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Corporate Governance

Statement on
Corporate Governance

Marondera Rural District Council recognises that in order to effectively play its role of setting out the Councils’ strategy and reviewing the Councils’ strategic direction, it must observe good corporate governance and comply with emerging global governance requirements. It is the Management and Councillor’s responsibility to ensure the Council observes generally accepted principles of corporate governance as enunciated in the various codes on corporate governance as well as compliance with laid-down regulatory obligations. The Council is fully cognisant of the standards set out in the King Codes, Cadbury Reports and the Zimbabwe National Code on Corporate Governance, and ensures that these are complied with in the Council. As a Public entity council is obliged to comply with Transparency.

Financial statements

The Management is responsible for the preparation and presentation of the financial statements. The Councils’ external auditors who are the Auditor General’s office are responsible for expressing an opinion on the financial statements based on their audit. The council financial statements are subjected to audit on a yearly basis as per the provisions of The Public finance Management Act Chapter 22: 19 .The Council’s operations are also subject to laws and regulations imposed by government and various acts which include The Public Finance Management Act, Traditional Leaders Act. The Management ensures that every effort is made to comply with these laws and regulations to the latter. The Full Council meets at least four times a year and other council committees meet at least 4 times a year whilst the Finance committee sits monthly.

Ethics

Management and employees are required to maintain the highest ethical standards, ensuring that business practices are conducted in a manner which, in all reasonable circumstances, is beyond reproach. Full disclosure is made by the Management concerning their interests, including those of their families, in outside activities or in businesses which may conflict with their positions at the Council.

Internal controls

The Council has an audit committee which assists the Council in the fulfilment of its duties. It is regulated by the Audit Charter and consists of five independent councillors who only sit in the Audit Committee and not any other Committee of council. The internal and external auditors have unrestricted access to the Audit Committee. The Council’s operations are also subject to laws and regulations imposed by government and various acts which include The Public Finance Management Act, Traditional Leaders Act. The use of both an internal audit department and the External audit function, which independently review the adequacy and effectiveness of the internal controls and systems which support them, in the various operating divisions, as well as business and financial risks which could have an adverse effect on the Council . Internal audit internal audit department is an independent appraisal function and has the respect and co-operation of both the Board of Directors and management. Weaknesses identified by internal audit are reported to the M Management. The Management is responsible for and ensure that the Council maintains adequate accounting records and internal controls and systems designed to provide reasonable assurance on the integrity and reliability of the financial statements, and to adequately safeguard, verify and maintain accountability for its assets. Such controls are based on established policies and procedures and are implemented by trained personnel with an appropriate segregation of duties. The council also has a Risky Policy in place to safeguard Council Assets

Management reporting

There are comprehensive management reporting disciplines in place which include the preparation of annual budgets. The council’s financial statements are subjected to Audit on a yearly basis and in timely. The councils budgeting process is also consultative. The Councils’ budget, including budgeted capital expenditure, is reviewed and approved by the Ministry Of Local Government .Monthly results of the Council are reported against approved budgets and reviewed by the Finance Committee. The Council subscribes to the principles of openness, fairness, relevance and promptness in communications but believes that the best interests of Marondera Rural Council should be considered in applying the concept of openness, as disclosures may not be appropriate in all circumstances and, in certain instances, may be in conflict with legal or regulatory requirements.