Audit Committee
7 June 2011
Agenda Item No________7_____
Review of the Effectiveness of Internal Audit
Summary:
The Accounts and Audit Regulations 2011 firmly establish the
requirement for the Audit Committee at North Norfolk District
Council to undertake an annual review of the Effectiveness of
the Internal Audit service. This review allows the Committee to
ensure that the assurances provided in the Internal Annual
Report and Opinion are soundly based and can be relied upon,
for presentation in the Annual Governance Statement. The
review is attached at Appendix A.
Conclusions:
The Internal Audit Service continues to deliver its objectives to
the Council, and comply with best practice guidance.
External Audit is able to place reliance on the work of Internal
Audit, maximising the effectiveness of the service offered to the
Council.
The service supports the Audit Committee in fulfilling its role
through the presentation of regular reports, and supports
management through providing advice and guidance as
required.
As such, the Internal Audit Service is deemed to be effective.
Recommendations:
The Audit Committee is requested to note the findings of the
review and take this into consideration when receiving Internal
Audit’s Annual Report and Opinion, and the Council’s Annual
Governance Statement
Cabinet member(s):
Ward(s) affected:
All
All
Leah Mickleborough, Deputy Audit Manager
01508 533954; lmickleborough@s-norfolk.gov.uk
Contact Officer, telephone
number, and e-mail:
1.
Introduction
1.1.
CIPFA’s draft statement on the Role of the Head of Internal Audit in Local
Government (December 2010) states that “The Head of Internal Audit occupies a
critical position in a local authority, helping it to achieve its objectives by giving
Audit Committee
7 June 2011
assurance on its internal control arrangements and playing a key role in
promoting good corporate governance.”
1.2.
The Accounts and Audit Regulations 2011 requires that a Council the size of
North Norfolk must perform a review of the effectiveness of the internal audit
function, and that this review be undertaken by the same body that reviews the
effectiveness of the system of internal control (which is the Audit Committee).
1.3.
Through undertaking a review of internal audit’s effectiveness, members can be
satisfied that these critical assurances provided are reliable and based upon a
firm foundation, and that the service itself is operating effectively. The review is
attached at Appendix A, and essentially evaluates the service provided to North
Norfolk District Council against a range 7 of measures.
2.
Recommendation
2.1.
The Audit Committee is requested to note the findings of the review and take this
into consideration when receiving Internal Audit’s Annual Activity Report, and the
Council’s Annual Governance Statement