Agenda item

Report of the Executive Director of Resources

The Committee considered a report of the Executive Director of Resources, which summarised the outcome of various activities and assessments for the period 2014/15, to assist the Committee in undertaking the review of the effectiveness of the Council’s System of Internal Audit, on behalf of the Council.

The Account and Audit Regulations included a requirement for the Council to carry out an annual review of the effectiveness of its System of Internal Audit.  Whilst not explicit in the guidance, the Audit and Procurement Committee was viewed as the appropriate Committee to undertake this review, given its role.  In completing the review for 2014/15, the Council had considered the CIPFA guidance in determining the scope of the review. The review had therefore focussed on the following, details of which were contained in the report:

·  The assessment of the Council’s Internal Audit Service against the requirement of the Public Sector Internal Audit Standards (PSIAS)

·  The results of the 2014/15 Internal Audit quality assurance review.

·  An update on actions identified in last year’s assessment of the Council’s Audit Committee arrangement in comparison with good practice reflected in CIPFA guidance.

There were also a number of areas which had not been considered in the review and the report submitted provided an explanation of why these issues had been omitted.

The report also highlighted areas for development by the Council’s Internal Audit Service and the Audit and Procurement Committee, which would be progressed and an update provided at a future meeting of the Committee.

The Committee took particular note of the its terms of reference, which had been based around the previous guidance from CIPFA.  The revised CIPFA guidance included a suggested terms of reference, which was appended to the report, and reflected a significant change in focus in that the number of core activities of the Committee had increased from 18 to 30.  However, this did not mean there were significant gaps in the Council’s current arrangements, as the majority of the new activity was either covered at least in part in reports already considered by the Committee, reflected the Committee’s current working practice or were exceptional type issues and, in the view of the Internal Audit and Risk Manager, would be considered if the issue arose.  It was acknowledged that there was a need to formally update the terms of reference of the Audit and Procurement Committee to ensure that it reflected current practices and, in the process, deciding whether the Council adopts all of the suggestions made by CIPFA.

Reference was made to the self-assessment of core knowledge and skills framework undertaken by Committee Members. This had highlighted a need to increase knowledge across the majority of the ten core areas and it was suggested that an informal training session be set up.

RESOLVED that:

1.  The Audit and Procurement Committee note the findings of the 2014-15 review.

2.  The areas for development highlighted be endorsed and a further update report be submitted to the meeting in December to ensure progress is being made.

3.  Arrangements be made for an informal training session for Members of the Committee to increase knowledge of the ten core areas that the Committee deals with.