Section 75, The Public Financial Management Act, 2016

(1) The Director of the Internal Audit Department of the Ministry may require the vote controller of a budgetary agency, subvented agency, other entity in the central government, local council, social security fund, or public enterprise to establish or maintain an internal audit department, division, or unit in the budgetary agency or entity. (2) An internal audit department, division, or unit of a budgetary agency or other entity established under subsection (1) shall– (a) ensure strict adherence to all control procedures introduced to safeguard the assets and records of the agency or entity; (b) monitor the execution of the budget by the agency or entity and report promptly on any irregularity; (c) make periodic reports on audits completed; (d) review implementation of the Auditor- General’s or other external auditor ’s recommendations; (e) in case of an internal audit department, division, or unit of a budgetary agency, review external audit reports and management letters on entities included in the general government or public enterprises in respect of which the head of the budgetary agency is the responsible authority; (f) review all contracts of the agency or entity for ensuring effective performance and value for money; (g) continuously review effectiveness and efficiency of internal control systems and procedures of the agency or entity; (h) offer advice on internal controls of the agency or entity; (i) review operations of the agency or entity to ascertain whether results are consistent with the objectives and goals of the agency or entity; and (j) perform any other functions assigned to it by the head of the agency or entity. (3) An internal audit department, division or unit of a budgetary agency or other entity referred to in subsection (1) shall report to the Audit Committee of the agency or entity and the Director of Internal Audit, Ministry of Finance: No. 13 Public Financial Management Act 2016 No. 13 Public Financial Management Act 201662 63 Audit Committee. Management of extractive industries revenues. Provided that the internal audit department, division, or unit shall report to the head of the agency or entity any matters directly related to the performance of the vote controller of the agency or entity. (4) An internal audit department, division, or unit of a budgetary agency or other entity mentioned in subsection (1) shall perform its responsibilities in accordance with internationally accepted standards.