(To be published in MoF website, under INTERNAL AUDIT DEPARTMENT)

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Nov 10, 2013 (3 years and 7 months ago)

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Ministry of Finance

Internal Audit Investigation and Evaluation General D
irectorate


(To be published in MoF website, under INTERNAL AUDIT DEPARTMENT)


Introduction


Internal auditing is an independent, objective assurance and consulting activity designed
to add value and improve Ministry of Finance operations. It helps the Ministry
accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk ma
nagement, control and governance process.


Vision

Tr
ansparent, accountable and people oriented good governance system in the Islamic Republic of Afghanistan


Mission



Provide effective internal oversight services to enhance economy in acquiring resources, efficiency in mobilizing the resourc
es and effectiv
eness in meeting the goals and
objectives of M
inistry
o
f
F
inance
.



To assist
M
inistry and audit committee in the effective discharge of their responsibilities by providing analysis, recommendations, coun
sel and information concerning
activities audited.


Objectives



Ascertaining the level of compliance with established
G
overnment laws, policies, procedures, and plans (including behavioral and ethical expectations).



Reviewing and appraising the soundness, adequacy and application of accounting, financial and

other controls in place to achieve goals.



Ensuring the economical, effective and efficient use of
Ministry of Finance

resources.



Ascertaining the effectiveness with which the
Ministry of Finance

assets are accounted for and safeguarded.



Conducting special

investigations.



Ensuring the integrity and reliability of financial and operational information produced by the
Ministry of Finance

departments

.



The key role of the Internal Audit program is to develop and implement audit procedures in line with govern
ment policy.


Mandate
:


Article 61 of the Public Finance and Expenditure Management (PFEM) Law has stated that
:

“T
he Ministry of Fi
nance (MoF) shall establish an I
nternal
A
udit administration and appoint auditors to audit the financial and accounting affa
irs of all state administrations.


The auditors referenced

in paragraph one (above)

may require the relevant administrations to provide all information needed for auditing financial affairs

.




Structure of Internal Audit in Ministry of Finance:


The management hierarchy of the General Directorate of Internal Audit, Investigation & Evaluation is as follows:
































یتایلمع شیتفت رمآ
نیناوق تیاعر و

موس تسب


یبایزرا و یسررب شیتفت یمومع سیئر

لوا تسب


Director of Audit, Monitoring & Evaluation

for Asset &

Revenue


G


2
nd



رترکس

تسب
5



Chief of Audit
for Taxes

and
Fess

G


3
rd



Chief of Audit
for Assets


G


3
rd


Chief of Audit
for Treasury



G


3
rd




Chief of Audit
for Mustofiats


G


3
rd



نیازخ شیفت سیئر
مود تسب هجدوب و


یبایزرا و یسررب شیتفت رما
اه متسیس

موس تسب


یسررب رمآ

بلقت

موس تسب


یتایلمع تیرمآ

موس تسب

یهد شرازگ و قیقدت ، یراذگ نلاپ یمومع ریدم
تسب
4


تسب اضعا
5

رفن هس


تسب تایلمع و تاطابترا یمومع ریدم
4


تسب اضعا
5

رفن هس

Chief of Audit
for Customs


G


3
rd


اه متسیس یسررب و نیناوق تیاعر شیتفت سیئر

مود تسب

Director of Audit, Monitoring & Evaluation

for Treasury & Budget


G


2
nd


یتایلمع شیتفت رمآ
نیناوق تیاعر و

Senior
Manager for
Compliance &
Operations
Audits

یبایزرا و یسررب شیتفت یمومع سیئر

䑩D散瑯r 䝥G敲慬aIn瑥tn慬a䅵
d楴ⰠInv敳瑩ta瑩tn & Ev慬u慴楯n

سیئر

اه ییاراد و دیاوع


Director

Asset
s

&

Revenue

Audits



رترکس

Secretary to DG

رمآ

تایلام شیتقت
سیف و

Senior
Manager

for
Taxes

&

Fe
e
s


رمآ

اه ییاراد شیتقت

Senior Manager

for
Assets

رمآ

نیازخ شیتفت

Senior Manager

for Treas
ury

Audits






رمآ

تیفوتسم شیتفت
اه

Senior Manager
for Mustofiat
Audits



رمآ

و نیازخ شیفت
هجدوب


Senior Manager
for Treasury &
Budget

Audits


رمآ

و یسررب شیتفت
اه متسیس یبایزرا

Senior Manager for
Information
Systems Audit

بلقت یسررب رمآ

Senior Manager
for Fraud
Investigations


یتایلمع تیرمآ

Senior Manager Operations

گ نلاپ یمومع ریدم
یهد شرازگ و قیقدت ، یراذ

Manager Planning & Reporting

ریدم

تایلمع و تاطابترا یمومع

Manager Public Relations & Operations

مآ
ر

تاکرمگ شیتفت

Senior Manager

for Customs

اه متسیس یسررب و نیناوق تیاعر شیتفت سیئر

Director Compliance & Information Systems

Audits

هجدوب و نیازخ شیفت سیئر

Director

Treasury & Budget

Audits

1)

TREASURY & BUDGET AUDIT DIRECTORATE:


Int
roduction:

Treasury & Budget Audit
Directorate
is responsible for the evaluation of Financial & Administrative matters of
v
arious
d
epartments of the
Ministry of Finance e.g.
Directorate General

of Treasury,
Directorate General

of Budget,
Directorate
of Pro
curement,
Directorate

of Finance
& Controllers of Budgetary Units.



Scope of Work:


Treasury & Budget Audit
Directorate
consists of three units, their names and responsibilities are as follows:



1.

Mustofiats

Audit Unit

:


This unit
is responsible for the
audit of revenue & expenses of the

mustofiats of relevant

provinces.




2.
Budget
Audit Unit
:


This unit
is responsible for the
monitoring &
evaluation of o
perational

& development
b
udget, also responsible for the audit of the
construction project
s
in the
Mustofiats

& Customs
units
.






3.
Treasury
Audit Unit
:



This unit
is responsible for the audit of
all units of Treasury directorate to ensure procurement process and procedures & other processes
are complied with the

rules, regulations & their relevant laws
.

M
onitoring controllers in budgetary units

of line ministries are also audited by this unit
.




2)

ASSETS & REVENUE AUDIT DIRECTORATE:


Introduction:


This
directorate

is responsible for
the following activities:

a)

Audi
t of f
inancial & accounting matters

of Customs, Taxation, Fees & Assets units of MoF,

b)

Finding
reasons
of

failure in achievement of
Revenue & Customs
targets,

c)

Manag
ing

& O
rganizing
operational
activities
audit groups and their members
,

d)

Monitoring, supervi
sion &
follow up of
relevant laws & regulations for their smooth & transparent
execution,



Scope of Work:


This
directorate also consists of three units, their names and responsibilities are as follows
:


1.
CUSTOMS AUDIT UNIT:


This unit is entirely resp
onsible for carrying out audits in all Customs units of the country.

It is composed of

two sub
-
sections
:


a)

Central Customs
Audit
Sub
-
u
nit

All Customs units located within the centre of capital are audited by this unit, for example: Kabul,


b)

Provincial Custo
ms
Audit
Sub
-
unit

All Customs units located outside the centre of capital and located in the provinces are audited by this unit.






2.

ASSETS AUDIT UNIT:


This unit is entirely responsible for carrying out audits
of fixed assets of the
Government

across
the

country.

It is composed of

two sub
-
sections
:


a)

Enterprises

Audit
Sub
-
unit

This unit is responsible for conducting audits of all State
-
owned Enterprises.


b)

Insurance

&
Real Estates

Audit
Sub
-
unit

This unit is responsible for conducting audits of Afghan Natio
nal Insurance Company & Real Estates.




3.

TAXATION & FEES AUDIT
UNIT:


This unit is responsible for
conducting
audits
of
taxation & fees and ensuring that taxes and fees are properly calculated, deducted and
paid as per the rules, regulations and law of the

country.

It is composed of

two sub
-
sections
:


a)

Large Tax Payers

Office

(LTO)
Audit
Sub
-
unit:

This unit is responsible for conducting audit of large tax payers, i.e. companies having capital of more than 75 million Afgh
anis


b)

M
edium

Tax Payers Office

(MTO)
A
udit
Sub
-
unit:

This unit is responsible for conducting audit of Medium tax payers, i.e. companies having capital of less than 75 million Afg
hanis








3)

COMPLIANCE
, FRAUD

& INFORMATION SYSTEMS

AUDIT DIRECTORATE:


Introduction:

This directorate is responsib
le for Compliance, Fraud Investigation & Information Systems Audits under the Ministry of Finance compass.



Scope of Work:

As the title indicates
,

this
directorate

is carrying out its responsibilities through the following
three

sub
-
sections:


a)

Complia
nce
Audit Unit

This section of the General Directorate of Internal Audit is in charge of observance of laws, regulations & procedures, if re
quired it may recommend amendments in
above mentioned documents.



b)

Fraud Investigation Unit

Considering Anti corrupt
ion strategy of the Ministry of Finance, General Directorate of Internal Audit established a fraud
Investigation

unit

as part of its compliance
department, this section played an important role in the development of anti corruption policies & procedures al
so discovering of fraudulent activities.



c)

Information Systems Audit Unit

With due diligence of the authorities of the Ministry of Finance most of the departments of MOF are comput
erized
,
& operate through a Computerized System,
therefore auditing

of comp
uterized systems need technical & professional staff; as
auditing

of systems is responsibility of the internal audit department, so the
General Directorate of Internal Audit decided to establish system evaluation section as a part of its compliance departm
ent; establishment of systems audit section is
a new phenomenon in MOF, so employees of this
unit

were given

on the job training in their relevant fields,
and are
now able to
audit

computerized systems
.

This newly established unit is responsible for carryi
ng out Information Systems Audits (IT Audits) of the systems installed and implemented in the various
departments of Government network, for instance, AFMIS (Afghanistan Financial Management Information System), ASYCUDA (Automa
ted System for Customs
Data)
and etc.











Achievements:


(a)
The key achievements of the on going year is
establishment of two new components i.e. 1)

F
raud
Investigation

Unit
and
(2) Information
Systems Audit

Unit. B
oth of them are well functioning.


(b)
Trained 400 Civil Ser
vants of various ministries & state administered institutions in “Audit Training Project (ATP)” for two years and
trained them in Basic Accounting, I
nternal audit guidelines, methods, handbooks
, Management, Computer & English Language.


(c)
During the year

1388 total 174 cases were supposed to be audited, out of the 86 planned cases, 10 out of plan and 78 special cases which
were audited in the
central and provincial sources, finding out approximately
56
.
9

Million
AFS.
as unpaid / due amount.

The outcome of

these evaluations has been officially issued to all related sources to execute accordingly.


(d)
In the cavities of fourth quarter 1388,
t
he IT audit
unit of this department carried out the first ever IT Audit of

Afghanistan Financial
Management Informati
on System (AFMIS)

& the very first IT audit of any system across Government
, a unique
& very motivating
move
towards accountability and transparency
.


(e) Internal Audit Manuals, Procedures, Guidelines, Handbooks have been developed as per the internationa
l standards of internal audit for the
institutional development of this department. They have been approved by the Audit Committee, are brought into practice & are

now part of
regular internal audits.


(f) Fraud Investigation & Information Systems Audit Ma
nuals have also been developed for the guidance of the relevant auditors and department

in carrying out audits as per the international standards.


(g) Certified Accounting Technician (CAT) course has been offered to 112 civil servants of Ministry of Finan
ce, and the first batch of 60
students were recently graduated. The second batch would complete the course by the end of August 2011.01.26
.


The
achievement
s

of the above outputs have

been
greatly
supported
(Technically & Financially)
by the
World Bank
P
ro
ject
& its team and
US
treasury advisors
.



Capacity Building of Internal Audit, Investigation

and Evaluation General

Department
:

Public Financial Management Reform (PFMR) is a supportive World Bank Project For development and supporting the financial and

budget
sectors of the government, therefore this project has provided capacity development trainings
in short and long terms
for the members of the
Internal Audit Investigation and Evaluation General Department for the better conduct of the task accordin
g to their
annual plan.



These trainings were in deferent branches like
(English

Language development, Information Technology System,
Introduction to Audit, Salary
Audit, Certified Accounting Technician

(CAT)

program
,

Introduction to the Pra
ctical Procedu
res of Audit,
Intro
duction to the Procurement Law
and Introduction to the Custom Law
)
.


Capacity building chart of Internal Audit, Investigation and Evaluation General Department


Current status

conductor

Duration

No. of
P
articipant

Matters

No

End

ATP

project

1st 6months of
1388

51

English and computer training

1

End

Training management of
Ministry of
Finance

One term

13

English and computer training

2

End

ATP project

Two years

36

CAT program (1
st

term)

(2
nd

term)

3

End

USAID

Four day
s

52

Salary Audit

4

End

ATP project

Ten days

30

Introduction to Audit

5

End

ATP project

Two days

18

Introduction to the practical
procedures of Audit

6

End

Law protection Audit

Four days

45

Introduction to procurement law

7

End

Law protection Audit

Sev
en days

8

Introduction to the custom law

8





Evaluation Executions:


We have much positive resulted evaluations conducted by Internal Audit, Investigation and Evaluation in Control Units of Mini
stries, Central
Custom Houses, Mostofiats and Custom Houses

of Mostofiats which was according to the

annual plan.

Based on the annual plan we have implemented 93 % evaluation in the Units, we had to evaluate 91but out of that 86 has been d
one by the Dept.



No.

Name of entity/ unit

No. of evaluation
based on t
he
annual plan

No. of
evaluations
conducted

Comparison between No. of
evaluation planned and
evaluation conducted

1

Control Units of
Ministries

17

16

1

2

Central Units of
Ministry
of Finance


35

32

3

3

Central Custom Houses

3

3

0

4

Mostofiats

24

26

More 2

5

Custom Houses of
provinces

12

11

1

Total

91

86

5


Implemen
ted activities of the year 138
8