IRMSA Public Sector Breakfast on ‘Navigating your Universe – Let’s get real: Series 2: Regulation Legal and Compliance
BarnOwl were proud sponsors of the IRMSA public sector Series 2 breakfasts recently held on:
- 9th May 2017, at the Johannesburg Country Club in Woodmead
- 25th May 2107 in Durban at the Sun Coast Conference Centre
- 1st June 2017 In Cape Town at Century City
The Johannesburg breakfast saw informative presentations from:
Now more than ever governance, risk, compliance and audit practitioners need to be seen and heard:
Now more than ever governance, risk, compliance and audit practitioners need to be seen and heard and be brave and confident enough to fight for good corporate governance defined by King IV (Copyright Institute of Directors Southern Africa) as: the exercise of ethical and effective leadership by the governing body towards the achievement of the following governance outcomes:
- Ethical culture
- Good performance
- Effective control
- Legitimacy
PFMA / MFMA
The following is a brief extract of the sections in the PFMA which refer to risk management and internal control / audit assurance:
- General responsibilities of accounting officers.—(1) The accounting officer for a department, trading
entity or constitutional institution—
(a) must ensure that, that department, trading entity or constitutional institution has and maintains—
(i) effective, efficient and transparent systems of financial and risk management and internal control;
(ii) a system of internal audit under the control and direction of an audit committee complying with and operating in accordance with regulations and instructions prescribed in terms of sections 76 and 77;
- General responsibilities of accounting authorities.—(1) An accounting authority for a public entity—
(a) must ensure that, that public entity has and maintains—
(i) effective, efficient and transparent systems of financial and risk management and internal control;
(ii) a system of internal audit under the control and direction of an audit committee complying with and operating in accordance with regulations and instructions prescribed in terms of sections 76 and 77;
- Unauthorised, irregular, fruitless and wasteful expenditure
9.1 General
9.1.1 The accounting officer of an institution must exercise all reasonable care to prevent and detect unauthorised, irregular, fruitless and wasteful expenditure, and must for this purpose implement effective, efficient and transparent processes of financial and risk management.
King IV code (copyrighted to The Institute of Directors Southern Africa):
Principle 4: The council / accounting authority should appreciate that the municipality’s / entity core purpose, its risks and opportunities, strategy, business model, performance and sustainable development are all inseparable elements of the value creation process.
Principle 11: The council / accounting authority should govern risk in a way that supports the municipality / entity in setting and achieving its strategic objectives.
Principle 13: The council / accounting authority should govern compliance with applicable laws and adopted, non- binding rules, codes and standards in a way that support the municipality / entity being ethical and a good corporate citizen.
Principle 15: The council / accounting authority should ensure that assurance services and functions enable an effective control environment, and that these support the integrity of information for internal decision-making and of the municipality’s / entity’s external reports.
SCOA
Risk management (objective setting, risk analysis etc.) and performance management (IDP, SDBIP) are strategic management tools which go hand in hand with SCOA. SCOA comprises the coding of items used for classification, budgeting, recording and reporting of receipts and payments within the financial system. It serves to facilitate and systematise the recording of all transactions and is directly linked to the Economic Reporting Format (ERF), in fact, the posting level items roll up to the ERF reporting format.
About BarnOwl:
| BarnOwl is a fully integrated governance, risk management, compliance and audit software solution used by over 200 organisations in Africa, Australasia, Europe and the UK. BarnOwl is a locally developed software solution and is the preferred risk management solution for the South African public sector supporting the National Treasury risk framework. You can see additional information on how BarnOwl supports the public sector risk framework at: https://api.barnowl.co.za/software-public-sector-industry/ |