Statement of Corporate Governance Practices 2021-22
Integrity of Internal Controls and Management Systems
is current through an evergreen process, responds to human resource developments, 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. Communications (with the Shareholder and Stakeholders) SaskEnergy is committed to the principles of transparency, openness, and timeliness in communication with its Owner, CIC, employees, stakeholders, and the public. The board is accountable to the Minister Responsible for SaskEnergy through the Board Chair. The Minister functions as a communication liaison among the Corporation, CIC, Cabinet, the Provincial Legislature, and the public. The Corporation follows a Board-approved external communications policy and complies with the communication requirements set by CIC and by its governing statute. SaskEnergy regularly surveys employees and external stakeholders for feedback on its corporate activities. More information on these communications is set out in the Management’s Discussion & Analysis. SaskEnergy strives to balance transparency and maintain customer confidentiality in its communications and disclosure as an entity subject to The Freedom of Information and Protection of Privacy Act . The Corporation is subject to annual disclosure requirements of the Legislative Committee regarding Crown Payee Disclosure on all payments greater than $50,000 to employees and suppliers and for all grants, donations and sponsorships greater than five thousand dollars ($5,000.00). All significant public disclosures of corporate performance of the Corporation are subject to prior approval of the Board. Senior Executive members of SaskEnergy also appear before Legislative Committees to answer questions relating to the business of the Corporation in preceding years. To facilitate feedback to and from the Owner, the Board Chair communicates with CIC and participates in a CIC Chairs forum where communication and feedback are provided on the Owner’s expectations of all Saskatchewan Crown corporations. SaskEnergy’s CEO regularly provides briefings to the Minister Responsible for SaskEnergy.
SaskEnergy’s 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 Corporation’s financial statements have been prepared following IFRS. As part of SaskEnergy’s 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 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 SaskEnergy’s internal controls and management systems, including its Unified Management System (UMS). The UMS aligns corporate pipeline activities, public and worker safety, and environmental protection to achieve 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 legislation through 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 (CFO). This process is designed to provide reasonable assurance regarding the effectiveness of SaskEnergy’s internal controls over financial reporting. The Board oversees the annual external audit plan of the appointed external auditor for the audit of the Corporation’s annual financial statements and the annual internal audit plan carried out by SaskEnergy’s 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 Corporation’s Non-Audit Services Policy. Robust Succession Process The SaskEnergy Executive team uses a semi-annual review process to address strategic management succession. It evaluates positions and ensures the succession plan
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