Page 83 - DUT Annual Report 2020

DURBAN UNIVERSITY OF TECHNOLOGY ANNUAL REPORT 2020
STATEMENT ON INTERNAL ADMINISTRATION/ OPERATIONAL STRUCTURAL CONTROLS
Convinced of the value of an optimal governance texture, including its positive impact on the integrity of financial reporting, our institution continued to prioritise the relevant constituent administrative and control elements. These include, amongst others, well documented organisational structures that clearly inform roles and responsibilities, continuing to review and update our suite of policies and securing Council approval thereof. Informed by the Stewardship Perspective of our institutional strategy, ENVISION2030, we remained sensitive to the significance of a strong ethical climate within the institution as well as how we interact with our stakeholders, both internal and external.
Demonstrative of our commitment to embracing technology, in the context of both digitisation and digitalisation, we commenced the journey towards a fully-fledged Enterprise Resource Planning (ERP) system during this reporting period. In the meantime, we continued to operate with the current fit-for-purpose IT system, until the ERP is implemented; this will elevate our operational activities to a new level of integrated functionality. Implications of the imminent coming into force of the Protection of Personal Information (POPI) Act remained on our radar, and thus informed our approach to the protection of data privacy, the disaster recovery posture, as well the cross-functional nature of our newly established Data Governance Committee.
Despite our conscious posture, in terms of progressing our risk culture to a more mature level, we inevitably find ourselves with control deficiencies being unearthed
Mr S Sibiya
Chairperson: Audit Committee
during the normal course of both internal and external auditors’ work. Through our institutional appetite for change and dedication to innovation, Management continues with its measures to address these findings and continually report its progress to the Audit Committee of Council. In turn, Council, operating through its Audit and Finance Committees, provides oversight of the financial reporting process.
Naturally, there are inherent limitations to the effectiveness of any system of internal control, particularly given the potential for human error and the circumvention or overriding of controls. Accordingly, even an effective internal control system can provide only reasonable assurance with respect to financial statement preparation and the safeguarding of assets. Furthermore, the effectiveness of an internal control system can change with circumstances.
The University reviewed its internal control requirements in conjunction with the internal auditors and developed a programme of internal audits to examine the systems, procedures and controls in those areas considered as high risk. The University believes that during the year ended 31 December 2020 its system of internal control over the operational environment, information reporting and safeguarding of assets met the requirements of its Internal Control Manual.
The Audit Committee approved this report at its meeting on 2 June 2021.
Mr S Nyangintsimbi
Chief Risk Officer
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