Report of the audit committee in terms of regulation 27.1 of
the Public Finance Management Act,
(1 of 1999), as amended
The audit committee reports that it has adopted appropriate
formal terms of reference as its audit committee charter, and
has regulated its affairs in compliance with this charter, and has
discharged 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
- the risk areas of the entity’s operations covered in the scope
of internal and external audits
- the adequacy, reliability and accuracy of financial information
provided by management and other users of such information
- accounting and auditing concerns identified as a result of
internal and external audits
- the entity’s compliance with legal and regulatory provisions
- the effectiveness of the corporate audit department
- the activities of the corporate audit department, including
its annual work programme, co-ordination with the external
auditors, the reports of significant investigations and the
responses of management to specific recommendations
- the independence of and objectivity of the external auditors
The audit committee is of the opinion, based on the information and explanations given by management and the corporate audit department and discussions with the independent external auditors on the result of their audits, that the internal accounting controls are adequate to ensure that the financial records may be relied upon for preparing the financial statements, and accountability for assets and liabilities is maintained. Having considered the matters set out in section 270A(5) of the Companies Act as amended by the Company Law Amendment Act, the audit committee is satisfied with the independence and objectivity of the external auditors.
The audit committee notes the possible impact on the internal
control environment of the following:
- tight operating during a period of reduced reserve margin
- immense pressure to execute the new build programme
- management of electricity challenges
- adverse stakeholder perceptions
This has increased the challenges and risks for the internal
control environment. This is an area that is receiving attention
and monitoring on an ongoing basis.
Nothing significant, other than reported in the directors’ report,
has come to the attention of the audit committee to indicate
that any material breakdown in the functioning of these controls,
procedures and systems has occurred during the year under
review.
The audit committee has evaluated the financial statements
of Eskom Holdings Limited and the group for the year ended
31 March 2008 and, based on the information provided to the audit
committee, considers that they comply, in all material respects,
with the requirements of the Companies Act, (61 of 1973), as
amended, and the Public Finance Management Act, (1 of 1999),
as amended, and International Financial Reporting Standards.
The audit committee concurs with the board of directors and
management that the adoption of the going-concern premise
in the preparation of the financial statements is appropriate.
The audit committee has therefore, at their meeting held on
25 June 2008, recommended the adoption of the financial
statements by the board of directors.
JRD Modise
Chairman
25 June 2008 |
