Page 88 - DUT Annual Report 2020

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DURBAN UNIVERSITY OF TECHNOLOGY ANNUAL REPORT 2020
ROLES AND RESPONSIBILITIES
The Audit Committee’s roles and responsibilities include statutory responsibility in terms of DUT’s Statute and the Higher Education Act (No. 101 of 1997, as amended); further, this report is submitted in line with the Regulations for reporting by Public Higher Education Institutions.
The Committee performed the following statutory duties for the year under review:
Reviewed the terms of engagement including the audit scope of the external auditors – Deloitte and SM Xulu Inc Consortium.
Reviewed the audit scope, approach and budget.
Reviewed and confirmed the independence of the
external auditors.
Reviewed and approved the budget for the fees to be paid to the external auditors.
Ensured that the appointment of the external auditors complies with the Higher Education Act (No. 101 of 1997, as amended).
External Auditors
The Audit Committee has satisfied itself that the external auditors are independent of the University. This includes compliance with criteria relating to independence or conflicts of interest as prescribed by the Independent Regulatory Board for Auditors (IRBA). The external auditors have given assurance that their internal governance processes support and demonstrate their independence.
The Committee, in consultation with Executive Management, agreed to the engagement letter, its terms, audit plan and budgeted fees for the 2020 year.
The Committee is satisfied that the audit firms and designated engagement partners are accredited with the Independent Regulatory Board for Auditors (IRBA).
Financial Statements and Accounting Practices
The Audit Committee reviewed the accounting policies and the financial statements and is satisfied that they are appropriate and comply with International Financial Reporting Standards, the requirements of the Higher Education Act (No. 101 of 1997, as amended) and reporting guidelines published by the DHET.
Internal Financial Controls
In addition to the report on internal operational structures and controls found elsewhere in the Annual Report, the Committee reviewed the formal reports submitted by the internal auditors of the University. Based on these reports, the Committee is of the opinion that the University’s system of internal financial controls is effective and forms the basis for the preparation of reliable financial statements.
Duties Assigned by Council
The Audit Committee fulfils an oversight role on behalf of Council. It is responsible for ensuring that the University’s outsourced internal audit function has the necessary resources, standing and authority to discharge its duties. In the context of combined assurance, the Committee also oversees co-operation between the internal and external auditors and serves as a link between Council and these functions.
During the year under review, the Committee met both the external auditors and internal auditors without management being present, in order to provide comfort that the auditors are satisfied with the role and performance of management in fulfilling their functions.
Risk Management
Council has assigned risk management oversight to a separate sub-committee, namely the Council Risk Committee, whose chairperson also serves as a member of the Audit Committee. The Council Risk Committee reports to Council and, where necessary, informs the Audit Committee of matters that need their attention.
Internal Audit
The Committee considered and approved the internal audit plan for 2020. The internal audit function is outsourced to Sizwe Ntsaluba Gobodo-Grant Thornton (SNG-GT) and two empowerment partners, namely Kgotlhetsa Consulting Services and HTB Consulting, who have responsibility for reviewing and providing assurance on the adequacy of the internal control environment across the University’s operations. The internal auditors have direct access to the Chairperson. The Chief Risk Officer is responsible for coordinating the internal audit work, including delivery of the agreed internal audit plan. Progress regarding findings is tracked and reported on regularly.