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Financial Reporting and Risk Management

Safe Guarding Integrity in Financial Reporting

The Company’s financial management and internal control practices have been structured having regard for the scale of the Company’s operations and level of complexity. 

In view of the size of the Board and scale of business operations, an audit committee has not been established at this time and accordingly the Company has not complied with CGC Recommendations 4.2, 4.3 and 4.4.  The two executive directors play an active role in monitoring the daily affairs of the Company.  The Board will continue to review the processes in place and relevance to the nature and scale of activities undertaken by the Company. 

Each board member has access to the external auditors and the auditor has access to each board member.

The persons fulfilling the roles of chief financial officer and chief executive officer are required to state in writing to the board that the Company’s financial reports present a true and fair view in all material respects of the Company’s financial condition and operational results and are in accordance with relevant accounting standards.

Recognising and Managing Risk

The Board examines and considers areas of significant business risk and implements policy to minimise exposure to these risks.

Areas of risk which are considered at Board meetings include:

• asset protection;
• project management/development;
• operating activities;
• commodity price and foreign exchange;
• internal controls;
• organisational behaviour and human resources;
• occupational health and safety in the workplace;
• heritage and the environment; and
• regulatory compliance and continuous disclosure obligations.

Comprehensive practices are established such that;

• Capital and operating expenditure above a certain level requires Board approval;
• Financial exposures are controlled;
• Occupational health and safety standards and management systems are monitored and reviewed to achieve high standards of performance and compliance with regulations; and
• Business transactions are properly authorised and executed.

The Board appoints the managing director as being responsible for development of appropriate risk management systems and ensuring that such systems are maintained and complied with. 

Consistent with the requirements of CGC Principles 4 and 7, the persons fulfilling the roles of chief financial officer and chief executive officer must state in writing to the Board that the Company’s financial reports present a true and fair view, in all material respects, of the Company’s financial condition and operational results and are in accordance with relevant accounting standards. Additionally, the responsible executive directors are required to state in writing that this is based on a sound system for risk management and internal compliance and control which implements the policies adopted by the Board and is operating efficiently and effectively in all material respects.