Internal Audit Unit

 

REGULATIONS

On Internal Audit Unit under the

Ministry of Health of the Kyrgyz Republic

These Regulations on the Internal Audit Unit (hereinafter referred to as “the Regulations”) is developed in accordance with the Law of the Kyrgyz Republic “On Internal Audit” and other regulatory legal acts of the Kyrgyz Republic, as well as in accordance with the Regulations on the Ministry of Health of the Kyrgyz Republic.

I.                    General Provisions

 

1.1. The Internal Audit Unit (hereinafter referred to as the IAU) is a structural subdivision of the Ministry of Health of the Kyrgyz Republic (hereinafter referred to as “the Ministry”), carrying out internal audit activities within its competence/scope of work.

1.2. The IAU organizes its activities on the basis of the Law of the Kyrgyz Republic “On Internal Audit”, in pursuance of regulatory legal acts of the Kyrgyz Republic, Decisions of the Minister of Health of the Kyrgyz Republic (hereinafter – “the Minister”), as well as these Regulations.

1.3. The IAU is designed to enhance the efficiency of internal control and risk management in the Central Apparatus of the Ministry of Health of the Kyrgyz Republic, subordinate departments and health care organizations.

1.4. The IAU conducts internal audits and performs other audit tasks in the Central Apparatus of the Ministry of Health of the Kyrgyz Republic, subordinate departments and healthcare organizations.

1.5. In its activities, the IAU is guided by the principles of independence, objectivity, competence and professional attitude to work, as well as the Standards of internal audit for government bodies and institutions of the Kyrgyz Republic.

1.6. The IAU and its Manager are accountable only to the Minister and are independent from other structural units in planning its work, performing internal audits and preparing internal audit reports. Assessment of the effectiveness of the audits, conducted by the IAU can be carried out only by the Authorized body in the field of internal audit.

II. IAU objectives

2.1. The main objective of the IAU is to improve and develop the internal control system in the Central Apparatus of the Ministry of Health of the Kyrgyz Republic, subordinate departments and health care organizations, for which it carries out an internal audit. In pursuance of its main objective, the IAU conducts internal audits in accordance with the Internal Audit Standards.

2.2. The IAU may also be engaged in special audits or investigations upon the direction of the Minister.

III. IAU Functions 

3.1. The IAU conducts an independent and objective assessment and audit of financial, accounting, administrative, design, information and other operational processes in the internal control system in the Central Apparatus of the Ministry, subordinate departments and healthcare organizations. This assessment shall be carried out in the following areas:

- identification of opportunities to improve the effectiveness and efficiency of processes;

- ensuring proper use of resources and preservation of assets;

- reliability of reporting (external and internal);

- compliance of the activity with the norms of legislation, internal organizational and administrative documents and Standards.

The conducted audits shall consist of both financial (compliance) and operational audits (systemic, functional and performance audits). To this effect, detailed audit plans and programs are developed, based on risks analysis, on-site audits are conducted, during which evidence is collected and documented, systems and controls are evaluated and tested to determine their adequacy and effectiveness, working documents and audit reports are prepared.

3.2. The  IAU assesses the effectiveness of the risk management system in the Central Apparatus of the Ministry Republic , subordinate departments and health care organizations and develops appropriate recommendations based on the results of the assessment.

3.3. The IAU assesses the security and effectiveness of Information Systems in the Central Apparatus of the Ministry, subordinate departments and health care organizations (IT audits).

3.4. At the request of the Minister and in agreement with the Internal Audit Council, the IAU implements special projects, including participating in investigation of abuses and violations. At that, the IAU should not be held responsible for investigating such cases.                  

3.5. The IAU performs other tasks and participates in other projects on behalf of the Internal Audit Council.        

3.6. The IAU assists the Minister in improving the internal control system by performing the following main objectives:

- review and evaluation of the internal control system in the Ministry, subordinate departments and health care organizations and providing the Minister with reports and recommendations on improving its performance;

- development of strategic, long-term and annual audit plans based on risk assessment and their submission to the Minister for approval;

- preparation of audit reports for each internal audit conducted and their coordination with the Minister;

- providing an internal audit report and recommendations to the Minister.

3.7. The IAU conducts monitoring, aimed at oversight of the actions of the Management of the internal audit facility to take effective measures through the agreed recommendations, reflected in the audit reports.

IV. IAU main entitlements and responsibilities

4.1. The IAU shall have the following main responsibilities:

- develop long-term and annual plans for conducting an internal audit taking into account the opinion of the Minister;

- compile systematic monitoring reports for the Minister;

- annually report to the Minister on the progress of work against the plan;

- evaluate the effectiveness of the internal control system and its compliance with the goals of the Ministry;

- evaluate the validity and adequacy of financial, accounting, management and other information;

- assess the compliance of the activities of structural divisions of the Ministry, subordinate departments and health care organizations with the regulatory legal acts, specified functions and approved action plans of these objects under internal audit;

- evaluate the effectiveness and compliance with the requirements for the use of resources, sufficient control over the use of resources and protection against losses;

- submit reports on the internal audit results;

- make recommendations for improving the performance of the Central Apparatus of the Ministry, subordinate departments and health care organizations;

- not to divulge information relating to state or other secret protected by the Law.

4.2. The functions of the Manager of the Internal Audit Unit under the Ministry shall be performed by the Head of the IAU, the functions of internal auditor shall be performed by the Chief specialist, Lead specialist, specialist.

4.3. Responsibilities of the IAU Head:

- determination the procedure for internal audit in accordance with the approved Internal Audit Standards and the Internal Audit Guidelines;

- development of long-term and annual plans for conducting internal audits taking into account the opinion of the Minister;

- is responsible for organizing the work of the unit and the assigned tasks;

- preparation of quarterly reports on monitoring implementation of annual plans for the Minister;

- submission of the annual report on the activities of the Internal Audit Unit to the Minister, including the assessment of internal control system;

- making recommendations for improving the performance of the Central Apparatus of the Ministry, subordinate departments and health care organizations;

- observing the ethical standards - not disclosure of information relating to state or other secrets, protected by law;

- informing the Minister of any identified facts, related to unlawful activities in the Central Apparatus of the Ministry, subordinate departments and health care organizations;

- defining the training needs for the IAU staff;

- conducting internal assessment of the quality of internal audit and ongoing internal monitoring;

- compliance with the Internal Audit Standard and other requirements of the legislation of the Kyrgyz Republic when conducting internal audits;

- establishment of the monitoring system to conduct oversight over the actions of the management of the internal audit facility to take effective measures through the agreed recommendations, reflected in the audit reports.

4.4 The internal auditor shall be entitled to:

- receive and verify in full and accordingly the information, documents and other materials necessary for the audit from the employees of the Central Apparatus of the Ministry, subordinate departments and health care organizations;

- receive from employees of the internal audit facility copies of all necessary documents related to internal audit;

- represent the interests of the Ministry in all institutions, organizations, enterprises and state executive authorities on the issues, related to internal audit activity of the Ministry.

 

V. Final provisions

5.1. Other issues, not covered by these Regulations, shall be regulated by the current legislation of the Kyrgyz Republic in the field of internal audit, Standards of internal audit and the methodology, recommended by the Authorized body of the Kyrgyz Republic in the field of internal audit.

5.2. These Regulations may be updated by the Ministry in connection with changes in the relevant legislation.


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