Section 48 of the Public Finance and Management Act, 2015, provides for the establishment of an Internal Audit Department in every vote.

Section 4 of the Local Government Finance and Accounting Regulation, 2007 Internal Audit means an independent appraisal function establish within organization to examine and evaluate its activities within as a service to the organization. 

In line with the Institute of Internal Auditors and the Public Finance Management Act 48 of 2015 and Local Government Act CAP 243 of 2015, Internal Auditing is also defined as an independent, objective assurance and consulting activity designed to add value and improve the operation and management of the vote to accomplish its objectives by bringing a systematic and disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.

The Scope
The internal audit work in Gulu City includes the examination and evaluation of the adequacy and effectiveness of the Gulu City’s governance, risk management, systems of internal control and the quality of performance when carrying out assigned responsibilities; aimed at achieving the Gulu City’s strategic goals and objectives.

Governance

The Department is administratively supervised by the City Town Clerk and functionally by the Speaker. 
In line with Section 90(2) of the Local Government Act CAP 243 of 2015 as amended, the Department of Internal Audit issues statutory quarterly internal audit reports highlighting the key observations made in the course of audits and the measures recommended or adopted by management to address the weaknesses noted and submit to the speaker giving copy to the city Public Account Committee (CPAC).

Core Functions of Internal Audit

• To maintain efficient and effective internal audit unit able to carry out the function of the unit;
• To implement all relevant aspects of the internal audit manual and ensure that the prescribed standards and work programmes are adhered to where applicable; 
• To prepare annual and quarterly work plans for internal audit unit to ensure optimal deployment of resources to priority audit area, and to submit the plan to chief executive for approval;
• To prepare internal audit quarterly reports for submission to the council within one month at the end of each quarter;
• To review financial and accounting systems of operation in each department and establishment of administration to ensure that they are adequate, effective and conform to the provisions of these regulations and internal audit manual;