Special Investigating Units and Special Tribunals Act, 1996
R 385
Co-operatives Act, 2005 (Act No. 14 of 2005)RegulationsCo-operatives Administrative Regulations, 2016Chapter 1 : Co-operative Registration and SupportPart 2 : Financial Reporting Framework for Co-operatives34. Management Decision Report |
| (1) | The Board of directors of Category Al and A2 primary co-operatives who does not have to appoint independent reviewers or auditors to independently review or audit their annual returns, must prepare a report to accompany the financial statements that assesses the cooperative's compliance with all legal requirements of any applicable legislation and the requirements contained in its own constitution. |
| (2) | The objective of the management decision report should, where relevant, cover the following matters— |
| (a) | The achievement of the objectives of the co-operative. |
| (b) | Whether proper written policies and procedures are in place for staff recruitment and administration, finance, procurement, loans and credit. |
| (c) | Whether all policies and procedures laid down by the members and the Board have been implemented and are being adhered to. |
| (d) | Whether Board members are democratically elected. |
| (e) | How duties and authority are delegated. |
| (f) | If there is a proper business plan and whether it is realistic and reviewed on a regular basis. |
| (g) | Whether Board and general meeting decisions are implemented and communicated. |
| (h) | Whether a register of declarations of interest by staff and Board members is in place and updated regularly. |
| (3) | Co-operatives that must appoint independent reviewers or auditors to independently review or audit their annual returns may also complete a management decision report. If co-operatives that must appoint independent reviewers or auditors to independently review or audit their annual returns prefer not to complete the management decision report the Board must certify that to the best of their knowledge and belief, the co-operative has complied with all legal requirements as well as the requirements contained in the co-operative's own constitution. |
