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Supplementary Valuation Roll No 6

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Integrated Development Plan 2012-2017

20 years of freedom
Zulu Kingdom

Internal Audit Section

The Emnambithi/Ladysmith Municipality has an Internal Audit Unit which is fully functional.

Legislative Mandate

The roles and responsibilities of the Internal Audit Unit is set out in Section 165 of the Municipal Finance Management Act, Act No. 56 of 2003 as follows:-

The Internal Audit Unit must -

(a) Prepare on an annual basis a risk-based audit plan and an internal audit programme for each financial year;

  • Advise the accounting officer and report to the Audit Committee on the implementation of the internal audit plan and matters relating to:
  • Internal audit
  • Internal controls
  • Accounting procedures and practices
  • Performance management
  • Risk and risk management
  • Loss control
  • Compliance with MFMA, Division of Revenue Act (DORA) and any other applicable legislation.
  • Safeguarding of assets.
  • Appraisal of the economy and efficiency with which resources are employed.
  • Perform other such duties as may be assigned to it by the Accounting Officer.

Objective and Scope of Work

Internal Audit Unit’s primary objective is to provide an independent and objective assurance and consulting services designed to add value and improve Emnambithi/Ladysmith Municipality’s administration operations through a systematic, disciplined approach to evaluate and improve the effectiveness of the systems of internal control, risk management and governance processes.

The scope of work of the Internal Audit function is to determine whether the municipality’s risk management, control and governance processes, as designed and represented by management, is adequate and functioning in a manner to ensure:

  • that risks are appropriately identified and managed;
  • that interaction with the various governance groups occurs as needed;
  • that significant financial, managerial, and operating information is accurate, reliable, and timely;
  • that employees’ actions are in compliance with policies, standards, procedures, and applicable laws and regulations;
  • that resources are acquired economically, used efficiently, and adequately protected;
  • that programs, plans, and objectives are achieved;
  • that quality and continuous improvement is fostered in the municipality’s control process; and
  • Those significant legislative or regulatory issues impacting the municipality are recognised and addressed appropriately.

Accountability

Internal Audit Unit is directly accountable functionally to the Audit Committee, as established in terms of section 166 of the MFMA. This accountability applies despite the administrative location of the Internal Audit Unit which is under the Office of the Municipal Manager.

Internal Audit Unit is responsible to the Accounting Officer to ensure that it gives assurance as to the effectiveness and efficiency of the systems of internal controls, risk management and governance process employed in the municipality.

Internal audit as a philosophy is a management tool designed to apprise and advice the Council, Executive Committee, Accounting Officer and his Strategic Management Committee on governance, risk management and systems of internal control within the processes. This affirms the attitude of the internal auditor’s role in internal audit activity which requires that reports be issued, discussed with management and management comments obtained incorporated into the reports before audit report to the Audit Committee is compiled and tabled before the Audit Committee.

Key Focus Areas 2013/2014

In terms of the Annual Risk Based Internal Audit Plan 2013/2013 the key focus areas include:

1. Key Focus Areas - Office of the Municipal Manager

1.1 Assessment of the functionality of the municipality’s performance system
1.2 Assessment of whether the municipality performance system complies with the Act
1.3 An assessment of the alignment of objective, output and measures
1.4 Review of Risk Management Strategy and Framework

2. Key Focus Areas - Department of Corporate Services

2.1 Leave Queries and Leave Encashments
2.2 Staff Records and Appointments
2.3 Administration of IOD’s and Pension Claims
2.4 Training Programmes Undertaken and submissions to LGSETA
2.5 Information Technology – Governance, Security Management, User Access Control, Program Change Management, Services Continuity, and Facilities and Environmental Control
2.6 Valuation roll and Rates Assessment

3. Key Focus Areas - Department Community Services

3.1 Collection of Fines Paid
3.2 Reconciliation between Samras and Trafman
3.3 Fleet Management and Fuel Consumption
3.4 Licencing collections
3.5 Job Costing and Sundry Services
3.6 Hire of Community Facilities
3.7 Projects and Grant Funding received

4. Key Focus Areas – Department Development Planning And Human Settlement

4.1 Administration of Land Sales
4.2 Administration of Housing Projects
4.3 IDP Process
4.4 Administration of LED Projects

5. Key Focus Areas – Department Finance

5.1 Creditors Run and reconciliation
5.2 Long Term Loans Reconciliation
5.3 Grants Reconciliation
5.4 Fixed Assets Register and Asset Count
5.5 Investment and Interest Charged
5.6 Inventory / Stock Control
5.7 Cash Taking
5.8 Banking and Bank Reconciliation
5.9 Employee Study Bursaries
5.10 Debtor Processes and Month End Trail Run for Services Rendered
5.11 Suspense Accounts
5.12 Commitments
5.13 Fruitless and Wasteful Expenditure
5.14 Journals Processed
5.15 Implementation of Indigent Policy
5.16 Salary Run, and ACB
5.17 Financial System Transaction Listing
5.18 Supply Chain Management Process
5.19 Contract Register and Contract Payments
5.20 Review of Mid-Year and Annual Financial Statements
5.21 Review of Mid-term and Annual Budget

6. Key Focus Areas – Department Infrastructural Services

6.1 Job costing and Sundry Services
6.2 Plan Approvals, Building Inspection and Occupation Certificates
6.3 Electricity loss calculations
6.5 Electricity Meter Books, Final Error Report, Meter Changes and Bulk Consumer Accounts
6.6 Projects and Grants Funding Received

Structure

The Internal Audit function is in house and not out-sourced to an external service provider, and is fully funded from the municipality’s operational budget.

The structure of the unit is as follows:

Simmi Maharaj
Internal Audit Manager:
Simmi Maharaj
Videsh Ramkhelawan
Chief Internal Auditor:
Videsh Ramkhelawan
Tholly Mazibuko
Senior Audit Clerk:
Tholly Mazibuko
Ashley Domun
Audit Clerk:
Ashley Domun
Shakira Jessop
Relief Clerk:
Shakira Jessop
Lungile Mthembu
Relief Clerk:
Lungile Mthembu
Raksha Omapershad
Personal Assistant:
Raksha Omapershad

Location

Our Unit is situated at the Community Services Department, 425 Murchison Street, Ladysmith.