Question 27 Umda University is a privately owned education institution operating in four provinces of South Africa. The council of the university held four meetings during the 2023 academic year Not yet answered ending July 2023, where the following documents were discussed: Masked out of 1.00 Preag (1) Risk register (5 top risks) Notes: All risk management reports were timely communicated to both the management and council. (2) Audit report (matters needing urgent attention) a. Debt costs increased from 3% to 5% of university income. b. Non-adherence to accounting policies. c. All computer assets of the university have exceeded the SARS-prescribed depreciation rates and period. d. Insurance policies of the university have lapsed due to non-payment of premium. (3) Financial information Performance information The university has only achieved 2 out of 6 strategic objectives. A recognised institution has downgraded the university teaching and research from a ranking of 11 to 26 . Council has not ensured the implementations of recommendations made by both the Internal Audit and Auditors during the last three years. Audit opinion: the university obtained a disqualified opinion from auditors. Council minutes (approved) Composition Council has five non-executive members who receive remuneration. Risk-related fees for non-executive members are R25 000 per meeting. The chair of the council, who is a nonexecutive member, recelves R50 000 per meeting, while the deputy chair, also a non-executive member, receives R45 000 per meeting. All other members of Council do not receive remuneration. The cost of each meeting, excluding the remuneration of members, is R45 000. It is expected that this cost will increase by 5% in the next academic period. Decisions Zero increase on meeting fees of Council members in the next academic period. Increase the number of Council meetings from 4 to 6 per academic year. Management to apply for government funding even though the Minister of Finance announced a blanket 20% budget cut in all social spending. Management is not allowed to make any loans. Replenish the university financial reserves by contributing 10% of surplus each year for the next ten years. Question Self-protection needs to be enhanced because of i. lapsed insurance policies. ii. depleted financial reserves. iii. poor financial performance iv. increasing overdraft a. I and ii b. i,ii, iii and iv C. i and iv