The audit committee report summarizes the process and results of AfriNIC's 2014 audit. The committee oversaw the audit conducted by KPMG and found their initial report and financial statements to be unsatisfactory. They met multiple times with KPMG to address issues with the draft documents. Ultimately, the committee recommended hiring a new auditor, Deloitte, for the 2015 audit and publishing board observations on the updated 2014 financial statements.

1. AfriNIC Board Report on 2014 Audit
By
Dr Paulos Nyirenda,
Chair: Audit Committee
paulos@sdnp.org.mw
4 June 2014
Outline
• Audit Committee mandate
• Members
• Audit for 2014 - process
• Audit report for 2014 – Financial statements
• Board issues
• Selection of next Auditor for 2015 year
Audit Committee Mandate
• Committee of the Afrinic Board
• Oversee financial reporting process
• Review financial control, risk management
• Oversee audit, internal and external
• Recommend appointment of external auditor
• Monitor compliance with laws on financial reporting

2. Audit Committee Members
• 1. Paulos Nyirenda (Chair)
• 2. Andrew Alston
• 4. John Walubengo
• 5. Kris Seeburn
Meetings
• Met 3 times since Afrinic 21
• November 2014 - face to face
– Also met with KPMG – external auditor
– Plan 2014 audit
– Letter of agreement signed
• May 2013 – 20th
and 29th
– Processed Audit Report of 2014
2013 Audit – process
• Committee met auditor KPMG in Nov 2014
• Agreed on audit plan and fees
• External audit scheduled to start 16 Feb 2015

3. • 13 check points with deadline points and dates
• KPMG to deliver report and FS by 15 May 2015
• Report draft received 15 May 2015 – bits and pieces, random
• Processed by Audit Committee on 20 May meeting
• Deadline set: full report to be delivered by KPMG on 25 May
• KPMG meets deadline: Report still marked DRAFT
• Figures changed
• Board publishes DRAFT to community
• Draft processed by Audit Committee on 29 May meeting
• Audit Committee meets with KPMG via WebEx
• Audit Report and FS unsatisfactory
• Report to the Board – 1 June 2015
• Recommend to hire a different auditor for 2015
• Recommend for comprehensive audit
• Board publishes observations on Financial Statements
• Observations cover details on FS – Board e-mail
• With updated Financial Statements & approved
recommendations
• Gives KPMG additional period to finalize FS

4. • Recommends to appoint Deloitte as auditor for 2015
• Thank you
• End
•