To provide government with a centralised, functionally independent and professionally competent appraisal, consulting and investigative function established within Government to examine, evaluate, inspect, scrutinize and recommend on government activities as a service to Government itself.

Primary Objective

The primary objective of Internal Audit is to assist Permanent Secretaries in the effective discharge of their duties. Internal Audit furnishes Permanent Secretaries with analyses, recommendations, counsel and information concerning activities reviewed and/or investigated.

Function

Public Internal Audit is an independent appraisal function established within Government to examine and evaluate its activities as a service to Government, which includes the performance of financial investigations into suspected cases of mismanagement and fraud. The Internal Audit and Investigations Directorate (IAID), under the responsibility of the Director Internal Audit and Investigations, is established and assigned responsibility for conduct of the Government Internal Audit and Financial Investigations Function.

Independence

The IAID is independent of the activities it audits to ensure objective judgement essential to its proper conduct and impartial advice to Government. No member of the IAID shall have authority over, or responsibility for, any of the activities reviewed. The involvement of the Directorate in developing or implementing departmental policies, systems and procedures shall be in an advisory capacity, in adherence to any past and/or present recommendations made by the IAID itself.

For further information about the Internal Audit and Investigations Directorate please contact:

Internal Audit & Investigations Directorate
Lower Ground Floor,                                                                                                                                                                                                                                                                      Valletta Buildings,                                                                                                                                                                                                                                                                          South Street,                                                                                                                                                                                                                                                                      Valletta, CMR 02

Tel: (00356) 21 237737
Fax: (00356) 21 237681
E-mail: info.iaid@gov.m

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Early in the year 2000 Government initiated a programme to restructure and upgrade the Internal Audit Function. The IAID was set up in June 2000 as a functionally independent government entity under the Office of the Prime Minister (OPM) with the responsibility to assist Permanent Secretaries (PS) in highlighting areas whereby the suitability of internal controls are vulnerable. The IAID's vision is derived from the Internal Audit and Investigations Board (IAIB) which is chaired by the Secretary to Cabinet of Ministers. The Board is presented with IAID's findings and if the need arises, these are discussed at Cabinet level

Yet, Malta’s application for European Union (EU) membership and Government’s commitment to ensure transparency in its departments were the two driving forces soliciting the financial investigative function to be coordinated also by the IAID. In fact, in February 2001, the IAID was also given the responsibilities to perform the function as the sole national interlocutor of the European Anti-Fraud Office (DGOLAF) in Malta and to act also as the chairman of the Coordinating Committee to support investigations into irregularities with a possible criminal intent coming from the Police, Customs and the Attorney General, amongst others

Objectives

• The Internal Audit and Investigations Directorate aims to assist Ministries to better manage their resources by carrying out audits of:
• The effectiveness and integrity of financial, operational and management control systems, including safeguards against fraud and abuse, in relation to the risks involved;
• The extent of compliance with the laws and regulations of Malta and those emanating from its international commitments;
• The extent to which resources are acquired economically and used efficiently;
• The extent to which organisations have structures appropriate to their functions;
• The action taken by Ministries, Departments or other entities to remedy weaknesses identified by internal audit reviews or investigations.
• The Directorate also aims to create and sustain linkages between itself and other auditing and investigative agencies, both locally and abroad, so as to enable coordinated action to be taken in cases of suspected mismanagement or fraud in the use of public funds.

Success Stories

From its establishment the Internal Audit and Investigations Directorate performed several audits on Governmental Departments and its related agencies.

Internal Audit and Investigations Board

THE IAIB - Mission Statement

To foster and regulate good public management practices in the field of financial control, internal audit and financial investigations.

This will be achieved by always guaranteeing and sustaining the functional independence of the public internal audit and investigations function for good quality effectiveness and transparency of government governance.

THE IAIB - Main Responsibilities

• Functionally Independent and objective public mechanism
• Regulating specific audits and financial investigations
• Acting as the conduit between cabinet and the IAID
• Considering and approving major changes to government internal auditing and investigative policies
• reviewing the adequacy of the Internal Audit and Financial Investigative function

Coordinating Committee: Strategic Objective and Terms of Reference

Strategic Objective
The proposed Coordination Committee – CC is an administrative structure which has the underlying strategic objective of ensuring that Malta’s commitments to the Acquis Communitairre regarding the protection of EU financial interests are not only addressed but effectively implemented. The CC will be composed of all those government agencies that directly or indirectly are involved with respect to the EU funds. Because of its central role within this structure, the Director, Internal Audit and Investigations will assume the role of chairman. This will ensure that there are direct and fast links within the structure, most especially to satisfy OLAF’s underlying requirement that in each member state there should be only ONE national interlocutor.

Terms of Reference

• To ensure the effective implementation of the EU Acquis requirements as specifically related to the protection of the EU financial interests focusing on actions relating to the combating against mismanagement and fraud;
• To serve as a centre of exchange of information and coordination of efforts between all agencies including those directly or indirectly related to the management of EU funds, including the management of data sources and reporting relationships with any EU Commission Service;
• To advise Government, through the OLAF’s designated interlocutor in Malta (the IAID) on any changes required to be made to internal policies and/or legislation, as a result of OLAF, international and/or local agencies’ experiences with respect to the fight against defalcations, mismanagement and fraud;
• To facilitate and ensure an efficient and effective network that is necessary to ensure that any action of anti-fraud, fraud that has taken place and/or other actions related to the mismanagement of EU and any related local funds is dealt with in the shortest time possible.
• To support OLAF’s designated interlocutor in Malta (the IAID), as well as OLAF itself with all the required information related to any criminal investigation and/or court action in the Maltese courts, emanating from any IAID and/or OLAF investigation.

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The Internal Audit and Investigations Directorate is regulated by a legislation conferring rights and responsibilities to the Directorate. 

Click on the following link to visit the Justice and Local Government webiste to read Chapter 461: Internal Audit & Financial Investigations Act

To view the document you may need to download the Acrobat Reader. To get the latest version of Acrobat Reader please visit www.acrobat.com.

www.gov.mt
www.doi.gov.mt
www.mic.org.mt
www.nao.gov.mt
www.cimu.gov.mt
www.europa.eu.int

Auditing

Alaska Division of Legislative Audit Home Page
www.legaudit.state.ak.us/

Audit Commission
www.audit-commission.gov.uk/home/

Audit Manuals
www.window.state.tx.us/taxinfo/audit/auditman.htm

Auditor of State - Audit Practice Aids
www.state.ia.us/government/auditor/practice_aids/paids.htm

AuditNet: Free Resources for Auditors
www.auditnet.org

INTOSAI - Secretariat General
www.intosai.org

Office of Audit and Management Advisory Services
http://amas.syr.edu/

Institute of Internal Auditors is the UK and Ireland
www.iia.org.uk

UK National Audit Office home page
www.nao.gov.uk/

West Virginia University Internal Audit
www.wvu.edu/~inaudit/phases.htm

City of West Palm Beach Internal Auditor's Office
www.cityofwpb.com

Internal Audit - Government - Fairfax County, Virginia
www.co.fairfax.va.us/gov/audit/

Columbia University - Internal Audit Home Page
www.columbia.edu/cu/ia/

Texas A&M University System Internal Audit Department
http://sago.tamu.edu/iaudit/

University of Kansas - Internal Audit
www.ukans.edu/~audit/iamainpg.htm

University of Wisconsin - Madison Internal Audit
www.bussvc.wisc.edu/intaudit/intaudit.html

County of Orange - Internal Audit Department
www.oc.ca.gov/audit/index.htm

Indiana University Internal Audit
www.indiana.edu/~iuaudit/

Wichita State University - Internal Audit
webs.wichita.edu/inaudit/

Clerk of the Circuit Court - Internal Audit
clerk.co.pinellas.fl.us

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Click here to view our Organisational Structure Chart.

To view the document you may need to download the Acrobat Reader. To get the latest version of Acrobat Reader please visit www.acrobat.com.

1: SEMINAR ON THE REPORTING OF ACTIVITIES RELATED TO THE FIGHT AGAINST FRAUD OF NATIONAL AND EU FUNDS FRIDAY, 27 FEBRUARY, 2004: PROJECT HOUSE, WORKS DIVISION, FLORIANA

Following the publication of the results of a recent European Union survey on the level of public awareness, particularly in the new Member States, about the anti-fraud activities of DG OLAF (the Anti-Fraud Office of the EU Commission), the Internal Audit and Investigations Directorate (IAID) of the Cabinet Office, which has been designated by DG OLAF as Malta’s Anti-Fraud Co-ordinating Service (AFCOS) has felt the need to acquaint the local media with these anti-fraud activities. Accordingly, a Seminar, to which representatives of all local media have been invited, is being held on Friday, 27 February 2004 at Project House, Works Division, Floriana. The Seminar is strictly of an informative nature.

In the local context, the main organisations that are involved in the fight against fraud of national and EU Funds, namely the Customs and the Police Departments as well as the Internal Audit and Investigations Directorate (IAID), have established the Malta Anti-Fraud Awareness Network which has, as its main objective, the dissemination, especially through the media, of information on local activities, including the results achieved, related to the fight against mismanagement and fraud of national and EU funds. The Network is co-ordinated by the IAID.

The Seminar will host two special guests who will make presentations and discuss with the participants their experiences on the reporting of successful cases of investigations of irregularities and fraud. They are Mr. Alessandro Buttice, the Spokesperson for DG OLAF and Mr. David Jones from the Serious Fraud Office in the United Kingdom. Senior Officials from the Malta Police Force, the Department of Customs and the Internal Audit and Investigations Directorate will also be addressing the participants at this Seminar.

2: DOI, Wednesday 31 May 2004: MALTESE AUDITOR TO FORM PART OF EU TEAM

Mr George P. Gafa, C.P.A.A., F.I.A., Dip. Bus. Mangmt., M.I.M., A.M.B.I.M., C.S.A. Internal Audit Manager at the Internal Audit and Investigations Directorate of the Cabinet Office, has been appointed a member of the College of Auditors of the recently created mechanism for the financing of EU crisis management operations.

ATHENA, as this mechanism is called, was established during the January session of the EU General Affairs and External Relations Council to finance the common costs of EU crisis-management operations. The costs of such operations are of two kinds: those borne by each participating state in connection with their own personnel and equipment, and other costs shared in common among all EU states. ATHENA, a mechanism to which all EU member states contribute, will cover common costs only – mainly administrative costs.

Mr Gafa’s appointment as member of the ATHENA College of Auditors is for the next three years, and will be effective from 1 June 2004. Other members of the College of Auditors hail from the United Kingdom, Sweden, Greece, Estonia and Denmark.

Mr Gafa` is a Certified Public Accountant and Auditor. A Fellow of the Malta Institute of Accountants, he has an extensive work experience in both the public and private sector. He is married with two children.

3: Sunday Times, 27 May 2004: Seminar on structural and cohesion funds

The Internal Audit and Investigations Directorate (IAID) within the Prime Minister's Cabinet Office, in collaboration with DG Regional Policy of the European Commission, recently held a seminar on the management, control and audit of the structural and cohesion funds.

This specialised training was targeted at auditors, controllers and financial managers in the various national agencies.

The seminar, which was held over one and a half days at Project House, Works Division, Floriana, was chaired by IAID director Pierre Pace, and Ricardo Garcia-Ayala, counsellor directorate (DG Regional Policy). A strong delegation of 10 officials from DG Regional Policy also took part.

On a national level, participants represented officials from the Planning and Priorities Co-ordination Directorate (PPCD) within the Prime Minister's office as the Managing Authority, the EU Paying Authority Directorate within the Ministry of Finance, the Department of Contracts as the Contracting Authority, the Treasury and the IAID as the Winding up Body and the European Anti-Fraud interlocutor in Malta.

Presentations on the effective management and modern audit tools in relation to the use of EU funds were delivered by the DG Regio officials and the national agencies. This activity focused on Article 5 of Commission Regulation No. 438/2001 and 1386/2002. The first day of the seminar addressed all the main elements relating to the description of management and control systems, in particular, on how the work already done by the national authorities under the Extended Decentralised Implementation System (EDIS) could be afforded a maximum value in the preparation of Article 5 descriptions.

In the afternoon two workshops were held; one workshop focused on the financial management of structural and cohesion funds while the other focused on control and audit issues.

The second day of the seminar was dedicated to issues relating to the 'control environment'; the collaboration and joint audits between the member states and the Commission, the audit strategy, timely reporting of irregularities, financial corrections and recovery of unduly paid EU funds.

The seminar proved to be a very fruitful and effective learning experience for all participants and served as an excellent tool to clear some still pending issues in the proper management, control and audit of structural and cohesion funds.

More specific and follow-up training activities are being planned for the near future, specially targeted at providing opportunities for national authorities to discuss their experiences and generate solutions to overcome any difficulties encountered in the effective management and audit of the EU Funds.

 4: DOI Friday, 29th October 2004:  Release No. 1692, Seminar on Training in Risk Analysis for Agricultural, Structural and Cohesion Funds  

Speech by the Hon. Tonio Fenech, Parliamentary Secretary at the Ministry of Finance, AT the seminar on risk analysis in agricultural, structural and cohesion funds organised by the european anti fraud office (OLAF) AND THE INTERNAL AUDIT DIRECTORATE – VALLETTA - 29^th October 2004

Director General,
Ladies and Gentlemen,  

Although at the final stages of this seminar, I would like to take the opportunity to give a warm welcome to our foreign guests, and hope you have enjoyed your short stay on the island. 

As I have been informed, this time last year, a good number of this year’s participants were also present for the Anti Fraud Co-coordinators (AFCOS) meeting held last year, were a strategic approach to the fight against fraud was mapped.   Malta was then in its final stages leading to accession.   

The protection of the European Unions financial interests, particularly the funding arising under the Agricultural, Structural and Cohesion Funds is fundamentally linked to the attainment of the objectives set for these allocations.  

The concept of “Solidarity” cannot be effectively implemented throughout all the member states, applicant countries and other third countries unless we have the appropriate systems and effective controls in place to ensure that irregularity and fraud are detected and addressed.  

This is our stewardship obligation both as politicians and officials within Governments and Community institutions, we who have been entrusted to utilise in the most effective manner the European taxpayers’ money.  The appropriate and effective management of European and Public funds could, in the medium to long-term contributes to a betterment of our citizens’ standard of living and possibly lessen the tax burden on the EU citizen.

As a new Member States Malta is fully committed towards such goals and has in the process leading towards membership not only built the necessary structures and human resource capacity to achieve the competencies necessary in this field.   We are also committed towards promoting a strong approach to combat irregularities and fraud, supporting new initiatives for the betterment of mutual exchange of information between the Commission and the EU member states.  

Malta views that the current proposals to amend Council Regulations 1073/99 and 1074/99 with both interest and some reservations.  We need to ensure that OLAF is not tied down with too many bureaucratic procedures; on the other hand the concept of devolution to the Member States of certain duties presently within the competence of OLAF may be explored.  We are also generally in agreement with the proposed Council regulation to extend mutual assistance and information exchange to VAT.   

We also view with interest the developments relating to enhancement of the role of the AFCOS agency in member states, as well as the applicant countries.  In our view, AFCOS can be more then a “Co-coordinating” service.   We need to ensure that our structures, while not duplicating roles and responsibilities, facilitate a fast response to combat and prevent any fraud or irregularity in matters dealing with community funds management and also guarantee protection of the very national interests of each and every member state. 

As new member states we have all run a long race towards accession, we have rapidly built numerous structures and built human resource capacity in a number of areas. We must now consolidate what we have achieved so far to ensure that the benefits of what we have sowed are reaped. These targets can be only reached by unhindered cooperation and exchange of information.  The success of the next steps fully depends upon the commitment of each and every one of us, the politicians on the one hand and the technocrats and experts on the other to achieve a common desirable goal.  

Finally, I want to thank Dr Bruener for his efforts to rationalize efforts in the protection of the EU’s financial interests, by presenting him with a memento of this event.  

Thank You.

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New premises for IAID
The Internal Audit and Investigations Directorate has moved to new premises.  For your information the new address is the following:

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Valletta Buildings,

South Street,

Valletta, CMR 11
Malta (Europe)

Telephone: (00356) 21 237737
Fax: (00356) 21 237681

Working Days: Monday to Friday

Summer Working Hours: 0730 to 1330 hrs
Winter Working Hours: 0745 to 1715

Website www.iaid.gov.mt

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The standard outline guide for the site was for an SVGA resolution monitor
(800 x 600) using 256 colours. The site is quite useable with specifications lower than this.

Browser Compatibility
The iaid.gov.mt web site has been fully tested on a number of browsers on the majority of existing computer operating systems.

iaid.gov.mt uses Cascading Style Sheets (CSS) to format the textual information within each page. Only browsers from version 4 upwards fully understand CSS formatting. While every effort has been made to ensure that the site is fully usable there are a number of small issues which CIMU and MITTS is trying to tackle.

Bookmarking Pages
To bookmark a particular page the user selects Favorites, Add to Favorites from the menu option within Microsoft IE or Bookmarks, Add Bookmarks in Netscape.

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Where is IAID situated?
The IAID is situated at Lower Ground Floor, Valletta Buildings, South Street, Valletta, CMR 02.

What is internal audit?
"Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve government’s operations . . . by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management and control."

Adopted from IIA - Institute of Internal Auditors

What is financial investigation?
Financial Investigation means the in-depth examination of all circumstances relative to irregularities and cases of suspected fraud, including the corruption of public officers, and, in that regard, the acquiring of records and, or, information and the carrying out of related assignments, analysis and recommendations, such financial investigation being limited in scope to the financial implications that could arise out of such an irregularity or suspected fraud.

What circumstance might lead to mismanagement or fraud?
- management does not monitor significant controls adequately
- high turnover of management
- significant, unusual or highly complex transactions
- entity has powers to award contracts and consequently approve also large variations
- no adequate physical safeguards over cash, inventory or fixed assets
- entity processes or keeps custody of large amounts of cash

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The IAID does not accept any responsibility for loss or damage suffered by any person or body relying directly or indirectly on any information contained within the IAID website.

The IAID does not provide quality control of external links; the inclusion of any company's name within the pages should not be construed as a recommendation of that company's products and/or services.

If you find anything on this website that causes concern please send an e-mail to the webmaster or use the feedback form

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Material produced by employees of the Public Service is the copyright of Government but material obtained from consultants, contractors and other third party sources may raise copyright issues. When third party copyright is involved, a licence has to be obtained or written permission is otherwise obtained. Additionally, the appropriation of code, graphics and layout of another Website is inadvisable for reasons of intellectual property rights.

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1.0 Privacy Policy

We are committed to protecting our visitors' privacy and we will not collect any personal information about you as a visitor unless you provide it voluntarily. Any personal information you communicate to us is kept within iaid.gov.mt itself in accordance with the Data Protection Act 2001.

2.0 The Data Protection Act 2001

The Data Protection Act 2001 has been enacted on the 14th December 2001 and came fully into force as from the 15th July 2003. We therefore have a legal duty to respect and protect any personal information we collect from you and we will abide by such duty. We take all safeguards necessary to prevent unauthorised access and we do not pass on your details collected from you as a visitor, to any third party or Government Department unless you give us your consent to do so.

The identity and the principal place of business of the Internal Audit and Investigations Directorate, and of any other person or entity authorised in that behalf will be respected and protected.

• The Internal Audit and Investigations Directorate is responsible to reply to the feed back form received
• In the feed back form it is only required to fill the Name, Surname and address; failure to enter the above, the form will not be allowed to be sent.

3.0 Information Collected

As a visitor, we collect three types of information on you:

Contact or feedback information;
Web page download information;
Site usage information.

3.1 Contact or Feedback

When you fill the form on the "CONTACT US" or "FEEDBACK", we use the personal information submitted in the form only to respond to your message. This personal information will not be kept longer than necessary and will be deleted once the feedback requirement is met.

3.2 Download Information

If you read or download information from our site, we automatically collect and store the following non-personal information:

The requested web page or download;
Whether the request was successful or not;
The date and time when you accessed the site;
The Internet address of the web site or the domain name of the computer from which you accessed the site;
The operating system of the machine running your web browser and the type and version of your web browser.

Please note that this information is strictly for the sole use of cimu.gov.mt and it is not shared, leased, or sold in any manner to any other organisation.

4.0 Links to other Web Sites

Our site has a number of links to other local and international organisations and agencies. In some cases, for the benefit of the visitor, it may be required that we link to other web sites of other organisations after permission is obtained from them respectively. It is important for you to note that upon linking to another site, you are no longer on our site and you become subject to the privacy policy of the new site.

5.0 Access to your information

You may request us at any time what information is effectively held on you if any, at that particular time. You have the right to have any inaccuracies corrected and where applicable erased, if they are not already deleted.

6.0 Changes to this Privacy Policy

If there are any changes to this privacy policy, we will replace this page with an updated version. It is therefore in your own interest to check the "Privacy Policy" page any time you access our web site so as to be aware of any changes which may occur from time to time.

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