Agenda Item No. 7
The Vale of Glamorgan Council
Audit Committee: 20th April 2015
Report of the Head of Finance and Section 151 Officer
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 PSIAS and comment on the areas where compliance has not yet been achieved if appropriate.
Reason for the Recommendation
1. To keep the Audit Committee informed and to ensure compliance with the Public Sector Internal Audit Standards (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 Auditor's (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 as Head of 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; if applicable, where further work is required to demonstrate compliance.
6. The self-assessment has recently been completed for 2014/15. A summary of the assessment findings is presented in Appendix A and the Conformance checklist at Appendix B to this report, both highlighting where the existing service complies with the PSIAS; or is considered not applicable to the Service and where action is required to address areas of current non-compliance.
7. The PSIASare 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 and B, the Internal Audit Shared Service is fully compliant with all relevant parts of the Standards. However, in relation to Standard 1312 - "External Assessment"; two responses have attracted negative answers. These can only be addressed once the Internal Audit Shared Service has agreed a timetable for being externally assessed; as these questions relate specifically to agreeing a scope of the external assessment. The Standard stipulates that an external assessment must be carried out, at least once every five years. As the Standards became effective from 1st April 2013; the Section must therefore have undergone an assessment before the end of March 2018.
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 2014. 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 Finance and Section 151 Officer