1. Internal Audit Plan and Its Alignment to Risk Strategy
Makhosandile Kwaza

2. Are Internal Auditors Watchdogs?

3. If you do not plan any way is the correct way

4. What is Internal Audit Plan

5. Legislative framework
Section 165 (2) (a) of the MFMA requires that the Internal Audit of a municipality or municipal entity to prepare a risk-based audit plan and an internal audit program for each financial year.
On the other hand, section 45 (a) of requires that the results of performance management in term of section 41 (1) (c) be audited as part of the municipality’s internal auditing processes.

6. International Standards for Professional Practice of Internal Auditing (ISPPIA)
Standard 2010 requires that the chief audit executive to establish risk-based plans to determine the priorities of the internal audit activity, consistent with the organization’s goals.
Standard 2010.A1 – The internal audit activity’s plan of engagements must be based on a documented risk assessment, undertaken at least annually. The input of senior management and the board must be considered in this process.

7. Risk Management A result of the risk assessment
Strategic level – municipal wide risks
Departmental level – departmental risks
IA plan takes into account strategic risks; departmental risk and other factors like AG findings

8. Time allocation

9. Linking your plan to strategic risk
No.
Objective
Risk name
Context / Root cause
2012/2013 1
To provide quality and sustainable drinking water in an integrated manner, to all consumers in the district
Climate change, drought and floods (Sustainability)
Restricted water availability (worst drought in 130 years
Climate change and associated disasters
Lack of integrated water reporting 2
To increase internal and external project spending to 80% of projected expenditure by 2015
Poor project management
Co-ordination of activities
Lack of monitoring and evaluation
Roll over's
Procurement deviation of SCM policy
Project Management Capacity (Skills & Personnel)
IDP/Budget process
Supply Chain Management Processes

10. Linking your plan to strategic risk
No.
Objective
Risk name
Context / Root cause
2012/2013 3
Provision of adequate, portable and sustainable water services infrastructure by 2014
Poor asset management
Outdated infrastructure (Inherited old infrastructure)
Increased maintenance costs
Loss of revenue opportunity on water and sanitation services
Underutilisation of resources
Poor fleet management
Poor implementation of asset disposal policy
Lack of asset management planning
Infrastructure asset management review
Asset management review
Fleet management review
Asset disposal review 4
To ensure that the district remains financially viable
Inadequate funding and revenue management
Insufficient funds to meet mandate (MTEF)
Inefficient utilisation of existing funds (poor cost itemisation)
Poor systems – revenue collection
Customer care
Leakages – water 2/3 (two thirds) of district dominated by indigent dependent on grant funding
Revenue management review
Water leakages review

11. Operational plan