POLICY FORUM VISIT TO NAOT 24 th APRIL, TOPIC: Annual Audit Process in Tanzania.

Transcription

1 POLICY FORUM VISIT TO NAOT 24 th APRIL, 2014 TOPIC: Annual Audit Process in Tanzania. 1

2 Rationale of the Presentation 1. Create space for participants to understand the NAOT audit processes. 2. The presentation be one of the source for participants to brainstorm opportunities and challenges in collaboration btn NAOT and Citizens/CSO in audit the process. 2

3 Presentation outline 1. Mandate and Functions of NAOT. 2. Administrative Structure 3. Types of Audits Conducted. 4. Annual Audit Process Flow. 5. Conclusion. 3

4 1. MANDATE & FUNCTIONS OF NAOT The Office of the CAG of the URT is a constitutional Office established in accordance with Article 143 of the URT Constitution of The Article is further amplified under the Public Audit Act No. 11 of Article 143(6) gives the CAG total mandate and freedom to decide on how to execute his functions and responsibilities. Article 144 explains the procedures to be followed if need will arise to relieve the CAG from his position. 4

5 What does NAOT do? NAOT audit and report on the accounts of: (i) (ii) Mandate & Functions of NAOT. The Government of the United Republic, that is MDAs, Public Authorities and Other Bodies; and Donor Funded Projects; The Local Government Authorities; (iii) The Judiciary; and (iv) The National Assembly. 5

6 Mandate & Functions of NAOT. What is the CAG s Responsibilities? The responsibilities of the CAG are enshrined in Article 143 (2) (a); (b); (c) and (3): Ensure there is proper use of moneys paid out of the consolidated fund. Ensure that appropriated moneys by Parliament have been used for the intended purposes. Audit and give an audit opinion in respect of accounts of the Government. 6

7 Mandate & Functions of NAOT. What is the CAG s Responsibilities? Other responsibility of the CAG is to make recommendations to the Govt for the purpose of: Preventing or minimizing unproductive expenditure of public funds Maximizing the collection of public revenues Avoidance of loss by negligence, carelessness, theft, dishonesty, fraud, corruption etc. 7

8 2. ADMINISTRATIVE STRUCTURE (Extract) CAG DAGs - 5 s - 19 CEA/RAs - 64 Asst. CEA/ Team Leaders 8

9 ORGANISATION STRUCTURE OF NATIONAL AUDIT OFFICE (NAO) (Approved by the President on 26 th February, 2010) CONTROLLER AND AUDITOR GENERAL TECHNICAL SUPPORT SERVICES UNIT ADMINISTRATION AND HUMAN RESOURCES MANAGEMENT DIVISION DIRECTOR INTERNAL AUDIT UNIT CHIEF INTERNAL AUDITOR INFORMATION, EDUCATION AND COMMUNICATION UNIT PRINCIPAL INFORMATION OFFICER FINANCE AND ACCOUNTS UNIT CHIEF ACCOUNTANT INFORMATION AND COMMUNICATION TECHNOLOGY UNIT PRINCIPAL COMPUTER SYSTEMS ANALYST PLANNING UNIT PRINCIPAL ECONOMIST LEGAL SERVICES UNIT PROCUREMENT MANAGEMENT UNIT PRINCIPAL SUPPLIES OFFICER PRINCIPAL LEGAL OFFICER CENTRAL GOVERNMENT DIVISION LOCAL GOVERNMENT AUTHORITIES DIVISION NATIONAL ACCOUNTS DIVISION PUBLIC AUTHORITIES DIVISION PERFORMANCE & SPECIALIZED AUDITS DIVISION DEPUTY AUDITOR GENERAL (DAG) DEPUTY AUDITOR GENERAL (DAG) DEPUTY AUDITOR GENERAL (DAG) DEPUTY AUDITOR GENERAL (DAG) DEPUTY AUDITOR GENERAL (DAG) ECONOMIC AND PRODUCTIVE SECTOR SECTION SOCIAL SECTOR SECTION ADMINISTRATIVE SECTOR SECTION COASTAL ZONE SECTION NORTHERN ZONE SECTION LAKE ZONE SECTION TREASURY SECTION TANZANIA REVENUE AUTHORITY (TRA) SECTION PENSION SECTION PUBLIC UTILITIES ORGANIZATIONS SECTION REGULATORY PUBLIC AUTHORITIES SECTION PERFORMANCE AUDITS SECTION SPECIALISED AUDITS SECTION SERVICES SECTOR SECTION MINISTERIAL AUDIT OFFICES CHIEF EXTERNAL AUDITOR CENTRAL ZONE SECTION SOUTHERN HIGHLANDS ZONE SECTION REGIONAL AUDIT OFFICES SECTION CHIEF EXTERNAL AUDITOR NATIONAL ACCOUNTS AUDIT OFFICES CHIEF EXTERNAL AUDITOR TRAINING, RESEARCH & HIGHER LEARNING INSTITUTIONS SECTION FINANCIAL INSTITUTIONS, PENSION FUNDS & OTHER PUBLIC ENTITIES SECTION DISTRICT AUDIT OFFICES ASSISTANT CHIEF EXTERNAL AUDITOR 9

10 Administrative structure The office is headed by the CAG assisted by five (5) Deputy Auditors General (DAGs), Director of Administration and Human Resources Management (DAHRM). The office has 19 Assistant Auditors General, 64 Chief External Auditors (Resident Auditors) and 513 other auditors. In addition to the above set up, the office has the following units: The Technical Support Services Unit. 10

11 Administrative Structure The Information Technology Unit. The Legal Unit. The Information, Education and Communication Unit. The Procurement Management Unit. The Development Planning Unit. Internal Audit Unit. The Finance and Accounts Unit. 11

12 Administrative Structure The office has a total of 812 employees of which 602 are auditors while the rest 210 are corporate staff (non auditors). 12

13 3. TYPES OF AUDITS CONDUCTED. Part IV of the PAA, 2008, specify the types of audit to be conducted by the CAG as follows: 1. Regularity Audit Financial Audit (Certification) 13 Compliance audit, Procurement audit, Int/Control etc 2. Forensic Audit.Under Forensic Audit Unit.Fin.Auds -Suspect of fraud report to CAG PCCB/DCI

14 Types Of Audits Conducted 3. Performance Audit Under P/A Division 4. Other Audits e.g.special Audits Any person or institution can request. 14

15 4. ANNUAL AUDIT PROCESS FLOW AUDIT THEMES Areas of audit issued to Auditors by the CAG Usually by January each year. These are minimum focus areas, circumstances of each individual audit are taken into consideration Bases for Preparation of Audit Themes: Guideline for preparation of plans and budget for five years development plan (i.e.2011/ /16) issued by the Ministry of Finance 15

16 Bases for Audit Themes. The approved national budget which has prioritized areas in which the Government intends to concentrate. Trends of the past audit reports (e.g. Payments of salaries to non-employees) Areas of public interest and best practice (shifting from cash basis to accrual basis) 16

17 Eg. Audit Themes /2013 Accounts Expenditure/Charges for Constitutional Review Census expenditure charges Audit of Public Private Partnership (PPP) - the Govt has set aside funds for training and seminars about PPP for all MDAs. Projects to start with, include Roads, Railway, Airports. 17

18 Audit process followed by NAOT from Planning to Reporting Stage. These stages are: 1. Pre- engagement activities 2. Strategic Planning 3. Detailed Planning 4. Audit Fieldwork 5. Reporting ANNUAL AUDIT PROCESS FLOW 18

19 Annual Audit Process Flow Activity Purpose Dates 1. Preengagement Assessing ethical & resources requirements Determining the terms of engagement (engagement letter) January 19

20 Annual Audit Process Flow Activity Purpose Dates 2. Strategic Planning Entrance Meeting Understand the entity (assess service sustainability) Identify & assess risks (review controls) Develop the overall audit approach Feb - June 20

21 Annual Audit Process Flow Activity Purpose Dates 3. Detailed Planning Determining appropriate response to the assessed risks - System Description - Audit Programs Feb -June 21

22 Annual Audit Process Flow Activity Purpose Dates 4. Audit fieldwork Performing Various audit procedures - Issuing Audit Queries - Receiving Mgt representation letters July - October 22

23 Annual Audit Process Flow Activity Purpose Dates 5.Concluding & Reporting Evaluating audit evidences - Issuing Management Letters - Issuing Audit Opinion Nov - December 23

24 ANNUAL AUDIT PROCESS cont.. 24

25 ANNUAL AUDIT PROCESS cont.. 25

26 5. CONCLUSION. Areas for Participatory Audit. There are several areas where NAOT can involve Public Organs such as CSOs Communicating to the public the report of the CAG through clear and simple language. Follow up of the CAG s recommendations. Playing role of whistle blowers. Suggesting to the CAG on the audit themes 26

27 CONCLUSION. Conducting training and awareness programmes to public on how to use CAG s report in their daily decisions. There is much to be gained from a strong working relationship between the NAOT and Citizens in the audit processes, this will enhance transparency and accountability in the collection and use of Public Resources in Tanzania. 27

28 End of Presentation Thank you for listening 28