A ROUTE TO CLEAN AUDIT 6 th Annual Audit And Risk Indaba Ekurhuleni Metro glance Contents Milestone Pillars of a clean audit Sustaining the clean audit Starting point Ekurhuleni Metro glance ID: 358130
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22 April 2015
A ROUTE TO CLEAN AUDIT
6
th
Annual Audit And Risk IndabaSlide2
Ekurhuleni Metro @ glance
Contents
Milestone
Pillars of a clean audit
Sustaining the clean audit
Starting pointSlide3
Ekurhuleni Metro @ glance
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BACKGROUND DATA
3 178 470 million residential population
1 015 645 million households
723,448 households refuse removed weekly
85% have flush toilets
82.2%
access
to electricity for lighting
2011 census
BACKGROUND DATA
38% unemployment rate
Operating income is R26.3 billion
Capital investment program of R3.8 billion
2011 census
44% have deeds of ownership
77.4% reside in formal dwellingsSlide4
Ekurhuleni Metro @ glance
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Delivering City
(2012 - 2020
)
efficient
& cohesive municipal institution effective delivery of basic services functioning area management sound financial footing Well informed and resourced IDPSlide5
Starting point
2000
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It
was established after the amalgamation of 11 erstwhile administrations which used to constitute the former East Rand.
Reconciliations
of many bank accounts, Merging the assets registersPlacements of employeesCondition of servicesStreamlining
process of the various administration systems while ensuring that there was no disruption to service delivery“The first step towards success is when you refuse to be a captive of the environment in which you first find yourself”Slide6
6
2007 internal audit was fully institutionalised
2010
Approved top institutional structure
OPCA was established
2008: Risk as function was established
Administration: Implement
Executive: monitoring
Legislature: Oversight
Milestones
2009 risk based audit
2011 Separation of power
2011 Performance contracts HoD: Risk and audit findingsSlide7
Political leadership
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All level of leadership took part as either implementers of the management letter and general improvement of the internal controls
Leadership on monitoring and evaluation
Oversights by different committees e.g. MPAC, Finance oversights and all committees for different departmentsSlide8
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Annual Financial
S
tatement: unqualified audit opinion
Pre-determined objectives (service delivery): No material findings
Laws, regulations and policies: no material findings
EMM and 5 of its 6 entities achieved clean audit.Pillars for clean auditSlide9
Approach to Operation Clean Audit
Approach
Audit findings were addressed as a project and not once off.
Emphasis was placed on the value chain not audit finding raised.
Proactive approach was taken to ensure that the root cause is addressed
OPCA report was done quarterly to Mayoral committee
Internal Auditor assisted by providing independent assurance on the implementation of the action plans on audit issues and take their findings seriousLeadershipTone at the top towards good and clean administration is clear and unambiguous.Team work
Appointment of competent professionalsStrong audit committeeMPAC
Robust MPAC that hold Executive and SM accountable Follow-up on consequence managementDeadline driven
EM and CMReview performance of the metro against commitments they made to the AG at the end of the previous financial yearSlide10
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2000-2009 Qualified opinions
2010-2013 Unqualified 4 yrs
2014 CLEAN AUDIT
2015 beyond sustain the clean audit
MilestonesSlide11
Risk assessment of three key pillars of the clean audit.
Mitigation strategy for ensuring that focus remains
Quality of reporting on predetermined audit objectives non-financial information.
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BACK TO BASICS
Sustaining the clean audit
Continue to train the finance team, Performance, Risk and Audit.
You will
definetrly
not change the world if you are always worried about being likedSlide12
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