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In what is being described as a huge lapse in management, the forensic audit into the Cheddi Jagan International Airport (CJIA) has revealed that the airport has been operating without an internal audit department.CJIAC CEORamesh GhirThe audit department is a unit which is tasked with overseeing accounting and record keeping. In doing this, it creates and implements procedures and controls to safeguard the organisation’s finances.The audit report was done by Goorwantie Kaladeen, who is an accredited member of the International Institute of Certified Forensic Investigation Professionals (IICFIP).She pointed out that Chapter 19:05, Section 49 of the Public Corporations Act gives the corporation and the then Minister of Public Works, Robeson Benn, the leeway to set up the department.In her report it was noted that this lapse, considering the magnitude of activities taking place at the Corporation, was a recipe for disaster.“Section 49 of The Public Corporation’s Act states that ‘A Corporation may and when so directed by the Minister concerned shall in consultation with the Auditor General or the concerned Officer of any Corporation established under Section 54(1) as may be specified by the Minister make arrangements for a regular system of Internal Audit which shall be in addition to the Audit and examination of accounts herein before provided in this part’.”According to the auditor,Cheap Jerseys, who covered the years of 2012 to 2015 in her report,China Jerseys Wholesale, it was observed that the Ministry of Public Works’ Internal Audit Department carried out an investigation audit into CJIAC in November 2014.The auditor noted that this was not considered good practice,Wholesale Authentic NFL Jerseys, since the Ministry is a separate entity from the CJIAC. In addition, it was pointed out that the Permanent Secretary of the Ministry is a Director on the CJIAC Board.“The position of Internal Auditor was discussed at the CJIAC Board. However, the Permanent Secretary had advised the Board that the Ministry of Public Works Internal Audit Department will assist in this regard.”Management’s response rebuttedThe Cheddi Jagan International Airport.Kaladeen noted that this matter was raised with management of CJIAC, in a bid to get their response in the audit report. CJIAC’s Chief Executive Officer is Ramesh Ghir. Management’s response had been that the matter was discussed at the Board and Ministerial levels.Management also said that it was agreed that the then Ministry of Public Works,Cheap Jerseys China, would implement an internal audit committee whose scope would entail all of the agencies falling under the Ministry.“This committee was established and CJIAC was audited by the internal auditors in 2014. Additionally, CJIAC Accounts Department carries out a number of independent audits and management is confident that system of internal controls is effective.“Nevertheless this issue will be addressed with the new Board of Directors,” had been management’s response.However, the auditor has completely debunked this response from management, affirming that the response was misleading. In her report, she emphasised that the Audit Committee is separate from the Internal Audit Department and serves its own purpose.“The Audit Committee does not carry out audits,” the auditor observed. “The Internal Audit Department of the Works Services Group of the Ministry is assigned to carry out audits for that Department and are part of that management team.”“The CJIAC and the Ministry of Public Work are two separate entities and (they) need to have their own Internal Audit Department. Internal Auditors form part of the Management team and provide a number of important services to an organization.”The auditor noted that these regular functions include detecting and preventing fraud, testing internal control, and monitoring compliance with company policy and government regulations.“Internal auditing is an independent,cheap jerseys, objective assurance and consulting activity designed to add value and improve an organization’s operations,” the auditor pointed out.“It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control,Wholesale Jerseys Free Shipping, and governance processes’ as defined by the Institute of Internal Auditors Inc.”The forensic auditor also observed that the Accounts Department cannot carry out independent audits since their functions are accounting and they have a responsibility to examine all transactions and adhere to proper internal controls.In its recommendations, the auditor made it clear that Management should include in its Organization Structure an Internal Audit Function and make efforts to have an Internal Audit Department. It was noted that this will add value to the management of CJIAC.The lack of an internal audit department comes against the backdrop of other revelations in the audit, including findings of fraud committed by a contractor in 2012 who, despite being reported to the police, was never blacklisted by authorities and went on to secure numerous other contracts.

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