Agenda item

The Head of Internal Audit and Corporate Anti-Fraud will submit a report presenting information and evidence in support of the review of the effectiveness of the Audit Function.

The Head of Internal Audit and Corporate Anti-Fraud submitted a report presenting information and evidence in support of the review of the effectiveness of the Audit Function as required by the Accounts and Audit Regulations 2015.

The Quality Assurance and Improvement Programme (QAIP) which was required to be developed in accordance with the Public Sector Internal Audit Standards (PSIAS) had been used as the basis of the annual review. 

The report outlined the elements of the QAIP process, which required both external and internal monitoring and assessment, and then described the ways in which these had been undertaken together with the findings.

Overall, the evidence from the various aspects of feedback and evaluation showed that auditees at all levels regarded the Internal Audit function as effective. 

Appendices to the report provided:

·         A summary of the feedback from auditees following specific audit work/reports

·         The internal Audit Performance Indicators for 2016/17

·         The PSIAS External Compliance Assessment Report

In the ensuing discussion, the following matters were raised:

·         The Head of Internal Audit and Corporate Anti-Fraud indicated that the Service was required to develop a quality assurance programme.  The Service had put together a detailed development plan part of which was refreshing the QAIP and which would form part of the progress report submitted to the December meeting as part of the Internal Audit Progress Report.  This would give assurances as to how improvements to service provision were going to be made and how this would manifest itself to clients

·         It was pleasing to note that a fundamental review was being undertaken of how recommendations were classified and categorised.  In response to questioning the Head of Internal Audit and Corporate Anti-Fraud stated that it was hoped that the new arrangements would focus more on giving management ownership of any issues identified via an audit.  A further report on the outcome of the proposals would be submitted in due course

·         There was a discussion of the ‘critical’ level of staff required to be maintained by Internal Audit in order to remain effective.  It was noted that Barnsley was broadly in line with other Authorities in terms of staffing ratios.  The Service Director Finance stressed that the review of the audit function raised no issues that required to be brought to the attention of Senior Management or this Committee.  Arising out of the discussion, Members took comfort from the fact that Internal Audit was still being seen as a Service of choice for external clients

RESOLVED that the information in support of the review of the effectiveness of the audit function and the effectiveness of the Service be noted.