HSRC Integrated Annual Report 2018/2019

Board Orientation and Induction No new Board members were appointed during the financial year. Board Evaluation In keeping with the recommendations of the King Code on Corporate Governance, the HSRC Board conducts an annual self-evaluation to assess its performance. The self-evaluation was done by means of an agreed-upon questionnaire, assessing the following main areas through a series of questions: • Board Structure: -- Board composition; -- Board meetings and content; -- The role of the CEO; -- The role of the Council Secretary; -- Board accountability; -- Performance evaluation; and -- Board committees. • Interaction: -- Communication and stakeholder relations; and -- Board dynamics and leadership. • Board focus and function: -- Strategic compliance and performance; -- Risk management and internal controls; -- ICT governance; -- Combined assurance; -- Non-financial sustainability; -- Integrated reporting; -- Balance of power and authority; and -- Ethics. Members of the Board unanimously agreed that the Board was effective in the discharge of its duties. Remuneration of Board Members Members of the HSRC Board are remunerated for attendance of meetings of the Board, meetings called by the Minister of Science and Technology and any other HSRC committees that they may be required to attend. Remuneration of HSRC Board members is mandated by section 6 of the HSRC Act (Act No.17 of 2008), and implemented in accordance with Treasury Regulation 20.2.2. Applicable rates are determined by the Minister of Finance and regulated by the National Treasury. The National Treasury amends these tariffs annually by means of a circular. According to the Act, all Board members who are not in the full-time employ of the State must be paid such allowances as the Minister of Finance determines. No current HSRC Board members are employed full-time by the State and all Board members are therefore remunerated in accordance with the above-mentioned provisions. In addition to remuneration, Board members are also compensated for travel/transport and accommodation expenses. Board remuneration for the year under review is set out as part of the notes to the Annual Financial Statements on pages 128 to 129. Internal Audit and Audit Committees The role of Internal Audit Activity (IAA) is to determine whether the organisation’s network of risk management, internal control, and governance processes, as designed and implemented by management, is adequate and effective to ensure that: • Risks are appropriately identified and managed; • Significant financial, managerial and operational information is reliable, accurate and timely; • Resources are acquired economically, used effectively, and adequately protected; and • The organisation’s objectives, goals, programmes and plans are achieved. Opportunities for improving controls, governance processes, risk management processes, service delivery and the HSRC’s image may be identified during the audits. The IAA at the HSRC is outsourced. The Internal Audit Service Provider annually prepares a three- year rolling and annual audit coverage plan for approval by the ARC. The plan is risk‑based and the scope of each audit is determined and agreed upon prior to each audit. HSRC INTEGRATED ANNUAL REPORT 2018/19 / 69