The IIA is the only recognised professional body in Zimbabwe that is entirely dedicated to the development of the internal audit profession.
Our vision is to provide an enabling environment for the development of well rounded professionals who will contribute effectively towards governance, risk and control issues affecting both the private and public sectors in Zimbabwe.
ANNUAL GENERAL MEETING [04 May 2012]
Honourable Patron, Fellow Internal Audit Practitioners, it is indeed an honour, and my pleasure, to welcome you all to this 2012 Annual General Meeting of the Institute of Internal Auditors [Zimbabwe]. The Board of Directors and I, as your President, are so very proud of having had the opportunity to serve you and help shape the future of the profession in Zimbabwe, while confronting both challenges and opportunities throughout 2011. We are proud of the manner in which IIA volunteers and staff pulled together with innovation and creativity to support the profession as our economy struggled to recover. And we are extremely pleased by the financial results of those efforts as will be chronicled in the Treasurer’s Annual Report.
Ladies and Gentlemen, IIA [Zimbabwe] last year developed a two-year strategy that has already demonstrated immense value and outstanding results. The plans for repositioning IIA Zimbabwe’s guidance, thought leadership, professional development opportunities, and other products and services complement and extend our “2011 – 2012 Strategic Plan” formulated by your board of directors. The strategy aims to advance the profession of internal auditing through the development and delivery of premier products and services that are relevant, timely, and focussed on the needs and expectations of members and stakeholders. To accomplish this, the IIA Zimbabwe board and management commit to running operations characterised by strong business acumen, and alignment with IIA Global’s Strategic Plan.
The Strategic Plan developed by your board was quite ambitious. I am glad to report that significant progress has been made by your board to achieve the following strategic goals it set to achieve in the Strategic Plan:-
[i] Benchmarking the structure / operations of our Institute against key regional Institutes:- Your Institute sent the Chief Executive Officer to South Africa to study the IIA [SA] structure and operations. We are therefore in the process of rolling out the preferred structure to improve our operations and service offering in order to be comparable to any other chapter Institute around the world. Your board has also developed By-Laws after benchmarking with the South African and the Global guidelines, and we are in the process of revising our Memo and Articles to ensure they are in sync with the proposed By-Laws. Members will be called upon to ratify these documents and changes thereto at an Extra-ordinary General Meeting to be called by the Institute. We are also in the process of acquiring a membership database (operating) system which will enhance our membership data management. In this regard, the preferred service provider has been selected and all that is left is the installation of the software and staff training on operating the system.
[ii] Ensuring the participation of IIA [Zimbabwe] in Global activities:- From this year , we participated in the Global Council Meeting, which was held in New Delhi, India, where we were represented by the 2nd Vice-President, Mr. Nyazenga. We were therefore able to contribute to the following key issues which all chapter Institutes around the world had to deliberate on:-
• The development of a Global Advocacy Platform to communicate common, universal messages about the Internal Audit Profession.
• Promoting and complying with the IIA Code of Ethics and the Standards to protect the integrity and reputation of the profession. For IIA members and IIA certification holders and candidates, it must be noted that conformance with the standards is mandatory.
• Revisiting the Definition of Internal Auditing to provide input to the “International Internal Audit Standards Board [IIASB]” mandated with the review of the current Definition to ensure its relevance in guiding the profession and effectiveness in communicating with stakeholders.
• Reviewing the Governance / Operating models for the IIA to determine whether the IIA should be an Institute of members, a confederation of Institutes, or a hybrid; and also to define the core principles by which all affiliated Institutes will operate.
The President will also represent IIA [Zimbabwe] at this year’s International Conference to be held in Boston, USA, in July 2012, whose theme is “Revolutionising Internal Audit”.
[iii] Developing a database for all Chief Audit Executives in the country:- This has been done for all major companies, although the list can never be exhaustive. We are using the database to encourage all CAEs and their audit staff to join membership of the Institute. The Heads of Internal Audit Committee delivered three workshops in 2011 to this target market of audit leaders.
[iv] Increase membership by aggressively selling the benefits of membership through various media:- In total we now have 500 members, out of which just under 350 members were paid-up as at 30th April 2012. We closed the year ended 31st December 2011 with 436 paid-up members. From January 2012, we are now producing a monthly e-newsletter, and the first half-yearly edition of our print magazine is currently under production. We have organised and run free workshops to educate Public Sector Internal Audit Practitioners on the benefits of membership, and we are confident that these efforts will bear fruit, as our economy slowly recovers.
[v] Improve on publicity and improve brand visibility:- We have published articles, supplements and adverts in the national press, which have clearly had a very positive effect on the standing of the Institute of Internal Auditors in the corporate world. As testimony to this, the Institute was invited to participate in and contribute to the drafting of the National Code on Corporate Governance for Zimbabwe, and is represented at the Zimbabwe Leadership Forum (ZIMLEF) by the 2nd Vice-President, Mr. Simon Nyazenga. As a further sign of respect the Institute has earned in the corporate world, the Institute of Directors Zimbabwe [IODZ] has also requested us to run joint workshops and seminars on areas of common interest, the first of which will be in May 2012.
[vi] Implementing a Quality Assurance Review Program in 2012:- The Research and Standards Committee of the Board has already designed a Quality Assurance Manual and Evaluation Forms. They also developed a training program to train reviewers and conducted the training for the Quality Assurance Reviewers. The reviewers have been accredited by the IIA, and the Institute is ready to conduct QARs. However, members appear to be hesitant to request for external reviews, which we remind members are mandatory in terms of the Standards.
[vii] Deliver a relevant, world class annual conference that attracts sponsors and international presenters:- We hosted a successful annual conference in 2011 that was attended by a record 220 delegates, up 22% from 180 delegates in 2010. We had two international / regional presenters, and overally the feedback from delegates was very positive and encouraging. Sponsorship of the 2011 Annual Conference increased by 198% from $9,500 in 2010 to $28,325 in 2011. Due to the high number of delegates that we expect to attend our Annual Conferences, the only venue with facilities that can now accommodate our members is Victoria Falls, and therefore the 2012 Annual Conference will again be held at the Elephant Hills Hotel. I am also glad to report that from 2012, we will expand the time of our conferences from one-and-half days to two full days, in order to decongest the conference program and maximise on presentations to be delivered.
[viii] Continuous Professional Development of Internal Audit Practitioners:- Ladies and Gentlemen, your Institute, having identified Continuous Professional Education as key in ensuring the development of a well-rounded internal audit professional, is delivering at least two workshops per month, including special courses for government auditors. We have also been running at least one course per quarter in Bulawayo, in order to decentralise the deliverance of training workshops. The Zimbabwe Open University (ZOU) partnered the Institute of Internal Auditors to develop an Internal Audit degree, the “Bachelor of Commerce Degree in Internal Auditing”, which was successfully launched in August 2011. This was a very important milestone in the history of IIA [Zimbabwe], as this degree will now enable our members, who previously were not able to register for International Certifications such as the “Certified Internal Auditor (CIA)”, to qualify for enrolment. The Institute continued to provide support for the attainment of international certifications through the provision of recommended study materials, which are available for sale at the Institute’s offices.
[ix] Recognise and reward high-performing Internal Audit Practitioners annually:- At the 2011 Annual Conference, the Institute successfully hosted the Inaugural Internal Auditor of the Year Awards, which seek to recognise and celebrate achievements by individual Internal Audit Practitioners in Zimbabwe for distinguishing themselves through tangible value addition to their organisations. This year we intend to categorise the awards between the Private Sector and the Public Sector.
[x] Acquiring a permanent home for the Institute:- Ladies and gentlemen, in pursuance of this important strategic objective, your board entered into a Sale Agreement in December 2011 to purchase a property for use as offices by the Institute. This was to be partly funded by a cash deposit of US$55,000 from the Institute’s own resources, and a bond of US$115,000 from a mortgage lender
However, due to the liquidity crunch that gripped the banking sector in the immediate successive period, the mortgage lender is still to approve the bond application. We however remain confident that the Institute will be able to achieve this key strategic plan in the immediate future.
Fellow Internal Audit Practitioners, the above strategic goals for our local Institute have to be in sync with the IIA Global’s Strategic Goals as we are a constituent member of the global body of Internal Auditors. IIA Global has identified the following key Strategic Goals in its “5-Year Strategic Plan for 2012–2016”:-
[i] Professionalism:- The IIA will be the driving force for the development of high-performing internal audit professionals, indispensable to their organisations.
[ii] Membership/Value Proposition:- The IIA will deliver the value that compels current, future, and former internal auditors to be members.
[iii] Advocacy:- The IIA will have positively raised the profile of, and demand for, professional internal auditing, globally.
[iv] Governance:- The IIA will have a global operating model in place where all affiliated institutes are aligned on core principles.
[v] Financial:- IIA operations will be self-sufficient financially with adequate reserves to carry out its core purpose and strategic direction.
Ladies and Gentlemen, I wish to advise you that Zimbabwe, among other African countries, will be hosting the Chairman of IIA Global, Phil Tarling, in August 2012. The Heads of Internal Audit Committee is already working on a function for members with the IIA Global Chairman, where we can discuss pertinent issues affecting the profession globally with the international body Chairman.
In conclusion, I would like to thank my fellow Board Members, Management, Staff and IIA Volunteers for their hard work and dedication to duty. My special appreciation goes to our Patron, Mrs. Chiri, for the advice and support she has continuously rendered to the Institute over the years. I would also like to thank the Nominations Committee for their work to ensure that your Institute has a functional succession strategy. While welcoming the incoming new board members to be elected today to the service of the profession, I would like to extend my sincerest appreciation to the outgoing board members for their immense contributions to the Institute. Lastly, I wish to thank all our Members and Internal Audit Practitioners in Zimbabwe for the support they have rendered me and my board during the first year of my term.
I THANK YOU.
IIA [ZIMBABWE] PRESIDENT