Internal Audit

Internal audit plays a pivotal role in upholding good governance, transparency, and accountability within Ghana's public sector, particularly for vital regulatory bodies like the Food and Drugs Authority (FDA). Established under the Public Health Act, 2012 (Act 851), the FDA's Internal Audit Directorate operates within a robust legal framework, including the Public Financial Management Act, 2016 (Act 921) and the Internal Audit Agency Act, 2003 (Act 658). This framework mandates rigorous financial and operational oversight, risk management, and compliance monitoring. The recent adoption of Global Internal Audit Standards (GIAS) further underscores Ghana's commitment to strengthening internal audit functions, ensuring that institutions like the FDA effectively safeguard public health and manage public resources with integrity and efficiency.

The integrity and effectiveness of regulatory bodies are paramount to public trust and national development. In Ghana, the Food and Drugs Authority (FDA), established under the Public Health Act, 2012 (Act 851), stands as a critical institution responsible for safeguarding public health by ensuring the safety, quality, and efficacy of food, drugs, and related products. Central to the FDA's operational integrity and its ability to fulfill this expansive mandate is a robust internal audit function. This article delves into the legal and operational significance of internal audit within the FDA Ghana, examining the statutory framework that underpins its existence and functions.

The legal foundation for internal audit in Ghana's public sector is multifaceted, drawing primarily from the 1992 Constitution, the Public Financial Management Act, 2016 (Act 921), and the Internal Audit Agency Act, 2003 (Act 658). The Public Financial Management Act, 2016 (Act 921), serves as the overarching legal framework for public finance management, mandating stringent requirements for financial statements, internal and external audits, and the establishment of audit committees across all public institutions. Specifically, Section 83 of Act 921 governs internal audit, while Section 87 mandates the establishment of Audit Committees for covered entities, which include statutory bodies like the FDA. These provisions are further elaborated by the Public Financial Management Regulations, 2019 (L.I. 2378), and the Internal Audit Regulation 2011 (L.I. 1994).

The FDA Ghana's Internal Audit Directorate (IAD) was established in March 2004, following the enactment of the Internal Audit Agency Act, 2003 (Act 658). This Directorate is structured into Financial and Compliance Audit and Operational and Assurance Audit Departments, reflecting a comprehensive approach to oversight. Its mission is to enhance and protect organisational value by providing risk-based and objective assurance, advice, and insight to management. Crucially, the Director of Internal Audit at the FDA maintains dual reporting lines: administratively to the Chief Executive Officer and functionally to the Audit Committee, as stipulated by Section 83(2) of the Public Financial Management Act, 2016 (Act 921). This dual reporting structure is designed to ensure both operational alignment and independent oversight, fostering an environment of accountability. The Audit Committee itself, inaugurated in November 2022, comprises members from the Internal Audit Agency, the Institute of Chartered Accountants, Ghana, and the FDA Board, tasked with advising on sound financial practices and ensuring compliance with laws and regulations. The Auditor-General, under Article 187 of the 1992 Constitution and the Audit Service Act, 2000 (Act 584), also has a broad mandate to audit the public accounts of Ghana and all public offices, including the FDA. Internal auditors are required to submit copies of their reports to the Auditor-General, creating an additional layer of external scrutiny. The recent adoption of the Global Internal Audit Standards (GIAS) in Ghana, with a compliance deadline of January 2025, signifies a national commitment to elevating the quality and effectiveness of internal audit practices across the public sector. This move aligns Ghana with international best practices, further strengthening the FDA's internal controls and risk management frameworks. The continuous internal audit of review processes is already recognized as enhancing the effectiveness and efficiency of the FDA's regulatory review procedures and decision-making practices for medicinal product applications.

The robust internal audit framework at the Food and Drugs Authority Ghana is indispensable for maintaining the institution's credibility and ensuring the effective discharge of its public health mandate. For legal practitioners advising public sector entities or engaging with regulatory bodies like the FDA, understanding the intricate web of statutory provisions governing internal audit is critical. The emphasis on compliance with the Public Financial Management Act, the Internal Audit Agency Act, and the newly adopted Global Internal Audit Standards means that adherence to sound financial management, risk mitigation, and transparent governance is not merely good practice but a legal imperative. Practitioners should closely monitor the implementation of GIAS and its impact on internal audit charters and operational procedures within the FDA and other public institutions, as this will shape the landscape of public sector accountability and compliance in Ghana for years to come.