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HSRC Annual Report 2016/17
Quality of quarterly management reports submitted in terms of the PFMA and the
Division Of Revenue Act
The committee is satisfied with the content and quality of the quarterly reports prepared and issued by the Accounting
Authority of the HSRC during the year under review.
Internal Audit
The committee reviewed and approved the annual Internal Audit Plan and Internal Audit Charter. During the year under
review, the internal audit function was outsourced to Nexia SAB&T. A review of the internal audit function was undertaken
by the ARC to evaluate the effectiveness of the function, and it met separately with the internal audit service provider.
In addition to providing assurance on governance, risk management and control processes during the year under review,
the internal audit function added value to the organisation by presenting timeous and relevant reports to management
and the committee. The ARC is satisfied with the effectiveness and independence of the internal audit function.
Independent review
The ARC mandated an independent investigation into the contract management and budget overrun of a service level
agreement between the HSRC and an appointed service provider. Nexia SAB&T, as the internal auditor, was appointed
to perform an external review of the process, to establish whether:
•
The supply chain management processes followed to appoint the service provider were in line with approved
policies and procedures; and
•
The project had been managed in the most efficient, effective and economical manner.
All findings in the report were noted and accepted and internal remedies were implemented as appropriate. Although
the expense associated with the budget overrun was disclosed as irregular due to process failure, the independent
review and the ARC verified that value for money was obtained.
There are no outstanding matters in this regard.
Auditor-General South Africa
The committee has met with the Auditor-General of South Africa and is satisfied that there are no unresolved issues.
Prof. Amanda Lourens
Chairperson: HSRC Audit and Risk Committee
PART C: Governance