MANDATE

Public Finance Management Act regulation of 2015 section 153 describes the mandate of an internal audit unit.

PURPOSE AND MISSION

Public Finance Management Regulations Section 153 (1) stipulates the mandate of the Internal Audit function in the county government entities is to provide reasonable assurance through the audit committee on the state of the entities’ risk management, control and governance.

The purpose of Internal Audit department is to provide independent, objective assurance and consulting services designed to add value and improve County Government operations. The mission of internal audit is to enhance and protect organizational value by providing risk-based and objective assurance, advice, and insight.

LEGAL FRAMEWORK

The Internal Audit department was established in accordance with section 155 (1) of the Public Finance Management Act, (No. 18 of 2012) of the law of Kenya. Which states, ‘A county government entity shall ensure that it complies with this Act and— (a) has appropriate arrangements for conducting internal audit according to the guidelines issued by the Accounting Standards Board.’

CORE FUNCTIONS

Public Finance Management Act sec 155 (3) and Public Finance Management Regulations sec 153 (1) stipulate the roles and responsibilities of Internal Audit. The internal audit unit has the responsibility to:

• Undertake internal audits aimed at strengthening internal control mechanisms that could have an impact on achievement of the strategic objectives of the entity;
• Provide assurance that: appropriate institutional policies and procedures and good business practices are established by the entity; and risks relating to the achievement of the entity’s strategic objectives are appropriately identified and managed;
• Assess the actions of public officers and key stakeholders are in compliance with the entity’s policies, procedures, laws and regulations;
• Review the effectiveness of the financial (including budgetary and financial management) and non-financial performance management systems and entities;
• Review the governance mechanisms of the entity and mechanisms for transparency and accountability with regard to management of public resources;
• Evaluate whether operations or programs are being carried out efficiently (value of output is more than value of input) and effectively (the results of operations or programs are consistent with established goals and objectives).
• Evaluate whether resources and assets are acquired economically, used efficiently, effectively applied against stated objectives and priorities and protected adequately; and
• Evaluate the adequacy and reliability of information available to management for making decisions with regard to the entity and its operations.

CORE VALUES

• Objectivity
• Professional Due Care
• Competence
• Integrity
• Confidentiality

STAKEHOLDERS

• Government of the Republic of Kenya
• County Government of Tana River
• County Assembly of Tana River
• Office of the Auditor General
• Public Sector Accounting Standards Board
• Government Institutions charged with governance and oversights
• General Public

MANDATE

Public Finance Management Act regulation of 2015 section 153 describes the mandate of an internal audit unit.

 INDEPENDENCE AND OBJECTIVITY

The Head of Internal Audit Unit (HIAU) shall enjoy operational independence by reporting functionally to the Audit Committee and Administratively (day to day activities) to the Accounting Officer as stipulated by Public Finance Management Regulations sec 155 (1).

The Head of internal audit unit will ensure that the internal audit department remains free from all conditions that threaten the ability of internal auditors to carry out their responsibilities in an unbiased manner, including matters of audit selection, scope, procedures, frequency, timing, and report content. If the head of internal unit determines that independence or objectivity may be impaired in fact or appearance, the details of impairment will be disclosed to appropriate parties.

 AUDIT COMMITTEE

Gazette notice dated 15/04/2016 No. 2690 provides for appointment of audit committee members in county governments.  National Treasury Cabinet Secretary circular No. NT/IAG/GEN/055(164) required all County Government to establish Audit Committee by 1^st of July 2016.

The purpose of the audit committee is to provide assistance to

the Accounting Officer or Governing Body through:

1. Obtain assurance from management that all financial and non-financial internal control and risk management functions are operating effectively and reliably.
2. Provide an independent review of an entity‘s reporting functions to ensure the integrity of financial reports.
3. Monitor the effectiveness of the entity‘s performance  management and performance information.
4. Provide strong and effective oversight of an entity‘s  internal audit function.
5. Provide effective liaison and facilitate communication between management and external audit.
6. Provide oversight of the implementation of accepted audit recommendations.
7. Ensure the entity effectively monitors compliance with legislative and regulatory requirements and promotes a culture committed to lawful and ethical behavior.

 AUDIT COMMITTEE

PFM Act Section 155 (5) states “a county government entity shall establish an internal auditing committee whose composition and functions are to be prescribed by the regulations”

AUDIT COMMITTEE MEMBERSHIP

Current membership of the audit committee at the County Government of Tana River

• Mr. Hadaisa Komora               Chairman
• Ms Rev Kerry Komora            Member
• Ms. Khadija Mohamed Kofa   Member
• Mr Bakari Garisa Omara         Member
• Ms Halima G Mahmud            Member
• Mr Charles Njuguna                Secretary