JOB STANDARDISATION: INTERNAL AUDIT JOBS

1. JOB STANDARDISATION: INTERNAL AUDIT JOBS MPUMALANGA INTERNAL AUDITOR’S RETREAT

2. PURPOSE The purpose is to inform the meeting on the legislative framework, the process and the practices followed with the compilation of benchmark job descriptions and grading levels for internal auditors To consult and obtain you views and inputs

3. LEGISLATIVE DETERMINATIONS • In terms of the PSR an EA shall, inter alia, prepare a strategic plan for his/her department stating – • Core objectives based on legislative and functional mandates • Service delivery improvement plan (Batho Pele) • Describe the core and support activities to achieve the core objectives • Specify the functions that will be performed internally and those that will be contacted out. • .

4. LEGISLATIVE DETERMINATIONS • Based on the strategic plan the EA shall • Determine the organisational structure in terms of core and support functions • Define the posts necessary to perform the relevant functions • Grade the posts with the job evaluation system determined by the Minister for Public Service and Administration • The aforementioned should be done by – • Complying with the requirements in paragraphs 5.1 and 5.2 of the Treasury Regulations • Avoiding duplications of functions

5. LEGISLATIVE DETERMINATIONS • Specifying the information systems required to achieve the goals, targets and core objectives • Promoting efficient, economic and effective use of resources • Improving the functioning of departments by applying working methods reallocation, simplification and coordination of work and elimination of unnecessary functions

6. LEGISLATIVE ENVIRONMENT • Adopted decentralised framework to promote efficiency • Unjustifiable differences in the structure of units performing similar functions and the grading of similar jobs • In an effort to address this situation one of the mechanisms adopted was the developed of generic functional structures and benchmark job descriptions and grading levels

7. COMPILING OF JOB DESCRIPTIONS • From the aforementioned it is clear that to develop good job descriptions the job functions, inputs, process, outputs, requirements and the environment of the job should be well know and well researched • For the development of the IA job benchmark job descriptions the following was considered • Inputs from internal audit practitioners from national departments, provinces and the National Treasury (consulted IPSA code of conduct, King III, COSO, COCO and CADBURY) • The relevant stipulations in the PFMA • The relevant stipulations in the Financial Regulations

8. COMPILING OF JOB DESCRIPTIONS • Issues identified by the National Treasury that should receive attention (audit queries) • The Competency Framework for Financial Management • The competency clusters, competency titles and definitions in the Technical Competency Dictionary • The occupational role for internal auditors • The generic organisational structure for Corporate Management • Internal Audit Framework: National Treasury

9. COMPILING OF JOB DESCRIPTIONS • Guidelines for Internal Audit: National Treasury • International Standards for the Professional Practice of Internal Auditing • Inputs by the Internal Audit Public Expert Practice Committee • Inputs by departments • The requirements for each job • Relationship with the internal audit committee

10. PROCESS • Points of departure • Generic benchmark job descriptions are developed • Departed from the pure function production level (coal face) job and other job levels determined from this level • Should consider whether different work streams are required (IT audits?) • Determined the performer levels required in the Public Service environment • Had to deal with the complexity of the Public Service namely “small”, “medium” and “large” work environments

11. PROCESS • Principle applies that all jobs do production work, higher levels do more complex and supervisory/middle management work • The Technical Competency Dictionary provides for 4 occupational roles • Occupational role one entail routine transactional work which does not appear in the internal auditing function • Occupational role 4 covers the SMS and was addressed through the Chief Audit Executive • We therefore dealt with occupational roles 2 and 3 where job descriptions for four work levels was developed namely Trainee Internal Auditor, Internal Auditor, Senior Internal Auditor and Internal Audit Manager

12. PROCESS • Competence role 2 covers the jobs of Trainee Internal Auditor and Internal Auditor • Competence role 3 covers the jobs of Senior Internal Auditor and Internal Audit Manager • Four job descriptions were developed based on the functions and requirements of the jobs • These levels still need to be tested with job evaluation (may not support ) • If there are regrades the cost of implementation must be defrayed from departmental budgets, however, this is becoming an issue

13. WAY FORWARD • The benchmark job description will have to be adjusted to reflect amendments to the Treasury Regulations and other policy changes • The benchmark job descriptions will need to be job evaluated • The benchmark job descriptions may need to be consulted with EAs and accounting officers • Decisions will have to be taken on implementation

14. THANK YOU