The internal audit function was outsourced for the 2021/22 financial year with the annual coverage plan approved by RAG. The key activities for the function entailed:

• The development of a risk based three-year rolling Internal Audit Plan together with the annual Plan, where the plans also indicated the scope, cost and timelines of each planned audit assignment.
• Reporting on the performance and progress against the plan to allow effective monitoring and intervention, when necessary.
• Coordination with both internal and external providers of assurance to ensure proper coverage and minimal duplication of effort.

Based on the prescripts and best practice, the internal audit function assisted SAHPRA to accomplish its objectives by bringing a systematic and disciplined approach to evaluate and improve the effectiveness of risk management, internal control, and governance processes.

Listed below are the objectives of the internal audit function, which prompts the review of:

• Internal control processes across the business.
• The reliability and integrity of both financial and performance information.
• The information systems environment.
• Compliance with policies, guidelines, regulations and controls.
• The safeguarding of assets.

The internal audit service provider conducted a series of audit assignments approved by RAG in the annual audit plan which include but not limited to:

• Performance of audit assignments across the business.
• Verification of both internal and external audit action plans with the objective to provide assurance on the corrective actions implemented on previous findings.
• Assessed the portfolio of evidence for performance information which contributes to the agreed achievement of organisational targets.

RAG has an oversight responsibility, and its role entails provision of an independent assurance and assistance to the Board as the Accounting Authority on controls, governance, and risk management. RAG is not an executive committee and does not replace established management responsibilities, accountability, and delegations.

The internal audit function reports functionally to RAG and administratively to the Chief Executive Officer, to ensure independence of the function as outlined in the Internal Audit Charter. In turn, RAG approves all decisions regarding the performance and monitoring of the internal audit activities.

The internal audit function assists the RAG and the Accounting Authority to maintain effective controls through assessment and evaluation of internal controls, thereafter, develop recommendations for enhancement or improvement of the inefficiencies identified.

During the 2021/22 financial year, RAG conducted the following activities but not limited to:

• Reviewed effectiveness and approval of internal audit activities, internal controls, risk management, fraud prevention and compliance management.
• Reviewed reporting on financial and performance information to the SAHPRA Board.