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Integrated Reporting – A New Era
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About Nkonki
► 22-year history in South Africa
► 100% Black-owned JSE-accredited auditing and advisory firm
► 40 Directors and Registered Auditors and 400 staff country-wide
► Global affiliation
► Deep and committed relationships with clients
► Provide audit and advisory services
5th Annual Audit Committee Conference
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Nkonki <IR> Thought Leadership track record
5th Annual Audit Committee Conference
2011Launched inaugural Nkonki/FM
<IR>
Awards Top 40 |
JSE and SRI companies
2012
Extended survey to include
Schedule 2 entities | Top 100 JSE and
SRI companies
2013 - 14
Annual surveys continued with
Schedule 2 entities | Top 100 JSE and
SRI companiesThought Leadership <IR> Publications
IR Checklist based
on King III Disclosure
requirements
Integrated Reporting
– Rising to a new
challenge
Quick wins towards
Integrated Reporting
Annual Survey
results reports for
SOC’s and Top 100
Annual Financial Mail
Corporate Report on
Integrated reporting
Most recent:
- Nkonki <IR> Roadmap
- Nkonki Maturity Chart
- Nkonki Gap Analysis
Top 100 2015 Thought Leadership and results – October 2015
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About the 2015 SOC <IR> Report
5th Annual Audit Committee Conference
21
Schedule 2 State Owned Entities
(in terms of PFMA) surveyed.
1 SOC report not available.
< R1.2 trillion
Asset base
< R360 billion
Revenue base
International <IR> Framework was used to assess extent of compliance reflected in integrated reports focusing on:
Interesting facts:
Fundamental Concepts Guiding Principals Content Elements
Value Creation
Capitals
Value Creation Process
Strategic Focus & Future Orientation Connectivity Stakeholder
Relationships Materiality
Conciseness
Reliability & Completeness
Consistency & Comparability
Organisational Overview
Governance Business Model
Risk & Opportunity
Strategy & Resource Allocation
Performance & Outlook
Basis for PreparationThe “Wow” Factor
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About the 2015 SOC <IR> Report
5th Annual Audit Committee Conference
Independent panel led by Professor Anton du Toit Ratings:
GUIDE TO THE RATINGS
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Key Take-Away From The 2015 Survey
5th Annual Audit Committee Conference
Comparison of 2011, 2012, 2013 and 2014 SOC Integrated Reports
In 2014, the overall reporting did
show some signs of improvement
with the average score improving by
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Key Take-Away From The 2015 Survey
5th Annual Audit Committee Conference
Most entities scored above 50% in more than 70% of the elements of <IR> Framework utilised in the report
Areas of excellence – averages of
68% and above
Excellence
Consistency & Comparability
Strategic Focus
Reliability & Completeness
100%
71.7%
68.5%
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Key Take-Away From The 2015 Survey
5th Annual Audit Committee Conference
Most entities scored above 50% in more than 70% of the elements of <IR> Framework utilised in the report
Areas where entities fared up - averages of
55% and above
Nature of Dealings with Stakeholders 66.9%Materiality in Terms of Dealings with Stakeholders 66.9%Presentation &Design 61.0%
Connectivity of Information 56.3%
Content Elements 55.0%
Average
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Key Take-Away From The 2015 Survey
5th Annual Audit Committee Conference
Improvement required in the following areas: Improvement
Observations
41.3%
45%This is the most radical section in moving towards <IR> Framework with new
concepts introduced - value creation process through the entity’s capitals and
linkage to the business model
<IR> Framework Elements
Average length of reports surveyed was 181pages (excluding AFS and Sustainability
reports).There is a clear link between guiding principal and materiality principal
Fundamental Concepts –
Business model, capitals, value
creation
The “Wow” Factor
Conciseness
Most entities are still struggling with making the reports easily readable by any user 11.7%
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Key Take-Away From The 2015 Survey
5th Annual Audit Committee Conference
Using the Nkonki Maturity Chart the following
observations were made:
No entities were classified as “Expert company”
15% entities were classified as “Proficient”
15% entities were classified as “Competent role player”
30% entities as “Advanced beginner”
40% entities as “Novice company”
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Global Trends
5th Annual Audit Committee Conference
► IIRC’s Pubic Sector pioneer network was introduced in November 2014
► Globally, entities have seen benefits of applying <IR> Framework as highlighted by Black Sun research in 2014 “Realizing the benefits: The impact of
Integrated Reporting”
► Users of <IR> Framework seeing value and benefits in:Breakthroughs in
understanding value
creation
Data Quality
improved
significantly
Improving
management
information and
decision making
A new approach to
stakeholder
relations
Connecting
departments
and broadening
perspectives within the
organisation ► IIRC’s Pubic Sector pioneer network was introduced in November 2014
► Globally, entities have seen benefits of applying <IR> Framework as highlighted by Black Sun research in 2014 “Realizing the benefits: The impact of
Integrated Reporting”
► Users of <IR> Framework seeing value and benefits in:
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Recommended Next steps
5th Annual Audit Committee Conference
► Internal gap analysis assessment
using Nkonki Gap Analysis tool
► Internal maturity assessment
using Nkonki Maturity chart
► Using Nkonki roadmap to assist in
project planning improvement to
excellent Integrated Reporting
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Thank You
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