ISLAMABAD: The Khyber Pakhtunkhwa government has introduced a comprehensive policy for a centralised internal audit system across all provincial departments, offices and autonomous bodies.

The internal audit function is being developed for the first time in KP’s history. The internal audit policy, released on Friday, will help citizens know whether public officials are managing public resources responsibly, effectively and honestly.

The policy was approved in the last cabinet meeting. After its implementation, KP will be the first province after Sindh to have dedicated internal audit functions.

KP Secretary Finance Shakeel Qadir Khan said internal audit provides the means for strengthening oversight and empowers the principal accounting officer to detect errors and prevent irregularities.

He said the implementation of the policy will be stakeholders’ collective responsibility.

As per the proposed plan, its implementation will begin soon after the issuance of a notification by the finance department in the next couple of weeks.

A centralised wing called Provincial Internal Audit Cell (PIAC) will be established at the finance department. A separate and independent Internal Audit Cell (IAC) will be established in each government department and directorate.

All employees within the IAC will maintain independence from operational management and will have no direct authority over any of the operational activities.

There are 34 departments and 81 directorates in KP. In the first phase, IACs will be established in 13 priority departments.

The PIAC will provide support, assistance, technical backstopping and coordination for IACs across the provincial government. The PIAC will be headed by a BPS-19 provincial coordinator of internal audit who will report to the finance secretary.

The purpose of the policy is to provide a legal basis for the functioning of internal audit in all departments of the KP government. It defines the broad principles related to the purpose, authority and responsibility of the IACs and the role of the PIAC.

Published in Dawn, September 30th, 2017