Agenda Item No 7

The Vale of Glamorgan Council

 

Audit Committee 25th April 2016

 

Report of the Head of Finance / Section 151 Officer

 

Audit Committee - Proposed Internal Audit Shared Service Strategy and Annual Risk-Based Audit Plan 2016/17

 

Purpose of the Report

1. To present to Members the Council's proposed Internal Audit Shared Service Strategy and Annual Risk-Based Audit Plan for the year April 2016 to March 2017.

Recommendation

THAT Members review, consider and approve the proposed Internal Audit Shared Service Strategy and Annual Risk - Based Audit Plan for 2016/17 as appended to this report.

Reason for the Recommendation

To keep the Audit Committee informed and to approve the proposed Internal Audit Shared Service Strategy and Annual Risk-Based Audit Plan for 2016/17 to ensure compliance with the Public Sector Internal Audit Standards (PSIAS).

Background

2. It is important for Internal Audit to plan effectively to ensure that they contribute to the Council's objectives at both strategic and operational levels. Planning enables Internal Audit to demonstrate both internally and externally that they are making best use of scarce resources.
3. Effective planning is one of the Standards contained within the Public Sector Internal Audit Standards (PSIAS) and against which our external auditors assess us. It is from this overall assessment of internal audit's programme of work and the contribution that this makes to the overall control environment of the Authority that our external auditors will draw the necessary assurances they need.

Relevant Issues and Options

4. Internal Audit planning is not an exact science but it is felt that the proposed plan for 2016/17 strikes a good balance between the risks identified, the internal audit resources available and the assurance work being carried out by other agencies. Therefore the plan provides for 1,287 productive days being delivered during 2016/17 which equates to slightly in excess of 7 full time equivalent employees.
5. Attached at Appendix A is the proposed Internal Audit Strategy document for 2016/17 and the annual risk-based Audit Plan 2016/17 for each Directorate is attached at Appendix B to F. It demonstrates how the Internal Audit Shared Service will be delivered and developed in accordance with our Terms of Reference and how it links to the Council's objectives and priorities. The Strategy will be reviewed and updated annually in consultation with stakeholders namely the Audit Committee, Corporate Management Team, External Auditors and senior management.
6. The 2016/17 proposed Annual Risk Based Audit Plan of work has been formulated to ensure compliance with the Standards as contained within the PSIAS. In order to keep Members of the Audit Committee fully informed, and to ensure compliance with Standards for Internal Audit. [Appendix B, Appendix C, Appendix D, Appendix E, Appendix F]

Resource Implications (Financial and Employment)

7. None as a direct consequence of this report.

Sustainability and Climate Change Implications

8. None directly from this report

Legal Implications (to Include Human Rights Implications)

9. Provision of an adequate and effective Internal Audit function is a legal requirement under the Accounts and Audit (Wales) Regulations 2014. 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.

Crime and Disorder Implications

10. 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)

11. None as a direct consequence of this report.

Corporate/Service Objectives

12. The work of audit is intended to assist in the achievement of all corporate and service objectives.

Policy Framework and Budget

13. The proposals in this report are in accordance with the policy framework and budget.

Consultation (including Ward Member Consultation)

14. No further consultation is proposed.

Relevant Scrutiny Committee

15. Corporate Resources.

Background Papers

None

Contact Officer

Helen Smith - Operational Manager - Audit Tel: 01656 754901

Officers Consulted

External Auditors - Wales Audit Office

Responsible Officer:

Carys Lord - Head of Finance / Section 151 Officer