1. Sage Evolution ERP IMFO Conference Expenditure Management
ICT- The ABC of Clean Audit Governance
IMFO Audit & Risk Indaba 2015
20 – 22April 2015: Olive Convention Centre, Durban
Presenter: Eddie Sweeney
1 October 2013

2. Governance defined is about leadership mitigating risks through:-
Embracing Corporate Discipline
Speed
Respecting the Statutes
Cost
Deploying Enabling Systems and Business Processes
Growth
Skill
Empowering People
IMFO: ICT- The ABC of Clean Audit Governance

3. Sage Evolution ERP AGSA – 2012/13 MFMA Audit Outcome Status of Information Technology Controls
Slight Improvement from previous audit
Alarmingly, almost half of municipalities has ineffective IT Controls
IMFO: ICT- The ABC of Clean Audit Governance

4. Sage Evolution ERP AGSA – 2012/13 MFMA Audit Outcome IT Governance
Corporate Governance of Information and Communication Technology Policy Framework (CGICTPF) adopted by Cabinet
King III
ISO 38500
COBIT 5
IMFO: ICT- The ABC of Clean Audit Governance

5. Sage Evolution ERP CGICTPF KING III / ISO 38500 Governance Framework
6 Principles
Responsibility
Strategy
Acquisition
Performance
Conformance
Human behaviour
IMFO: ICT- The ABC of Clean Audit Governance

6. Sage Evolution ERP ISACA COBIT 5 - Control Objectives for Information and Related Technology
Information Systems Audit and Control Association, an international professional association focused on IT Governance
IMFO: ICT- The ABC of Clean Audit Governance

7. Sage Evolution ERP ISACA COBIT 5 - Priority Focus Areas for ICT Audits as defined by AGSA
EDM01: Governance framework setting and maintenance
APO01: Manage the ICT management framework
APO02: Manage strategy
APO03: Manage enterprise architecture
APO05: Manage portfolio
APO10: Manage Suppliers
APO12: Manage Risk
APO13: Manage security
BAI01: Manage programmes and projects
DSS01: Manage operations
DSS04: Manage continuity
MEA01: Monitor, evaluate and assess performance and conformance

8. Sage Evolution ERP AGSA – 2012/13 MFMA Audit Outcome Security Management
IT security is managed at the highest organizational level (CIO)
Strong password controls to authenticate system access, minimum character length, alpha numeric, encrypted, forced change of password
Firewalls & routers are configured correctly within the network environment
Patch management processes to prevent exploitation of vulnerabilities
Antivirus software is implemented across the organisation
System configurations need to ensure that security vulnerabilities and incidents are detected, monitored, reported and resolved on a regular basis
Activities within the system network including databases are tracked, using audit trails and reviewed on a regular basis by someone independent of administration functions and in a senior position
IMFO: ICT- The ABC of Clean Audit Governance

9. Sage Evolution ERP AGSA – 2012/13 MFMA Audit Outcome User Access Management
Formally documented and approved user account management standards and procedures are in place
Formal access request for registering users, changing of access rights, password resets and termination of access rights is approved by management
The number of users with administrator privileges that can perform all functions pertaining to user account management is minimised
Activities of system administrators are monitored by an independent person, in a senior position
Periodic reviews of employee access rights and privileges to ensure it is in line with their job responsibilities are performed
IMFO: ICT- The ABC of Clean Audit Governance

10. Sage Evolution ERP AGSA – 2012/13 MFMA Audit Outcome IT Service Continuity
The IT continuity and disaster recovery plans have been incorporated into the organisational business continuity plan.
The IT continuity plan and DRP has been distributed, updated and tested and is also stored at an offsite location
An IT backup and retention strategy has been implemented
Backup procedures for data and programs exist and are performed according to above strategy
Backups are stored in a secure offsite storage facility
Physical access and environmental controls over the offsite storage facility are implemented
IMFO: ICT- The ABC of Clean Audit Governance

11. Sage Evolution Enabling Systems and Business Processes Compliance with the Statutes
MFMA, PPPFA, MPRA, VAT, PAYE
Budget Regulations – Multiple Financial Periods (7 minimum)
Reporting up to GRAP AFS
SCM – Supplier Rotation, BBBEE, Automated Evaluation and Adjudication, Budget Control, Levels of Approval, Authorised Deviations, Requisition to PO
Property Valuation Roll (GV & SV)
Billing - Tariffs for Rates and Services, Statements

12. Sage Evolution Enabling Systems and Business Processes Compliance with the Statutes
MFMA, PPPFA, MPRA, VAT, PAYE
CRM - Debt Collection and Credit Control, Interest Charging, Ageing per Service
VRM - Supplier Database, BBBEE & Tax Clearance, Invoicing and Payments
Asset Management – Bar Coding, Infrastructure, Depreciation
VAT – Payments or Invoice Based, VAT201
Payroll – EMP201, EMP500
Audit Trails – Transactional as well as System Transactions

13. Sage Evolution Enabling Systems and Business Processes mSCOA
Design Elements of SCOA
Segmented GL Account Structure (7 Segments) with Lookups and Filters per Segment
Short Codes, Full mSCOA Codes and GUID’s
Business Process Automation
Uniform Transaction Types
Multiple Reporting Categories and Levels
Scheduling and Locking of Published Reports
Transaction Data Output File as per NT requirements

14. Sage Evolution Supply Chain Management
Main features of the Sage Evolution Advanced Procurement Module:-
Manages your SCM cycle from requisitions to purchase order and payment of suppliers
Manages your tender processes
Allows you to rotate preferred suppliers
Categorise suppliers by sector / commodities
Allows you to request, evaluate and approve quotes using workflows
Create preferred suppliers to supply certain requested commodities
Set specific qualifying criteria for supplier
Manually or automatically calculate supplier scores
Import and export functionality for supplier quotes
Compare and evaluate quotes and suppliers according to PPPFA scorecards
Thank You!