Creating legal and financial systems to support the target state

The legal entity setup of the corporation is a crucial step in the transformation journey of KFSF&RC to a Not for Profit Independent Foundation. The objective of this initiative is to put in place the key requirements that are necessary for KFSH&RC to commence its journey towards corporatization.

The Corporatization initiatives comprises of four (4) sub-initiative:

1. Corporate Transformation Office (CTO)
2. Legal Due Diligence and Corporation Set-Up legal activities
3. Accounting Framework and Practices to International Standards
4. Fixed Asset Valuation and Impairment Testing

Legal due diligence will ensure all legal activities are undertaken to form the corporation and will address all legal implication and considerations related to the transfer of assets, employees, and contracts. This is a significant task. The assets of the General Organization need to be assessed and valued in order to provide input into the first set of books of the corporation.

Furthermore, the accounting standards requirements for the new corporation will be addressed and due diligence on profit and loss will be completed.

As part of the corporatization the new board will need to institute an Enterprise wide risk management program and to that end will need to invest in the development of an Enterprise Risk Management and Governance Risk and Controls Framework. The GRC and ERM will be commenced in 2018 based on the outcome of due Target Operating Model.