With the establishment of the Southern Provincial Council under the Provincial Council Act No. 42 of 1987, the Department of Internal Audit of the Southern Province was established with the establishment of a separate independent unit for internal audit work under the Southern Provincial Chief Secretariat.
Later, subsequent to the approval of the Southern Provincial Council Appropriation Statute in 2005, the Internal Audit Unit is considered as a Department of the Southern Provincial Counciland carries out activities such as, allocation of financial provisions, release ofimprest, keeping accounts, reporting, presentation of appropriation account and financial statements under expenditure head 323 as a department having an expenditure head of the Provincial Treasury.
The Internal Audit Department has been classifiedas a grade A Department of the Southern Provincial Council with effect from 01/01/2008 in accordance with the Gazette No. 1567 of September 12, 2008 of the Democratic Socialist Republic of Sri Lanka and incorporated and published in the Gazette.It is set out in Provincial financial regulations that there shall be an internal audit department under the Chief Secretary which shall assist the Chief Secretary to provide an efficient and productive service through good governance under Provincial financial rule 79.4.Action is being taken from year 2005 to appoint the Internal Audit Director as a head of a grade- A Department being an accounting officer of the Provincial Council.In addition to the Head office, from 2013, district internal audit offices operate in Matara and Hambatota districts with the aim of making the internal audit activities of all intuitions of the Southern provincial council efficient, andapproved cadre of the department is 70.