1. African Regional Director
Planning and programming for sustained effective use of internal audit resources
Rob Newsome
African Regional Director

2. Overview The need to understand what is subject to audit
Understand the objectives of the Ministry
Using risk to position the audit work
Co-ordinating with other assurance providers
Skilling up the internal audit department

3. Audit Universe External Forces & Agents Strategic Management Processes
Delivery against
Political Promise
Public service
Vendors/Suppliers
Contractors
Sub-contractors
Distributors
Other government
departments
Ancillary
Complimentary
Services
Trade
Unions
Landlords
Strategic Management
Processes
External Forces & Agents
Resource Management Processes
Road construction
Road
maintenance
Building services
Asset protection
And control
Individuals
Road users
Not for profit
Institutions
Government
Commercial
Entities
Core Business Processes
Business Processes
Markets
Alliances
Core Products
Customers
Planning and budgeting
Logistics and Contractor management
(Supply Chain)
Customer Service Delivery
Human Resource Management
Financial/Treasury Management
Regulatory Management
Property Management
Information Management
Local Politics
International Politics
Regulators
World Bank Financing
Suppliers
Natural Disasters
Civill Strife
Economy
Technology
Capital Markets

4. INTERNAL BUSINESS PROCESS
Strategy to risk link
Vision and
Strategy
“To succeed financially, how
should we
appear to our shareholders?”
Objectives
Targets
Measures
Initiatives
FINANCIAL
“To achieve our vision, how should we
appear to our
customers?”
CUSTOMER
“To satisfy our
shareholders
and customers,
what business
processes must
we excel at?”
INTERNAL BUSINESS PROCESS
“To achieve our vision, how will
we sustain our ability to change and improve?”
LEARNING AND GROWTH

5. Benchmarking Risks which threaten objectives Controls linked to risks
Accidents
Monitor compliance with safety standards and policies & procedures
Lack and timing of resources
Monitor compliance with logistics plan
Equipment break-downs
Monitor compliance with maintenance plan
Labour disruptions
Human Resources management
Wasted expenditure
Budgeting and financial disciplines

6. Assurance co-ordination
Assurance Areas
Focus
Timing
Assurance Provider
Cash risk
Independently evaluate your process to ensure that the key controls in place adhere to sound cash management principles
March September
Management / Internal Audit
External audit review
Strategic
Staff planning, productivity, succession, competency, performance, capacity, staff morale, mentorship
June
Management
Plant maintenance
Maintenance expenditure control
May
Human Resource Management
Recruitment
February

7. Internal Audit expectations
To support the Board of Directors, Audit Committee and management in identifying and managing risks and thereby enabling them to achieve corporate objectives. This is achieved by:
Enhancing the understanding of risk management and the underlying concepts and assisting to implement an effective risk process; and
Providing objective feedback on the quality of organisational controls and performance.

8. Internal Audit resources needed for…
Risk management ,and
Providing objective feedback

9. Risk Management Resources
Chief Risk Officer vs. Chief of Internal Audit
Providing objective feedback on the process of risk management
Risk management software to maintain the risk data base

10. Assurance Resources
Determine which risks Internal Audit should provide assurance on
Group the risks within logical processes to detemine effective audit coverage
For each audit identified consider the resources needed to complete the review

11. Assurance Resources continued…
Use software for data interrogation and audit working papers
Assess the skill levels needed to complete each audit
Determine the hours of each skill level to complete the specific tasks
Per skill level aggregregate the estimated hours
Obtain view of the total resource needed to complete the audit universe

12. Assurance Resources continued…
Agree with management and the Audit Committee on the annual cycle to cover the audit universe
The man plan of the department therefore has a zero base
Determine the optimal level and specialist staffing mix inclusive of skills that may be outsourced
This optimal man plan becomes the profile to recruit, train and provide career development

13. Assurance Resources continued…
Benchmark the plan against international and other relevant measures to ensure that the investment is within acceptable norms
Develop acceptable measures to report on department utilisation of resources

14. Closing comments
Audit efficiency and effectiveness through using CAATs
Establish monetary and time budgets for each review and measure actual performance

15. This approach is being adopted in the public sector
This approach is being adopted in the public sector. What needs to be done to make it operational in your organisation???