Design Internal Audit Procedures & Tools
The Internal Audit Officer will design procedures for cross-checking financial and operational transactions to ascertain compliance with laid down regulations. Such a task includes:
- Designing the audit plan including the different levels of priority, procedures updates and controls to perform;
- Developing specific tools smoothening routine control while enabling audited departments to improve their compliance with procedures;
- Conducting risk assessments and determining objectives of the missions accordingly;
- Controlling and examining the good implementation of the defined procedures.
Auditing activity General description
Using the procedures, the Internal Audit Officer will verify compliance by conducting audits, cross-checking accounting records, reviewing savings records and checking any other records relating to loan transactions or the general financial administration of the organization. The accounting as well as the loans & savings MIS is part of the perimeter of audit of the Internal Auditor.
Such a task will include in particular the regular assessment of risk areas with previously designed auditing tools as well as the follow-up of her/his own recommendations or that of external auditors.
Financial Management Audit
The Internal Audit Officer will ensure proper management in the Branches of all cash related to Loans and Savings Operations
- Conduct spot checks on cash held in Branches to check compliance with the procedures (frequency of cash remittances; maximum authorized balance);
- Check the bank reconciliations on Operations accounts, to ensure that the balance appearing in the Loan Performer tallies with the actual bank balance.
- Check proper reconciliation of financial data between Peachtree and LPF:
- Cross verify accounting records – cash book, receipts, vouchers, loan ledger, usage of funds from earmarked fund sources (on a sample basis);
- Ensure that financial transactions related to the microfinance operations are clearly segregated from those related to Running Expenses.
- Conduct checks on cash and fund management in Head Office
- Ensure that petty cash related to Running Expenses is managed in compliance with the procedures, and followed up accurately in the Head Office;
- Check the bank reconciliations on Running Expenses accounts, to ensure that the balance appearing in Peachtree tallies with the actual bank balance;
- Check the approvals for all expenses posted as per approval and all financial policies set by the Executive Council.
Administration and Human resources Management Audit
The Internal Audit Officer will check on transparency of human resources management:
- Ensure all payroll transactions are duly documented;
- Check the follow-up of employee’s leave.
Anti Money Laundry Audit
- Maintains awareness of any updates in International Regulations as regards AML/FT procedures
- Ensures completeness and regular updating of all policies and procedures as regards AML/FT. In case of necessary updating of any of the AML/FT procedures, approval of the Executive Council should be required for finalisation and implementation.
- Training of all staff on AML Policies and procedures at SEED. This includes a short session to be had with all new incoming staff, as well as refresher courses as required to current staff.
- Ensuring compliance and implementation of all AML/FT procedures through appropriate internal controls.
- First point of reference for all staff to declare any activities that may be considered as potential money laundering operations or of financing terrorism.
- Ensuring that such declarations are kept confidential, so long as the staff is deemed to acting on good faith.
- Declaration of such case, if relevant, to the appropriate Local Authority.
Safeguard Assets of the Organization
The Internal Audit Officer will periodically reconcile the physical assets of the organization with the record of such assets in order to protect the organization’s property. Such a task includes in particular controlling and examining the realty of the assets (cash and tangible assets).
Investigate Special Cases1.4.1 Suspected Fraud
Where there is suspicion of malpractice relating to operations activity or the financial management of the organization, the Internal Audit Officer will be instructed to conduct specific investigations to verify the facts. Such instruction can come from the Internal Audit Officer’s own suggestions.
The Internal Audit Officer can be asked to lead specific missions requested by the Risk team/ Manager as and when needed, pertaining to her/his attributions described above.
The Internal Audit Officer is expected to communicate and write result summaries and Internal Audit Reports to the Risk team as well as communicate results of the audit to the audited departments and to the concerned management.
Recommendation of efficient practices is fully part of the reporting the Internal Audit Officer is asked to produce in order to help increase efficiency in the use of organizational resources.
The Internal Audit Officer will make sure s/he formulates recommendations relevant to the context of ID-Ghana but also in compliance with best practices of microfinance sector, which standards are set by bodies such as GHAMFIN and CGAP.
The Internal Audit Officer will ensure that he participates in the process of upgrading staffs skills (along with the staff trainings plan designed by Human Resources Department) by making sure that all audit findings and recommendations are understood by audited staffs and that informal trainings are happening in the course of her/his work actually enabling staffs to implement best practices.
Furthermore, Human Resources department may consider
Internal Audit Officer as a resource person for specific staffs’ trainings related
to her/his area of speciality as and when needed