Umsobomvu Youth Fund Annual Report 2006 - Nyda

Western Cape Nature Conservation ProjectThe Fund has implemented a quality assurance system and has documented most of itsoperational processes and procedures to meet the ISO9002 Standards and is confidentthat this has enhanced its effectiveness of sound, auditable internal controls.Internal AuditInternal Audit is an integral part of the Fund and is prescribed by the King II Report, thePFMA and the Protocol on Corporate Governance. It is responsible to the Board and theExecutive Management of UYF in providing reasonable assurance on the effectivenessof the Fund’s corporate governance, risk management processes and the system ofinternal control.Internal audit has been outsourced to SizweNtsaluba VSP to independently appraise theFund’s activities, processes and business risks. The internal auditors have unrestrictedaccess to members of the Audit Committee, and have a standing invitation to attendevery Audit Committee meeting.Internal Audit is used as a tool by Management to:• Assist UYF to achieve its mandated objectives;• Recommend improvements to UYF’s operations;• Mitigate losses, illegality and damage to reputation; and• Serve to address enterprise-wide risks, audit common business functions and beresponsive to the needs of the business.Fraud Prevention and Whistle-BlowingUmsobomvu Youth Fund has adopted and implemented a Fraud Prevention and Whistle-Blowing Policy, which has been approved by its Board of Directors.Fraud, or fraudulent activities, in any form as defined in the Policy, is not toleratedby the Fund and is investigated and followed up by the application of all remediesavailable to the Fund within the full extent of the law.The Fund maintains a fraud hotline, which is outsourced to an independent external serviceprovider. Employees, service providers and beneficiaries of the Fund are encouraged toreport any suspected fraudulent, corruptor unethical activities and the policiesof the Fund enable and protect those toreport these offences within their rightsas afforded through legislation such asthe Protected Disclosures Act 27 of 2000.The Risk Management Unit receives andfollows up on every report received andupdates the Risk Management Committeeon the status or progress of reportedincidences. The Board Audit Committeereceives a summary report of theseincidences.Financial Intelligence CentreActThe Fund is fully compliant with theFinancial Intelligence Centre Act, 38 of2001 (FICA), and all employees receivecompulsory training as to the awarenessand obligations of the Fund in respect ofFICA to support the international combatagainst money-laundering activities.Employment practicesThe Fund has employment policies andpractices that it believes are appropriateto the business and the market in whichit operates in line with the EmploymentEquity Act. They are designed to attract,motivate and retain quality staff at alllevels. Equal employment opportunitiesare offered, without discrimination, toUmsobomvu Youth Fund 2006 Annual Report31