Agenda item

Training - The Role of Internal Audit

Minutes:

The Shared Internal Audit Service Manager gave a training presentation on the role of Internal Audit. He began by explaining how the Shared Internal Audit Service worked in partnership with several Councils across Hertfordshire, with East Herts Council being one of the founding members eleven years ago.

 

The Shared Internal Audit Service Manager explained the definition of internal audit, and the differences between internal and external audit. He advised Members of the statutory requirement for the Council to have an internal audit provision under the Accounts and Audit Regulations 2015, and the links between internal audit and the Council’s Chief Financial Officer.

 

He went on to explain that the Shared Internal Audit Service was audited by the Public Sector Internal Audit Standards (PSIAS), with annual self-assessments made against PSIAS standards, and an external independent assessment carried out every five years.

 

The Shared Internal Audit Service Manager explained the role of internal audit in the Council’s governance framework. The need for assurance, and how this feeds into the Council being able to account to its residents and service users, and know that it is complying with policies and legislation.

 

He told Members of the different delivery models for Internal Audit and the Internal Audit cycle, adding that the Annual Assurance Statement and the Internal Audit Annual Report were on the evening’s agenda.

 

Councillor Alder asked how the Shared Internal Audit Service was internal if their staff were employed by Hertfordshire County Council. The Shared Audit Service Manager said that one partner of the service acted as the service lead for legal and employment reasons, but that many of the team did not carry out work for Hertfordshire County Council, instead focusing on district or borough work.

 

Councillor Crofton asked if the different partners within the group shared the same standards and processes. The Shared Audit Service Manager said that East Herts Council had its own audit work programme, with none of the other partners having any influence on this. 

 

Councillor Crofton asked if a better way of working was found would the service recommend this to other partners within the group. The Shared Audit Service Manager said that information was shared via a learning newsletter, and that an audit featured in another Council would be looked, at and possibly incorporated into East Herts (or vice versa) if appropriate. 

 

Councillor Crofton asked who the Shared Audit Service reported to within the council, and clarification on how many items were worked on at any one time. The Shared Audit Service Manager said that reporting is made to the relevant Head of Service (the audit sponsor). He said that audit reports were sent to the Head of Strategic Finance and Property, with Members seeing final reports. He advised that liaison meetings with the Head of Strategic Finance and Property were held every four months. He said that twenty audits would be completed over the course of a year. 

 

The Chairman thanked the Shared Audit Service Manager for his presentation.

 

RESOLVED – that the presentation be received.