1. Internal Audit Approach
Makhongela MM – Limpopo Chairperson: CIGFARO

2. Table of Contents
Introduction
IA Responsibilities
Accountability Cycle
Key Activities
Conclusion

3. Introduction
The role of Internal Audit is clearly defined by the Institute of Internal Audit on its definition of Internal Auditing as
Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

4. Introduction
The objects of Local Government indicates the responsibilities and Core Functions of the Municipalities.
The focus of Internal Audit should be to assist Municipalities to achieve this objectives.
How??
Internal Audit plan include both Audit of Performance Information and Performance Audits to assist the Municipalities to deliver services to the communities.

5. IA & Risk Management Responsibilities on AOPO
Regulation 14 (1). (a) A municipality must develop and implement mechanisms, systems and processes for auditing the results of performance measurements as part of its internal auditing processes.
Any auditing in terms of paragraph (a) must include assessments of the following:

6. IA Responsibilities on AOPO Cont..
(i) The functionality of the municipality’s performance management system; (ii) whether the municipality’s performance management system
complies with the Act; and (iii) the extent to which the municipality’s Performance measurements are reliable in measuring performance of municipalities on indicators referred to in regulation 9 and 10 (c) A municipality’s internal auditors must -
(i) on a continuous basis audit the performance measurements of the municipality; and (ii) submit quarterly reports on their audits to the municipal manager and the performance audit committee referred to in sub regulation.

7. IA Responsibilities on AOPO Cont..
on a continuous basis audit the performance measurements of the municipality; and (ii) submit quarterly reports on their audits to the municipal manager and the performance audit committee referred to in sub regulation.
To meet the IA definition of value add, internal audit need to develop a plan which will be aligned to the calendar of activities for the IDP, Budget and PMS processes.

8. Accountability

9. Key Activities Report Legal Mandate Key Deadline
Tabling of Final Budget to Council and Approving any changes
to the municipality’s IDP
Section 24 (1) & (2) of the Municipal Finance Management Act,
At least 30 days
before the start of the
budget year – i.e.: 31
May
Approve the Service Delivery
and Budget Implementation
Plan [SDBIP]
Section 53 (1) (c) (ii) of the Municipal Finance Management Act,
Within 28 days of the
approval of the
municipal budget by
Council
Quarterly progress report on SDBIP
Section 41 (1) (e) of the Systems Act,
Section 166 (2) (a)
(v) and (vii) of the Municipal Management Finance Act
(MFMA) and Regulation 7 of the Municipal Planning and
Performance Management Regulations.
Within 30 days of the
end of each quarter –
i.e.: 31 October, 31
January, 31 April, 31
July

10. Key Activities Report Legal Mandate Key Deadline Mid-year performance
assessment (assessment
report due by 25 January each year)
Section 72 of the MFMA.
Section 13 (2) (a) of the Municipal Planning and
Performance Management Regulations 2001
By 25 January each year
Annual report
(to be tabled
before Council by 31January)
Sections 121 and 127 of the MFMA, as read with
Section 46 of the Systems Act and Section 6 of the
Systems Amendment Act.
By 31 January each year

11. My interest is in the future because I am going to spend the rest of my life there. ~ Charles F. Kettering