2023-24 SaskEnergy Statement of Corporate Governance

2023-24 Statement of Corporate Governance Practices

and in line with corporate and regulatory standards; and, responsibilities of employees in the development, maturation, or request of new AI services. The Integrity of Internal Controls and Management Systems SaskEnergyʼs financial statements are prepared following International Financial Reporting Standards (IFRS). As part of the March 31 year- end audit, the external auditors have stated that the Corporationʼs financial statements have been prepared following IFRS. As part of SaskEnergyʼs commitment to accountability, the Audit and Finance Committee reviews the financial performance of the Corporation quarterly. Natural gas purchase transactions and credit risk are reported by management and are actively monitored by the Committee. In addition, the Board and the Audit and Finance Committee receive reports from and work closely with internal and external auditors to promote financial transparency and ensure the integrity, effectiveness, and adequacy of SaskEnergyʼs internal controls and management systems. This includes its Unified Management System (UMS), which aligns corporate pipeline activities, public and worker safety, and environmental protection to promote compliance. The Board sets out limits of authority for expenditures of the Corporation. The expenditures are managed through a series of execution and expenditure authorization policies, which are reviewed regularly by the Board. Some of the limits on authorities are imposed upon both management and the Board through legislation, including Orders in Council, compliance with investment requirements, or changes to The SaskEnergy Act . The Board has also validated and approved a Bright Line Mandate, which is a decision-making matrix that defines the ultimate decision-making body on key matters.

According to the directive of CIC, SaskEnergy has a process in place regarding internal controls certification by the CEO and Chief Financial Officer. This process is designed to provide reasonable assurance regarding the effectiveness of SaskEnergyʼs internal controls over financial reporting. The Board oversees the annual external audit plan of the appointed external auditor for the audit of the Corporationʼs annual financial statements, and the annual internal audit plan carried out by SaskEnergyʼs internal audit group. To preserve the independence of the role of the external auditors, the Audit and Finance Committee must pre-approve all non-audit services undertaken by the external auditor following the Corporationʼs Non-Audit Services Policy. Robust Succession Process The SaskEnergy Executive team uses a semi-annual review process to address strategic management succession. The Executive: evaluates positions and ensures the succession plan is current through an evergreen process; responds to human resource developments; and, focuses on continuous employee development and the mitigation of succession and knowledge transfer risks. The Executive considers various strategic options to address short-term needs (emergency or unforeseen personal circumstances) and long-term needs (structural business changes and planned retirements). The Human Resources and Safety Committee receives a succession plan update semi-annually and reports to the Board on the succession management process. The Board of Directors and CEO directly oversee the succession plans for the CEO and the Executive management team.

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