Agenda item

To comply with the new Global Internal Audit Standards (GIAS), the Application Note for the Global Internal Audit Standards in the UK Public Sector and CIPFA’s Code of Practice for the Governance of Internal Audit in UK Local Government, this report introduces the new Internal Audit Charter for BCP Council. The Internal Audit Charter has been completely revised in light of the new requirements and contains other key documents, such as the Internal Audit Strategy and the Quality Assurance & Improvement Programme.

This report also provides an overview of the GIAS, which comes into effect from 1 April 2025 and the action plan in place to ensure full conformance with the standards.

The Audit Manager presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'E' to these Minutes in the Minute Book.

The new Internal Audit Charter for BCP Council had been completely revised in light of the new Global internal Audit Standards (GIAS) and other requirements which would come into effect from 1 April 2025. The Audit Manager drew attention to the new GIAS structure diagram at paragraph 4 of the report, setting out the domains, principles and standards. The Council had undertaken a self assessment to prepare for the new GIAS. The action plan at Appendix 1 of the report set out the steps required to meet full conformance. The Internal Audit Charter was attached at Appendix 2. The Audit Manager referred to the key components of the Charter including the Purpose and Mandate for Internal Audit, the Internal Audit Strategy and an updated Quality Assurance and Improvement Program. Members were asked to note a change in performance target 1A to reflect the need for a more dynamic and responsive annual audit plan. The Charter also set out the role and responsibilities of the Audit and Governance Committee and the Chief Internal Auditor (CIA) and other staff including measures to manage independence and conflicts of interest.

The Head of Audit and Management Assurance responded to a question about whether the requirement for the CIA to report their declarations of interest to the Committee should be as and when rather than annually (paragraph 7.7, Principle 2 of the charter). He explained that as CIA he made a base declaration which was then his responsibility to keep updated and every time this changed it was reported to the Chair and Vice Chair. He agreed to amend paragraph 7.7 to reflect this practice.

The Audit Manager was asked how the performance target for completing 90% of the audit plan was managed, when the audit plan was meant to run from April to March. She explained that the target had been changed to include the completion of the (whole of) the final revised annual audit plan and included dates by which the audits should be completed. This reflected the move away from a static annual plan a number of years ago to a more dynamic plan which was updated through the year in response to risks and changing priorities. It was noted that audits did not always fall neatly into one side or the other of the financial year and there had never been a situation where all audits were completed by 31 March.

RESOLVED that the Audit & Governance Committee approves the Internal Audit Charter having considered the following:

•       The mandate which :

o      includes appropriate authority, role and responsibilities of the internal audit function

o      provides expected scope and types of internal audit services

o      ensures the independence and effective performance of internal audit

•       Content of the Internal Audit Strategy

•       Change to performance target 1A of the Quality Assurance and Improvement Program – “To complete the final revised annual audit plan by 30 May or 31 July for agreed cross-year engagements”

•       Arrangements to manage organisational independence and conflicts of interest, including in those areas which the Chief Internal Auditor manages

Voting: Unanimous