An Internal Control System of Value to the Driving Licence Testing Centre of the Madibeng Local Municipality

Abstract

The purpose of this article is to assess the critical components of an internal control system that need to be considered when designing an internal control system at the local sphere of government. This article argues that internal control is deeply rooted in the processes set to provide reasonable assurances that the needs of society will be met effectively while complying with applicable laws. Further, this article maintains that an internal control system comprises of the control environment, risk assessment, control mechanisms, information and communication, and monitoring. To comprehend the importance of an internal control system at the local sphere of government, the Driving Licence Testing Centre of the Madibeng Local Municipality is used as the case under study and specifically the issuing of driving licences. However, the problem is that despite the importance of the components of an internal control system, the effective and efficient application thereof is lacking at the Driving Licence Testing Centre of the Madibeng Local Municipality. A qualitative research design was followed and mixed data gathering instruments were used to answer the research question: ‘Which components need to be considered when designing an internal control system for the Driving Licence Testing Centre of the Madibeng Local Municipality?’. In addition to the literature review, the empirical findings validated the components needed to be considered. The article concludes that although the existing internal control system of the Driving Licence Testing Centre of the Madibeng Local Municipality has benefits, it is often faced with challenges and features that may affect it negatively.