Board Digest 2021
At the last Board meeting of 2021, the Board reflected on the achievements this year, while acknowledging the lingering impact of COVID-19 in a challenging business environment.
The matters mentioned below were dealt with and approved.
- Board Approvals
The Board considered and approved the following matters:- The Corporate Governance Framework, as recommended by the Nomination and Governance Committee (NOMGOV). This framework describes the governance of the institute and will be communicated in due course.
- The Delegation of Authority policy, as recommended by the Audit and Risk Committee (AUDCO).
- The SAICA budget for 2022, which seeks to achieve a stretch budget to enable the innovative delivery of the strategy. To ensure that the operational costs identified to meet the respective strategic objectives are adequately covered, an increase of 4,3% in membership subscriptions was approved. More detail about the budget will be shared in the annual member subscription notice, which will be sent to members in due course.
- The 2021 Integrated Report framework, as reviewed by AUDCO. The Board noted the improvements made to the Integrated Report.
- The establishment of the Sustainability Technical Committee, as proposed by the Social, Ethics and Transformation Committee (SETCO). The purpose of this new committee is to work on recommendations for future Sustainability Standards.
- The SAICA Enterprise Risk Management Policy and Framework, as reviewed and recommended by AUDCO.
- The SAICA Compliance Policy, as recommended by AUDCO.
- The Terms of Reference of the respective SAICA Board Sub-Committees, namely AUDCO, Digital Transformation Governance Committee (DTGC), Human Resources and Remuneration Committee (REMCO), NOMGOV, and SETCO.
- National Council Matters and Board Sub-Committees
The President of the SAICA National Council indicated the need to add a third meeting to the annual meetings of the National Council from 2022. In addition, the President confirmed that the outcomes of Board meetings are communicated regularly in a formalised manner to the Council.
The Board considered and noted the following matters, amongst others, from the various Board Sub-Committees:
- The Education and Assessment Ad hoc Committee Report indicated that an independent, comprehensive research project is currently under way. Results, outcomes, and recommendations from the project are expected for review and consideration in 2022.
- The following matters from the Audit and Risk Committee (AUDCO) Report were highlighted:
- The approval of the Audit Strategy.
- The financial review of The Hope Factory group of which satisfactory performance in implementing the turnaround strategy was commended as well as the Thuthuka Education Upliftment Fund performance.
- Risk mitigations have adequately implemented measures to address current and emerging risks.
- The quarterly compliance review and status reports for SAICA and the SAICA Group.
- The following matters from the Digital Transformation Governance Committee (DTGC) Report were highlighted:
- The Digital Transformation Programme (Stage 2 of the Ushintsho project) delays are likely to affect the revised timeline of April 2022 by a month or more.
- The Information Technology and Security risks have been limited by proactive monitoring through an IT Security Operating Centre against cyber violations.
- The following matters from the Nomination and Governance Committee (NOMGOV) Report were considered:
- The Board noted the annual review of the Board Charter.
- As stipulated in the SAICA Constitution, three members of the Board (excluding ex-officio members) need to rotate at the next SAICA Annual General Meeting on 26 May 2022.
- The Board noted the maximum term of tenure may not exceed six years, including the term of the President of the National Council.
3. The CEO’s Quarter 3 Report
The CEO highlighted, amongst others, the following matters:
- Disciplinary matters feedback, which is communicated to members once a quarter and also published on the website.
- The series of Ethics events, with more than 1 000 people attending each session. The sessions’ recordings are available to view on the SAICA website.
- SAICA’s participation in Chartered Accountants Worldwide’s launch of the Edelman Trust Survey results. The results were communicated to members earlier and more information can be found on the website.
Round Robin Resolutions
The following resolutions, approved by round robin, were ratified at the meeting:
- Changes to the Disciplinary Code of the SAICA by-laws, which are available in the following document on the website.
- Reappointment of the 2021 disciplinary panellists for 2022.
- The new Independent Non-Board members who will serve on AUDCO as well as a new National Tax Committee member.
Given the rapid increase in COVID-19 infections and the new variant, I urge all members to stay safe and healthy during the festive season.
On behalf of the SAICA Board, I wish all SAICA members and associates a blessed and peaceful holiday season. May you all rest well and return to work in January feeling healthy, happy, and hopeful for the coming year.
Regards
Vincent Motholo
Chairman: SAICA Board