52 INTEGRATED ANNUAL REPORT 2023 Internal Audit The Internal Audit function of the NCT Group serves as an independent appraisal function for the organisation. The Internal Auditor is guided by the NCT Internal Audit Charter and reports directly to the Audit and Risk Committee. Audits evaluate financial processes, controls, efficiencies, compliance with applicable laws, rules, regulations, and NCT’s policies with a view towards ensuring that services are appropriately delivered in the most efficient, effective, and economical manner possible. The internal audit function targets key risks affecting NCT Forestry Agricultural Co-operative Limited, its divisions, and subsidiaries. The annual audit plan is therefore an agile one, developed based on a risk-based approach, approved by the Audit and Risk Committee at the beginning of the fiscal year, which allows Internal Audit to focus on the evolving strategic needs of the NCT Group and respond to emerging risks. The audit plan delivered nine internal audit reviews and four risk follow-up exercises where the audit team reviewed the status of previously identified risks. The plan was fully delivered by the end of 2023. • Mid-year and year-end financial controls and Audit readiness • Melmoth Farm Audit • Protection of Personal Information Act (POPIA) implementation and controls • Enon Farm Audit • Company vehicles usages and returns Audit • Tree Farms banking risk analysis • NCT Large Assets Procurement process • Mills Weighbridge Systems Audit • Commondale Farm Audit • Holding Depot Timber stock verification • Follow-up on HR and Payroll Audit • Follow-up on Ingwe Farm Audit • Follow-up on Timber Payments/Deduction Agreements. Internal Audit is also responsible for conducting investigations for allegations of fraud, and co-ordinates the whistle-blower portfolio. Only one case was investigated. Internal audit as an independent appraisal Audit work conducted Assurance from the Committee Chairman The Committee submits this report as a fair representation of the NCT group activities for the year ending 28 February 2023. I am satisfied that the Committee is complying with its mandate and substantially complies with the monitoring elements provided for in the Companies Act and The Co-operatives Act. The Committee shall remain committed to its mandate and improve on business practices to the benefit of all stakeholders . JW STEGEN | CHAIRMAN – AUDIT AND RISK COMMITTEE
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