GOVERNANCE AUDIT SENSITIZATION. Institute of Certified Public Secretaries of Kenya (ICPSK)

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1 GOVERNANCE AUDIT SENSITIZATION Institute of Certified Public Secretaries of Kenya (ICPSK) July 6,2016 1

2 In the Frontline of Governance 2

3 ABOUT ICPSK Established under the Certified Public Secretaries of Kenya Act 1988 (Cap 534). The core mandate of the Institute is to promote the practice of good governance in all sectors. More than 3,000 Members competent in matters of governance, corporate secretarial practice, compliance, management and administration. 3

4 Governance Initiatives The ICPSK Champions of Governance (COG) Award Governance Forum CPD Programmes Code of Governance for State Corporations-Mwongozo The Code of Governance for Private Organizations in Kenya. The Code of Governance for Non-Governmental Organizations in Kenya. CSIA Corporate Secretaries Tool Kit The Governance Framework for Certified Public Secretaries working at the County Governments. 4

5 GOVERNANCE AUDITORS ACCREDITATION COURSE ICPSK, in partnership with the International Finance Corporation (IFC) and the Institute of Company Secretaries of India, established a Training of Trainers programme (TOT) in which members were trained on Andragogy, Governance Auditing and Board Evaluation. Based on the approved Standards, Guidelines and Framework, the trained trainers are now facilitating Governance Auditors Accreditation Courses where the Institute has trained its members to carryout Governance Audit assignments. 5

6 A Governance Audit is an independent assessment of an organization with a view to expressing an opinion on the adequacy and effectiveness of the organization s policies, systems, practices and processes. 6

7 Importance of Governance Audit Is an effective mechanism to check compliance with legislation, regulations and codes of best practices and therefore help to detect cases of non-compliance and facilitate taking corrective-measures. It leads to: Employee and customer loyalty and respect for the brand; Recognition for the Organization as a good corporate citizen; Impact on the bottom line through improved visibility and endorsements; 7

8 Importance of Governance Audit Leads to: Promotion of the Organization s image and competitiveness; Increased investor confidence and credit rating; Increased transparency and accountability; Promotion of high standards of compliance; Improvement of the working relationship between management and the Board; Enhancement of communication with stakeholders; and Identification of operational and functional gaps 8

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10 Key Governance Audit Areas Parameters a) b) c) d) e) f) g) h) i) Ethical Leadership and strategic management; Transparency and disclosure; Compliance with laws and regulations; Communication with stakeholders; Board independence and governance; Board policies, systems, practices and procedures; Consistent shareholder and stakeholder value enhancement; Corporate social responsibility and investment; and Sustainability. 10

11 Governance Audit Process The Governance Audit Cycle 11

12 What is your Role? In-house Certified Secretary a) Providing all necessary governance and compliance information and documentation; b) Facilitating effective communication between the organization, management and other stakeholders; c) Facilitating the governance auditor in the conduct of the governance audit; and, d) Coordinating the preparation of Governance Audit Self-Assessment Report. 12

13 As the Board a) Putting in place a compliance Programme; b) Constituting a team responsible for governance compliance; c) Maintenance of proper Records; d) Preparation of Compliance Chart; e) Conduct Compliance Awareness Programmes; and, f) Giving all assistance and facilities to the governance auditor. 13

14 Governance Auditor To be engaged as a Governance Audit, one must be a member of the Institute in good standing, successfully gone through a 40 hours Governance Auditors 'Accreditation Course by the Institute and must have been accredited as a Governance Auditor. All accredited Governance Auditors have unique Governance Auditors Accreditation Number in addition to the usual membership numbers. Members who have successfully undertaken the Accreditation Course but are yet to get an accreditation number can only work under guidance and supervision of accredited Governance Auditors. 14

15 Governance Auditor A Governance Audit Report must be signed and indicate the Governance Auditor s Accreditation Number The list of members trained during the 40 hours Governance Auditors Courses and their contacts can be downloaded from our website. Only members with a Governance Audit Accreditation Number are approved to be Governance Auditors while the rest can only be assistants in the process To download list, click this link governance-accreditation-auditors 15

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17 Please contact.. The Secretary (ICPSK) CPS Governance Centre Kilimanjaro Road Upper Hill P. O. Box Nairobi Kenya Tel: /2, , ; Website: 17

18 Thank You 18