Agenda Item No. 14
The Vale of Glamorgan Council
Audit Committee: 28th April 2014
Report of the Head of Accountancy and Resource Management
Audit Committee - Internal Audit Shared Service Self -Assessment Against The Public Sector Internal Audit Standards
Purpose of the Report
1. To inform Members of the results of the self-assessment of the Internal Audit Shared Service function against the Public Sector Internal Audit Standards (PSIAS), effective from 1st April, 2013.
1. THAT Members review and note compliance with the Public Sector Internal Audit Standards (PSIAS) and comment on the areas where compliance has not yet been achieved.
2. That Members endorse the actions and suggested timeframe required to ensure compliance with the PSIAS.
Reason for the Recommendations
1. To keep the Audit Committee informed and to ensure compliance with the PSIAS.
2. As at the 1st April 2013, the Bridgend and Vale Internal Audit Shared Service has been working to the Public Sector Internal Audit Standards (PSIAS), defined as proper practice for Internal Audit in the UK Public Sector, which the Audit Committee endorsed at their meeting held on 25th February 2013.
3. The PSIAS is applicable to all areas of the United Kingdom public sector and is based on the Chartered Institute of Internal Auditors (CIIA's) International Professional Practices Framework.
4. The roles of the Audit Committee in relation to Internal Audit are to:
Oversee its independence, objectivity, performance and professionalism;
Support the effectiveness of the internal audit process and;
promote the effective use of internal audit within the assurance framework.
Relevant Issues and Options
5. The Operational Manager - Audit has undertaken a self-assessment to demonstrate the extent to which the Internal Audit Shared Service complied with the PSIAS and to identify areas where further work was required to demonstrate compliance.
6. The self-assessment has recently been completed. A summary of the assessment findings is presented in Appendix A to this report, highlighting where the existing service complies with the PSIAS and where action is required to address areas of current partial / non-compliance.
7. The PSIAS are broken down into two main areas
Attribute Standards; address the characteristics of organisations and parties performing Internal Audit activities.
Performance Standards; describes the nature of Internal Audit activities and provide quality criteria against which the performance of these services can be evaluated.
8. As can be seen from Appendix A, the Internal Audit Shared Service is fully compliant with 8 of the Standards and partially compliant with the remaining three. An action plan (attached at Appendix B) has been formulated to assist the Internal Audit Shared Service in working towards compliance with the requirements of the PSIAS.
Resource Implications (Financial and Employment)
9. None as a direct consequence of this report.
Sustainability and Climate Change Implications
10. None directly from this report
Legal Implications (to Include Human Rights Implications)
11. Provision of an adequate and effective Internal Audit function is a legal requirement under the Accounts and Audit (Wales) Regulations 2005 as amended. The PSIAS replaced the Code of Practice for Internal Audit in Local Government in the United Kingdom, last revised in 2006. In local government in Wales, the PSIAS is mandatory for all principal local authorities and other relevant bodies subject to the Accounts and Audit (Wales) (Amended) Regulations 2010.
Crime and Disorder Implications
12. 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)
13. None as a direct consequence of this report.
14. The work of audit is intended to assist in the achievement of all corporate and service objectives.
Policy Framework and Budget
15. The proposals in this report are in accordance with the policy framework and budget.
Consultation (including Ward Member Consultation)
16. No further consultation is proposed.
Relevant Scrutiny Committee
17. Corporate Resources.
Helen Smith - Operational Manager - Audit Tel: 01656 754901
External Audit Manager - Grant Thornton UK LLP
Alan Jenkins - Head of Accountancy and Resource Management