PESHAWAR: The Khyber Pakhtunkhwa government on Tuesday formally launched a centralised and comprehensive internal audit policy for its departments, offices, autonomous bodies and local governments.

A statement issued here said the key financial management reform initiative formulated by the finance department provided for a mechanism to strengthen internal controls, preempt misuse of funds and enable top management to have efficient control.

It added that the internal audit function was being developed for the first time in the province`s history.

The launching ceremony was attended by senior government officials, secretaries and representatives of development partners, civil society and media.

Finance minister Muzaffar Said attended the event as the chief guest.

He said the internal audit policy was intended to build the people`s confidence by providing unbiased assessments of whether public officials are managing public resources responsibly, effectively and honestly.

He said internal audit policy supported the government`s responsibilities of oversight,insight, and foresight and that the oversight intended to address whether public sector entities were doing what they were supposed to do; funds were being spent on intended purposes, and laws were being complied with.

The policy has already been approved by the cabinet.

The finance department has also issued a notification for the implementation of the policy.

KP will be the second province after Sindh tohave dedicatedinternalauditfunctions.

Earlier, finance secretary Shal(il Qadir Khan said the government through the internal audit policy would put in place effective internal controls in every department and ofñces for the purpose of efñciency, transparency, judicious use of resources, avoid waste and misappropriation of funds, and detect errors and irregularities in the ñnancial proceedings and other processes of the government.

He said the government considered internal audit to be a very important management tool, which the finance department has formulated with a technical support from DFIDfunded sub-national governance programme.

Under the internal audit system, a centralised wing called the Provincial Internal Audit Cell (PIAC) has been established at the finance department. A separate and independent Internal Audit Cell (IAC) will be established in each government department and directorate. Currently, there are 34 departments and 81 directorates in KP.

In the first phase, IACs have been estab-lished in 13 departments and more will gradually be established across the remaining offices and autonomous bodies.

The audit policy also defines the broad principles related to the purpose, authority and responsibility of PIAC, departmental/ district Internal Audit Cells (IACs), and the role of the both regard to coordination, support and functioning.

All employees within the IAC will maintain independence from operational management and will have no direct authority over any of the operational activities.

The PIAC will provide support, assistance, technical backstopping and coordination for IACs across the provincial government. The PIAC will be headed by a BPS-19 provincial coordinator of internal audit who will report to the hnance secretary.

The jurisdiction of the Internal Audit include all payments made out of the provincial consolidated fund, contract award and managementits processes and record, recruitments, risk and asset management.

This policy is applicable to all departments, directorates, attached departments, attached offices and autonomous/semi-autonomous bodies, authorities and board s working under the administrative departments.

Under the law, IACs will prepare and implement an annual audit plan, assess the quality of the department`s risk management, governance, assessing compliance of the management`s activities, assisting the department`s management in the investigation of significant suspected fraudulent activities.