OMBUD COUNCIL ANNUAL REPORT 2024/25

PART C: GOVERNANCE

individuals and small businesses) who do participate in the formal financial sector by utilising the products and services of licensed financial institutions, are over-indebted and struggling to make ends meet. This situation highlights the imperative for ombud schemes to have processes in place that are accessible, suitable, and empathetic for vulnerable complainants. 14. AUDIT AND RISK COMMITTEE REPORT We are pleased to present our report for the financial year ended 31 March 2025. AUDIT AND RISK COMMITTEE MEMBERS AND ATTENDANCE The Committee consists of four members and should meet at least four times per annum as per its approved terms of reference. During the current year, four scheduled meetings were held as well as a further four special meetings. AUDIT AND RISK COMMITTEE RESPONSIBILITY The Committee reports that it has complied with its responsibilities arising from section 51(1)(a) and section 77 of the PFMA and Treasury Regulation 27.1. The Committee is also established in accordance with section 187(1)(b) of the FSR to review, monitor and advise the Board on the risks faced by the entity and plans for managing those risks, and has fulfilled this function. The Committee also reports that it has adopted appropriate formal terms of reference as its Audit and Risk Committee charter, has regulated its affairs in compliance with this charter and has discharged all its responsibilities as contained therein. THE EFFECTIVENESS OF INTERNAL CONTROL The system of internal controls applied by the entity over financial and risk management is effective, efficient and transparent. In line with the PFMA and the King IV Report on Corporate Governance requirements, Internal Audit provides the Committee and management with assurance that the internal controls are appropriate and effective. This is achieved by means of the risk management process, as well as the identification of corrective actions and suggested enhancements to the controls and processes. From the various reports of the internal auditors, the Audit Report on the annual financial statements, and the management report of the external auditors, it was noted that no matters were reported that indicate any material deficiencies in the system of internal control except for internal audit findings in the IT governance and control environment. Accordingly, we can report that the system of internal control over financial reporting for the period under review was efficient and effective. Management has undertaken to address IT governance and control weaknesses.

extreme weather events; and energy supply challenges, such as Eskom load shedding leading to equipment damage and business interruption claims. From April 2024, the Council leased office space at the Regus office park in the Midrand, Waterfall area and abided by the health and safety measures of the landlord. The Board approved the Ombud Council’s Occupational Health and Safety Policy and processes and conducted awareness sessions to familiarise staff with safety protocols. 12. COMPANY SECRETARY For the period under review the Ombud Council Board was supported by the Board Secretariat function handled by support staff of the Ombud Council. The procurement of an outsourced Board Secretariat was delayed and only finalised towards the end of the financial year and the appointed service provider will commence duties in the first quarter of the 2025/26 financial year. 13. SOCIAL RESPONSIBILITY The Ombud Council participated in the Mandela Day Initiative on 18 July 2024 by visiting an orphanage and distributed supplies as per the needs of the orphans. Various initiatives will be explored in the 2025/26 financial year and driven by the new Communications Officer. The Council’s statutory mandate to promote and assist in ensuring access to ombud schemes for financial customers is itself part of the broader national social responsibility and financial inclusion agenda. South Africa’s economic challenges have negative social consequences, which particularly impact lower income and less sophisticated financial customers. The level of unemployment, poverty, and inequality are unacceptably high. These factors exacerbate already low levels of financial inclusion, while many South Africans (particularly

Mandela Day

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OMBUD COUNCIL ANNUAL REPORT 2024/25