Issue - items at meetings - Review of the Effectiveness of Internal Audit

Report of the Director of Finance (copy attached)

RESOLVED- That the Audit Committee:

Note the findings of the review of the effectiveness of the system of internal audit for 2010/11 and notes the actions arising for minor improvement.

Note that based upon the results, the council’s Internal Audit is considered to be operating in accordance with accepted professional practice and remains effective and that the council can continue to place reliance on its Internal Audit arrangements for the purpose of the Annual Governance Statement.

12.1         The Committee considered a report of the Director of Finance that presented the findings of the annual review of the effectiveness of Internal Audit. This report was also regarded as a part of the wider annual review of the council’s governance arrangements and production of the Annual Governance Statement.

12.2         The Head of Audit and Business Risk supplemented that the review was undertaken in accordance with the proper standards of professional practice as set out in the CIPFA Code of Practice for Internal Audit in Local Government (2006).

12.3         The Chair referred to the option for the Committee to establish a sub-group of the Committee to assist its effectiveness. If Members were agreed on establishing such a group, he suggested that representation be allocated on a cross-party basis.

12.4         Members were in agreement with the proposals put forward and confirmation of membership was to be made to the Head of Internal Audit and Business Risk.

12.5         Councillor Wealls noted that the assessment had been conducted internally then reviewed by the Assistant Director Audit for the London Borough of Bromley. He asked if this review had challenged any elements of the assessment.

12.6         The Head of Audit and Business Risk answered that no challenges had been made but more information was requested. The Director of Finance added that the test was very prescriptive in nature, requiring yes or no responses. She informed the Committee that it was her responsibility to sign off the report after assessing its findings.

12.7         RESOLVED- That the Audit Committee:

Note the findings of the review of the effectiveness of the system of internal audit for 2010/11 and notes the actions arising for minor improvement.

Note that based upon the results, the council’s Internal Audit is considered to be operating in accordance with accepted professional practice and remains effective and that the council can continue to place reliance on its Internal Audit arrangements for the purpose of the Annual Governance Statement.