Agenda Item No 12
The Vale of Glamorgan Council
Audit Committee 24th February 2015
Report of the Operational Manager - Audit (as the Head of Audit)
Audit Committee - Internal Audit Shared Service Charter 2015/16
Purpose of the Report
1. To present to Members the Council's Internal Audit Shared Service Charter for 2015/16.
1. THAT Members review, consider and approve the Internal Audit Shared Service Charter for 2015/16 as appended to this report.
Reason for the Recommendation
1. To keep the Audit Committee informed and to approve the Internal Audit Shared Service Charter for 2015/16 to ensure compliance with the Public Sector Internal Audit Standards (PSIAS).
2. As at the 1st April 2013, the Public Sector Internal Audit Standards (PSIAS) came into force and superseded the Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice for Internal Auditors.
3. The PSIAS is applicable to all areas of the United Kingdom public sector and is based on the Chartered Institute of Internal Auditor's (CIIA) 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.
5. One of the key roles which demonstrate the Audit Committee's role in this respect is the approval of the Internal Audit Shared Service Charter. The Audit Committee approved the first Charter at their meeting held on 29th April 2013.
Relevant Issues and Options
6. The PSIAS requires the Head of Audit to review the Charter periodically but final approval resides with the Audit Committee.
7. The Internal Audit Shared Service Charter for 2015/16 is attached at Appendix A. It has been reviewed to ensure it continues to reflect the requirements of the PSIAS. Any amendments if applicable; have been highlighted by tracked changes. There have been two changes made at paragraph 1.8 amended to reflect the new Accounts and Audit (Wales) Regulations 2014 and 4.8 to increase the target figure from 90% to 90.5%.
Resource Implications (Financial and Employment)
8. None as a direct consequence of this report.
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). The PSIAS replace 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
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.
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.
Helen Smith - Operational Manager - Audit Tel: 01656 754901
External Audit Manager - Grant Thornton UK LLP
Alan Jenkins - Head of Finance and Section 151 Officer