Agenda Item No
The Vale of Glamorgan Council
Audit Committee: 23rd February, 2012
Report of the Head of Accountancy and Resource Management
Compliance of Internal Audit to the Standards as Contained Within the Code of Practice for Internal Audit in Local Government in the United Kingdom 2006
Purpose of the Report
1. The purpose of this report is to inform the Audit Committee of the findings of the self-assessment checklist - measuring the compliance of Internal Audit to the Standards as contained within the Code of Practice for Internal Audit in Local Government.
THAT the Committee notes the results of the Self-Assessment Checklist and the overall compliance of the Section with the Code of Practice.
Reasons for the Recommendations
To facilitate monitoring of the audit function.
2. The Code of Practice defines the way in which the internal audit service should undertake its functions. It consists of eleven standards together with a checklist for compliance with the Code.
3. In order to assist the Committee in discharging its obligations under the Constitution, and to facilitate the monitoring of the internal audit function to ensure that a continuously effective level of performance is maintained, compliance with the Code of Practice for Internal Audit is mandatory.
Relevant Issues and Options
4. A checklist is included as an appendix to the code, which offers the Head of Internal Audit - Head of Accountancy & Resource Management to measure the service provision against the standards within the Code. It is suggested that the results of this review should be used as part of the annual internal audit report to those charged with governance to demonstrate compliance with the Code and identify any areas for further action
5. Attached at Appendix A are the results of the self-assessment of the Vale of Glamorgan Council's Internal Audit Section against the checklist. It is pleasing to report that with the exception of 2 minor partial compliant scores; overall the Section has achieved 99% compliance with the Code. Such compliance will be subject to a separate annual review by the Council's External Auditors - Grant Thornton UK LLP.
6. The areas identified where action is required will be addressed when the Terms of Reference for Internal Audit are brought before the Committee; thus ensuring adherence to the Standards.
Resource Implications (Financial and Employment including Climate Change, if appropriate)
7. None as a direct consequence of this report.
Legal Implications (to Include Human Rights Implications)
8. Provision of an adequate and effective Internal Audit function is a legal requirement under the Accounts and Audit (Wales) Regulations 2005.
Crime and Disorder Implications
9. Pursuing initiatives to prevent, detect and deter crime is encompassed within the terms of reference under which the audit function operates.
Equal Opportunities Implications (to include Welsh Language issues)
10. None as a direct consequence of this report.
11. The work of audit is intended to assist in the achievement of all corporate and service objectives.
Policy Framework and Budget
12. The proposals in this report are in accordance with the policy framework and budget.
Consultation (including Ward Member Consultation)
13. No further consultation is proposed.
Relevant Scrutiny Committee
14. Corporate Resources.
Helen Smith - Principal Auditor Tel: 01656 754901
External Audit Manager - Grant Thornton UK LLP
Alan Jenkins - Head of Accountancy & Resource Management