Sasol Form 20-F for the year ended 30 June 2021 - Book - Page 108
an expansion of the previously identified
deficiencies within one segment to the wider
South African integrated value chain
impairment process) was the result of a
number of deficiencies:
System design - Inadequate initial design
principle applied in the system
implementation
Process design - Inadequate initial
process design which was not documented
in sufficient detail
Sequence of process – Inefficient
impairment process due to the sequential
order of completion of the impairment
calculations through the South African
integrated value chain
Manual interventions – Inconsistent and
multiple manual interventions across the
entire South African integrated value
chain impairment process
People Capability – Lack of
understanding and knowledge of the endto-end South African integrated value
chain impairment assessment principles
and to ensuring that a proper, consistent tone is
communicated throughout the organisation. To
that end, our management, with the oversight
from our Audit Committee, has executed our
remaining remedial actions per our
remediation plan, in order to fully remediate
the underlying causes that gave rise to the
material weakness.
During 2021, the company has
successfully completed the remaining remedial
steps to address the tone and cultural aspects of
the identified root causes of the material
weakness. These include:
If not remediated, this material
weakness could result in misstatements of
property, plant and equipment, right of use
assets, deferred taxation, remeasurement items
affecting operating profit (impairment of
property, plant and equipment and right of use
assets) account balances and disclosures that
would result in a material misstatement to the
consolidated financial statements that would
not be prevented or detected.
Rolled out our cultural enhancement
programme and assessed our talent
management and leadership development
processes implementing specific cultural
interventions as appropriate;
Directed the Operating Model Entities
(OMEs) to implement the action plans
that have been defined with employees to
address areas to improve culture within
OME;
Rolled out additional training, including
as to reporting obligations, to the various
employees involved in the LCCP and/or
its oversight; and
Evaluated and improved, as appropriate,
the effectiveness of our functions in the
United States with progress reported to
oversight committees.
During 2021, we successfully
completed the testing necessary to conclude
that the controls were operating effectively and
have concluded that the material weakness
related to the capital cost estimation process has
been remediated.
(c) Remediation efforts to address material
weaknesses
(i)
(ii)
Remediation Efforts to Address the Material
Weakness with respect to the capital cost
estimation process implemented in connection
with the LCCP, which resulted from the
aggregation of a series of individual control
and project-related control environment
deficiencies.
Remediation Efforts to Address the Material
Weakness with respect to the level of precision
applied to the impairment assessments
performed on the cash generating units related
to the South African integrated value chain.
We have during the prior year
evaluated this material weakness and developed
plans of remediation to strengthen our internal
controls related to the impairment processes
The company is committed to
ensuring a strong internal control environment
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