Page 47 - CON Boardpack FEBRUARY 2020 FINAL (v5) P1 - 75_Neat

DRAFT

4. APPROVAL OF THE MINUTES HELD ON 12 June 2019

The minutes were approved.

Proposer: Johann van der Walt Seconded: Stephen Butt

5. MANDATE OF THE AUDIT & RISK COMMITTEE

The following matters were identified during a discussion on the Mandate of the

Audit and Risk Committee should be a standard discussion points on the Agenda of

the Audit Committee meetings:
1. Financial sustainability;
2. Financial Control Culture;
3. Transactional Risk;
4. Data security;
5. Risk Matrix Update;
6. Compliance Framework
7. Capital expenditure and Sales of Assets

Decision:

The committee accepted the mandate of the Audit and Risk Committee and

proposed that it be tabled at the Executive Board meeting.

It was noted that the voluntary fees as paid in the past was used to buy the building

and thereafter the two separate bank statements that SAPPO had was

amalgamated into one set of financial statements.

Self-Insurance Policy

Jacques Marais confirmed that he researched different possibilities for SAPPO’S self-

insurance policy for disasters. The decision went with Santam’s self-insurance policy.

It is noted as an off-balance sheet expense. All the funds will be returned to SAPPO

if the policy would be called-up / claim activated.

SAPPO’s lawyers did structure a compliance document to direct the governance of

actions on utilising the funds. The fund has a 24-hour availability. The Executive

Board approved the self-insured policy with Santam.

It is noted that the Audit committee confirmed their approval that the controls

around accessing the funds were sufficient and that it can only be accessed for the

right purpose.

The annual financial statements were included in the AGM report.

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