Agenda Item No. 9
The Vale of Glamorgan Council
Audit Committee - 28th November 2017
Operational Manager - Audit (as the Head of Audit)
Update on External Assessment - Internal Audit Shared Service
Purpose of the Report
- To provide Elected Members with an update on the implementation of actions resulting from the External Assessment of the Internal Audit Shared Service completed in January 2017.
THAT the Committee considers the Action Plan as attached and note the progress that has been made to date.
Reason for the Recommendation
To facilitate the monitoring of the Council's Internal Audit Shared Service and to ensure it remains compliant with the Public Sector Internal Audit Standards.
- External Assessments are required to be undertaken to appraise and express an opinion about the internal audit's conformance with the Public Sector Internal Audit Standards (PSIAS) Definition of Internal Auditing and Code of Ethics and to include recommendations for improvement, as appropriate. An external assessment must be conducted at least once every five years, in accordance with the PSIAS.
- At the Committee meeting held on 16th November 2015, Members expressed their preference for the External Assessment against the PSIAS to be carried out by an independent organisation rather than by peer review.
- As a consequence, a procurement exercise was undertaken to procure the most economically advantageous organisation to undertake an external assessment of the Bridgend and Vale Internal Audit Shared Service, ensuring compliance with the Vale of Glamorgan Council's Contract and Financial Procedure Rules. This resulted in the commissioning of the Chartered Institute of Public Finance and Accountancy (CIPFA) to undertake the assessment.
Relevant Issues and Options
- The review commenced on the 30th January 2017 and the on site assessment concluded on 3rd February 2017. The Assessor has made 18 recommendations and a further 10 suggestions for improvement. The Action Plan (including responses and action dates) was agreed by Audit Committee on 24th April 2017.
- Whilst the assessment has identified some recommendations and suggestions for improvement, overall the assessment identified no areas of non-compliance with the standards that would affect the overall scope or operation of the internal audit activity. Indeed, the Assessor stated that all auditees and statutory officers were positive in their responses and understanding of the audit process and the value it added.
- It was agreed that regular progress reports against the implementation of the recommendations and suggestions for improvement would be presented to the Audit Committee during 2017/18.
- Attached at Appendix A is the up to date Action Plan for the Audit Committee's consideration.
Resource Implications (Financial and Employment)
- There are no resource implications as a direct result of this report.
Sustainability and Climate Change Implications
- None directly from this report.
Legal Implications (to Include Human Rights Implications)
- The External Assessment of the Internal Audit function is a requirement of the Public Sector Internal Audit Standards.
Crime and Disorder Implications
- 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)
- None as a direct consequence of this report.
- The work of audit is intended to assist in the achievement of all corporate and service objectives.
Policy Framework and Budget
- The proposals in this report are in accordance with the policy framework and budget.
Consultation (including Ward Member Consultation)
- No further consultation is proposed.
Relevant Scrutiny Committee
- Corporate Performance and Resources
Public Sector Internal Audit Standards
Audit Committee Report 24th April 2017
Helen Smith - Operational Manager - Audit
Carys Lord - Head of Finance / Section 151 Officer