DEPARTMENT OF INTERNAL AUDIT (DIA)

Director JuliusThe Internal Audit Department derives its mandate from the Public Finance Management Act. No 1 of 2018, which provides for the establishment of a system of Internal Audit in every Public Body under the charge of a Controlling Officer. Therefore, the work of the Department is guided by the said Act and the International Standards for the Professional Practice of Internal Auditing, as outlined in the Internal Audit Manual of 2015.

  • PURPOSE

The primary function of the Department is to provide independent and objective assurance service on the effectiveness of systems of governance, internal controls and risk management in the Ministry. In addition, the Department provides consulting services designed to add value and help the Ministry improve its operations in the implementation of Government programmes.

Among other things, the Departments assists the Ministry in:-

  • -Continuously improving internal controls and risk management processes in order to enhance effectiveness and efficiency of operations for the attainment of strategic objectives;
  • -Enhancing transparency and accountability through Economical and Efficient utilization of public funds;
  • -Providing assurance that the assets of the Republic are properly safeguarded against loss or fraud;
  • -Complying with relevant laws, regulations, policies, procedures and contracts, as well as administrative Circulars and guidelines.
  • -Promoting Reliability and Integrity of financial and operational information;
  • -The management of risks from identification, assessment and treatment;
  • -Resolving external audit queries from the Office of Auditor General.
  • TYPES OF AUDIT

Generally, the work of Internal Audit is directed by the Office of the Controller of Internal Audit based at the Ministry of Finance and the Audit Committee for the Ministry, established pursuant to section 19 of the Public Finance Management Act No 1 of 2018. Types of audits undertaken include:-

  • -COMPLIANCE AUDITS (Pre-Payment Audit Examination commonly known as PRE-AUDIT) – Reviewing of transactions before payments are made;
  • -PERFORMANCE AUDITS – Value for money audits focusing on efficiency, effectiveness and economy;
  • -ICT AUDITS – Audit of electronic Management Information Systems (MIS);
  • -SPECIALIASED AUDITS – Adhoc investigative audits as maybe requested by Management.
  • -In addition, the Department provides ADVISORY SERVICES on any matter when called upon.
  • -REPORTING –The Department is required to report on a quarterly basis and at any other time that may be necessary. In this regard, section 16 (3) of the Public Finance Management Act states that:- “An Internal Auditor shall submit reports to the Controller of Internal Audit, Controlling Officer and the Audit Committee, and such reports shall be copied to the Minister, Accountant General, Secretary to the Treasury, Auditor General and the Appropriate Minister.”

 

Note that, for every audit carried out, there is a report issued which is a summary of the unresolved matters. Internal Audit policy allows for a period of 10 – 15 working days for matters in draft reports to be resolved, otherwise they are escalated to the final report issued in line with section 16 (3) above. These matters end up being uplifted by the external auditors if they remain unresolved. Therefore, it is important that all queries raised by Internal Audit are dealt with to their logical conclusion.

  • -Structure

The current staffing complement for Department is five (5). In this regard, the Department is headed by one (1) Director, deputized by two (2) Internal Auditors and two (2) Assistant Internal Auditors. This is against an approved staff establishment of thirteen (13) posts not yet fully implemented.