Agenda Item No
The Vale of Glamorgan Council
AUDIT COMMITTEE 25th SEPTEMBER 2008
REPORT OF THE DIRECTOR OF FINANCE, ICT & PROPERTY
MAKING THE CONNECTIONS: UPDATE ON INTERNAL AUDIT SHARED
SERVICES IN SOUTH EAST WALES
Purpose of the Report
1.
The purpose of this report is to update the Audit Committee of the
progress of the Internal Audit South East Wales Shared Services
Project.
Recommendations
That the content of the report be noted
That the Committee endorse the way forward
proposed by the Directors of Finance in developing shared services
in the provision of Internal Audit Services across the ten South
East Wales local Councils.
Reasons for the Recommendations
To keep the Audit Committee abreast of
progress on the Internal Audit Shared Services initiative in South
East Wales.
Background
2.
The Audit Committee were advised of the initiation of a
multi-authority project to evaluate the feasibility of sharing
certain "back office" and professional support services as part of
the "Making the Connections" agenda at the Audit Committee meeting
held on 29th January 2007 (minute number 754).
3.
PriceWaterhouse Coopers (PWC) was commissioned to produce a
Strategic Outline Case (SOC) for the provision of shared services
for a range of support services. They recommended that a specialist
resource model be developed for Internal Audit covering school
audits, IT, and Contract Auditing. This would be developed in
three years into a full shared service covering the ten authorities
provided from a single base.
4.
Whilst the Finance Directors welcomed the opportunities which
shared working offered, they did not believe that the case for a
single internal audit service was proven. Projected savings
were relatively small when considered as an annual amount per
Council and would be difficult to verify as to whether it
represented a reduction in staff with or without a diminution of
service.
5.
It was agreed that the Heads of Internal Audit would undertake
further work in developing proposals and options for shared
services. This work would concentrate on eight core
activities over which internal audit could be reviewed.
Relevant Issues and Options
6.
Attached at Appendix
A is the report of the Directors of Finance which outlines the
proposed actions to be taken in developing shared services in the
provision of Internal Audit activities across the ten South East
Wales local Councils.
7.
The eight core proposals as set out in the Executive Summary (pages
3 & 4) of the above mentioned report range from the
introduction of common working practices to formulation of shared
services for specialist areas such as Contract and Computer
Auditing.
8.
This is a long term project and initially the Heads of Internal
Audit have been asked to produce proposals and timescales to
advance joint working within the service.
Resource Implications (Financial and Employment)
9.
The implementation of the proposals within the report will have an
impact on resources and on the day to day operations and management
of the Internal Audit Section.
Legal Implications (to Include Human Rights Implications)
10. It will be necessary
to set up a clear collaborative framework and specifically identify
and address governance arrangements. Officers and Members may
only act within the delegated authority given to them under the
constitutional arrangements of individual Councils.
Crime and Disorder Implications
11. There are no crime
and disorder implications as a direct result of this report.
Equal Opportunities Implications (to include Welsh Language
issues)
12. None as a direct
result of this report
Corporate/Service Objectives
13. The principles
enshrined in the "Making the Connections" agenda are reflected in
the context for change, which underpins the Council's Corporate
Plan.
Policy Framework and Budget
14. This report is in
accordance with the Policy Framework and Budget.
Consultation (including Ward Member Consultation)
15. None
Relevant Scrutiny Committee
16. Corporate
Resources.
Background Papers
None
Contact Officer
Alan Jenkins - Head of Accountancy &
Resource Management
Tele: 01446 709254
Officers Consulted
External Audit Manager - Grant Thornton UK
LLP.
Responsible Officer:
Sian Davies, Director of Finance, ICT &
Property