Adequate policy and procedures | KPMG | NA
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Adequate policy and procedures: A key foundational element of a sound organisation

Adequate policy and procedures

The foundations of an organisation need to be built on good governance and reinforced by a system of internal control.



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Adequate policy and procedures

Its common knowledge that laws and regulations are the foundations of any state. The same goes for an organisation as well. If the foundations of an organisation are not built on the concrete of good governance and reinforced by the steel of an appropriate system of internal control of which relevant policy is a key element, it wouldn’t take long for it to crumble.

The benefits of effective policies and procedures are seldom realised and are often taken for granted. Once drafted they are filed and forgotten and as they accumulate dust, the processes and technologies change and staff tend to determine their own policy or carry out informal procedures to the potential detriment of the entity.  

An audit of an organisation’s policies and procedures would typically find it in one or a combination of the following

  • Well written out, signed and relevant documents that are followed and guide the entity’s operations
  • Documented policy and/or procedures that are not followed (partly or completely)
  • Documented policy and/or procedures with inadequate controls to mitigate the risks faced by the organisation
  • Outdated and/or unsigned documents that do not represent the current operations
  • Non-existent policy and/or procedures

The following are characteristic of effective policy and procedures:

  • Takes into account all relevant risks and incorporates controls to mitigate them;
  • Clear, concise and well documented e.g. objectives, risks, policies, procedures, controls linked and listed separately;
  • Signed by the Board and regularly reviewed as part of the ongoing improvement process; and
  • Adopted by management and rigorously enforced top-down throughout the organisation.

© 2018 KPMG Advisory Services (Namibia) (Pty) Ltd, a Namibian private company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The information contained in this newsletter is of a general nature and should not be used or relied upon as a substitute for detailed advice or as a basis for formulating business decisions. Please contact the writer for advice relating to your specific circumstances. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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