Agenda Item No


The Vale of Glamorgan Council


Audit Committee 17th September 2012


Report of the Head of Accountancy and Resource Management


Proposed Internal Audit Annual Plan 2012-13


Purpose of the Report

1.             The purpose of this report is to submit the proposed 2012/13 Annual Audit Plan for approval


1.             That the 2012/13 Annual Audit Plan be approved

Reasons for the Recommendations

1.             To facilitate monitoring of the Internal Audit function.



2.             It is important for Internal Audit to plan effectively to ensure that they contribute to the Council's objectives at both strategic and operational levels.  Planning also enables Internal Audit to demonstrate both internally and externally that they are making best use of scarce resources.

3.             Effective planning, is one of the Standards contained within the Code of Practice for Internal Audit in Local Government in the United Kingdom 2006 and against which, our external auditors assess us.  It is from this overall assessment of Internal Audit's annual programme of work and the contribution that this makes to the overall control environment of the Authority that our external auditors will draw the necessary assurances they need.

Relevant Issues and Options

4.             The 2012/13 annual plan of work has been formulated to ensure compliance with the Standards as contained within the Code of Practice.  The plan has once again been based upon six main areas of audit coverage across each Directorate these encompass Corporate Governance, Performance Management, Risk Management (excluding the Insurance function), Anti-Fraud & Corruption (excluding Housing Benefit & Council Tax Benefit Fraud), Assurance and Value for Money.  The plan is attached at Appendix A detailing the proposed schedule of work.

5.             In addition, attached at Appendix B is the Internal Audit Strategy document for 2012-13.  It demonstrates how the Internal Audit Section will be delivered and developed in accordance with our Terms of Reference and how it links to the Council's objectives and priorities.  The Strategy will be reviewed and updated annually in consultation with stakeholders namely the Audit Committee, Corporate Management Team, External Auditors and senior management.

6.             Members should note that the plan has been formulated to take account of the combined Internal Audit Shared Service with Bridgend County Borough Council during 2012/13.  Therefore, as a result, the plan does not include productive days for Housing and Council Tax Benefit Fraud although this will continue to be overseen by the Principal Auditor and reported regularly to the Audit Committee.  It also does not include time for the Insurance function as this will no longer be included within the functions of Internal Audit but will continue to remain the responsibility of the Head of Accountancy and Resource Management.

7.             Taking into account the points as set out in 6 above, the plan provides for 1,510 productive days being delivered during 2012/13 which equates to approximately 9 full time equivalent employees.

Resource Implications (Financial and Employment)

8.             Effective audit planning and monitoring are key contributors in ensuring that the Authority's assets and interests are properly accounted for and safeguarded.

Sustainability and Climate Change Implications

9.             None directly from this report

Legal Implications (to Include Human Rights Implications)

10.        Provision of an adequate and effective internal audit function is a legal requirement under the Accounts and Audit (Wales) Regulations 2005 as amended.

Crime and Disorder Implications

11.        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)

12.        None as a direct consequence of this report

Corporate/Service Objectives

13.        The work of audit is intended to assist in the achievement of all corporate and service objectives

Policy Framework and Budget

14.        The proposals in this report are in accordance with the policy framework and budget.

Consultation (including Ward Member Consultation)

15.        No further consultation is proposed

Relevant Scrutiny Committee

16.        Corporate Resources

Background Papers



Contact Officer

Helen Smith, Tel: 01656 754901


Officers Consulted

External Auditor - Grant Thornton UK LLP


Responsible Officer:

Alan Jenkins - Head of Accountancy & Resource Management