Internal Audit Unit (IAU)

Internal audit function was established in Finance Department (along with Home, Health and School Education Department) in May 2017 through an Internal Audit Charter approved by Honorable Chief Minister Sindh under World Bank funded, Sindh Public Sector Reform Management Project.

The internal audit function provides the assurance services to ensure that the Finance Department’s system of risk management, control and governance processes, as designed and presented by management, are robust, i.e. adequate & appropriate to the professional standards and functioning in a prescribed manner.


SCOPE

The scope of the internal audit is unrestricted and includes strengthening internal controls, adherence to centrally prescribed policies and procedures; laws, rules and regulations and directives to foster economy, efficiency and effectiveness of the activities of the department and organizations with transparency in the audit execution and sustainability of the public services delivery.


REGULATORY STRUCTURE

The overall structure of the Internal Audit function in Sindh has a Provincial Internal Audit Committee (PIAC) chaired by the Finance Minister. The PIAC is responsible for establishing and maintaining a robust internal audit function and mechanism, for the Government of Sindh. The PIAC oversees the implementation of Internal Audit Charter, Law & Rules made for the purpose in accordance with the relevant provisions.

The PIAC is supported by an appropriately staffed Secretariat established at the Finance Department, as per the scope laid down in the IA Charter.

Departmental Internal Audit Committee which is headed by the Secretary Finance with clear mandate and scope as laid down in approved IA Charter is a forum where internal audit plan, internal audit reports are presented and corrective actions are instructed to concerned Wings / Units of Finance Department.

The Internal Audit function at finance department is responsible to assess on a regular basis:

  • The adequacy and effectiveness of the systems of financial, operational and management controls and their operation in practice in relation to ascertained risks
  • The extent of compliance with laws and regulations of the departments and organizations of the government
  • The extent to which resources are acquired economically, used efficiently, duly accounted for and safeguarded from losses of all kinds arising from waste, extravagance, inefficient administration, fraud or other causes
  • The suitability, accuracy, reliability and integrity of financial and other information and the means used to identify, measure, classify and report such information
  • The integrity of processes and systems at the time of development / introduction, to ensure that controls offer adequate protection against error, frauds and losses of all kinds and that the process aligns with the objectives of the departments and organizations of the government
  • Fiduciary risks (including procurement and corruption risks) by rating and highlighting them as High, Medium and Low risks, that might arise out of a particular reform or initiative that has implications, and suggest measures to mitigate these risks (advisory / consulting)
  • The extent and effectiveness of inter-departmental and / or intra-departmental coordination and liaison required for effective service delivery
  • Programs, projects and plans are effectively implemented and objectives are timely achieved
  • Workable options for improving management control, value for money, revenue enhancement and methods to stop revenue evasion and better government image are identified during internal audit and recommended in good time to the senior management

DIRECTOR / CHIEF INTERNAL AUDIT

Internal Audit Unit is headed by Syed Sameer Abbas Ali who is a Chartered Accountant and an associate member of Institute of Chartered Accountants Pakistan. He has more than 10 years of experience in external and internal audits in audit firm as well as listed companies. Prior to GoS, he was associated with BIPL Securities Limited (Formerly KASB Securities Limited) as Head of Internal Audit. Before BIPL, he was working in Riaz Ahmad, Saqib, Gohar & Co., Chartered Accountants (A member firm of AGN International) as Manager - Audit & Assurance.

FOCUS

  • Reviewing compliance with relevant Acts, rules and regulation as well as departmental guidelines, SOPs and standing orders.
  • Recommending changes in above to strengthen controls and oversight as well as to match it with the modern bureaucratic systems.
  • Recommending practicable improvements in processes and internal controls to achieve efficiency as well as effectiveness in oversight on transactions.
  • Recommending softwares, MIS, electronic database to ensure effective controls, efficient recording as well as swift management reporting
  • Advisory role over financial and legal matters with the senior management of the Finance Department
  • Recommending additional controls to improve detection and deterrence of resource wastage and other unacceptable practices at department level

STRATEGY FOLLOWED BY INTERNAL AUDIT UNIT

Level Steps to be Taken
1.Initial
  • Hiring of initial staff / consultant firm
  • Understanding and mapping of processes
2.Adoption of regulatory framework - Development of
  • Internal Audit Charter / Terms of Reference
  • Internal Audit Plan
  • Internal Audit Manual
- Hiring of requisite staff considering the scope and quantum of work.
- Conduct of audits as per plan
3.Integrated within the Department
  • Advisory role of IA in strategic meetings for inputs on system development, financial reporting, legal and regulatory matters
  • Auditees’ realizing IA recommendation and starts implementation.
  • Performance monitoring of Internal Audit Unit
4.Management of process implementation
  • Internal Audit activities are linked with organization’s risk management strategy
  • Swift implementation of internal audit implementation
5.Optimization Level
  • Internal audit function plays key role as an agent of change management

Currently, Internal Audit Function in Finance Department lies between level 3 & level 4 above.


ACHIEVEMENTS / IMPLEMENTATION

Since its establishment, internal audit function has audited following sub-functions of Finance Department and has recommended various controls, procedures, information systems to strengthen internal controls and bring efficiency in service delivery:

  • Budget & Expenditure Wing
  • Local Finance Wing
  • Development Wing
  • Admin & SR Wing (Procurement)
  • Fund Management House
  • Debt Management Unit
  • Resource Wing
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