PI-21. Effectiveness of internal audit Application This indicator can be applied at all levels of sub national government. References to central government should refer to sub national government. In some countries, internal auditors from the national treasury or central government ministries carry out compliance audits at the local level. This can confuse the situation with respect to internal or external oversight function, unless the scope of the central government internal auditors is carefully laid out. However, for PI 26 only external audit functions compatible with INTOSAI standards should be included. In determining the time spent on systemic issues (dimension (i)) it is suggested that all “internal� audit activities are included, but an explanation of the various players and their various responsibilities are clearly described in the report. Explanation/ Interpretation In some instances, the structure and functions of internal audit units may be centrally determined, deficiencies are therefore due to external factors outside the control of the sub national government.
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Accounting and Reporting PI-22. Timeliness and regularity of accounts reconciliation Application: This indicator can be applied at all levels of sub national government. PI-23 Availability of information on resources received by service delivery units. Application This indicator can be applied at all levels of sub national government. However there could be potential overlap if carrying out a combined or general government assessment. In these cases, reference to service delivery units should be modified as follows: Collection and processing of information to demonstrate the resources that were actually received (in cash and kind) by the most common front-line service delivery units within that level of government’s responsibility, and jurisdiction. This would help highlight problems with fund flows within a level of government. At the local government level, it is suggested that the requirement for a special public expenditure tracking survey be changed to special or ad hoc report. PI-24. Quality and timeliness of in-year budget reports. Application This indicator can be applied to all types and levels of sub national government. In year reports should however relate to internal reports for management purposes and internal reports for the Council or other SN legislative body. Reporting to national government would be covered by PI 8 (iii) in a central government assessment. References to central government and ministry of finance should be modified as appropriate.
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