Agenda Item No


The Vale of Glamorgan Council


Audit Committee: 17th September 2012


Report from the Head of Accountancy and Resource Management


Internal Audit's Terms of Reference


Purpose of the Report

1.             To present to members of the Committee the Internal Audit's Terms of Reference for 2012/13 for approval.


1.             That Members consider and approve the 2012/13 Internal Audit Terms of Reference

Reasons for the Recommendations

1.             To keep the Audit Committee informed.



2.             Part of the Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice for Internal Audit in Local Government is guidance that the Council should have terms of reference for its internal audit.  This report presents Terms of Reference for the Vale of Glamorgan Council's Internal Audit Section in its provision of internal audit to the Council.

Relevant Issues and Options

3.             The Terms of Reference (ToR) is attached at Appendix A.

4.             They set out a number of areas, including Responsibilities and Objectives; Reporting Lines and Relationships; Independence and Accountability; amongst others.

5.             The approval of the Terms of Reference for Internal Audit is an important function of this Committee and is an outcome that is tangible.  The ToR will be reviewed annually and will be presented to the Committee for approval each year.  As there is a link to the Internal Audit Strategy and Annual Audit Plan it is logical that these documents are considered at the same time.

Resource Implications (Financial and Employment)

6.             None as a direct consequence of this report

Sustainability and Climate Change Implications

7.             None directly from 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 as amended.

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

Corporate/Service Objectives

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 do not contravene the policy framework and budget

Consultation (including Ward Member Consultation)

13.        No further consultation is proposed

Relevant Scrutiny Committee

14.        Corporate Resources

Background Papers



Contact Officer

Helen Smith - Principal Auditor Tel: 01656 754901


Officers Consulted

External Audit Manager - Grant Thornton UK LLP


Responsible Officer:

Alan Jenkins - Head of Accountancy & Resource Management


Also attached - Policy Statement - Auditors Independence