About unit

About Internal Audit

Internal audit is an independent and objective consulting activity designed to enhance the value and improve the performance of an organization. It helps an organization achieve its goals by ensuring a systematic and disciplined approach to assessing and improving the effectiveness of risk management, controls and management processes.

The Internal Audit Unit in the Ministry of Civil Affairs of Bosnia and Herzegovina, in accordance with Article 4 of the Internal Audit Charter of the Ministry of Civil Affairs of Bosnia and Herzegovina No.: 01-50-2-1227/15 of 1.6.2015, does not perform tasks in the Ministry of Civil Affairs of Bosnia and Herzegovina that are not related to the internal audit function.

The professionalism of internal auditors is reflected in the objectivity and impartiality of the expert assessment of the current state of the internal control system by applying audit standards, and in the quality and practicality of recommendations for improving the risk management, controls and business processes in the Ministry.

The Internal Audit (IA) system is part of the Public Internal Financial Control (PIFC) system developed by the European Commission and which aims to assist countries in the process of accession to the EU in understanding and implementing well-developed and effective internal control systems.

Bosnia and Herzegovina's obligation in the field of internal audit is established by Article 90 of the Stabilisation and Association Agreement between the European Communities and their Member States and Bosnia and Herzegovina, in the section entitled "Cooperation in the field of audit and financial control" (''Official Gazette of BiH - International Agreements'', No. 10/08).

The PIFC framework consists of three pillars that should ensure sufficient synergistic effects in order to achieve sufficient clear assurance that internal controls are functioning properly and effectively, namely:

Functionally independent and decentralized internal audit (IR) - as an aid to the head of the institution who performs internal control reviews,

Financial management and control (FMC) - with strengthening of responsibility for achieving the institution's goals and the economical and efficient functioning of the financial management and control system in the institution

The Central Harmonization Unit (CHU) is a separate unit that develops and directs the PIFC process.

The internal audit system in BiH institutions, in addition to the Law on Internal Audit of the Institutions of Bosnia and Herzegovina ("Official Gazette of BiH", No. 27/08 and 32/12), is also defined by the Strategy for the Implementation of Public Internal Financial Control in the Institutions of Bosnia and Herzegovina, adopted by the Council of Ministers of Bosnia and Herzegovina at its 110th session held on 30.12.2009., which, among other things, provides for the development of decentralized internal audit in the institutions of Bosnia and Herzegovina.

Scope of the Internal Audit Unit

In accordance with the Decision of the CHJ of the Ministry of Finance and Treasury of BiH on the criteria for establishing internal audit units in BiH institutions (Official Gazette of BiH, No.: 49/12 and 69/17), and based on data from the Law on the Budget of BiH Institutions and international obligations of BiH, the Internal Audit Unit of the Ministry of Civil Affairs of BiH is responsible for performing the internal audit function for the following institutions - users of internal audit services:

Ministry of Civil Affairs of Bosnia and Herzegovina

Anti-Doping Control Agency of Bosnia and Herzegovina

Agency for Medicines and Medical Devices of Bosnia and Herzegovina

Agency for Preschool, Primary and Secondary Education of Bosnia and Herzegovina

Agency for Labor and Employment of Bosnia and Herzegovina

Agency for the Development of Higher Education and Quality Assurance of Bosnia and Herzegovina

State Regulatory Agency for Radiation and Nuclear Safety

Commission for the Preservation of National Monuments

Center for Information and Recognition of Documents in the Field of Higher Education in Bosnia and Herzegovina

Mine Clearance Center in Bosnia and Herzegovina - BHMAC

The goal of internal audit is to provide services that should help management in the efficient execution of obligations, checking whether the implementation of management and control mechanisms is appropriate, economical and consistent in relation to legal regulations, work instructions, internal acts and contracts and other regulations, giving recommendations and advice in connection with the activities that are subject to auditing. Internal audit helps the user of internal audit services in achieving goals by applying a systematic and disciplined approach to assessment and improving the efficiency of risk management processes, controls and management processes.

The internal audit function complies with the principles of independence and objectivity, competence and due professional attention, as well as the principles of confidentiality and integrity, in the manner prescribed by the Law on Internal Audit of BiH Institutions and internal audit standards.

The performance of internal audit work will be in accordance with the internal audit methodology defined in the Internal Audit Manual issued by the Central Harmonization Unit of the Ministry of Finance and Treasury of Bosnia and Herzegovina.

Function inteInternal audits will be performed in full compliance with the Code of Ethics for Internal Auditors in the Institutions of BiH.

Internal Audit Procedures and Activities

The basic tasks of internal audit include:

strategic (three-year) and annual internal audit planning;

testing, examining and evaluating data and information;

reporting on results and making recommendations with the aim of improving business operations;

reviewing, monitoring and implementing internal audit recommendations previously submitted to management;

preparing and executing the budget necessary to achieve the objectives of the internal audit function.

The head of the institution has the exclusive authority to initiate special tasks of an advisory nature related to internal audit, which are not included in the annual internal audit plan.

Internal Audit Unit

Head of Internal Audit Said Piralić

Internal Auditor Predrag Veljo