Study for Strengthening Internal Audit Functions the Government of Madhya Pradesh

Transcription

1 Study for Strengthening Internal Audit Functions the Government of Madhya Pradesh Terms of Reference February 2009 Page 1 of 6

2 Table of Contents 1. Introduction Objective Description Output /Key Deliverables Time-Frame Team Structure Budget and Procurement... 6 Page 2 of 6

3 1. Introduction Under the control of The Finance Department, the Directorate of Treasuries and Accounts is entrusted with the responsibilities of administration of Treasuries, Cadre management, Internal Audit of Departments (other than local bodies and corporations), Financial Management, Training and Generation of MIS to support Financial Planning. All this is performed with the help of field level offices including 53 Treasuries, 160 Sub-Treasuries, 07 divisional offices and 07 Account Training Schools (ATS). The current function of internal audit is often not effective enough to cater to the needs of the fast changing scenario of liberalization in every field. Therefore, the GoMP needs to improve its current internal audit functions Evaluating the existing internal audit standards/procedures and developing appropriate standards/implementation guidelines for Government departments/ public sector undertakings/ corporations and bodies is the need of the hour. Moreover there is a strong need of capacity building of the auditors in the State by training in best International and National institutes and exposure to international best practices. Towards this end, Government of Madhya Pradesh has received IDF Grants from World Bank for strengthening Internal Audit in the State.These funds will be spent to retain consultants to provide services as presented in the following pages. Page 3 of 6

4 2. Scope of Work 2.1 Objective The Government of Madhya Pradesh has embarked on streamlining financial procedures and rules and implementing electronic treasury procedures. GoMP also aims at undertaking measures to strengthen internal audit through institutional restructuring, adoption of internal audit standards and implementation guidelines and exposure of the government internal auditors to best practices through training. The sustainability of these initiatives would be dependent on state government s ability to train its officials to adopt and institutionalize these procedures. This in turn requires a strong training framework in the state. The proposed assignment will thus also support capacity enhancement in the state government s accounts training schools to facilitate efficient adoption of new, streamlined procedures. Specifically, the assignment has one component: (a) Strengthening Internal Audit Functions. 2.2 Description Component: Strengthening Internal Audit Functions The current function of internal audit in the State is limited to auditing individual transactions as opposed to periodic evaluation of the adequacy of the internal control systems and governance processes. Thus there is a strong need for strengthening the internal audit functions in the State. Consulting services are thus proposed to be engaged for: A gap analysis between international standards /best practices in the Internal Audit in the Public Sector and the practices currently prevalent in GoMP. The Consultants will also consider relevance and applicability of standards issued by the Institute of Internal Auditors and global best practices in internal audit in the public sector in the backdrop of the GoMP and develop implementation guidelines for application of the relevant standards and best practices. Recommending the most appropriate organizational structure for internal audit in GoMP. Identifying training needs and organizing appropriate training in association with Institutes of National repute such as INGAF & the Indian Chapter of the Institute of Internal Auditors. The training program would mainly involve acquisition of auditing skills and techniques through intensive training on international standards and recognized global best practices in internal audit in the public sector for at least 25 officers of GoMP. Page 4 of 6

5 It should be ensured by the consultant that the training curriculum needs to be appropriately customized for audit of government departments receiving funds from the Consolidated Fund of India. Training will be provided to 25 officials from the Directorate of Treasury & Accounts The trainees themselves will be holding a range of finance positions from DDO to joint directors. Under this assignment, the consultant will: Determine gaps with national and international best practices on internal audit in the Public sector and practices currently prevalent in GoMP. Develop implementation guidelines for application of International standards. The consultant will recommend the most appropriate organizational structure for internal audit in M.P. Identify training needs. Organize appropriate training comprising classroom and practical work experience by institutes of repute such as The Institute of Government Accounts and Finance (INGAF) & Indian Chapter of the Institute of Internal Auditors, Florida. 2.3 Output /Key Deliverables Component : Strengthening Internal Audit Functions The key outputs/deliverables under this component would include: o o o A report charting the way forward for government internal audit in MP laying down the results of Gap analysis, recommending the most appropriate organizational structure for Internal Audit in MP and Implementation guidelines for applying International Standards and best practices. identifying training needs, training curriculum and Institute for training Completion of training of 25 Government officers 2.4 Time-Frame Component : Strengthening Internal Audit Functions The assignment will be completed within a period of 18 months from the date of its commencement. Time-frame for various activities will include the following: Page 5 of 6

6 S.No Activity Target Date. a Deliver Draft Report charting way forward for End of Month 9 government Internal Audit in MP b Discuss with GoMP and finalise draft report End of Month 11 c Identify training needs, training Institutes and End of month 12 training curriculum d Organise appropriate training comprising End of Month 18 classroom and practical work experience by (training to be institutes of repute such as The Institute of completed) Government Accounts and Finance (INGAF) & Indian Chapter of the Institute of Internal Auditors, Florida 2.5 Team Structure Component : Strengthening Internal Audit Functions The team will be lead by Team Leader with at least 10 years of experience. The Team Leader will have adequate international experience in Internal Audit Practices in both government and private sector. The team will comprise two members one having exposure to the international best practices in Internal Audit and the other should be a local consultant having exposure to the Public sector in India. The skill sets required include expertise in internal audit, institutional development, government accounting and training. These key professionals will need to be deployed for about 250 person-days Budget and Procurement Given the need to high quality standards of the outputs, the consultant will be procured through Least Cost Selection method of the World Bank.. Page 6 of 6