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Skills Development Act, 1998 (Act No. 97 of 1998)


Constitution of the Local Government Sector Education and Training Authority (LGSETA)

11. Audit Committee, Chambers and other Committees


11.1 Audit Committee


11.1.1 Composition


The Authority must appoint an audit committee in accordance with the provisions of the Public Finance Management Act and any relevant treasury regulations.


11.1.2 Duties and functions


The audit committee must, amongst others, review the following: The effectiveness of the Authority's internal control systems; The effectiveness of the Authority's internal audit; The risk areas of the Authority's operations to be covered in the scope of internal and external audits; the adequacy, reliability and accuracy of financial information provided to management and other users of such information; Any accounting and auditing concerns identified as a result of internal and external audits; The Authority's compliance with legal and regulatory provisions: and The activities of the internal audit function, including its annual work programme, co-ordination with the external audits or the reports of significant investigations and the responses of management to specific recommendations; and Where relevant, the independence and objectivity of the external auditors.


11.1.3 The audit committee must: Report and make recommendations to the Authority; Report on the effectiveness of internal controls in the annual report: and


11.1.4 Comment on its evaluation of the financial statements in the annual report.


11.2 Chambers


11.2.1 The Authority may, (in terms of section 12 of the Act) establish in its sector, chambers.


11.2.2 A chamber so established must consist of an equal number of members representing employees and employers and may include such additional members as the Authority determines.


11.3 Establishment of other committees


11.3.1 The Authority may approve the establishment of ad hoc committees. The Executive Committee or a Provincial Committee may with the approval of the Authority establish any standing committee or ad hoc committees to assist it in the performance of its functions and must determine— The membership of the committee; Its functions; and Its written terms of reference.


11.3.2 Unless otherwise determined in terms of sub-clause 11.3.1 membership of a committee— Must consist of an equal number of members representing registered trade unions and representing organised employers; and Is not restricted to members of the Authority, the Executive Committee, a Provincial Committee or a Chamber of the Authority.


11.4 Meeting procedures


Meetings of any committee must comply with the meeting procedures as contemplated in clause 12.