The South African Local Government Association (Salga) and the Institute of Internal Auditors – South Africa (IIA SA) have signed a memorandum of understanding (MoU) to provide South Africa’s municipalities access to standardised norms and methods of internal auditing, to help them achieve sound financial management.
The Municipal Finance Management Act of 2003 (MFMA) requires each municipality to have an internal audit unit.
The MFMA states that the accounting officer of a municipality should take all reasonable steps to ensure that the municipality has and maintains effective, efficient and transparent systems of internal audit operating in accordance with any prescribed norms and standards.
“The mandate and role of internal auditors is not always understood. Sometimes internal auditors are not in the correct reporting structures and in a senior enough level in institutions and their findings and recommendations are not always taken into account.
“Working with Salga and local government, we will collectively strengthen the pillars of good governance,” said IIA SA CEO Claudelle von Eck.
The MoU would provide for both parties to allow each other’s members to attend training and development courses, programmes, workshops, seminars and related activities at member rates; and any joint ventures that support the objectives outlined in the MoU.
“While the Auditor-General’s report is a key indicator of the state of local government, it is not the only barometer to measure municipal performance. Internal auditing enjoys dominance and, therefore, it is important to strengthen partnership like these, so that we can improve auditing functionality and introduce standardised methods of auditing across the board,” Salga CEO Xolile George noted.
Salga and IIA SA recognised that certain fields that may be of interest to its members did not form part of their area of core expertise.
By entering into an agreement with each other, both parties would be in a better position to address the needs of their members.