Pixley Ka Seme District Municipality

Internal Audit

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Chief Audit Executive: Ms R. Sors

INTERNAL AUDIT LEGISLATIVE REQUIREMENT: In terms of Section 216(1)(c ) of the Constitution, national legislation must prescribe measures to ensure both transparency and expenditure control in all spheres of government by introducing uniform treasury norms and standards Section 165 and 166 of MFMA

  • Internal Audit unit and Audit Committee
Section 165 of the MFMA:
  • Requires each municipality MUST have an internal audit unit.
  • Prepare a risk-based audit plan for each financial year.
Plan must include matters relating to:
  • Internal audit
  • Internal controls
  • Accounting procedures and practices
  • Risk and risk management
  • Performance Management
  • Loss control
  • Compliance
  • Any duty assigned to it by the AO (Adhoc assignments)
  • Advise Accounting officer and report to AC
INDEPENDENCE AND OBJECTIVITY:
  • Internal audit must report functionally to the audit committee, and administratively to accounting officer.
  • Independence is achieved through the organisational status and the objectivity of internal audit activity.
  • Internal Audit is independent when it can carry out its work freely and objectively and has the support of senior management and audit committee.
  • The Chief Audit Executive should have direct communication with the Accounting Officer, Audit Committee, municipal council and other appropriate governing authorities.
GOOD GOVERNANCE:
  • As part of Good Governance structures Internal Audit and their oversight committees when given the necessary attention, can be a valuable management tool which increases an Institution’s prospects of success through minimizing negative outcomes and optimizing opportunities
  • Good governance is built upon an effective interface between political office bearers, political structures, councillors and officials, assurance providers and the delegation of appropriate powers to achieve maximum operational and administrative efficiency and the amicable resolution of disputes between the respective role-players.
DUTIES:
  • Developing an Internal Audit Strategic Plan
  • Understanding the Environment
  • Developing operational internal audit plan that is risk-based.
Types of audits include:
  • Risk-based Audits, Based on a Risk Assessment
  • Cyclical audits, Attention given to medium to lower risk areas.
Ad hoc requests, may consider requests from management. It must be written with the approval of the AC. It should however be assessed against planned audits and prioritised based on how much value can be added and available resources SERVICE RENDERED TO:
  • Emthanjeni
  • Kareeberg
  • Ubuntu
  • Siyancuma
  • Siyathemba
  • Thembelihle
  • Renosterberg
  • Umsobomvu
  • Pixley Ka Seme D/M
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