61 / 182
Adcock Ingram has implemented a number of projects with a view to
improve its business processes and continues to improve these processes
to achieve compliance. The implemented processes include:
• Business driven IT strategy;
• Standardisation of systems and processes to improve business
operations and reporting;
• Replacement of outdated and obsolete systems with the Oracle ERP
suite of products, running on modern energy efficient servers;
• Upgrading of software and hardware to ensure continuous support
and licence compliance;
• Information security systems; and
• Disaster recovery systems and procedures.
Adcock Ingram subscribes to the statement in the
King III Report that IT governance can be considered
as a framework that supports effective and efficient
management of IT resources to facilitate the
achievement of the Group’s strategic objectives.
INFORMATION TECHNOLOGY (IT)
It is more than a year since, the Internal Audit function has been in-house
and the responsibility to oversee, manage, inform and take accountability
for the effective operation of this function lies with the Chief Financial
Officer. The Internal Audit function operates within a formally defined
charter and annual audit plan which are approved annually by the Audit
Committee.
Furthermore, there has been co-ordination and sharing of information
between the Group’s External Auditor and the Internal Audit function.
The Internal Audit function forms an integral part of
the governance structure of the Group and its key
responsibility is to evaluate the Group’s governance
processes and associated controls, amongst others, as
set out in the King III Report.
In performing its functions, the Internal Audit function
provides reasonable assurance to the Board, through
the Audit Committee, regarding the effectiveness of the
Group’s network of governance, risk management and
internal control processes and systems.
INTERNAL AUDIT
The Board can confirm that it has considered and satisfied itself with
regard to the competence, qualifications and experience of the Company
Secretary. In the year under review, the Company Secretary was evaluated
by the directors. The evaluation criteria included the following areas:
• requisite qualifications;
• knowledge of, or experience with, relevant laws;
• ability to provide comprehensive practical support and guidance to the
directors; and
• ability to provide the Board collectively and individually with guidance
as to their duties, responsibilities and powers.
The evaluation questionnaires were collated and analysed by independent
advisors and the results thereof shared with the Board. Based on the results
of the evaluation, the Board can confirm that the Company Secretary is
competent and has relevant experience to discharge his duties. Furthermore,
the Company Secretary is suitably qualified for this role, conducts his duties
professionally, maintains an arm’s length relationship with the Board and is not
a director.
Mr Ntando Simelane is the Company Secretary of
the Group. All directors have unlimited access to the
Company Secretary for advice to enable them to
properly discharge their responsibilities and duties in
the best interests of Adcock Ingram, with particular
emphasis on supporting all the directors, including the
Chairman. The Company Secretary works closely with
the Chairman of the Board, Chairmen of the respective
committees and executive directors, to ensure the
proper and effective functioning of the Board and the
integrity of the Board governance processes.
COMPANY SECRETARY
FIVE
SIX
THREE
ONE
FOUR
TWO
OUR GOVERNANCE
(continued)
| 57
Integrated Report 2016