The decentralisation of the internal audit function in the public service

Abstract

PURPOSE: The study aims to understand the way that the new hybrid system proposed for the public service is being implemented, and whether the current change from the centralised model to a new hybrid system - where the high risk Ministries are being decentralised, and low risk Ministries remain centralised - accentuates the advantages and mitigates the disadvantages of the traditional fully centralised and fully decentralised systems. DESIGN: The research objectives were tackled through qualitative data collection. Fifteen semi-structured interviews were conducted with participants from the IAID, and ten out of fifteen Ministries. FINDINGS: Although the accepted proposal for the new hybrid system classified five Ministries as high risk, only two have yet become decentralised. The decentralisation process has to be initiated by the Internal Audit and Investigations Directorate’s Board, and it is unclear why more Ministries have not been decentralised, as further decentralisation is desired by both the Internal Audit and Investigations Directorate and many Ministries themselves. Further, Ministries which remain centralised are seeking internal audit services from other auditors outside the centralised unit, showing that the centralised model is not fulfilling its duties adequately. CONCLUSIONS: The new hybrid system has sustained benefits, especially in the case of the decentralised units which require ongoing monitoring. This system has also allowed the Internal Audit and Investigations Directorate to focus its resources on fewer Ministries. However, it is required that more Ministries set up a decentralised internal audit function to allow the full benefits of the proposed system to be reaped. IMPLICATIONS: This system is a relevantly new feature, and requires public servants to be more aware and knowledgeable about its benefits so as to encourage its adoption.