Issue - meetings

That the proposed changes to the Internal Audit Charter be approved, together with three additional changes:

§         To include more detail on Police involvement in the undertaking of investigations into fraud and irregularities in consultation with appropriate Council officers;

§         To include reference to the provision of advice from Wales Audit Office colleagues in working alongside Internal Audit and the Audit Committee; and

§         To include wording on economic, efficient and effective use of resources.

The Internal Audit Manager presented the report to outline the updated Internal Audit Charter.  Changes had been made in accordance with requirements of the new Public Sector Internal Audit Standards (PSIAS) which had replaced the Chartered Institute of Public Finance & Accountancy (CIPFA) standards.  Most of the changes reflected current practices which had not previously been included in the Charter.

The Chair pointed out that the section on ‘Audit Responsibility’ did not include mention of Police involvement in terms of any improprieties.  The Internal Audit Manager explained the process leading up to any contact with the Police, with possible involvement by Human Resources, but stressed that any decision to take the matter further would rest with the Police.

The Democracy & Governance Manager suggested that the Charter could include reference to the involvement of appropriate officers such as the Head of Legal & Democratic Services on such matters.

The Head of Legal & Democratic Services provided more detail on the investigations process including his involvement in issues identified under the disciplinary policy.  He also provided information on the involvement of the Crown Prosecution Service in cases reported to the Police, together with clarification on the Council’s Whistleblowing Policy where individuals internally or externally were able to report matters firstly through internal procedures or directly to the Police.

Following a request made by the Chair, the Internal Audit Manager agreed to include more detail on Police involvement during investigations by Internal Audit into matters relating to fraud and irregularities.

Under the section on ‘Independence and Authority’, Councillor G.S. Banks referred to the opening paragraph relating to impartial advice to management and suggested that reference be included on the provision of advice from Wales Audit Office (WAO) colleagues in working alongside Internal Audit and the Audit Committee.  Ms. Hughes of WAO suggested that this could be expanded upon in the penultimate bullet point on liaison with the external auditor under ‘Audit Responsibility’.

Councillor M. Bateman queried the removal of text on the ‘efficient and effective use of resources’ under ‘Definition of Internal Audit’.  The Internal Audit Manager explained that the original wording taken from CIPFA had been replaced by the new definition from PSIAS, but agreed to reinstate part of this.

RESOLVED:

That the proposed changes to the Internal Audit Charter be approved, together with three additional changes:

§         To include more detail on Police involvement in the undertaking of investigations into fraud and irregularities in consultation with appropriate Council officers;

§         To include reference to the provision of advice from Wales Audit Office colleagues in working alongside Internal Audit and the Audit Committee; and

• To include wording on economic, efficient and effective use of resources.