Internal Audit of Beel User Group

Concept & Approach

CBRMP LGED
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Michael A Roy Management consultant

The concept: a peer review

Internal Audit is an independent appraisal set in projects M&E system to examine and evaluate particularly group performance of some core activities
1. Finance , Asset, Books & Records

Group fund ( Own and Project ) Maintenance/conservation activities Cash status Distribution and use of Group/Project fund Books and Records

2. Capacity building

Human Social Technical Institutional

3. Performance rating 2

The Purpose
Support the project administration and BUG in effective service delivery in transparent and accountable manner
To that end: Internal Audit provides them, i.e. Project & BUG : analyses of information recommendations and advices
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The Scopes
Internal Audit mainly reviews:
1. The reliability and integrity of the information 2. Compliance with policies, plans, procedures,

laws, and rules 3. The safeguarding of assets. 4. The economical and efficient use of resources to meet the overall objectives

1. The reliability and integrity of information

Financial and operating records are accurate, reliable, timely and complete.
Further on INTEGRITY
Correctness Completeness/ containing all parts/works/formalities Soundness/valid reasoning/logical and compliance with the intention

of the work It is achieved by preventing accidental or deliberate unauthorized insertion, modification or destruction of data in books and records.
It is all about:

Honesty, Commitment & Fairness a Moral Quality

2. Compliance with policies, plans, procedures, laws, and regulations.

Internal auditors are responsible for determining whether the process practiced are adequate and effective and whether the activities audited are complying with the appropriate policy, plans, procedure, laws and rules

3. The safeguarding of assets

Internal auditors should review the means used to safeguard assets from various types of losses such as those resulting from theft, fire, improper or illegal activities

4. The economical and efficient use of resources

Procedures have been established for

measuring economy and efficiency Deviations from procedures are identified analyzed, and communicated to those responsible for corrective action Corrective actions have been taken or not Underutilized of facilities Procedures which are not cost justified
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The professional ethics

The primary focus is to provide excellent service

to the administrations Should be committed to the highest degree of fairness, integrity, and moral conduct in performance. The relationships with the BUG will be maintained by respect, helpfulness, sharing, patience, and openness. Although the IA team members are a part of the project they should be committed to maintain their independency in defining the scope and objectives of their investigations

Universal Code of Conduct of IA

Principles

GIAS/IIA

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Process of collecting information

Information should be/have:
sufficient complete relevant sound basis

for audit recommendations

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Summary note on findings

Upon the conclusion of the fieldwork, the auditor will summarize the audit findings with following focuses:

Statement of Condition (What is?) Criteria (What should be?) Effect (what impact?) Cause (Why did it happen?) Recommendation (What should be done?)

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Steps in closing the audit Preparing draft report Debriefing Management letter Final report

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Follow-up

Internal auditors should check whether appropriate actions are taken on reported audit findings

a must...
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Benefit and values of IA

(in summary )

Accountability

Transparency

Integrity

Credibility
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wishing a quality work

Thanks

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