INTERNAL AUDIT – EASTERN PROVINCE
This Department is responsible for the management and control of Government resource usage and ensures that adequate, effective prudential measures and controls are in place in the process of utilizing the resources. Therefore, the main goal of the Department is to promote accountability in all Government Departments and Statutory Bodies in Eastern Province.
Institute of Internal Auditors defines Internal Auditing as:
‘An independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes’
ORGANIZATIONAL STRUCTURE OF INTERNAL AUDIT – EASTERN PROVINCE
THE OBJECTIVES OF THE INTERNAL AUDIT DEPARTMENT
The objectives of Internal Audit Department entail the following:
• To evaluate financial and operational systems or processes for effectiveness and adequacy of internal controls and provide
advice and guidance on control aspects of new policies, systems, and controls.
• To verify the existence of government assets and recommend improvements to management to ensure that proper safeguards are maintained to protect them from loss and possible fraud
• To determine the accuracy of financial transactions
• To determine the level of compliance with government policies, laws, contracts, and procedures
• To evaluate the accuracy, effectiveness, and efficiency the Province’s electronic information and processing systems
• To determine the effectiveness and efficiency of Province’s in accomplishing their objectives and identify opportunities for cost saving measures
• To provide an advisory service to Controlling Officers and Accounting Officers
• To undertake any other task or assignment to further the achievement of the above-mentioned objectives
THE ROLE OF INTERNAL AUDIT DEPARTMENT
In order for the internal audit to achieve the above objectives it has three (3) interlinked roles namely:
• To ascertain that the risk management and internal control systems are in place and continually being improved and optimized in response to an ever-changing environment
• To provide reasonable assurance to the relevant Controlling Officers and the Secretary to the Treasury that internal controls exist and are being complied wit as required by law and other regulations
• To ascertain, evaluate and improve on the governance processes put in place by management
To fulfil these roles the major functions of the Internal Audit Department include:
• Reviewing and appraising the appropriateness, adequacy and application of authorization, financial and other operating controls
• Promoting effective controls at reasonable cost
• Ascertaining the extent of compliance with established policies, plans and procedures
According to the new Public Finance Management Act of 2018, Section 14 (1) there shall be Controller of Internal Audit who is a Public Officer at the level of Permanent Secretary and head of internal audit services in government. Section 14 (2) The Controller of Internal Audit shall in the performance of duties under this Act, be subject to the direction of the Secretary to the Treasury.
Section 16 (1) of the Public Finance Management Act of 2018 states that “ There shall be appointed by the Civil Service Commission as public officers, Internal Auditors as shall be necessary for the proper administration of this Act.
Section 16 (2) of the Public Finance Management Act of 2018 states that “ An Internal Auditor shall in the performance of any duty under this Act, be subject to the direction of the Controller of Internal Audits.
INTERNAL AUDIT UNIVERSE
The Audit Universe is a list of auditable units and activities identified in consultation with management.
In the case of Eastern Province, there are 29 auditable units which receive funding through Provincial Administration. Every year, we plan to carry out in any of these auditable units and provide audit reports to the Permanent Secretary and the respective Head of these Auditable Units