The Governance Assessment Instrument (GAI) has as its primary objective the proficient discharge of responsibility relating to good governance as the organisation considers King III and the application of the related principles and practices.
The GAI achieves the following outcomes:
- All governance best practices within that Industry (King III together with the Industry Requirements are considered – viz JSE Listing requirements, Companies Act, PFMA, Pension Funds Act, Medical Schemes Act etc)
- It is a robust framework and process methodology that is both complete and credible
- The GAI facilitates a correct interpretation and understanding of the requirement by adequately equipping a custodian of the GAI to consider all Practices,
- The GAI has an inherent scoring capability facilitating a measure of the application of good governance practices. It does so by weighting every Practice (and effectively every related Principle),
- The Instrument provides an overall Governance result, result by Governance Category, for the Management Reports (‘Evidence Report’; ‘Explanation Register’; and “Exception Listings’) and Public Reports’; namely ‘King III Application Register’ in detail and as an executive summary
Ideally, the assigned responsibility for implementation is a senior office bearer who enjoys a holistic view of the extent to which the organisation is applying and practicing good Governance. In a Listed Company or State Owned Entity, this is envisaged to be the role and function of the Company Secretary (Cosec). The board remains the focal point and custodian of corporate governance.
In South Africa the King Report and Code on Governance (2009) sets out recommendations of Principles and Practices that need to be ‘applied or explained’. The JSE has made some of these Practices mandatory for its members.
The GAI facilitates that there is a complete and credible framework by which a full review of the practices pertaining to the Board of Directors, the Executive team and the organisation can be performed.
- Do Assessment
- Review and Report to EXCO
- Archive final Result
- Publish Governance Register (Annual Report & Website)
- Monitor and Review
|Governance Office Bearers
Chief Executive Officer
|Board Role and Duties
||Focal point of corporate governance
Corporate citizenship and leadership
Reporting and disclosure
Social and ethics committee
||This where the organisation affirms that the Practice is applied.
It is proposed that a ‘Report Comment’ be provided as to how it is done. This facilitates for a greater assurance for the reader of the results
||This where the organisation is not applying the Practice, and chooses not to apply it for given explanation.
The explanation provided by ‘Report Comment’ populates the Explanation Register.
The system is set that the ‘explained’ answer type can only be saved where an ‘explanation’ is provided in the comment box.
|“NO” / “FALSE”
||This where the organisation is not applying the Practice, and recognises that it should be applied.
It is proposed that the Report Comment box be used to record the organisations view of its significance and the manner by which it will be addressed in the following year.
||This where the organisation affirms that the Practice is applied, but where it requires improvement in the ‘how it is done’.
Unlike the previous answer types that are ‘Quantitative’ by nature, this answer type is ‘Qualitative’.
It is proposed that the area requiring attention
be detailed with the motivation of the
The IoDSA has mapped every Practice to one of the 75 King III Principles.
The GAI provides an HTML presentation capability whereby the link opens up the full Governance Register by King III Chapter and allows for ‘drill down’ capability to the Principles and then further to the evidence of the Practices, with the added assurance where commentary as to how these are done.