1. Fundamental elements of internal control11
Fundamental elements of internal control
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2. Reputation promise/mission22
Reputation promise/mission
The Auditor-General has a constitutional mandate and, as the Supreme Audit Institution (SAI) of South Africa, it exists to strengthen our country’s democracy by enabling oversight, accountability and governance in the public sector through auditing, thereby building public confidence. 22

3. Introduction: Why the need for internal control?33
Introduction: Why the need for internal control?
An organisation needs internal control to:
Provide greater assurance that they will achieve their operating, financial reporting and compliance objective
Internal control helps ensure that direction, policies, procedures, and practices are designed and approved by management and put into place and functioning and desired. 33

4. Fundamental elements of internal control44
Fundamental elements of internal control
1. Leadership
Tone from the top – creating an environment favorable to good financial management and service delivery
Identifying key controls aimed at achieving clean audit reports
Assessing skills / competencies of finance staff, ensuring the right staff mix, and managing consultants to ensure effective skills transfer 44

5. Fundamental elements of internal control (cont.)55
Fundamental elements of internal control (cont.)
2. Financial management
Monthly financial statements and non-financial performance information, plus continuous monitoring
Sound financial management systems and documentation control procedures needs to be institutionalised
Operating basic internal controls for an efficient financial management environment 55

6. Fundamental elements of internal control (cont.)66
Fundamental elements of internal control (cont.)
3. Governance
Adequately resourced and effectively functioning internal audit and audit committee
Maintenance of effective risk management strategies, including fraud prevention plans 66

7. AGSA role to enhance oversight of the Executive77
AGSA role to enhance oversight of the Executive
Oversight focus
Budget information
Performance information
Financial information/management
Compliance information
AGSA visibility
Engagement with Executive Authorities 77

8. Questions and discussion88
Questions and discussion
Questions and discussion 88