Final Adopted IDP - KZN Development Planning

RISK MANAGEMENT
A risk assessment was undertaken at the Municipality with the assistance of the
Provincial Treasury Risk Management Division was in September 2010. A risk register
was compiled and a three year Strategic Risk Management Plan was prepared from this
information. Based on the Risk Management Plan, the Internal Audit Plan to be
implemented during the 2011 / 2012 financial year was updated and revised. The revised
Internal Audit Plan was approved by the Audit Committee at its meeting held in
February 2011.
In the final management letter in respect of the 2010 / 2011 financial year, the Auditor
General raises a number of risk related matters that need urgent attention:
• Establish and communicate policies and procedures to enable and support
understanding and execution of internal control objectives, processes and
responsibilities
• Design and implement formal controls over IT systems to ensure the reliability of
the systems and the availability, accuracy and protection of information
• Implement appropriate risk management activities to ensure that regular risk
assessments, including consideration of IT risks and fraud prevention, are
conducted and that a risk strategy to address the risks is developed and
monitored
• Ensure that there is an adequately resourced and functioning internal audit unit
that identifies internal control deficiencies and recommends corrective action
effectively
The core function of the internal audit unit is to monitor the internal controls put in
place by the management of the Municipality and, having made recommendations to
improve and tighten the internal controls, monitor the implementation of the
recommendations. The Internal Audit Unit at the Municipality is functional and consists
of three appropriately qualified staff – an Internal Audit Manager, a Senior Internal
Auditor and an Internal Auditor. The Unit functions in accordance with the Internal
Audit Charter – it reports directly to the Municipal Manager and the Audit Committee
constituted by the Municipality.
The Municipality has appointed its own Audit Committee consisting of three members all
appointed from outside of the political and administrative structure of the Municipality.
The Chairperson and remaining two members of the Audit Committee are all suitably
qualified and function in accordance with the Audit Committee Charter.
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