Internal Audit is an independent, objective assurance and consulting activity designed to add value and improve the operations of the Ministry of Education, Arts and Culture by bringing a systematic, disciplined approach to evaluating and improving the effectiveness of risk management, control and governance. The purpose is to advise management whether the prescribed policies and systems are being operated as intended and whether they are effective in ensuring sound management and promoting efficient and economical use of resources, and whether they provide the necessary measures of accountability.

Risk management, control and governance comprise the policies, procedures and operations established to ensure the achievement of objectives, the appropriate assessment of risk, the reliability of internal and external reporting and accountability processes, compliance with applicable laws and regulations, and compliance with the behavioural and ethical standards set for the organisation.

The Internal Audit Unit in the Ministry of Education, Arts and Culture derives its authority from the Instruction on Internal Audit, issued by Treasury under the State Finance Act, Act 31 of 1991. The Internal Audit Unit of the Ministry of Education, Arts and Culture is established by the Accounting Officer.

The Internal Audit Unit is authorised to have full, free and unrestricted access to any and all Ministry of Education, Arts and Culture (MoEAC). records, property and staff relevant to the conduct of an audit. All employees are requested to assist the internal audit unit in fulfilling its roles and responsibilities.

Documents and information provided to the internal audit unit shall be handled in the same prudent and confidential manner. The code of ethics shall also be adhered to.

The Internal Audit Unit is independent of the activities it audits so as to ensure the objective judgement necessary for the proper conduct of its duties and for giving impartial advice to the Management.

Internal auditors shall have no direct responsibilities for the activity being audited. Internal auditors shall not develop and introduce procedures, shall not prepare data, or be involved in the activities they audit. The involvement of internal auditors in developing or implementing policies, systems and procedures shall be in an advisory capacity only, in accordance with any past/present recommendations made by the Internal Audit Unit.

The Internal Auditor shall comply with the Code of Ethics and the Institute of Internal Auditors Standards for the Professional Practice of Internal Auditing and shall carry out the tasks in accordance with guidance provided by the Internal Audit Directorate at the Treasury.

The scope of Internal Audit encompasses, but is not limited to, the examination and evaluation of the adequacy and effectiveness of the organization’s governance, risk management process, system of internal control structure, and the quality of performance in carrying out assigned responsibilities to achieve the organization’s stated goals and objectives. It includes:

• Developing a strategic plan based on the purpose of Internal Audit and on an objective understanding of the risks to which the Ministry of Education, Arts and Culture is exposed, and submitting the plan for the endorsement of the Audit Committee or Accounting officer.

• Developing an annual operational plan using a risk-based methodology to support the strategic plan. The annual plan will take into account the policies and directives of the Internal Audit Directorate at the Treasury, concerns of the management, and risk assessments of the Ministry of Education, Arts and Culture’s activities carried out by the Internal Audit Unit. The annual audit plan will include the areas to be reviewed, target completion dates, and allocation of resources.

• Implementing the plans, as approved by the Audit Committee or Accounting officer, and completing other ad-hoc assignments as may be required – either on the initiative of the Head of Internal Audit (subject to approval) or at the request of the Audit Committee or Accounting officer.

• Assessing the reliability and integrity of financial and operating information.

• Assessing the systems established to ensure compliance with policies, plans, procedures, laws and regulations.

• Assessing the means of safeguarding assets and, as appropriate, verifying the existence of such assets.

• Assessing operations or programs to ascertain whether results are consistent with established objectives and goals and whether the operations or programs are being carried out as planned.

• Monitoring and evaluating the effectiveness of the organization’s risk management system.

• Maintaining a professional audit staff with sufficient knowledge, skills and experience to perform consulting services, beyond internal auditing’s assurance services, to assist management in meeting its objectives. Examples may include facilitation, process design, training and advisory services.

• Establishing effective co-operation with the Auditor General’s office and other external stakeholders.

• Ensuring that recommendations for improvement are implemented or that management understands and accepts the risks involved when no action is taken.

The Head of the Internal Audit Unit shall report administratively to the Accounting officer. Functionally, the Head of the Internal Audit Unit shall report to the Audit Committee.

Audit assignment reports:

A draft report to the manager of the activity under review shall be produced within one month of the completion of each audit assignment. The report shall set out the findings and recommendations arising from the audit and express an opinion on the Ministry of Education, Arts and Culture’s risk management, control and governance arrangements. The draft report will be discussed with the manager of the activity under review, who will respond in writing, providing additional information as necessary to ensure the draft report’s factual accuracy.

The final audit report will be issued to the Audit Committee with a copy to Accounting officerand the manager of the activity under review. The final report will include an agreed action plan for implementing audit recommendations, along with an explanation where the Ministry of Education, Arts and Culture chooses not to implement recommendations.

Quarterly reports:

The Head of Internal Audit shall report to the Audit Committee with a copy to Accounting officer throughout the year, at least on a quarterly basis, on the progress in implementing agreed audit plans and explaining any variations from the plans.

The Head of Internal Audit shall issue an Annual Report on the activities of the Internal Audit Unit to the Accounting officer and copy this to the Internal Audit Directorate at Treasury. As a minimum, the report shall include:

• the level of audit coverage achieved compared with that planned;

• an executive summary of each completed internal audit;

• an analysis of common or significant weaknesses arising;

• details of any major findings where action is urgently required but has not been taken, including those identified in previous years’ reports.