AVBOB Integrated Annual Report 2018

Remuneration and Nominations Committee The Remuneration and Nominations Committee is chaired by the Chairperson of the Board and comprises one Executive Director and three Non-executive Directors. The Committee members are appointed on an annual basis by the Board. The Non-executive Directors are all considered to be independent. The Committee meets twice annually or as and when necessary. Further details on the Committee and its activities are set out in the Remuneration Report. Audit-Risk Committee Composition The Audit Committee comprises four independent Non-executive Directors who are appointed on an annual basis at the AGM of members. The Risk Committee comprises four independent Non-executive Directors and one Executive Director, all of whom are appointed on an annual basis by the Board. The Committees operate in terms of their own approved charters. However, due to the size of the Group, its complexity and maturity, risk profile and risk culture, it was resolved to operate the committees jointly as a joint Audit-Risk Committee. There is a vacancy on the Audit-Risk Committee due to the retirement of Mr GL Marx. Responsibilities The Committees have executed their duties and responsibilities during the financial year in accordance with their charters which include: • External Auditors: • Approved the Auditors’ terms of engagement, the audit plan and audit fees. • Evaluated the effectiveness of the audit. • Obtained assurance from the Auditors that their independence was not impaired. • Obtained assurance from the Auditors that adequate accounting records were maintained. • Confirmed that no reportable irregularities were identified and reported by the Auditors in terms of the Auditing Professions Act 26 of 2005. • Satisfied itself that the Auditors are independent of the Group. • Financial statements: • Confirmed the going concern principle as the basis of preparation of the annual financial statements. • Examined and reviewed the annual financial statements as well as financial information disclosed prior to submission and approval by the Board. • Ensured that the annual financial statements fairly present the financial position, the results of operations and cash flows for the financial year. • Considered the basis on which the Society and its subsidiaries were determined to be a going concern. 27