Section 6, The Government Budgeting and Accountability Act, 2005

(1) There shall be an Internal Audit Department withinthe Ministry which shall be responsible for– (a) the internal audit in the Ministry; (b) ensuring that the internal audit division or other unit in every budgetary agency or other establishment required by the Minister under subsection (2) to establish or maintain such division or unit is appropriate to the needs of the organisation concerned and conform to internationally recognised standards, and (c) the control of the staff of the internal audit division or other unit referred to in paragraph (b). (2) The Minister may require any vote controller to establish or maintain an internal audit division or other unit in the budgetary agency under him, and such division or unit shall be responsible to the Minister responsible for the budgetary agency. (3) For the purposes of this section– (a) “internal audit” means the function within an organisation which measures, evaluates and reports upon the effectiveness of internal controls, both financial and otherwise, as a contribution to the efficient use of resources within the organisation; and (b) “internal controls” means a system which ensures– (i) that financial and other records are reliable and complete, and (ii) adherence to the organisation’s management policies, the orderly and efficient conduct of the organisation and the proper recording and safeguarding of the assets and other resources of the organisation. (4) An internal audit department, division or other unit shall have the following duties in the performance of its functions:– (a) ensure strict adherence to all control procedures introduced to safeguard the assets and records of Government; (b) monitor the implementation of the budget as approved by Parliament and report promptly on any irregularity; (c) make periodic audit reports on audits completed; (d) review management response to Auditor- General’s reports; (e) review external audit reports and management letters on parastatals for the attention of the Minister; (f) review all contracts ensuring effective performance and value for money; (g) continuously review systems and procedures to ensure adequacy, effectiveness and efficiency; Internal audit. No. 3 Government Budgeting and Accountability Act 2005No. 3 Government Budgeting and Accountability Act 2005 98 (h) offer professional advice on accounting and auditing matters to the Minister; (i) review operations and programmes to ascertain whether results are consistent with the objectives and goals. (5) Reporting by the Internal Audit Department within the Ministry and within any other budgetary agency shall, ordinarily, be to the vote controller but shall be made to the Minister in any matter concerned with the management of internal controls by the vote controller. PART III – CONSOLIDATED FUND AND GOVERNMENT BANKING ARRANGEMENT