Training Events Report on Implementing Strong Internal Audit ...

PROGATIPromoting governance,accountability, transparencyand integrity<strong>Training</strong> Course <strong>Report</strong>Tel: +880 2-988-2530 Fax: +880 2-988-2556 Website: www.dai.comHouse 54/A, Road 16, Block A, Banani, Dhaka 1213 BangladeshSubmitted: 16 th February 2012Bangladesh Enterprise InstituteTitle: “Implementing Strong Internal Audit Procedure” for the officials of the Audit Cell ofthe Ministry of Health and Family Welfare (MOHFW)Venue: Auditorium of the Health Economics Unit, MOHFW, Ansary Building, 14/2Topkahana Road DhakaDate: 7-9 February 2012Duration: Each day 6 hours. Total 18 hours for 3 days of trainingObjective of <strong>Training</strong> Course:(1) To build awareness among ministry officials, particularly those engaged in the Audit Cellabout the need for a strong and active Internal Audit set-up to foster better financialmanagement practice.(2) To make the Audit Cell officials and others responsible for financial management in theministry familiar with basic concepts and ideas of Internal Audit.(3) To exchange views about the possibility of forming Internal Audit Cells at different tiersof management in the ministry.1. Lead Trainer or Facilitator: Syed Amirul Mulk, Senior Consultant, BEIAchievements and Observations:(1) With PROGATI support, Audit Cells are now operational in a number of ministriesincluding the Ministry of Health and Family Welfare (MOHFW)(2) Traditional set-ups dealing with audit in the ministries were almost wholly engaged inresponding to audit queries and observations raised by the staff of the Audit Department; theyhardly took any pro-active role by focusing on areas of weaknesses and strict adherence torules and procedures so that audit objections from external auditors are minimized and moreeffective financial management practice is followed.(3) PROGATI has been encouraging Internal Audit so that Audit Cells are better equippedwith strong internal control practices by focusing on areas of weaknesses.Insert organization name, title of event, Event <strong>Report</strong> 1

(4) The need for internal control and internal audit was emphasized by the Ministry ofFinance through a detailed circular as early as 2005, but it remains largely unheeded due tolack of training and absence of functional arrangement.(5) Internal Audit as a tool for better management by reducing wastage and irregularities wasemphasized by the Secretary, MOHFW while addressing the inaugural session of the training.Previously, he made the same recommendation while inaugurating the first meeting of theFOWG in the MOHFW (another outfit sponsored by PROGATI/BEI in June 2011).(6) Trainees on Ministry audit Cell of the MOHFW held on 24-26 July 2011 underPROGATI/BEI auspices also recommended, “Internal Audit/ Internal Control should bedeveloped and strengthened”.(7) Trainees of the training session were drawn from various levels of the ministry and itsdepartments so that they could exchange views with each other and share their experiences.Apex ministry level officers (Deputy Secretaries) were included along with field officers likeCivil Surgeons responsible for all Health Ministry activities at district level. Trainers were allwith Audit and Accounts background, including one from corporate sector.(8) This was possibly the first-ever training on Internal Audit organized for officials of thislevel, who are responsible for handling public resource. Interest in the subject of internalaudit was keen. Awareness about the need for internal audit for effective financialmanagement was built up among the participants. They were convinced that by organizingand putting in practice a strong internal audit procedure, strict adherence to rules andregulations could be ensured. This would not only prevent wastage and misuse of publicresource, but would also minimize excessive audit objections from external source likeOCAG. In the process OCAG will also be able to minimize their staff cost.General Recommendations:Having recognized the need for internal audit in the management of public fund, it wasrecommended that (1) training, as was conducted under this event, should be repeated forother officials of the ministry (2) MOHFW should formulate a policy outlining internal auditset-up in the ministry and departments and (3) based on such a policy, an internal auditstructure should be formed at different levels to conduct such audit.2. Second Facilitator or Presenter (if any): Md. Shahjahan, Senior Consultant, BEIAchievements and Observations:1. The conceptual difference between Internal Audit and Statutory Audit was spelt outdistinctly in the training sessions.2. The possibility and areas of Internal Audit where it can act as an aid to Statutory wereidentified.Insert organization name, title of event, Event <strong>Report</strong> 2

3. Dissemination of knowledge about “Internal Audit Manual” issued by the m/o Finance wasemphasized. Consequently, the need for formation of “Internal Audit Cell” and strengtheningthis cell to be appeared to be gaining more importance.General Recommendations:(1) More officers, particularly those who are at the cost centers as well as at the field levelshould be included in any such training sessions in future.(2) To have a better and clear understanding about “Internal Audit’, training programmecould be arranged on subjects like Budgeting, Accounting etc.Insert organization name, title of event, Event <strong>Report</strong> 3

3. Monitoring Officer/Observer (if any)Jamil Osman, Sr. Consultant and Project ManagerAchievements and Observations:1. Internal audit and internal control are prerequisites for statutory audit. Audit cells havebeen established in several Ministries under PROGOTI initiative. The role of internal auditand internal control within a Ministry is to guide and assist the management in observingfinancial proprieties according to general or other financial rules and to minimize the conflictbetween authorized allocation of fund and a tendency of the disbursing entities to go beyondthe sanctioned budgetary limit disregarding financial rules and regulations. PROGOTIconducted training sessions on internal audit and internal control for the Audit Cells of theMinistries have created awareness among the Ministry officials regarding the need for andeffectiveness of internal audit and internal control.2. Every year the Ministry of Health and Family Welfare spends a huge amount of both donorand Government funded money on public health and health related activities, training,construction of medical colleges and hospitals, procurement of medical instruments,advocacy etc. So, internal audit and internal control have a significant role to play in thefinancial management of this Ministry. However, there is a lack of expertise in internal auditand internal control in the Ministry of Health and Family Welfare. Three days and 18 hourstraining on “Implementing Strong Internal Audit Procedure” for the officials of the AuditCell of the Ministry of Health and Family Welfare will enrich the knowledge of the traineeswhich they will be able to apply in the discharge of their audit activities.General Recommendations:Three days and 18 hours training on “Implementing Strong Internal Audit Procedure” for theofficials of the Audit Cell of the Ministry of Health and Family Welfare has created a positiveimpact and brought about an attitudinal change among the trainees as to the importance ofinternal audit and internal control for better management and safeguarding themisappropriation and wastages of public money and resources. To make the audit cell of theMinistry of Health and Family Welfare proactive and effective, the management authoritymust take a serious note on internal audit and internal control affairs of the Ministry. In orderto sustain the impact on awareness and attitude, the Ministry of Health and Family Welfareshould, in future, conduct in-house training sessions on internal audit and internal control forits audit cell officials on regular basis.4. Course Evaluation Form Summary<strong>Training</strong> Event Evaluation forms were distributed to all 15 (fifteen) participants. They wereasked to circle their evaluation on each of the 18 (eighteen) questions asked. The followingsummary regarding the evaluation of the trainees can be drawn on the basis that the traineeswere satisfied/agreed if they circled 3 or 4 :(1) 100% of the trainees thought training was relevant and appropriate.(2) 100% of the trainees thought training objectives were achieved.Insert organization name, title of event, Event <strong>Report</strong> 4

(3) 100% of the trainees thought topics were relevant to their work.(4) 93% of trainees thought they gained new knowledge and skills.(5) 86% of the trainees thought they would use new knowledge and skills in their daily work.(6) 87% of the trainees thought that new knowledge and skills would help in their work.(7) 93% of the trainees thought that resource persons were prepared and knowledgeable.(8) 93% of the trainees thought that resource persons’ presentation skill were good.(9) 87% of the trainees thought that presentation method was appropriate which helped themto learn.(10) 87% of the trainees thought that materials provided were appropriate and easy tounderstand.(11) 93% of the trainees thought that time allocated for each topic was adequate to supportlearning and understanding.(12) 100% of the trainees thought that they had opportunities to participate and ask questions.(13) 100% of the trainees thought that classroom climate was free and without fear.(14) 87% of the trainees thought that seating arrangements were comfortable and appropriate.(15) 100% of the trainees thought that food and drinks served were delicious.(16) 87% of the trainees thought that overall the venue was comfortable and suitable.(17) 83% of the trainees thought that overall training organization and management weregood.(18) 100% of the trainees thought that they would like to participate in similar nature oftraining in future.Event Title: Implementing Strong Internal Audit Procedures for Officers of MOHFWDate: February 7-9, 2012Degree of Response : Disagree.......Agree range = 1 to 4Q.Sl 1 % 2 % 3 % 4 % Total %1 0% 0% 5 33% 10 67% 100%2 0% 0% 9 60% 6 40% 100%3 0% 0% 7 47% 8 53% 100%4 0% 1 7% 6 40% 8 53% 100%5 1 7% 1 7% 2 13% 11 73% 100%6 1 7% 1 7% 4 27% 9 60% 100%7 0% 1 7% 6 40% 8 53% 100%8 0% 1 7% 9 60% 5 33% 100%9 1 7% 1 7% 6 40% 7 47% 100%10 0% 2 13% 6 40% 7 47% 100%11 1 7% 0% 11 73% 3 20% 100%12 0% 0% 0 0% 15 100% 100%13 0% 0% 7 47% 8 53% 100%14 0% 2 13% 6 20% 10 67% 100%15 0% 0% 3 40% 9 60% 100%16 0% 2 13% 4 27% 9 60% 100%17 0% 1 7% 2 13% 12 80% 100%18 0% 0% 1 7% 14 93% 100%Note: Double/Multiple & No Responses are marked as 1Insert organization name, title of event, Event <strong>Report</strong> 5

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Please attach the following documents to this report:1. Participant name list and associated data;2. Event schedule/agenda.The implementing organization should deliver these items to the Grants Manager for filing andreporting purposes.Revised: 20 June 2009Insert organization name, title of event, Event <strong>Report</strong> 7

TRAINING ON “IMPLEMENTING STRONG INTERNAL AUDIT PROCEDURES” OF MINISTRY OF HEALTHAND FAMILY WELFARE (MOHFW)DAY ONE Date: 07‐02‐2012Session Time Subject SpeakerRegistration 09.30 AM – 10.15 AM Registration and IntroductionOpening session 10.15 AM ‐ 10.30 AM10.30 AM ‐ 10.45 AMBrief Speech by Secretary,MOHFWAim and objective of the<strong>Training</strong>Tea Break 10.45 AM – 11 AM Tea Break1 st session 11.00 AM — 12.00 PM Internal Audit : concept and itsrole in effective FinancialManagement2 nd session 12.00 PM ‐ 01.00 PM Internal Audit as an aid toExternal Audit (CAG Audit andCA Audit)Lunch/ Prayer 1.00 PM ‐ 2.00 PM Lunch and Prayer3rd session 2.00 PM – 3.00 PM Independence , purpose,authority and responsibility inInternal AuditTea Break 3.00 PM – 3.30 PM4 th session 3.30 PM – 4.30 PM Group discussion• Procurement• VAT/Tax deductionMr. Md. Humayun KabirMr. Syed Amirul MulkSenior Consultant , BEIMr. Shish Haider Chowdhury(Senior Officer of the AuditDepartment)Mr. Shish Haider ChowdhuryMr. Niaz Rahman(Senior Officer of the AuditDepartment)

DAY TWO Date: 08‐02‐2012Session Time Subject SpeakerOpening session 9.30 AM – 10.30 AM Review of FM practices in theministry : strengths andweaknessesTea Break 10.30 AM – 10.50 AM1 st Session 10.50 AM – 11.50 AM Audit evidence / files andworking papers of InternalAudit.2 nd Session 11.50 AM — 12.50 PM <strong>Report</strong>ing Methodology andfollow‐up exercisesLunch / Prayer 12.50 PM – 1.40 PM3 rd Session 1.40 PM – 2.40 PM Audit Objection disposal inconnection with HPNSDPTea BreakConcludingSession2.40 PM – 3.00 PM3.00 PM — 4.30 PM Group discussionMs. Farmin Mowla(Senior Officer of the AuditDepartment)Mr. A.K.M. Delwar HossainFCA Director (Finance)Bangladesh Sugar & FoodCorporationMr. Neaz RahmanMd. Zakir HossainJoint Secretary (FinancialManagement & Development)

DAY THREE Date: 09‐03‐2012<strong>Training</strong> On “Implementing strong Internal Audit Procedures” of MOHFWSession Time Subject SpeakerOpeningSessionTea Break9.30 AM ‐ 10.30 AM Fund Flow practice in MOHFWaffecting programmeimplementation10.30 AM ‐ 10.50 AM1 st session 10.50 AM ‐ 11.50 AM The quality of fundmanagement in the field leveland at the line director level2 nd Session 11.50 AM — 12.50 PM Practice of training on FM inMOHFW and the role of ChiefAccounts Officer (CAO) as anadvisor to Principal AccountingOfficer (PAO)Lunch / Prayer 12.50 PM — 1.40 PM3 rd Session 1.40 PM — 2.40 PM Group discussiona. FM practices in the fieldlevel and theirweaknesses.b. Suggestions andrecommendations onachieving a better FMpracticeTea Break 02.40—0.3.00PMConcludingSession0.3.00PM – 0.4.30PM2 assignments to be given tothe participants for study.Evaluation and concluding jointdiscussion among participantsand Trainers.Dr. Alfaz HossainDeputy Secretary & Ex‐ProjectFinancce Officer (Deputy Officer)MPHFWMr. Zakir HossainDr. Alfaz Hossain