Audit Department

April 6, 2016 Web Administrator

INTERNAL AUDIT SERVICES DEPARTMENT

Citizen Service Delivery Charter

Commitment To Service Delivery

BRIEF BACKGROUND

The Internal Audit unit was established in accordance with Section 155 (1) of Public Financial Management Act, (No. 18 of 2012) of the Laws of Kenya. Section 155 (1) of the PFM Act states, “A county government entity shall ensure that it complies with this Act and has appropriate arrangements for conducting internal audit according to the guidelines issued by the Accounting Standards Board.”

The purpose of Internal Audit is to assist the County Government of Kakamega in accomplishing its objectives by bringing a systematic, disciplined approach, to evaluate and improve the effectiveness of risk management, control, and governance processes

VISION

To be a customer-focused function that provides value-added audit and consulting services to support the achievement of the County Government of Kakamega objectives.

MISSION

To provide assurance, advisory and consultancy services to all stakeholders on the use of public resources through a professional, systematic, disciplined audit functionality that enhances good and ethical governance of the County Government of Kakamega.

OUR MANDATE

The mandate of the Internal Audit function has been stipulated in the Public Financial Management Act (2012) Regulations [Section 150] and encompasses:

A duty to give reasonable assurance through the Audit Committee on the state of risk management, control and governance within the County Government of Kakamega, specifically;
-Review enterprise risk management framework and associated procedures in order to identify and manage financial and business risks facing the County Government of Kakamega;
-Improve management’s awareness of the need to identify and manage risks;
-Validate risks with management across the processes and functions within the ministries; and
-Establish a basis for a risk-based internal audit plan aligned with the risk framework.
Review and evaluation of budgetary performance, financial management, transparency and accountability mechanisms and processes in the County Government of Kakamega, including the County Assembly; specifically:
-Review the internal control environment within the County and present recommendations on how to improve these controls;
-Review policies and procedures and ensure they are adequate and completely addresses the processes within the County Government;
-Review the culture that is embedded within the County Government and ensure it is committed to ethical and lawful behavior;
-Review performance against budget,
-Review the planning and execution the budget in line with County Government priorities, and whether the budget contributes to implementation of County Government’s objectives;
-Review the use of budgeted resources to ensure they contribute to efficient service delivery and value for money to the county residence; and
-Carry our audit of internal controls and issue reports with recommendation on improvement of identified gaps.
Reviewing the effectiveness of the financial and non-financial performance management systems of the County Government of Kakamega
-Non-Financial Performance Management: Review of ratio-based performance measures, excluding the monetary value; such as customer satisfaction, employee engagement and satisfaction, quality of service provision, improving the way the public view of the operations of the County Government, etc. Non-financial performance measures are considered to be leading indicators of future financial performance.
-Financial Performance Management: Measures of how well the County Government utilizes the assets and available resources/facilities to generate revenue, and how well it manages costs in the execution of its mandate.

The responsibility over the management of risk, control and governance processes remains with the County Executive Committee (CEC) of the County Government of Kakamega. As such the CEC is required to design, implement and manage the internal control system within the County.

CORE FUNCTIONS

Reviewing the governance mechanisms of the County Government and mechanisms for transparency and accountability with regard to the finances and assets of the County Government;
Conducting risk-based, value-for-money and systems audits aimed at strengthening internal control mechanisms that could have an impact on achievement of the strategic objectives of the County Government;
Verifying the existence of assets administered by the County Government and ensuring that there are proper safeguards for their protection;
Providing assurance that appropriate institutional policies and procedures and good business practices are followed by the County Government;
Evaluating the adequacy and reliability of information available to management for making decisions with regard to the County and its operations.

CORE VALUES

Independence
Confidentiality
Professionalism:
Timeliness
Innovation
Transparency and accountability

OUR CLIENTS

The Government of the Republic of Kenya
The County Government of Kakamega
Members of County Assembly of Kakamega
The Public Service Board of the County Government of Kakamega
The Office of the Auditor General (Kenya National Audit Office)
Office of the Controller of Budget
The Public Sector Accounting Standards Board
Other government institutions tasked with monitoring the governance and operations of County Governments
The general public

LINES OF DEFENCE FOR THE COUNTY GOVERNMENT

In setting up its internal control framework, the County Government of Kakamega has employed three lines of defense. These lines of defense exist so that there is assignment of specific roles and responsibilities for effective risk management of the operations of the County Government. The three lines of defense are:

People, Process and Technology.
Management and Oversight

Internal Audit Function

INDEPENDENCE & OBJECTIVITY

All Internal Audit activities shall remain free of influence by any element in the organization, including matters of audit selection, scope, procedures, frequency, timing, or report content to permit maintenance of a necessary independent and objective mental attitude.

Internal auditors shall have no direct operational responsibility or authority over any of the activities audited. Accordingly, they will not implement internal controls, develop procedures, install systems prepare records, or engage in any other activity that may impair internal auditor’s judgment.

An internal auditor shall not perform audit assignments for providing assurance relating to activities and structures on which he or she has provided consulting services or in which he or she had been employed over in the last twelve (12) months.

Internal auditors must exhibit the highest level of professional objectivity in gathering, evaluating, and communicating information about the activity or process being examined. Internal auditors must also make a balanced assessment of all the relevant circumstances and not be unduly influenced by their own interests or by others in forming judgments.

AUDIT COMMITTEE

The treasury Gazette Notice dated 15/04/2016 No.2690 outlines the on the appointment of Audit Committees. Treasury Cabinet Secretary circular No. NT/IAG/GEN/055/(164) requires that all Counties and County Assemblies must establish an Audit Committee by 01/07/2016. We are glad to note that the County Government of Kakamega together with Nairobi County Government are the only Counties that have established these committees.

In accordance with Public Financial Management Act (2012) Regulations [Section 165], the main purpose of the Audit Committee of the County Government of Kakamega shall be to provide oversight over the issues of risk management, system of internal control and governance and associated assurance. The responsibility over the management of risk, control and governance processes remains with the management of the County Government of Kakamega.

The Audit Committee shall also oversee the process of follow up on the implementation of the recommendations proposed by the internal and external auditors respectively.

INTERNAL AUDIT SERVICES DEPARTMENT

The proposed County Government Internal Audit Organogram

AUDIT COMMITTEE MEMBERSHIP

The current audit committee members were appointed on 24/11/2015 and comprise of the following;

Tubman Bosley Walaba -Chairman
Lucy M Anangwe – Member
Ainea Martin Omuse – Member

AUDIT STAFF

The Department requires a staff compliment of at least twenty officers and currently has the following officers working under the department still under a centralized system. The Department provides services to all county departments sub counties and units. To uphold professionalism and excellence in service delivery, the department has recruited appropriate staff who are currently bringing in a systematic approach towards auditing. All staff are now members of the Institute of Internal Auditors (IIA) and some members of the Institute of Certified Public Accountants of Kenya(ICPAK). Currently, the following officers are on board offering Internal Audit Services;

Director Internal Audit Services (Head of Department)
Principal Auditor
Three Audit Assistants
Seven Audit Assistants
Three Departmental Drivers.

We are in the process of recruiting more staff.

OUR SERVICE STANDARDS

We shall attend to our stakeholders swiftly as follows:

Respond to all written communication within 7 days upon receipt
Issue reports and follow up to closure within 14 days
Attend to complains from the public immediately
Maintain
Have an officer at hand always to attend to any clients visiting our offices
Ensure all staff are identified through official staff badges when entering our offices.

we shall attend to our stakeholders swiftly as follows:

respond to all written communication within 7 days upon receipt
staff to be identified through official badges of the county government

SERVICES RENDERED	CLIENT REQUIREMENTS	USER CHARGES/COST	TIME FRAME
Provide reasonable assurance that risk management control and governance systems are functioning.	Receipt of necessary /relevant information -organization risk mgt framework, organization current priority framework plans.	free	21 Days
Conducting core IT internal audits, computer controls, information security, pre & post implementation reviews -Network audits	Policies,procedures,laws and regulations governing. -Total employees, total assets, scope of operations	free	7 Days
Reviewing the proposed business continuity and disaster recovery plans for design,completeness-contingent plans	Policies,procedures,plans hard drives ,templates, offline storage devices/receipt of relevant documentation	free	7 Days
Conducting compliance audits for independent assessment of compliance with the Policies and procedures Regulator applicable rules and regulations.	-Compliant information/documentation -Statutory and regulatory documents related to the product/service Guidelines,schedules,policies procedures in place,	free	21 Days
Consulting services -Performance metric reviews -Strategic initiative reviews -Value for money audits -Benefit realization on implemented projects	Receipt of relevant /necessary information -Inquires, contracts ,order handling -Governance documents,budgets,plans -Other documents as may be requested -Organization strategic plan	free	14 Days
Evaluating effectiveness of fraud management framework -Providing ethics training sessions -Monitoring whistle blowing instances -Carrying out suspected fraud investigation -Ascertaining root cause analysis -Proposing control improvements and recommendations	Receipt of notification	free	21 Days
Governance reports Risk management issues Internal control deficiencies identification Recommendations for efficient and effective performance	Receipt of relevant documentation, control documents. Risk mgt plans,policies,procedures sector/departmental budgets, detailed schedules	free	14 Days
Accountability -Supporting the county to achieve its objectives -Provide capacity building for county entities by developing curriculum, training materials -Advising members of CEC and chief officers on emerging issues in control environment	All accountable documents, statements of accounts, payment vouchers, bank statements	free	14 Days
Preparation and submission of routine audit reports to other government agencies -Special audits	Timely delivery of relevant and clearly requested information	No fee	-7 Days -Quarterly basis -On needs basis

Resolution of public complains	Timely requests Provide adequate and accurate information	free	Personal visits/phone calls-immediate -On need basis
Respond to general inquiries by the public	Timely requests Provide adequate and accurate information	free	Personal visits/phone calls-immediate

Obligation of our clients:

To be able to offer efficient, timely and quality services to our clients and stakeholders in the most effective and efficient manner our clients have an obligation to:

Be conversant with the department policies procedures and guidelines in regard to services rendered.
Provide full sincere, complete and accurate information on the services required
Provide feedback on the quality of services offered by our staff
Avoid unethical behavior
Make timely requests for services required
Relate to our staff with courtesy and respect.

Rights of our clients

Our clients have a right to:

Confidentiality of sensitive information
Be served with respect and courtesy
To receive quality and timely services
Lodge complaints when dissatisfied with services rendered

Professional & Excellence is our passion & Commitment

CONTACTS

Email: audit@ kakamega.go.ke

ctunga@kakamega.go.ke

LOCATION

Sahajanand Building 2nd Floor( Kakamega-Mumias RD)