On Jun. 21, SRI GVT wrote regarding governance in public sector.
SRI GVT issued a management audit circular with respect to implementing a risk management framework that includes key element of governance and oversight.
It was issued to all secretaries of ministries; chief secretaries of provincial councils; head of departments; secretaries; relates to officials of government institutions bearing responsibility of optimizing public resources to effectively meet country needs.
Document dated Jun. 21, 2024, received from SRI GVT Jun. 25, summarized Jun. 28.
Overview of Requirements
Management and Audit Department developed risk management framework set out within this circular based on International standard of risk management (ISO 31000).
Based on that risk management framework, each spending unit is required to develop a customized risk management framework tailored to its organizational requirements.
Regular updates on the methodology are essential with monthly, quarterly and annual reviews as appropriate; system should be scrutinized for ensuring its effectiveness.
Circular also includes other requirements, i.e. with respect to annual risk based audit plan; requirements on Chief Accounting Officer/Accounting Officer; provides that starting from 2025, each expenditure unit must prepare risk management framework.
However, in 2024, entities are encouraged to proactively engage in risk identification.
Plus, to develop necessary internal control processes, refine their risk management strategies; key elements of risk management framework include those set out below.
Specifically, risk identification and assessment; risk mitigation and treatment; internal control framework; governance and oversight; risk culture as well as awareness.
The key element of governance and oversight comprises clearly outlining risk management roles along with responsibilities across all organizational levels.
In addition, establishing a risk committee tasked with supervising and monitoring risk management endeavors; engaging the audit committee and internal audit function to furnish independent assurance and advisory services; circular includes 4 appendices.
These appendices are respectively titled Risk appetite statement; Risk assessment form; Risk register; and Review of the effectiveness of internal control system.
Effectiveness
In 2024, entities are encouraged to proactively engage, as mentioned above.
Starting from 2025, each expenditure unit must prepare risk management framework.
