Umsobomvu Youth Fund Annual Report 2006 - Nyda

eport ofthe auditcommitteeincomestatementsfor the year ended31 March 2006Report of the Audit Committee interms of regulation 27.1.8 of thePublic Finance Management Act,1 of 1999, as amendedThe Audit Committee reports that it has adopted appropriateformal terms of reference as its Audit Committee charter, andhas regulated its affairs in compliance with this charter, and hasdischarged all of its responsibilities contained therein.In the conduct of its duties, the Audit Committee has, inter alia,reviewed the following:• The effectiveness of the internal control systems, based onthe reports of Management, internal and external audit.• The effectiveness of internal audit.• The risk areas of the entity’s operations to be covered in thescope of internal and external audits.• The adequacy, reliability and accuracy of financial informationprovided to Management and other users of suchinformation.• Any accounting and auditing concerns identified as a result ofinternal and external audits.• The entity’s compliance with legal and regulatory provisions.• The activities of the internal audit function, including its annualwork programme, co-ordination with the external auditors,the reports of significant investigations and the responses ofManagement to specific recommendations; and• Where relevant, the independence and objectivity of theexternal auditors.• Ensure that transactions undertaken are recorded in theGroup’s records.The Audit Committee has evaluated the Company and Groupfinancial statements of the Fund for the year ended 31 March2006 and based on the information provided to the AuditCommittee, considered that they comply, in all material respects,with the requirements of the Companies Act, 61 of 1973, asamended, and the Public Finance Management Act, 1 of 1999, asamended, Public Audit Act and International Financial ReportingStandards. The Audit Committee concurs that the adoption ofthe going concern assumption in framing the annual financialstatements is appropriate. The Audit Committee, at a dulyconstituted Board Audit Committee Meeting held on 17 July2006, has therefore recommended the adoption of the annualfinancial statements and Group financial statements by theBoard of Directors.Ms Dumo MotauChairperson31 July 2006Nothing has come to the attention of the Audit Committee,other than the significant matters referred to in the Directors’report, to indicate that a material breakdown in the functioningof the internal controls, procedures and systems has occurredduring the year under review.In the opinion of the Audit Committee, and based on work doneby internal audit, the internal controls and laid-down proceduresof the Umsobomvu Youth Fund (the Fund) are considered to beappropriate in all material respects to:• Meet the business’s objectives of the Fund;• Ensure the Group’s assets are adequately safeguarded andUmsobomvu Youth Fund 2006 Financial Statements40