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Mangosuthu University of Technology Annual Report

51

Mangosuthu University of Technology (MUT) maintains a

system of internal controls over financial reporting and

the safeguarding of assets against the unauthorised

acquisition, use or disposal of such assets. Such systems

are designed to provide reasonable assurance to MUT

and the Council regarding an operational environment

that promotes the safeguarding of MUT’s assets and the

preparation and communication of reliable financial and

other information.

The University is in the process of documenting the

organisational structures setting out the division

of responsibilities, as well as established policies

and procedures, including a Code of Ethics that is

communicated throughout the organisation to foster a

strong ethical climate and the careful selection, training

and development of its people.

Information systems utilising modern information

technology are in use throughout the organisation.

Systems have been developed and implemented

according to defined and documented protocols.

Accepted standards are applied to protect privacy and

ensure control over all data, including disaster recovery

and “backup” procedures.

Password controls are strictly maintained with users

required to change passwords on a monthly basis. There

are regular reviews (monthly) to ensure that there are no

clashes in user access rights and that the basic internal

control concept of division of duties is maintained.

MUT assessed its internal control systems as at 2015

financial year in relation to the criteria for effective internal

control over financial reporting described in the Internal

Control Manual.

Internal auditors monitor the operation of internal control

systems and report findings and recommendations to

management, the Audit committee and the Council.

Corrective actions are taken to address control deficiencies

and other opportunities for improving systems when

identified.

This report is signed by:

8. REPORT ON INTERNAL

ADMINISTRATIVE / OPERATIONAL

STRUCTURES AND CONTROLS