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BUSINESS MODEL
AND STRATEGIC
OBJECTIVES
LEADERSHIP
GOVERNANCE
SHAREHOLDERS’
INFORMATION AND
ADMINISTRATION
OPERATING
PERFORMANCE
FINANCIAL
PERFORMANCE
BLUE LABEL INTEGRATED ANNUAL REPORT 2014
69
The Committee, in consultation with executive
management, agreed to the engagement letter,
terms, audit plan and budgeted audit fees for the
2014 financial year.
Any non-audit services to be provided by the external
auditors are governed by a formal written policy
which incorporates a monetary delegation of
authority in terms of non-audit services to be
provided. The non-audit services rendered by the
external auditors during the year ended 31 May 2014
comprised tax advisory services, tax compliance
services and general advisory services. The fees
applicable to the aforementioned services totalled
R1.6 million (2013: R0.9 million).
The ARCC has nominated, for approval at the
Annual General Meeting, the reappointment of
PwC as registered auditors for the 2015 financial year.
The Committee also satisfied itself that PwC is
accredited and appears on the JSE List of Accredited
Auditors as contemplated in paragraph 3.86 of the
Listings Requirements.
Internal audit and internal controls
The Committee:
➔
➔
reviewed the co-operation and co-ordination
between the internal and external audit functions
to avoid duplication of work. This will be further
formalised through a combined assurance
facilitation;
➔
➔
examined and reviewed the progress made by
internal audit against the approved 2013/14
audit plan;
➔
➔
approved the internal audit plan for the 2014/15
financial year;
➔
➔
considered the effectiveness of internal audit;
➔
➔
considered internal audit findings and corrective
actions taken in response to such findings; and
➔
➔
reviewed the effectiveness of the systems of
internal control, including internal financial control
and risk management.
Risk management and compliance
The Committee:
➔
➔
reviewed the integrity of the risk control systems
and ensured that the risk policies and strategies of
the Company are effectively managed;
➔
➔
made recommendations to the Board concerning
the levels of tolerance and risk appetite;
➔
➔
monitored bi-annual risk assessments;
➔
➔
ensured that management considered and
implemented appropriate risk responses;
➔
➔
reviewed legal matters that could have a material
impact on the Group; and
➔
➔
reviewed developments in corporate governance
and best practice and considered their impact and
implications across the Group with particular
reference to the principles of King III.
EXPERTISE AND EXPERIENCE OF THE
FINANCIAL DIRECTOR AND FINANCE
FUNCTION
The Committee considered the appropriateness of the
expertise and experience of the Financial Director and
finance function in accordance with the Listings
Requirements and governance best practice. The
ARCC concluded that the finance function is
adequately resourced with technically competent
individuals and is effective. The Committee confirms
that it is satisfied that Dean Suntup possesses the
appropriate expertise and experience to discharge his
responsibilities as Financial Director.
AUDIT, RISK AND COMPLIANCE
COMMITTEE REPORT
CONTINUED