Internal Audit

OBJECTIVE

Objective of the directorate is to provide independent, objective, assurance and consulting services designed to add value and improve the Ministry's operations and systems of internal controls, risk management, and governance processes.

 RESPONSIBILITIES

To achieve the objective of the directorate and hence, that of the Ministry, the directorate has the following main responsibilities in line with the Federal Government of Ethiopia Financial Administration Proclamation No.648/2009 and Financial Administration council of Ministers Regulation No. 190/2010.

RESPONSIBILITIES ON GOVERNANCE

A focus on corporate governance offers the directorate the opportunity to become a more active & strategic team player. To this end, the following are the identified responsibilities of the directorate on governance process of the Ministry:  

  • Assess and make appropriate recommendation to the management for improving the governance process of the Ministry;
  • Provide consulting services to appropriate areas of the Ministry to ensure effective organizational performance management & Accountability;
  • Provide risk & control information to appropriate areas of the Ministry;
  • Provide consulting services to appropriate areas of the Ministry to prompt appropriate ethics & values.

RESPONSIBILITIES ON RISK MANAGEMENT

  • Assist in the determination of whether current and comprehensive risk management framework are in place to provide  an end-to-end  link between objectives, strategy, and execution of strategy, risks, controls, and assurance  across all levels in the organization, and associated procedures for effective identification and management of risks፡
  • evaluate risk exposures to identify & assess significant risks related to the Ministry's governance, operations & information systems regarding the achievement of the organizational objectives, reliability & integrity of financial & operational information, effectiveness & efficiency of operations & programs, safeguarding of assets, compliance with laws, regulations, policies, procedures & contracts;
  • assist management to identify the risks of fraud and develop fraud prevention and monitoring strategies;
  •  review the effectiveness of implemented policies that ensure risks are identified and that controls implemented are adequate, in place and functioning properly;

RESPONSIBILITIES ON INTERNAL CONTROL

  • Assist to maintain effective controls by evaluating the effectiveness & efficiency of the internal control system of the Ministry & by promoting continuous improvement over the existing internal control system;
  • Assist over the adequacy & effectiveness of controls in responding to risks within the organization governance, controls & information system;
  • Assist whether relevant governance frameworks, policies and procedures  are in place and that these are periodically reviewed and updated;
  • Promote a culture of cost-consciousness, self-assessment and adherence to high ethical standards;
  • Disseminate across the Ministry better practice and lessons learnt arising from  audit activities;

SCOPE OF INTERNAL AUDIT ACTIVITY OF THE DIRECTORATE

  • Internal audit reviews of the directorate cover all programmes and activities of the ministry together with associated entities as provided for in relevant agreements, memorandum of understanding or contracts;
  • The scope of audit coverage of the directorate is organization-wide and no unit of the organization is exempted from audit and review;
  • The directorate has no responsibility for developing or implementing procedures or systems and does not prepare records or engage in original line processing functions or activities.

AUTHORITY/ CONFIDENTIALITY

  • Has unlimited power of audit over the whole range of finance, property and activity of the Ministry as per Financial Administration Council of Ministers Regulation No. 190/2010  article 60;
  • Have to full, free and unrestricted access  to all functions, premises, records, other documentations & information, personnel, physical properties, etc necessary to enable the directorate to meet its responsibilities(subject to confidentiality consideration);
  • administrate the resources budgeted for the directorate;
  • close the storehouses/ records / physical properties, etc for audit engagements  with or without prior notice;

FUNCTIONAL REPORTING RELATIONSHIP & ACCOUNTABILITY

  • The directorate is directly accountable and reports to the minister of the Ministry;
  • The directorate is accountable for its internal audit activity in any of professional & legal frameworks.
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