INSTITUTE OF INTERNAL AUDITORS MALAWI

18TH ANNUAL CONFERENCE

30TH AUGUST – 2ND SEPTEMBER 2018

SUNBIRD NKOPOLA LODGE

Theme: Gaining the Edge with Partners in Excellence

CONFERENCE PROGRAMME

Day 1, Thursday 30th August 2018

14.00 – 21.00 Arrival of participants and registration at Sunbird Nkopola Lodge and Sun n Sand

Day 2, Friday 31st August 2018

07:45 – 08:00 Delegates take their seats

08:00 – 08:20 Welcome Address by the President of IIAM

08:20 – 08:50 Keynote Address by Guest of Honour

08:50 – 09:00 Group photo by Events & Organizing Committee

09:00 – 09:15 Partnership/Sponsorship Slot (ACL)

09:15 – 09:55 Topic 1: Impact & Effectiveness of Internal Auditors from the CEO and Board Perspective

PRESENTER: KWANELE NGWENYA, NBS Bank CEO – Malawi

09:55 – 10:05 Troubleshooting/ Q&A Session

10:05 – 10:20 Partnership/Sponsorship Slot (K-SAP)

10:20 – 10:35 REFERESHMENTS BREAK & NETWORKING

10:35 – 11:15 Topic 2: Game Changer

PRESENTER: Dr Naomi Ngwira - Malawi

11:15 – 11:25 Troubleshooting/ Q&A Session

11:25 – 11:35 ACB Slot

11:35 – 11:50 Partnership/Sponsorship Slot (NBS)

11:50 – 12:30 Topic 3: Pensions Act. Employer Obligation and Employee rights

PRESENTER: CHIMWEMWE KACHINGWE - Malawi

12:30 – 12:40 Troubleshooting/ Q&A Session

12:40 – 13:40 LUNCH BREAK

13:40 – 14:20 BREAKAWAY SESSIONS

Topic 4: Data Analytics & Robotics – Future of Internal Audit

PRESENTER: Charles Chitowe – Malawi

Topic 5: Enterprise Risk Management (ERM)

PRESENTER: Angela Witzany – IIA Global HQTRS

14:20 – 14:50 PLENARY

14:50 – 15:30 Topic 6: Information Security on the cloud

PRESENTER: CLARENCE GAMA - Malawi

15:30 – 15:45 REFRESHMENTS BREAK & NETWORKING

15:45 – 17:30 ANNUAL GENERAL MEETING (2017/18 PAID UP MEMBERS ONLY)

16:00 – 18:00 Leisure Non-Members

19:00 – 21:00 COCKTAIL

Day 3, Saturday 1st September, 2018

09:00 – 09:10 Membership and Publicity Talk – Bright Sitima

09:10 – 09:50 Topic 7: IIA Malawi Legislation/Draft Internal Audit Act

PRESENTER: APOCHE ITIMU - Malawi

09:50 – 10:00 Troubleshooting/ Q&A Session

10:00 – 10:15 Partnership/Sponsorship Slot (Old Mutual)

10:15 – 10:30 REFERESHMENTS BREAK & NETWORKING

10:30 – 11:15 Topic 8: Trusted Advisor

PRESENTER: Angela Witzany – IIA Global HQTRS

11:15 – 11:30 Troubleshooting/ Q&A Session

11:30 – 12:00 Closing Remarks - IIA Malawi President

12:00 – 13.00 LUNCH BREAK

13.00 – 18.00 Leisure: Various Sporting Activities

19.00 Pungweee!! DINNER DANCE

Day 4, Sunday 2nd September, 2018

09.00 Breakfast, Guests Check out and Depart for Home

GUEST OF HONOUR: DR DALITSO KABAMBE

GOVERNOR of the Reserve Bank of Malawi

Dr Dalitso Kabambe was appointed Governor for the Reserve Bank of Malawi on 21 April 2017. He is married and has three children. He holds a PhD and a Master’s Degree in Development Economics from Imperial College - University of London, United Kingdom which were obtained in 2008 and 2001, respectively. He also holds a BSc Degree from the University of Malawi, obtained in 1998. As Governor of the Reserve Bank, he is responsible for providing strategic direction and leadership, in line with the principles dictated with the role of a central bank. His prime focus is on the design and execution of the objectives outlined by the monetary

policies; strengthen the exchange rate stability and advocate for the soundness and development of the financial system, which in the end will ensure economic growth. He undertakes and oversees all Central Bank communications with the public to ensure that these are in alignment with the Bank’s primary goals and objectives. Previously, Dr Kabambe worked in the Malawi Government Economic Service for a period of 19 years from 1998. He held different positions such as Principal Economist, Chief Economist, Deputy Director of Economic Planning and, Budget Director in the Ministry of Finance, Economic Planning and Development. He also served as Secretary for Foreign Affairs and International Cooperation for close to 2 years. As a member of the Government Economic Management Team for Malawi, Dr Kabambe contributed in formulating, implementing and managing the country’s fiscal, monetary and real sector policies; Carried out macroeconomic policy analysis forecasting/modelling and preparation of the National Accounts and Balance of Payment (BOP); Conducted macroeconomic research including Business Interviews and prepared periodic reports on the performance of the Malawi economy, including economic reports; Participated in all discussions/meetings on macroeconomic issues on fiscal, monetary, external, Public Financial and Economic Management (PFEM), national accounts and IMF Missions; Initiated and coordinated the formulation of medium to long term sectoral and national development strategies and policies; Analysed potential impacts of economic and development policies including bilateral and multilateral policy decisions; Coordinated the preparation and execution of budgets including Public Sector Investment Projects (PSIP) and ensure effective and efficient delivery of public services; Conducted the reviews of the country’s development strategies, policies, projects and programs to ensure that they are in line with the medium to long term development priorities; Analysed both domestic and international socioeconomic policies, programs and projects as well as shocks on the economy and formulated appropriate policy recommendations; In addition and specifically as Budget Director, Dr Kabambe provided professional advice and guidance on Fiscal, Monetary and Real Sector policy positions of the country; Reviewed Budget Policy practices, taxation and all elements of Government Revenues and Expenditures; Monitored performance of Treasury Funds, Trust Funds, Subvented Organizations and Parastatal Institutions; Vetted annual and supplementary national budget estimates before submitting to Cabinet and Parliament; Monitored Government financial

position at the Reserve Bank on regular basis; Participated in Malawi’s efforts aimed at mobilizing aid and technical assistance from bilateral and multilateral partners.

OPENING REMARKS TO THE 2018 INSTITUTE OF INTERNAL AUDITORS MALAWI

ANNUAL CONFERENCE

On behalf of the Board, the organizing committee and the Secretariat, I welcome you all our esteemed members and guests to the 2018 annual conference of the Institute of Internal Auditors Malawi (IIA Malawi). Special welcome to our guests who have travelled all the way from Austria and Zimbabwe respectively, representing IIA Global and IIA Zimbabwe to be part of this conference. I hope our guests and all delegates will enjoy the conference while experiencing the friendly hospitality at this magnificent Conference Centre, Sunbird Nkopola.

This year’s conference is being held under the theme “Gaining the edge with partners in excellence”. The choice of this theme was thoughtfully done, being mindful that, after decades of coming from behind and reacting to an already destroyed control environment, it’s time to position ourselves to an insightful mode and proactively advise our stakeholders to be winners. Therefore, for us to gain mileage in this economy and deliver positively on our mandate of providing assurance on Governance, Risk Management and Control (GRC) processes, knowledgeable and competent Internal Auditors are needed to ably advise.

In today’s world our goal is to earn returns both monetary and in-service delivery. Time has therefore come for us (Internal Auditors) to accelerate performance by igniting our thinking so that we remain relevant in the ever-changing world. It’s important that, Auditors playing these roles are well conversant and knowledgeable so that institutions benefit. At this conference, we will have a chance to receive feedback from the CEO/Boards perspective as to whether we are gaining the edge enough. The feedback will help us to appropriately align so that we positively impact and focus where there is need.

To achieve this alignment, It’s the Institutes desire that all internal auditing practitioners are registered with IIA to allow them to get relevant information and world trends that come in through the IIA global. Lack of legal instruments to govern internal auditors in Malawi is a challenge when it comes to enforcing those Internal Auditors practicing without registering with the IIAM. If the draft law is enacted it will be easy to regulate all IAs to an effective performance. We are happy that in this conference we will be taken through the provisions of the IIA Malawi Legislation/The draft Internal Audit Act so that we understand and know what it entails. In addition, we will also be taken through the Pensions Law in Malawi to ably apply and advise. Ladies and Gentlemen, we are living in a digital era where the notion of internet of things (IoT) is an in thing. As Internal Auditors we need to understand our role to manage the risks that come along with technology, hence the need to understand where the future will be in terms of data analytics and robotics. You will all agree with me, members and delegates that in the (IoT) environment, physical working papers, files and documents are fading away, as such information is being stored in the cloud rather than in the drawers and cabinets as the case was. With these advances in technology, information security is key to mitigate cybercrimes and other information technology risks. In addition, we need not to forget that the world is changing and so are the risks, if we continue sticking to our old ways of doing things where we routinely advise on issues that are already known to our valued clients, it will bore them and our work will not attract any action, we need to adopt a spirit of a game changer to remain relevant. At this conference we will listen to

renowned presenters who will motivate us into being drivers of positive change to impact the world around us. Lastly but not least, Internal audit work is regarded as a tool for value addition in forms of assurance and advising. It is therefore necessary for internal audit function to portray traits of a trusted advisor and ably advise on risk management to ensure organizations goals are achieved.

I am confident that, this conference will be one of its kind where our horizon of understanding on internal audit matters will be widened. The objectives of this conference will be achieved because the choice of this year’s guest of honor and presenters was carefully done to ensure that we get the best for our members and all participants. Apart from listening and tapping from these great minds, we will also have a chance to mingle, network and participate in social activities that have been outlined by the organizing committee. I therefore urge you all to participate fully and enjoy!

To all our sponsors and partners, your contribution will go a long way and help us gain the edge we are desiring as Internal Auditors so that we aptly serve our country and stakeholders better.

With these remarks I wish you all wonderful deliberations and insights at this annual conference for the IIA Malawi and God Bless you all.

Thokozile Kuwali CIA, CRMA, CFSA

IIA Malawi President

MEET THE PRESENTERS…

Topic: Enterprise Risk Management

Presented by: Angela Witzany, CIA, QIAL, CRMA, IIA 2016-17 Global Chairperson of the Board

Angela Witzany is currently head of internal audit of Camelot Ltd., a 100% associated company of Sparkassen Versicherung AG Vienna Insurance Group, the IT company of the Insurance Company. Starting by April 2018, Angela Witzany serves as well as the Data Protection Officer for Vienna Insurance Group (VIG), responsible for all insurance companies of VIG in Austria and acts as the coordinator in Central Eastern Europe. The Vienna Insurance Group is an international insurance group headquartered in the Austrian capital; with over 25,000 employees work for the Vienna Insurance Group, at around 50 companies in 25 countries.

She was head of internal audit for Sparkassen Versicherung AG Vienna Insurance Group, a large life insurance provider in Austria. Witzany has been an internal auditor in the insurance sector since 1997, when she developed Sparkassen Versicherung’s new internal audit function. She served there as head of internal audit from 2001 to 2017 and had responsibility for internal audit activities in Austria and Central Eastern Europe. Further, Witzany served as the Austrian Insurance Association’s vice president of the Committee of Internal Audit and Control. She was an active member of that organization since 1997. Over the past decade, Witzany built an impressive record of volunteer service, particularly with The Institute of Internal Auditors (IIA). Most recently, she was Chairman of the IIA’s Global Board of Directors for 2016-17. A member of the Global Board since 2013, Witzany previously served as senior vice chairman. She also was chairman of the Finance Committee, chairman of the Professional Guidance Advisory Council, and a member of the Professional Certifications Board. Witzany also was chairman of the board for IIA-Austria and lead the permanent working group of private insurance companies as a contributor to numerous internal audit guidelines, model audit charters, and audit engagement programs. In Europe, she served as a board member of the European Confederation of Institutes of Internal Auditing (ECIIA) and completed her term as vice president in 2015. She is a frequent speaker and moderator at internal audit conferences around the world and has written about internal audit-related topics for a number of publications. As IIA Global Chairman, Witzany spoke on the theme “Audit Never Sleeps,” advocating that internal auditors must be credible, reliable, and have strong relationships to ensure their organizations are well-positioned to meet the challenges of a dynamic and complex business environment. “Internal auditors have sought to add value to their organizations by working tirelessly and passionately to meet the evolving expectations of stakeholders, and to become trusted advisers and partners to boards, audit committees, and management,” Witzany says. Witzany earned her master’s degree in commercial science at Vienna University of Economics and Business and is a certified accountant. She holds the Certified Internal Auditor (CIA), Qualification in Internal Audit Leadership (QIAL) and Certification in Risk Management Assurance (CRMA). She is a lecturer and trainer on internal auditing in the insurance industry at an Austrian university, Johannes Kepler University Linz.

Topic: Impact and Effectiveness of Internal Auditing from the CEO and Board Perspective. Presenter: Kwanele Ngwenya, CEO NBS Bank

Mr Kwanele Ngwenya is a professional banker with international experience in commercial banking covering corporate, commercial and retail banking. Mr Ngwenya joined NBS Bank as CEO in April 2017 after completing a 2-year contract as CEO for Opportunity International Bank of Malawi. His role is to provide overall direction and leadership of the bank and ensure that all aspects of the bank’s activities are managed efficiently and effectively to achieve the best interest of shareholders, customers and employees. Mr Ngwenya is responsible for the provision of highest level of customer relations and service by ensuring compliance with bank policies and procedures as well as those of the regulatory and supervisory authorities. He previously worked for Steward Bank as its first CEO and Executive Director. He is currently the Chairman of National Switch Malawi, Vice President of Bankers Association of Malawi and a board member of Nico Technologies. He holds 2 master’s Degree in administration and Strategy.

Topic: The IIA Malawi Legislation/The draft Internal Audit Act

Presenter: Apoche Itimu, Legal Advisor Mota-Engil Construcao Africa, the Malawi Branch

Apoche Itimu holds an LLB Bachelor of Law (Hons) degree from University of Northampton, a post graduate diploma in Legal Practice from Staffordshire University and an LLM master’s in international law and World Economy from University of East London. She has over 10 years of legal work experience having worked in the international, public and private sectors.

Topic: Data Analytics & Robotics

Presenter: Charles Chitowe

Charles is an Information Systems Audit expert with practical experience in the audit of information systems. He is a Certified Information Systems Auditor (CISA) and a member of the Information Systems Audit & Controls Association (ISACA). He is a member of IIAM Board and the Continuous Professional Education (CPE) Committee of the IIAM. He holds a master’s in computer systems Audit, currently he is working for Reserve Bank of Malawi as Manager Information Systems Audit.

Topic: Game Changer

Presenter: DR Mrs. Naomi Mkandawire,

Dr Mrs. Naomi Mkandawire served as Deputy Governor for the

Reserve Bank of Malawi from 2012-17, where she was responsible

for the formulation and implementation of foreign exchange and

monetary policies. Before that she worked as Director of Debt and

Aid at the Ministry of Finance of Malawi.

Dr. Mkandawire was Lecturer and head of department at the

University of Malawi from 1997 to 2003 where she taught graduate

students econometrics and economic policy and planning. She has

conducted research and consultancies for various organization in

Malawi and in the Africa region and beyond that including UNDP,

UNECA, USAID, The OECD, ODI UK, DFID Malawi, and the Ministries of Finance of Zambia,

Lesotho and Zimbabwe, on topics such as Budget Formulation and Implementation, Poverty

Reduction Strategy Papers, Aid and Debt Management, Women’s Poverty and Inheritance

Rights, and Gender Budgeting. She has been extensively involved in civil society campaign

for social justice and is a founding member of the Malawi Economic Justice Network. In 2003-

4 she served as Chairperson of the Special Law Commission of Marriage and Divorce.

Dr. Mkandawire has served in various capacities that include board member of Celtel Malawi,

Malawi Development Corporation, Press Agriculture, and the African Economic Consortium,

Nairobi. Currently she is on the Board of CDH Investment Bank. In 2003 she served as UN

Secretary General’s envoy on a panel of Women and HIV/AIDS in Southern Africa. In 2011/12

she was on the advisory team to the minister of finance of Ireland on Debt and Aid

management, where she contributed to the preparation of the White Paper on Aid for the Irish

Government.

Dr Mkandawire holds four degrees in Economics from the University of Malawi, East Anglia

and Michigan State. Her professional and career goal has been/is to contribute to research,

dialogue and practice of national economic management in Malawi that leads to poverty

reduction, and in gender responsive manner.

Topic: Information, Security in the cloud Presenter: Clarence Gama, CEO, NICO Technologies

Clarence has been leading Technology teams in the financial and

telecommunications industries for 10 years. He is the CEO for

NICO Technologies since July,2016, Prior to that he was Country

Service Manager at IBM working on the Airtel Managed services

contract. NICO Technologies operate IT managed services

agreements in Insurance and Banking with NICO Group of

companies managing information security, computer

infrastructure and software. He holds a BSc in IT and IBM

Certifications in Leadership, Project Management and

Cybersecurity.

Clarence is a member of the Project management institute and holds a Toastmasters

International competent communicator award. He is passionate about motivation and

mentorship and hence enjoys public speaking in his free time, and additionally enjoys good

music, playing squash and Photography.

Topic: Pensions Act. Employer Obligations and Employee rights.

Presenter: Chimwemwe Kachingwe, Director for Pension and Insurance Supervision at

Reserve Bank of Malawi

Miss Chimwemwe Kachingwe is the Director for Pension and

Insurance Supervision Department at Reserve Bank of Malawi. She

holds a Master of Science degree in Banking, International

Economics and Finance. Miss Kachingwe also holds a Certificate in

Insurance. She boasts of a 17 year-strong background in financial

regulation that has seen her through bank supervision, insurance

supervision and pension regulation.

PLATINUM SPONSORS GOLD SPONSORS SILVER SPONSORS

CONTRIBUTIONS

RESIDENTIAL: FULL BOARD

Nkopola Sun ‘n’ Sand

Member K490,000 K450,000

Non-Member K565,000 K520,000

This includes conference fees and materials, meals &

accommodation for participants only. Rooms will be

allocated on a first come first serve basis.

NON-RESIDENTIAL: (PARTICIPANTS ARE REQUIRED TO MAKE

THEIR OWN ACCOMMODATION ARRANGEMENTS)

IIA MEMBER: K300,000

NON-MEMBER: K355,000

This covers conference materials, refreshments, and lunch at

Nkopola lodge only.

OTHER CONFERENCE DETAILS

• A 15 hours Continuous Professional Development (CPD)

certificate of attendance;

• Free attendance to the Gala Dinner;

• Delegates will be provided with meal coupons which will

be used for breakfast, lunch and dinner during the

conference period. Extra coupons will be available for

sale during registration. We kindly ask participants to

take care of meal coupons as there will be no

replacements in case of loss.

NOTE: All crossed cheques should be made payable to the

Institute of Internal Auditors

REGISTRATION Registration is confirmed on receipt of

payment. Please call to confirm space

availability. All cancellations must be

submitted in writing. No refunds will be

made on cancellations received within less

than 7 working days of the conference or

for participants who registered but do not

attend the conference. However, a refund

less 35% administrative charges will be

refunded 7 or more working days before the

conference. There is no charge for

substitutions, however, written notification

must be provided to IIA Secretariat.

ACCOMMODATION

Participants have the options of paying full

board of paying for the conference only.

Those choosing to pay full board will have

the option of choosing whether they would

like to stay at Sunbird Nkopola Lodge or Sun

‘n’ Sand Holiday Resort. Participants have

the option of bringing a spouse and

children to the conference for an extra fee.

SPORTS & LEISURE

Sports activities and leisure include

swimming, BAWO, beach football and

volleyball, which will be free of charge.

Other activities such as Boat Cruises will be

available for a fee. Please contact IIA

Secretariat for more information.

DRESS CODE

Participants are advised to note that smart

casual will be the dress code throughout

the Conference period, except during the

Gala Dinner, when the dress code will be

formal.

Financial Education Article

SINGLE AND STARTING OUT. WHERE DO WE GO WRONG?

Whilst each of us is different, with our own colours, races, tribes, faces, tongues, educational

backgrounds, needs and circumstances as the nations have created, there are certain life stages

and “watershed” events that are common to most of us in one form or another. Financial literacy

runs over all the differences. This article is about financial management amidst many

irresistible social demands.

Research has proved that poor financial planning habits are at the root of poor money

management. Many Malawians know what to do, they have basic knowledge and motivation

of what they actually want; but they just end up not doing it. Why? Interestingly, every time

during crossover gatherings on 31st December, the night that takes us over to 1st of each New

Year, most people identify nice goals to be achieved by end of the coming year. Nevertheless,

nine months down the line, many people are either off the goals or very behind their goals.

Sometimes they even forget those goals completely.

At this life stage, one may still be studying, or has just started his or her first job, and needs to

consider ones financial needs as an independent adult. Here, the person does not have much in

the way of responsibility – no dependents and few financial commitments. Now let’s consider

the following points:

Consider having a financial plan. In general usage, a financial plan is a comprehensive

evaluation of an individual’s current pay or earnings and future financial state by using current

known variables to predict future income, asset values and withdrawals plans. It is vital to keep

track of and record all one’s financial incomes each month so that you know how much you

earn. Understand how much you owe others because your current wealth status means the

money and assets you have minus the money and assets you owe others. Comprehend how

much you spend by keeping track of and recording all financial expenditures so that you do not

spend more than what you earn. Any person who spends more money than what he or she earns

is on the “high-way” to poverty.

Consider paying off your loans. The focus here is not on whether loans are good or not.

Whether you decide to pay the loans promptly or systematically, what is important is that you

plan to re-pay the loans timely to avoid the interests that maybe added due to delayed payment.

Consider having an emergency savings plan. This is a stash of money set aside to cover the

financial surprises life throws your way. These unexpected events can be stressful and costly,

for example job loss, medical or dental emergency, unexpected home repairs, car troubles and

unplanned travel expenses. It is therefore, important to put aside an amount each month to

cater for life’s little emergencies. This should be done through a lower-risk investment with an

insurance company or a bank that offers you competitive interest rates and easy access to your

money for example by getting Unit trust, Tsogolo Savings plan which provides you access to

you in times of emergencies, or bank account. A little something being saved each and every

month makes a difference. It is not about non-affordability of a savings plan, it is about

compromising some of our daily habits in order to save something at the end of the day.

Consider Investing or Saving for a Goal. According to the Secret of the Leopard from Old

Mutual big five secrets of money management, the leopard never lets its prey out of its sight,

patiently planning and moving towards its goal, never backing off or giving up. Here the lesson

is that we need to have SMART goals. As a young person it is of great significance to note

that a lot of things are awaiting you on your way for example need to buy households items,

buy a car, buy or build a house, further studies, hold a good wedding, start a business among

others. Thus, early savings will help to attain the goals easily. It is however important to ensure

that your savings are in a secured method that will allow your money to grow for example

taking a policy with Insurance Company allows your money to enjoy the compound interests.

Consider having Life insurance Policy. Most people think that one does not need life

insurance policy at this life stage because he still has many years to live. As much as he is still

young, remember there are too things in life: either you live longer or you die early. In either

situation, what will happen to your bereaved relations if you do not prepare for your death?

Life policy provides you with “peace of mind” – meaning you work at peace knowing that your

life is covered even if you are involved in an accident. You get the whole amount of money

agreed in the contract, tax free and no any other charges attached but rather the whole lump

sum amount. Old Mutual Timba Family plan and Timba plus are the best examples of such

arrangement. Life insurance policy is different from a medical scheme where you are covered

for your medical bills, though it is also necessary at this stage.

Consider having retirement plan. While retirement may seem like the distant future to you,

it is never too early or too late to start. Whether you are joining a staff pension plan which is

mandatory or are self-employed, an early start with a pension administrator (Insurance

Company) that will grow your money could mean the difference between being able to retire

and having to work in your old age. Aspire never to be like those aged people who keep on

working even after reaching their retirement mandatary age due to poor retirement planning,

those who ask the employer to put them on month to month contract, those whom after

retirement there is nothing to show for, but just words they borrowed from the colonial regimes.

No matter what life stage you are or financial needs you have, you need good habits of money

management for your success. For more details visit www.oldmutual.co.mw and for feedbacks

email financialeducation@oldmutual.co.mw

2018 Financial Education Article One Benard Chiluzi FEF