and Risk Committee shall:
• Consider the effectiveness of the organisation’s internal control system, including information technology governance, security and internal control;
• Understand the scope of internal and external auditor’s review of internal control over financial reporting and obtain reports on significant findings and recommendations, together with management’s responses;
• Review the effectiveness of the internal control systems.
• Review the control procedures followed by management.
• Review the controls designed to ensure that assets are
safeguarded.
• 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 indicating their assessment of these matters.
Compliance with Laws and
Regulations
The ARC reports must comply with its responsibilities arising from Section 50(1) of the Public Finance Management Act and Treasury Regulations.
The Audit and Risk Committee shall be responsible for:
• Reviewing the effectiveness of systems for monitoring compliance with laws and regulations and the results of management’s investigation and follow-up on any
instances of non-compliance; and
• Obtaining regular updates from management and the
organisation’s legal counsel regarding compliance matters.
Conflict of Interest
There are clear processes and procedures for Board members and employees alike to declare their interests and involvement in KZNFC related projects. These declarations are monitored and recorded appropriately at every meeting.
The Board Chairperson affords sufficient deliberations to pertinent issues and allows other Board members to note their dissent and other views at the meeting. The chairperson, through the executive committee, also mandates records of meetings and resolutions to be maintained.
Employees who serve on different SCM committees are required to declare their business interests at every meeting that they attend. It is general practice that the participants in the various governance structures are required to declare any conflicts of interest in the matters being discussed which is then noted in the minutes of the meeting.
During the period under review, a declarations process was conducted with all Board and board committee members.
Code of Conduct
With regards to SCM matters, the code of conduct as contained in the Provincial Treasury Practice Note 04 of 2007 is applied within KZNFC.
Furthermore, KZNFC has a Code of Ethics policy which serves as a set of rules guiding the behaviour of individuals in an Organisational setup. These behavioral rules are based on KZNFC’s Core Values and create an organizational culture requiring an exemplary reputation with all its stakeholders. This Code of Ethics is designed to take the ambiguity out of values and explains how employees are to demonstrate the
KZN FILM COMMISSION ANNUAL REPORT 2020/2021
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