Issue - meetings

The Board considered a report of the Operational Director, Finance, on the safeguards put in place to ensure internal auditor independence and objectivity in the light of recent changes to management structures.

The Board was advised that the Council’s internal audit function sat within the Audit, Procurement and Operational Finance Division. It was noted that the Divisional Manager post was recognised in the Council’s Constitution as being the Head of Internal Audit. Following restructuring and rationalisation of the Council’s management structures, the Council’s Head of Internal Audit now assumed responsibility for a number of other finance-related functions, as set out in the report. In addition, further proposed restructuring would result in this post assuming management responsibility for Income and Assessment; and Debtors and Fraud Investigation.

It was reported that the Public Sector Internal Audit Standards (PSIAS) provided the standards for the Professional Practice of Internal Auditing and were mandatory for all principal local authorities, which were subject to the Accounts and Audit (England) Regulations. There were a number of specific provisions within the PSIAS which addressed the issues of independence and objectivity and the independence of the internal audit function. Appendix A set out how the Council had responded to the requirements of the PSIAS which established a range of safeguards to limit any impairment to independence or objectivity of the Council’s internal audit function.

RESOLVED: That the Business Efficiency Board notes and endorses the safeguards established to limit any impairment to independence or objectivity of the internal audit function.