Agenda Item No. 11
The Vale of Glamorgan Council
Audit Committee 29th April 2013
Report of the Head of Accountancy & Resource Management
Internal Audit Shared Service Charter 2013/14
Purpose of the Report
1. To present to Members the Council's Internal Audit Shared Service Charter for 2013/14.
1. THAT Members review, consider and approve the Internal Audit Shared Service Charter for 2013/14 as appended to this report.
Reasons for the Recommendations
1. To keep the Audit Committee informed and to approve the Internal Audit Shared Service Charter for 2013/14 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 As at the 1st April 2013, the Public Sector Internal Audit Standards (PSIAS) came into force and superseded the Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice for Internal Auditors.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.
Relevant Issues and Options
4. The new "Standards" bring in new mandatory requirements. The key areas are summarised as follows:
The internal audit activity must be formally defined in an internal audit charter, which must be periodically reviewed and approved by the "Board". The Internal Audit Shared Service Charter is attached at Appendix A.
There is also a requirement to define the term "Board" and as such this is the relevant Audit Committee together with the Internal Audit Shared Service Board.
There is a requirement to define Internal Auditing, ensuring there is compliance with the Code of Ethics, together with a clear process for reporting non-compliance.
There are other specific local government requirements detailed throughout the document and these are referenced throughout the Charter by the Standard number.
5. CIPFA are publishing an application note to support the implementation of PSIAS, this is expected to be released during March 2013. However, the Internal Audit Shared Service Charter has been written without the ability to refer to this application note. Therefore, any required changes to the Charter will be referred to the Audit Committee.
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. 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
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.
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 are in accordance with the policy framework and budget.
Consultation (including Ward Member Consultation)
13. No further consultation is proposed.
Relevant Scrutiny Committee
14. Corporate Resources.
Helen Smith - Principal Auditor Tel: 01656 754901
External Audit Manager - Grant Thornton UK LLP
Alan Jenkins - Head of Accountancy & Resource Management