Corporate Governance

Structure of the Internal Audit and Reporting Protocol

The Senior Manager: Internal Audit must functionally report to the Audit Committee, and administratively to the Accounting Officer. Independence is achieved through the organisational status and the objectivity of internal audit activity.

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Structure of the Audit Committee

Aligned to Section 166, Chapter 14 of the Municipal Finance Management Act (MFMA), uMdoni Municipality uses shared services with the Ugu District Municipality. The Audit Committee is governed by the Audit Committee Charter, which is reviewed and adopted annually by Council. The Audit Committee reports directly to Council. The Audit Committee is comprises four members, all whom are external members. All Audit Committee members are governed by the Council-approved Audit Committee Charter for the 2013/2014 financial year.

Structure of the Performance Audit Committee

Council adopted the Audit Committee as its Performance Audit Committee. Legislatively the Committee must sit twice for a financial year. Also statutorily under the auspices of the charter of the Audit Committee serving as its terms of reference.

Functions of Internal Audit

Aligned to Section 165, Chapter 14 of the Municipal Finance Management Act (MFMA), Umdoni Municipality continues to sustain its own Internal Audit Unit. Internal Audit provides an independent objective assurance and consulting activity that adds value and improves the operations of the Municipality.
Internal Audit helps the organisation to accomplish its objectives by bringing a systematic and disciplined approach to evaluate and improve the effectiveness of risk management, control and governance. The Internal Audit Unit adheres to the Institute of Internal Auditor (IIA) Standards, Code of Ethics, Treasury Regulations, King III and the Municipal Finance Management Act.