The Role of Internal Audit within City of Tshwane

Presenter: OBED THENGA , CHIEF AUDIT EXECUTIVE , CITY OF TSHWANE

Contents

• Structure of IA within CoT • Functions performed at IA • Role of IA on Corporate Governance • Role of IA on the GDS 2055 • Conclusion

CoT Group Audit and Risk structure

Group Audit & Risk

Internal audit services

Specialised Services

Forensic and Investigations Risk Management

Functions performed at IA

• IA functions’ planning /approach is informed by the strategy of the CoT and its Municipal Entities and align it with business performance .

• Audited areas are identified in line with approved risk register (risk based plan )

• Audit and performance Committee approves the IA plan to Mayoral Committee and Board of Directors of the Municipal Entities.

• Mayoral Committee takes cognizance and recommends approval of IA plan to Council.

The following functions/audits are conducted

• Compliance audits• IT audits • Performance audits • Forensic investigations • Other requests from Management , Mayoral

Committee (adhoc audits)

Roles of IA on Corporate Governance

• Good governance –method /system of management including exercising authority/control

• IA should contribute to organisations’ governance process by evaluating and improving the process through which:

• Values and goals are established and communicated • The accomplishment of goals is monitored • Accountability is ensured, and • Values are preserved

IA operates in two capacities in Governance

• First, as auditors providing independent, objective assessment on the appropriateness of the organization’s governance structure and governance activities

• Second, as catalysts for change by advising or advocating improvement to enhance the organisation’s governance structure and practices.

• Audit Committee has a major responsibility in assuring that the mechanisms for corporate accountability are in place and functioning.

• One of these mechanisms is a solid , well-orchestrated, cooperative relationship with IA.

Roles of IA on GDS 2055• Governance activities exist to help the organization meet its

objectives in being well –run and accountable to its stake holders.• Just like in the GDS 2055, the CoT is articulating its objectives in

each area and put programs to achieve those objectives.• IA must identify challenges in realising GDS 2055 aspirations and to

suggest means of meeting those challenges standing in the way .• It is important for IA to assist CoT to realise the step change

necessary to achieve 2055 aspirations .• A fundamental change is required , not just in economic

performance ,but also in the delivery of public goods that underpin our ability to develop the economy.

Conclusion

• The methodology that we are using now is to begin with quick call for the best ideas and then rapidly moves to action .

• We learn best from doing , rather than simply planning, similar to learning to ride a bicycle .

• This roadshow is a public call for the best ideas, as the sole intention of the programme is to make a difference, and to implement the best ideas, from wherever they come.

THANK YOU