Summary of Recommendations
As I have made several recommendations, I will summarise, in point form and only for the purposes of convenience, the recommendations made and where they can be found in the body of the report. They are:
The Constitutional Documents.
1. Complete re-draft of the Constitutional Documents. (See Section 3).
2. Obtain independent professional advice about complete re-draft of the Constitutional Documents. (See Section 3).
3. Amend the Association’s Constitution to take account of the several points raised in the World Bank questionnaire. (See Section 5).
4. Amend the Association’s Constitution so that the Ombudsman reports only to the Council (See Section 5).
5. Amend the Rules. (See Sections 3 and 5).
Review of Corporate Structures and Practice
6. Consider establishing an Executive Committee. (See Section 4).
7. Amend the powers of the Committee (See Section 3).
8. Consider revolving auditors every five years. (See Section 4).
9. Investigate any benefits to be gained by employing internal auditors. (See Section 4).
Performance review of Council members.
10. Consider taking advice on how this should be done. (See Section 4 ).
Review of future workload.
11. Review future workload as a consequence of statutory reforms. (See section 5).
12. Consider requesting ASISA to do more to publicise Ombud schemes in general and OLTI in particular. (See Section 5).
The South African Consumer Union.
13. Consider more engagement with The South African Consumer Union. (See Section 5).
Human Resources Review.
14. Consider instructing Ms. Odendal of Mazars to do follow-up review. (See Section 5).
Review necessary resources to cater for increased workload.
15. Plan for increase in resources due to anticipated workload. (See Section 5).
MANAGEMENT AND COUNCIL’S RESPONSE TO RECOMMENDATIONS
Re: The Constitutional Documents, The Rules and The Committee
Points 1, 2, 3, 4, 5 and 7
We agree with the recommendations. However, we think it will be unproductive to start this process until there is more clarity regarding the legislative landscape and the amalgamation process. As is well known, there has not been a regulator mechanism to bring about any changes to documentation for several years. The FSOS Council was appointed on 24 May 2021.
Re: Review of Corporate Structures and Practice
Point 6 Executive Committee
This is a decision for Council but from our perspective it is not necessary. The Council is able to meet remotely when required, and to mandate sub-committees as required.
The Council agreed that an Executive Committee is not required.
Re: External Auditors
We acknowledge that it is sound practice to revolve auditors, although a five-year period should be a guideline rather than a rule.
Re: Internal Auditors
We agree that we should investigate.
Re: Performance review of Council members
Point 10 Consider taking advice how this should be done
We agree with the recommendation, but this is a decision for Council.
The Council agrees with the recommendation.
Re: Review of future workload
This has already been factored in.
Re: The South African Consumer Union
Re: Human Resources Review
We agree, but we think it can wait to 2022.
Re: Review necessary resources to cater for increased workload
This is a continuous and ongoing exercise.