To establish effective management and “Good Governance Principles”, the reform of Public Internal Financial Control (PIFC) has been underway since 2010, which is highly important due to obligations Georgia has undertaken before EU and due to the potential benefits from its implementation. The reform aims to promote the establishment of the Internal Control system within the government, which ensures the straightened managerial accountability, therefore, more targeted, economical, efficient, and productive use of the budgetary resources.

With time, more and more internal audit units have introduced risk-based planning in central government and moved from traditional compliance and financial audits to efficiency and system-based audits. However, there is still high emphasis made by CHU in municipalities. Further development stage of the internal audit function goes to the development of Internal Audit Quality Assurance Program. Strong and efficient internal audit functions are actively dependent on the leadership support and adequate understanding of role of IA within the organization, therefore it was often supported by CHU to conduct awareness-raising sessions for senior and mid-level management or conducting meetings with Heads of organization and employees, to introduce benefits and methods of internal auditing, therefore increase understanding among public servants and key stakeholders of internal audit results, e.g. reports.

An overall objective of CBI’s support is to further strengthen public financial management capacity of Kobuleti and Telavi Municipalities.

The specific objective of this assignment is to support Kobuleti and Telavi Municipalities:
 in fulfilment of indicators defined by the memorandum signed with the MoF;
 in arrangement of internal audits based on the relevant standards;
 in improvement of internal auditors’ qualifications;
 in carrying out internal audit activities in compliance with the law of Georgia “On Public Internal Finance Control”, internal audit methodology approved by the Government of Georgia, and international standards.