Risk Management
The Accounting Officer and Council are required by the Municipal Finance Management Act, Act 53 of 2003 to establish and maintain appropriate risk management systems. Risk Management Practices requires the Accounting Officer and Council to manage the strategic and operational risks of the municipality. The risk management system must provide for mitigating strategies and control activities against the risks within the municipality from unacceptable likelihood and impact. It is expected that a municipality’s risk management system identifies strategic and operational risks and assign responsibility to appropriate officials within the municipality. The Audit Committee’s role in relation to risk is to support the Accounting Officer and Council. The municipality has not yet appointed a Risk Officer. Risk Management Committee under the chairperson of the Chief Financial Officer is not yet appointed. The terms of reference for the Risk Management Committee are embedded in the Risk Management Policy which has not been reviewed and restructured and has not been adopted by Council. The Council is ultimately responsible for risk management supremacy with Exco and is embarking on the process of appointing the Audit Committee which will be playing a very crucial oversight role as a function that is delegated to them and legislated. The status of strategic and operational risks will be reported and monitored on regular basis by Internal Audit Unit and Risk Management Committee who will give feed back to the Accounting Officer and Audit Committee.The Audit committee will be appointed in the year 2014 -2015 and same to the establishment of Internal Audit Unit.