Agenda Item No 10
The Vale of Glamorgan Council
Audit Committee: 31st January 2018
Report from the Operational Manager - Audit as the Head of Audit
Progress against the Audit Risk Based Plan 2017-18
Purpose of the Report
- To provide Members with a position statement on the audit work that was included and approved within the 2017-18 Internal Audit Annual Risk Based Plan.
- THAT Members note the content of the report and agree the proposed changes
Reason for the Recommendation
- To keep the Audit Committee informed.
- In accordance with the Public Sector Internal Audit Standards, the Head of Audit is responsible for developing a risk-based annual audit plan which takes into account the Council's risk management framework. Within the Standards there is also a requirement for the Head of Audit to review and adjust the plan, as necessary, in response to changes in the Council's business, risks, operations, programs, systems, controls and resources. The Head of Audit must also ensure that Internal Audit resources are appropriate, sufficient and effectively deployed to achieve the approved plan.
Relevant Issues and Options
- At the Audit Committee meeting held on 28th November 2017 it was agreed that, following the presentation of the Head of Audit's summary outturn report covering the period April to October 2017 and as a consequence of the impact of the number of staff vacancies the section is currently carrying, Members would be provided with an update on the progress against the 2017/2018 Plan.
4. The attachment at Appendix A provides Members with the relevant information in relation to the Directorates, the audit areas, together with a position statement relevant to the area. It also highlights what action is being taken in relation to the specific area e.g., work allocated for quarter four and / or deferred to 2018/19. Members can be assured that every effort is being made to ensure that as much of the 2017/18 Risk Based Audit Plan can be completed in order that the Head of Audit is able to provide an annual opinion.
5. It is proposed that 9 reviews be deferred to 2018/19. These include 6 reviews that had been identified as additional areas in the Plan should resources become available.
6. The work to be undertaken by the South West Audit Partnership as indicated within Appendix A will encompass a new approach which is based on the 3 lines of Defence Model, promoted by the Chartered Institute of Internal Auditors. This being:
- 1st line of Defence - Operational Management (management controls / internal control measures)
- 2nd line of Defence - Risk Management and Compliance functions (financial controls; security; risk management; quality; inspection and control)
- 3rd line of Defence - Internal Audit
It is a health check on 8 essential corporate functions (or any combination of the 8) which underpins day to day operational activities. These are Corporate Governance; Financial Management; Risk Management; Performance Management; Procurement and Commissioning; People and Asset Management; Programme and Project Management and Information Management.
7. In consultation with the Managing Director and the Head of Finance / Section 151 Officer it has been agreed that four areas would be included in the Healthy Organisation review - these being Risk Management, Procurement & Commissioning, Programme and Project Management and Information Management.
8. This approach has the following benefits :
- The results of the review can be used to inform the audit plan for the following year;
- Members, officers and Internal Auditors are more informed on the organisation's assurance arrangements;
- Addresses systemic organisation failure through a corporate view, rather than individual control failure;
- Promotes the efficient use of assurance resources - assurance is expensive and duplication is identified through this approach; and
- Can eliminate assurance reporting in silos - supports a move towards integrated, organisational wide reporting.
Resource Implications (Financial and Employment)
9. None directly from this report.
Sustainability and Climate Change Implications
10. None directly from this report.
Legal Implications (to Include Human Rights Implications)
11. None directly from this report.
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 directly from 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 Performance and Resources
Helen Smith - Operational Manager - Audit
Carys Lord - Head of Finance / Section 151 Officer