Question NW2350 to the Minister of Water and Sanitation

Reply:

a) The internal audit function at Magalies Water is outsourced because the entity currently does not have an established internal audit division.

b) The duration of the period is three (3) years. The contract commencement date is 01 October 2015 and will expire on 30 September 2018.

c) The internal audit function is outsourced to PRICEWATERHOUSECOOPERS.

(d) Terms of the contract are as follows:

1. Provision of Internal Audit Services:

• Evaluating adequacy and effectiveness of controls and advising managers at all levels in determining key control indicators and develop recommendations for enhancement or improvement of these controls;
• Assisting the Chief Executive Officer in achieving the objectives of the institution by evaluating and developing recommendations for the enhancement or improvement of processes through which —
• Objectives and values are established and communicated;
• The accomplishment of objectives is monitored;
• Accountability is ensured; and

2. Corporate values are preserved:

• • • Analysing operations and conformity to organisational mandate; and
    • Reviewing the Internal Audit Charter for the approval by the Audit and Risk Committee and Magalies Water Board, and thereafter adhere to the Charter;
    • Liaising with the Risk Specialist in the development of a risk-based 3-year rolling internal audit plan;
    • Conducting forensic audits as and when required;
    • Evaluating specific operations at the request of the Board or management, as appropriate;
    • Maintaining professional audit staff with sufficient knowledge, skills, experience and professional certification to meet the requirements of the internal audit charter;
    • Evaluating adequacy and effectiveness.

(e) The total amount paid is R4 213 594.28

---00O00---