Corporate governance aligned to the King IV^TM principles

Key focus areas and value-creating activities for the period under review

REGULATIONS

The committee considered the following constitution and by-law amendments to the Board:

• The amendments to clause 13.11 of the SAICA constitution to be approved at the AGM in 2024
• SAICA by-law – resignation procedure
• The delegation of certain disciplinary functions to the Designated Disciplinary Officer through amendments to the SAICA constitution and SAICA by-laws
• SAICA Code of Professional Conduct alignment with ISA 600

DISCIPLINARY

Update on by-law amendments to the disciplinary code. To increase case management effectiveness, the disciplinary case management system was put in place.

TAX PRACTITIONERS COMMITTEE

Addressed complaints from tax practitioners and general CPD compliance. Examined further resources for the disciplinary unit and expanded the Professional Conduct Committee's (PCC) authority to examine situations in which a punishment was imposed for minor, one-time offences, and where appropriate, revise the SAICA Disciplinary Code (Appendix 4 of the by-laws).

EMPLOYEE RELATIONS

Employee relations (previously referred to as labour relations), has shown a decrease in terms of the number of incidents from 2022 to 2023, which is commendable. The committee has satisfied itself that the employment relations environment is sound and that adherence to the United Nations Global Compact principles on human rights and labour was ensured.

ETHICS MANAGEMENT

Raising awareness and expanding training were prioritised. Advocacy and thought leadership demonstrated through submissions of articles and well-attended seminars and events. Code compliance ensured in addition to the strengthening of Integrated Ethics Plan reporting structures.

SUSTAINABILITY – UPDATE ON PROGRESS

• Navigation of sustainability reporting landscape, determine the state of readiness to adopt International Sustainability Standard’s board IFRS sustainability disclosure standards, prioritising net zero project
• SAICA Climate Change Conference with representation by Presidential Commission on Climate Change and agenda for COP29

Management reported regularly on SAICA’s standing in terms of the principles set out in the United Global Compact principles relating to:

• Good Corporate Citizenship
• Management of Ethics that is both effective and consistent, with updates provided by the Integrated Ethic Progress Report
• Employment Equity in terms of Labour and Employment
• Broad-Based Black Economic Empowerment Programme relating to transformation in skills and supplier development
• The Organisation for Economic Co-operation and Development (OECD) principles regarding corruption
  • Monitoring and implementation of anti-corruption plan
  • Implementation and review ethics policy and fraud prevention policy
  • Ongoing leadership intent programme –whistleblowing measures remain in place

MEMBER ENGAGEMENT

An increase in both formal and informal sessions with members. An emphasis on streamlining the admissions process. Engagements with all stakeholders (IRBA and Small Audit Practices). Within the Practice Portfolio, the launch of podcasts SMEs and publication of Manage your Practice series in Accountancy SA.

B-BBEE

Achieved Level 2 B-BBEE verification. Resulted in the requirement to focus on and uphold consistency in areas such as preferential procurement, enterprise development, and sub-economic development components.

TRUST RESTORATION

Monitoring of progress of Integrated Ethics Plan. Audit Reform Project supported the necessity for management to develop a proof-of-concept for establishing the Centre for Audit Quality (CAQ), with a focus on processes and timelines.

Financial Intelligence Centre (FIC) focus on the development of anti-money laundering legislation and guidance, and monitoring the impact thereof on members and associates. Address greylisting, broadening scope of accountable institutions, and changes to applicable laws (see Standards).