Portfolio Committee on Home Affairs Presentation on Internal Audit 19 April 2013

1. Portfolio Committee on Home Affairs Presentation on Internal Audit 19 April 2013 Building a New Home Affairs

2. Content of the presentation • Legislative Mandate • Internal Audit Budget • Internal Audit Establishment • Compliance with International Standards • Key actions taken to comply with ISPPIA • Findings of the Auditor-General • Audit of foreign missions • Current challenges • Remedial steps

3. Legislative Mandate

4. Legislative Mandate

5. Legislative Mandate

6. Legislative Mandate

7. Legislative Mandate

8. Internal Audit Budget

9. Internal Audit Establishment

10. Compliance with the International Standards for the Professional Practice of Internal Auditing (ISPPIA) An external quality assurance review was done in 2010. The state of play at that point compared to now is as follows: July 2011 April 2013

11. Extensively revised the Internal Audit Methodology to bring it in line with a risk-based audit approach Introduced checklists at critical points in the audit process to improve quality control Trained Internal Audit staff in the application of the Internal Audit Methodology Improved the systems for documenting and tracking management’s implementation of audit recommendations Enhanced the time management system Enhanced reporting to the Audit Committee Key actions taken to comply with ISPPIA

12. Took steps to bring in IT audit capacity Took steps to bring in an Office Manager to assist in monitoring of time and project management Took steps to reorganise internally to improve productivity Expanded the use of computer assisted auditing techniques (CAATs), however, there is still more room to improve the use of CAATs With regard to the audit of the foreign missions closer collaboration has been fostered with DIRCO Internal Audit to establish synergies Key actions taken to comply with ISPPIA

13. Findings of the Auditor-General

14. Findings of the Auditor-General (Continued)

15. 54 foreign missions have DHA staff performing DHA functions and are audited by DHA Internal Audit All other missions have DIRCO staff performing DHA functions and are audited by DIRCO Internal Audit Steps have been taken recently to ensure that DHA receives reports from DIRCO on the audits that they have done with regard to the DHA functions A risk ranking matrix for foreign missions has been implemented to inform which missions must be audited The following foreign missions were audited in 2010 /11: Luanda, Angola and Kinshasa, DRC The following foreign missions were audited in 2011 /12: Accra, Ghana; New Delhi, India and Nairobi, Kenya No foreign missions were audited in 2012/13 and the following audits are planned for 2013/14: Windhoek, Namibia; Maputo, Mozambique; Sao Paolo, Brazil; Canberra, Australia; Toronto, Canada and Mbabane, Swaziland. Asmara, Eritrea and 1 other mission to be agreed upon will be audited jointly with DIRCO Internal Audit Audit of the foreign missions

16. Current Challenges • Situation of the Chief Audit Executive • Capability of Internal Audit staff • Quality of internal audits • Long delays in finalising internal audit projects • Operating model of Internal Audit

17. Remedial Steps • A process is underway to appoint an Acting Chief Audit Executive on a full time basis pending resolution of the labour relations process against the incumbent CAE • Greater attention is being given to improve the implementation of quality assurance, time keeping and project management tools • On going staff development programmes • There is an increased focus on staff performance management. The Audit Committee and Executive have instructed that serial non-performers must be performance managed out of Internal Audit and possibly the department.

18. Remedial Steps • A strategic co-sourcing model has been agreed upon. A pool of service providers will be established to supplement the internal capacity. The SCM process to give effect to this has commenced. • The priority task of the incoming IT Audit specialists will be to design and implement a system of continuous auditing

19. THANK YOU Questions? Comments? Suggestions?