89 / 172
87
HSRC Annual Report 2016/17
Annual self-assessment
The committee performs an annual self-evaluation of its activities and functioning to assess the efficacy of the
organisational audit and risk management process. Although very positive, the outcome of the assessment highlights
areas for improvement, notably in the risk management function.
Effectiveness of internal control
The internal audit function, as one of the pillars of the combined assurance model, provides the committee and
management with reasonable assurance that the internal controls of the HSRC are adequate and effective for the
organisation to achieve its goals and objectives.
In its oversight role, the committee determined that the risk management processes for the year under review were
inadequate. Management’s mitigation proposals to address the deficiencies in the risk and compliance management
processes have been noted and will be monitored at each committee meeting. The combined assurance model has
not been fully implemented, and will be addressed as part of the risk management process enhancement.
In considering the various internal audit reports, the management report of the Auditor-General of South Africa, the
internal control opinion expressed by the internal auditor and discussions held with both the internal and external
auditors, the committee is satisfied that the internal controls of the HSRC remained effective during the year under review.
Internal financial controls
The committee is satisfied that the internal financial controls of the HSRC were effective during the year under review
and provided the basis for preparation of reliable Financial Statements.
Evaluation of the finance function
A review of the finance function was undertaken by the ARC to evaluate the effectiveness thereof. The committee is
satisfied that the finance function fulfilled its objectives for the year under review.
Evaluation of the Financial Statements
The committee has:
•
Reviewed the audited Financial Statements to be included in the Integrated Annual Report;
•
Reviewed the Auditor-General of South Africa’s management report and management’s response thereto;
•
Reviewed the performance information;
•
Reviewed changes in accounting policies and practices;
•
Reviewed the entity’s compliance with legal and regulatory provisions; and
•
Noted that there were no material adjustments resulting from the audit.
The ARC concurs with and accepts the Auditor-General of South Africa’s report on the Financial Statements, and is
of the opinion that the audited Financial Statements should be accepted and read together with the report of the
Auditor-General of South Africa.