Corporate governance report/Korporatiewe beheerverslag

Background and reporting

As a non-profit organisation Grain SA regards compliance with King III to be extremely important to provide stakeholder parties with the necessary assurance that Grain SA’s corporate governance meets the highest standards. Reporting is an important aspect of King III and the annual report is therefore used to create an integrated presentation of the achievements of the organisation compared to its main objectives. The fully audited financial statements are also included for transparency.

Sustainability

Grain SA has various sources of income that all contribute to the sustainability of the organisation. Of these sources, members’ levies probably provide the most important and biggest contribution to Grain SA’s income. For various reasons Grain SA has experienced cost pressure over the past three years. The levy per ton has remained unchanged since its introduction in 2002. In order to ensure the sustainability of Grain SA an increase in the levy was unavoidable. At the 2014 Congress a resolution was passed unanimously and the new levy was introduced, which had a positive impact on Grain SA’s cashflow.

The dependence on funding from external trusts remains a risk. Grain SA is working continuously on possibilities for obtaining additional sources of income in order to reduce this risk.

The management of risks

Extensive management control measures are applied continuously to identify potential risks. Each risk is prioritised on the basis of the impact that the risk involved would have on the business if it occurred, and also on the probability that it will occur. The high-priority risks are addressed first. This information is discussed during Audit Committee meetings, as are action plans proposed by management. Management then implements certain control measures to limit these risks.

Summary

The successful cooperation between the Audit Committee, management, staff and external auditors ensures a healthy environment in which good corporate governance can be applied successfully.

Agtergrond en verslagdoening

As ‘n nie-wins organisasie, beskou Graan SA die voldoening aan King III as uiters belangrik om aan belanghebbendes die nodige gerusstelling te gee dat Graan SA se korporatiewe beheer aan die hoogste standaarde voldoen. Verslagdoening is ‘n belangrike aspek van King III en daarom word die jaarverslag gebruik om ‘n geïntegreerde geheelbeeld te skep van die organisasie se prestasie teenoor sy hoofdoelwitte. Hiermee saam word die volledig geouditeerde finansiële state ook ingesluit vir deursigtigheid.

Volhoubaarheid

Graan SA het verskeie bronne van inkomste wat almal bydra tot die volhoubaarheid van die organisasie. Van die verskillende bronne, bly ledeheffings sekerlik die belangrikste en grootste bydrae tot Graan SA se inkomste. Weens verskeie redes het Graan SA kostedruk ervaar oor die laaste drie jaar. Die heffing per ton het sedert sy instelling in 2002, onveranderd gebly. Ten einde die volhoubaarheid van Graan SA te verseker was ‘n aanpassing in die heffing egter onvermydelik. Tydens die 2014 Kongres is die besluit eenvormig geneem en die nuwe heffing is ingestel, wat gevolglik aan Graan SA se kontantvloei ‘n positiewe opheffing verskaf het.

Die afhanklikheid van befondsing deur eksterne trusts is steeds ‘n risiko. Graan SA werk ook volgehoue aan moontlikhede om addisionele bronne van inkomste te bekom om sodoende die risiko te verlaag.

Die bestuur van risiko’s

Uitgebreide bestuursbeheermaatreëls word deurentyd toegepas om potensiële risiko’s te identifiseer. Elke risiko word geprioritiseer op grond van die impak wat die betrokke risiko op die besigheid sal hê indien dit voorkom, en ook die waarskynlikheid dat dit sal voorkom. Die hoëprioriteitsrisiko’s word eerste aangespreek. Hierdie inligting word tydens Ouditkomiteevergaderings bespreek en so ook aksieplanne wat deur bestuur voorgestel is. Bestuur implementeer daarna sekere beheermaatreëls om hierdie risiko’s te beperk.

Opsomming