Council for Medical Schemes – Supply Chain Management
Business Unit: Internal Audit
Competency Lead: Jabulile Nkosi
Project: Council for Medical Schemes – Supply Chain Management
The Council for Medical Schemes is a statutory body established by the Medical Schemes Act (131 of 1998) to provide regulatory supervision of private health financing through medical schemes.
The governance of the Council is vested in a board appointed by the Minister of Health, consisting of a Non-executive Chairman, Deputy Chairman and 13 members. The Executive Head of the Council is the Registrar, also appointed by the Minister in terms of the Medical Schemes Act. The Council determines overall policy, but day to day decisions and management of staff are the responsibility of the Registrar and the Executive Managers.
The Council for Medical Schemes supervises a massive and very important industry comprising more than 80 medical schemes registered in the country.
Lack of sufficient human resources within the SCM Department with the risk that key processes in terms of the CMS Supply Chain Management Policy, PFMA and Treasury Regulations were by-passed, consequently increasing the client’s risk of obtaining a qualified audit opinion from the Office of the Auditor General.
How SkX Helped:
SkX assisted in identifying errors and non-compliance in processes and procedures within the procurement and tendering processes of the client thereby assisting CMS management in:
- Identifying the root cause of the errors and non-compliance and recommending appropriate controls to prevent the errors from recurring in future; and
- Ensuring that all control weaknesses were adequately rectified and that an unqualified audit opinion was obtained.
What Added value we provided client:
We queried anomalies identified based on our review of high value procurement transactions and tender processes, making reference to the CMS Supply Chain Management Policy, Public Finance Management Act and National Treasury Regulations, thereby adding value for them to enhance adherence to their processes.
Our team was highly regarded by the client for our thorough audit processes.
Team members who worked on the project:
- Jabulile Nkosi
- Seelan Nayagar
- Mapula Nong