Agenda item

Internal Audit within the Public Sector in the UK is governed by the Public Sector Internal Audit Standards (PSIAS) - which had been in place since April 2013 (updated April 2016).

The Standards required an external quality assessment be undertaken at least once every 5 years as part of Internal Audit's Quality Assurance and Improvement Programme.  Members gave consideration to a report which provided the Committee with information on the result of the external quality assessment. 

The assessment was undertaken in September 2016 and included:

·         Discussion with 34 people across the client base, including West Lindsey.  This had involved Audit Committee Chair's, Chief Executives, Section 151 Officers and auditees.

·         Review of a wide range of documentary evidence and audit files, including the Internal Audit Charter.

·         Comparison with other Internal Audit Functions

Assurance Lincolnshire practice had been assessed against 56 fundamental principles and over 150 points of recommended practice.

The overall conclusion had been that there were no areas of non-compliance within the standards that would affect the overall scope or operation of the internal audit activity, nor any significant areas of partial non-compliance.

In response to the best practice question the Assessor had stated:-

"As part of my review I was asked to compare the Assurance Lincolnshire Partnership against other authorities for whom CIPFA has undertaken PSIAS reviews. There is little that I can add to the excellent work that you are already doing and I have already requested examples of some of your core documents to share with others".

Assurance Lincolnshire were really pleased with the outcome of the External Quality Assessment and prided themselves on being an experienced, competent and innovative provider which strived to maintain and develop its service by embedding quality in all elements of internal audit activity.

A copy of the External Quality Assessment report was provided to Members.

The Assessor had identified some recommendations for further development and improvement.  Actions had been agreed and included in the Quality Improvement Plan.   Two recommendations had been made:

R1       Include details of resources in the strategy/audit plan.

More information on the team and level of staff resources deployed to deliver the plan.

R2       Ensure that the planned ethical audit is undertaken.

Assurance Lincolnshire plan and undertake work to contribute to the development of clients governance arrangements.  Updated good practice guidance on governance, including ethics, was published in April 2016.  Assurance Lincolnshire work plans for 2016 and 2017 include assurance over conformance with this guidance and whether clients’ governance arrangements are working effectively.  We propose to include this work for West Lindsey in the 2016/17 plan.

A copy of Assurance Lincolnshire's Quality Assurance and Improvement Plan was provided to Members.

The Committee congratulated Audit Lincolnshire on their success.

.

RESOLVED that

(a)     the External Quality Assessment of Assurance Lincolnshire as detailed within the report and what it tells the Committee about the quality of the Internal Audit Service be noted, and;

(b)     the Committee are assured over the quality and effectiveness of the Council's Internal Audit Service provider – Assurance Lincolnshire.