Independent Expert for the Finance, Audit and Risk Committee at FSD Africa

PURPOSE

• The independent expert provides expert advice, guidance, and support related to: financial management and performance, financial reporting, internal audit, external audit, enterprise risk management, business policies and practices, and other relevant matters within the scope of responsibilities for the Finance, Audit and Risk Committee (FARC) of FSD Africa and FSDAi.

RESPONSIBILITIES

Responsibilities
As a member of the Finance, Audit and Risk Committee for FSD Africa and FSDAi, the independent expert is responsible for the following:
Financial management and performance

• Assess the financial management and performance of each company during the year both against budget and key performance drivers.
• Review the annual budget and the annual work plans to ensure they are realistic, practical, and aligned to the strategic and annual business plans of FSD Africa and FSDAi.
• Review and report on financial and performance management reports against approved benchmarks.
• Review significant accounting and reporting issues, including complex or unusual transactions and highly judgmental areas, as well as professional and regulatory pronouncements, and assess their impact on the financial statements of FSD Africa and FSDAi.
• Assess FSD Africa and FSDAi compliance with agreed value for money (VFM) frameworks.

Financial reporting

• Review: the effectiveness of the annual external audit, draft annual accounts, report of the external auditors, and the response prepared by management to any issues that have been raised by the auditors.
• Assess the financial results as well as the correctness and completeness of disclosures and the application of FSD Africa and FSDAi accounting policies, having regard to relevant legislative and other requirements.
• Hold private sessions with the external auditors to discuss any issues that relate to the management of the business of FSD Africa and FSDAi.
• Provide advice on recommendations to be provided to the Board on the acceptance of, or amendments to, the annual accounts as a result of the annual review carried out with management and the external auditors.

External audit

• Review the annual external audit plan and the monitoring of its implementation, as well as the proposed audit fee structure.
• Review reports prepared by the external auditors on financial statements, business activities, controls, and other issues identified during the conduct of the annual audit.
• Evaluate the performance of the external auditors and provide advice on recommendations to be provided to the Board on their continued appointment or replacement.
• Assess the extent to which non-audit services of the auditors should be used, whether on a paid or pro-bono basis, given the need to ensure that the independence of the external auditors is maintained.

Internal audit

• Review the effectiveness of the existing internal audit arrangements and the use of outside internal audit expertise to ensure that there is an effective, risk-based internal audit function.
• Review the annual internal audit plan and audit reports in the context of ensuring the effectiveness of FSD Africa and FSDAi governance, risk management, and control processes.
• Evaluate whether regular internal audits or reviews are conducted on select projects, disbursements, or investments made by FSDAi using a risk-based approach.
• Assess, for purposes of safeguarding the independence of the internal audit function, whether the function reports directly to FARC on the implementation of the annual internal audit plan and the findings therefrom, highlighting key areas of risk and non-compliance, and on remedial actions taken or recommended.

Enterprise risk management

• Assess whether FSD Africa and FSDAi have robust processes for identifying, managing, and monitoring critical risks.
• Review the adequacy of policies and systems for managing and mitigating key financial and operational risk areas.
• Provide timely input to executive management on critical risk issues.
• Engage management in an ongoing risk appetite dialogue as conditions and circumstances change and new opportunities arise.
• Review the conduct of and results of enterprise-wide risk assessments, including the identification and reporting of critical enterprise risks.
• Review the management of any specific complex and significant risks that warrant the attention of the full Board.

Compliance

• Monitor the effectiveness of the implementation of the organization’s compliance policies.
• Review the organization’s compliance systems and policies as appropriate.
• Staying informed about changes in regulatory requirements and emerging issues.

Other Matters

• Review FSD Africa and FSDAi policies as they relate to financial, audit, and risk matters and recommend acceptance or changes in line with legislative requirements and business needs.
• Provide advice, guidance and support on any other matters that are within FARC’s scope of responsibilities.

QUALIFICATIONS

Experience

• A record of success as a senior executive (current or retired) with deep experience and expertise in financial and risk management, accounting, and internal or external auditing.
• Longstanding experience, of at least 10 years, in providing advice and direction to senior management concerning financial, audit, and risk management matters.
• Prior Board or audit and risk committee membership with an aptitude for working in multicultural group settings is advantageous.

Education

• Degree in accounting, finance, business, actuarial science, or related field.
• Professional qualification such as Certified Public Accountant (CPA), Chartered Accountant (CA), or equivalent is desirable.

Language and knowledge

• Fluency in both oral and written communication in English.
• Proficiency in Microsoft Office Suite and board engagement platforms such as CONVENE.
• Exposure to and understanding of basic investment concepts. Good oral and written communication skills.
• Proactive and able to thrive in a team-oriented environment while also working autonomously.

REPORTING

• The independent expert will work under the guidance and overall supervision of the Chair of FARC and report periodically on progress and deliverables. The expert will also participate in all scheduled FARC meetings as required. The frequency of the meetings is at least four times per year.