LEPL - David Aghmashenebeli National Defence Academy
Provision of the Internal Audit Service
Article 1. General Provisions
- The Internal Audit Service (hereinafter – the Service) of the LEPL - National Defence Academy of Georgia (hereinafter - the Academy) is the structural unit implementing internal audit in the Academy, which ensures the fulfillment of the tasks defined by this Regulation within the scope of its competence in accordance with the Georgian legislation.
- The Service is guided by the legislation of Georgia and individual administrative-legal acts of the Rector of the Academy (hereinafter – the Rector).
- The Service operates in accordance with methodological documents developed by the Central Harmonization Unit defined by the Law of Georgia on State Internal Financial Control, methodical guidelines, internal audit standards and other legal acts.
- The Service operates with the principles of independence, integrity, objectivity, professionalism, confidentiality, legality, transparency and fairness.
- The Service is independent in its activities and is directly accountable to the Rector. It is inadmissible to interfere in its activity with any form of other officials of the Academy or request for a report on its activity.
- The Service does not participate in the current work of the Academy and does not perform other functions except the rights and obligations defined by the Law of Georgia on State Internal Financial Control and this Regulation.
Article 2. Objectives of the Service
- The main mission of the service is to facilitate the fulfillment of the goals and objectives set by the Academy for which it analyzes, assesses and improves the effectiveness of the risk management, control and management process of the academy with independent, objective, assurance and consulting activities and systematized, disciplined and organized approach.
- The task of the service is to evaluate the policy and procedures of the Academy, legislative requirements and standards, productivity, efficient and economical use of resources, the objectives and achievements of the goals set by the Academy; to make recommendations and inform the Rector on the adequacy of the risk management, control and management mechanisms in the Academy, efficiency, operating standards and compliance with the Georgian legislation.
Article 3. Main Directions and Activities of the Service
In order to fulfill the objectives the Service carries out following activities:
- Assessment of risk management levels facing the academy;
- Assessment of adequacy and efficiency of financial management and control system;
- Conformity assessment of the Academy's activities with the Georgian legislation, existing rules and regulatory acts;
- Assessment of performance, efficiency and productivity of the Academy;
- Assessment of the credibility, accuracy and completeness of financial and other information;
- Assessment of adequate protection of the assets, other resources and information;
- Issuing recommendations as a result of implemented activities and monitoring of implementation of recommendations and suggestions;
- Other activities, that derives from the interests of the Academy and do not contradict the laws of Georgia, the principles of the Law of Georgia on State Internal Financial Control and the principles of independence and objectivity of the Internal Auditor.
Article 4. Competence of the Service
- Within the scope of competence of the Service, all the processes and activities of the Academy may become the subject of study and analysis.
- Service is entitled to:
- a) Conduct internal audit inspection on the basis of the internal audit strategic and annual plans based on risk assessment in the academy by using the following types of audits: System audit, compliance audit, efficiency audit, financial audit and information technology audit;
- b) Request and receive all the information and documents required from the academic structural units without any limitation in both written and oral form, in order to carry out the activities of the service in the main directions and access to databases, regardless of their form, except for the cases envisaged by the legislation, also receive any relevant information or interpretation from any personnel of the Academy in both verbal and written form.
- c) In order to monitor internal audit inspection and fulfillment of recommendations, the Service employees have unlimited access to any direction of the Academy activities and documentation (on the basis of official certificate), except for the restrictions provided by legislation of Georgia;
- d) Request the document in the state language within the framework of the legislation; make the copies of the document, except for the restrictions established by the legislation of Georgia;
- The staff of the Academy is obliged to provide adequate assistance within their competence to the Internal Auditor in the process of internal audit inspection.
- The Service shall:
- a) Follow the internal audit standards, the Code of Ethics of Internal Auditors, internal audit methodology and other legal acts regulating internal audit;
- b) Submit an individual audit inspection plan to the auditee according to the Law of Georgia on State Internal Financial Control except for the cases when it is necessary to conduct an instant inspection without prior notice to the auditee because of the nature of the examination and the specific case materials;
- c) Ensure the protection of the personal data, state, service and commercial secrecy of an auditee in accordance with the rules established by the legislation of Georgia. Do not reveal the information that has become known during his/her activities except when it derives from the purpose of internal audit inspection and / or envisaged by the relevant legislation;
- d) Do not make public internal audit results without the Rector's consent, except for the cases envisaged by the legislation of Georgia.
Article 5. Structure and Composition of the Service
- The Service includes: head of the service and chief specialist
- Functions and responsibilities of the chief specialist of the Service are determined by his/her job description, approved by the Rector of the Academy.
Article 6. Service Leadership
- The Service is headed by the head of the Service which is appointed and dismissed by the Rector.
- The head of the Service is directly accountable to the Rector.
- The head of the Service within his/her competence:
- Represents the Service when performing its duties and responsibilities;
- Supervises and manages activities of the Service;
- Issues instructions and tasks to employees;
- Supervises the performance of official duties by the employees of the Service, controls the performance of the internal regulations of the Academy;
- Signs and vises the documents prepared in the Service;
- Develops the strategic and annual plans of internal audit and submits to the Rector for approval;
- Submits an individual audit plan to the Rector for approval;
- Develops the rules and procedures of the Service activities;
- Conducts monitoring of the implementation process of the internal audit annual plan and the application of the internal audit methodology by the Service;
- In case of detecting the crime / malefaction in the internal audit process, shall immediately notify the Rector for further reaction;
- Submits an internal audit report to the internal auditee and defines a reasonable time to submit an action plan to fulfill its recommendations and visions;
- Submits the final internal audit report and the action plan for execution of recommendations to the Rector;
- Cooperates with the Central Harmonization Unit and provides the relevant documentation and information in case of request;
- Develops the internal audit quality assurance and improvement program and ensures its implementation;
- Submits suggestions to the Rector about optimization of the structure and the manning table of the Service, encouragement or disciplinary liabilities for the employees of the Service;
- Solicits for the allocation of funds, equipment and inventory, which is necessary for the performance of functions and tasks;
- Solicits for raising the qualification and retraining of the staff of the Service;
- Provides control over performance of the tasks of the Service and other issues within the competence;
- Considers the relevant recommendations and instructions issued by the Central Harmonization Unit within the Georgian legislation;
- Carries out other functions defined by the legislation, this provision and the individual administrative-legal acts of the Rector.
- If the head of the Service is temporarily absent, his/her functions and obligations shall be performed by an employee of the Service based on the individual administrative-legal act of the Rector.
Article 7. Planning of the Activities of the Service and Providing Reports
- The Service activities are carried out based on the internal audit strategic plan stemming from the risk assessment. The internal audit strategic plan is derived from the long term goals of the Academy, including three-year periods and determines strategic development strategies in the field of internal audit.
- On the basis of the internal audit strategic plan, the head of the Internal Audit Service shall develop an annual internal audit plan that reflects specific audit results.
- The internal audit strategic and annual plans are approved by the Rector.
- Each internal audit shall be conducted in accordance with an individual plan which determines the sphere of internal audit, tasks, duration, resource distribution, internal audit implementation methods, scope, audit type and etc.
- As a result of internal auditing, the Service develops an internal audit report project and submits it to an internal auditee for the purpose of presenting its own opinion on the issues raised in the report within the reasonable time defined by the head of the Service and also the action plan for the implementation of the recommendations, which will be reflected in the final report.
- The internal auditee sends the response letter and the action plan for the implementation of the recommendations to the head of the Service.
- If the internal auditee fails to follow the terms defined by the paragraph 5 of this article, the internal audit report project will be considered as a final version as well as the findings and recommendations outlined therein as agreed.
- The internal audit report is signed by all members of the audit group.
- After receiving the considerations of the internal auditee, the head of the Service shall present the final internal audit report together with the action plan for implementation the recommendations presented by the internal auditee to the Rector for further reaction.
- If the Internal Audit Service and the internal auditee fail to agree to the recommendations outlined in the final internal audit report, the Internal Audit Service sends dissenting recommendations to the Rector who makes the decision within a reasonable time.
- The head of the internal auditee is responsible for the implementation of the recommendations outlined in the internal audit report and the elaboration of the action plan for their implementation.
- The head of the Service submits an annual report to the Rector until the end of January of the next year and the report on current activities carried out by the Service in case of request.
- The head of the Service shall also present the annual audit report to the Central Harmonization Unit.
Article 8. Organization and Registration of Case Proceedings
- The case materials reflecting the inspection carried out by the Service are kept in the Service and the rules for query of them are defined by the applicable legislation.
- The head of the Service is responsible for the first archiving, processing and registration of the case materials, as well as for the record-keeping and case proceedings of the incoming and outgoing documents and correspondence.
Article 9. Cooperation with Public Agencies
- The Service cooperates with the State Audit Office, in case of request provides relevant information and / or documentation and operates in accordance with the international standards of internal control.
- According to the Law of Georgia on State Internal Financial Control, the Service cooperates with the Central Harmonization Unit and acts coordinated with it in cases specified by this Law.
- The Service cooperates with the Internal Audit Department of the Ministry of Defense of Georgia (hereinafter - the Ministry), in case of request, provides them with relevant information and / or documentation.
- The Service:
- a) Cooperates with the entity of the Internal Audit of the Ministry to conduct coordinated and adequate inspection, prevent duplication and use resources productively;
- b) Cooperates with the entity of the Internal Audit of the Ministry in order to conduct joint inspections, for which they shall develop a joint plan;
- c) Submits strategic and annual plans to the Internal Audit of the Ministry as well as reports on inspections upon request;
- d) Sends the annual report to the relevant entity of the Internal Audit of the Ministry until the end of January of the following year.
- e) Together with the relevant entity of the Internal Audit of the Ministry participates in the workshops and cooperates with the establishment of international standards and quality improvement.
- Cooperation with other agencies is carried out in accordance with the Georgian legislation.
Article 10. Avoidance of the Conflict of Interests
- The employee of the Service does not participate in internal audit if one of the following cases of conflict of interest has been revealed:
- a) The employee worked in the internal auditee during the inspection period;
- b) The class I and II heirs of the Service employee have been at the leading positions during the last one year or have held the leading positions of the internal auditee throughout the period of the audit.
- c) Another case of conflict of interest as determined by the head of the Service.
- In case of circumstances envisaged by paragraph 1 of this Article, the employee is obliged to declare self-withdrawal.
- The issue of withdrawal of the Service employee from the internal audit inspection process is decided by the head of the Service on the basis of the legislation and the withdrawal of the head of the Service is decided by the Rector.
Article 11. Final Provisions
- Changes and amendments to the provision shall be implemented in accordance with the procedure established by the applicable legislation.
- All the issues not covered by this provision shall be regulated by the applicable legislation of Georgia and the relevant administrative-legal acts.