1. NRF Internal Audit Services “Your Partner for Sustainable Business”
GRANT MANAGEMENT &
INSTITUTIONAL VISITS
NRF Internal Audit Services “Your Partner for Sustainable Business”

2. Definition of Internal Audit & Mandate
“Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organisation's operations. It helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.”

3. Managing the audit function in a transformative/changing environment
RAISE the bar – Live up to Heightened Expectations
REVISIT the Charter and reporting relationships – Validate purpose and position
REBALANCE Internal Audit activities – Focus on emerging risks and Stakeholder Expectations
COMMUNICATE – Sharpen dialogues with management and Audit Committee
ACT as a change agent – facilitate positive change

4. What is a sound control environment
A control environment is the foundation (set of standard, processes and structures)on which an effective system of internal control is built and operated in an organization that strives to:
achieve its strategic objectives;
provide reliable financial reporting to internal and external stakeholders;
operate its business efficiently and effectively;
comply with all applicable laws and regulations; and
safeguard its assets.

5. Understanding Combined Assurance
Management
External assurance
providers
Internal assurance
CA is a co-ordinated approach that ensures that all assurance activities provided by ALL relevant assurance and consulting providers address significant risks facing an organisation and that suitable controls exist to mitigate these risks.
A combined assurance model ensures that adequate, optimised and relevant assurance is provided by reliable, appropriately qualified assurance providers at the right time and in sufficient detail to enable the AC to understand the situation and formulate appropriate responses on the degree of assurance provided in relation to the organisation’s risk appetite.
It is the Board / Executive authority’s responsibility, through the Audit or Audit & Risk Committee, to ensure that an appropriate combined assurance model is applied to an organisation to provide a coordinated approach to all assurance activities.
To this end, IAA is best placed to implement and co-ordinate such a model.
Combined assurance
Who is providing what assurance on what, when, to who and to what extent?

6. Why Combined Assurance?
Support Board / Executive Authority in effectively discharging its responsibilities;
Efficient & effective use of resources;
Avoid duplication of effort / reduce assurance fatigue;
Optimise assurance coverage;
Reduce information overload /facilitate sound decision making;
Reduce costs; and
Regulatory conformance.

7. Annual internal audit scope - Grant Management
Grant management is CORE BUSINESS, hence the area is subject to an ANNUAL REVIEW as a result of its perceived INHERENT RISK to be EXTREME
General focus areas (processes & key controls)
Defining funding opportunities (Strategic Framework(s) / Business Process Documentation / Guidelines etc.)
Call for Applications
Receipt of Applications
Assessment of Applications (Panel meetings, Declaration of Interest(s), Confidentiality Agreements, Consensus Score Cards, etc.)
Approval of Funding Decisions
Awards & Releases
Claims & Payments to Institutions
Grant Adjustments & Journals
Monitoring: Progress Reports and/or External Assurance (Audit Reports)
Carry-forward process
IT General Controls (Phoenix / Great Plains Access Controls, etc.)
Performance Information

8. Institutional visits / “Dipstick” audits
Initial request for “Dipstick”-audits from RISA-executive (2013)
“Dipstick”-audits done to date:
Rhodes University (RU)
University of Witwatersrand (Wits) – 2014
University of Pretoria (UP) – 2014
University of Zululand (UZ) – 2015
Walter Sisulu University (WSU) – 2015
North-West University (NWU) – 2015
University of Cape Town (UCT) – 2016
University of Limpopo (UL) – 2016
University of Fort Hare (UFH) – 2016
University of Zululand (UZ) – 2017
North-West University (NWU) (Ad-hoc THRIP grant) – 2017
National Health Laboratory Services (NHLS)

9. Timing of reviews External Audits (conducted by the Auditor-General)
Interim audit (Q4)
Final audit (Q1 & Q2 of new year)
Internal Audits
Institutional visits (Q1)
RISA grant management process (Q2)
Performance Information (Q4)

10. Questions?

11. Contact details Mrs Vuyokazi Mkwaqa Mr Benjamin Smit
Head: Internal Audit Senior Internal Auditor
Telephone: Telephone:
Mobile: Mobile:
Mr Mandla Dhladhla Mr Bongani Lekula
Internal Auditor Internal Auditor
Telephone: Telephone:
Mobile: Mobile:
Mr Daniel Nkitseng
Internal Auditor
Telephone:
Mobile: