Issue - meetings

Internal Audit Services - Contract Renewal

Meeting: 18/10/2018 - Executive (Item 51)

51 Internal Audit Partnership Agreement

The purpose of this report is to set before the Executive the options available, the recommendation for the way forward and to seek approval for the Council to enter into a partnership agreement with the Southern Internal Audit Partnership.

Supporting documents:

Decision:

RESOLVED that:

(i)            With effect from 1 April 2019, the Council be authorised to join the Southern Internal Audit Partnership as a Key Stakeholder / Partner thereby securing market tested, quality assured and value for money Internal Audit services for the Council for a minimum period of five years.

(ii)          The Section 151 Officer, in consultation with the Monitoring Officer, be authorised to enter into the joint working agreement with Southern Internal Audit Partnership.

(iii)         The Section 151 Officer be authorised to represent the Council’s interests by becoming a voting member of the Southern Internal Audit Partnership Key Stakeholder Board. 

(iv)         Approval be given for exemption from the Council’s contract procedures for the reasons outlined in the exempt Part 2 report of the Executive’s agenda.

 

Minutes:

Councillor T. Schofield, Executive Member for Finance, introduced the report and set out the rationale behind the proposal for the Council to enter into a partnership agreement with Southern Internal Audit Partnership (SIAP).

It was noted, following extensive market and quality assurance testing, that the recommended provider offered the best value for money and quality of service.

Councillor Schofield informed the Executive that the Overview and Scrutiny Committee had considered the report at their meeting on 11 October. It was noted that the Committee had discussed a number of issues relating to cost, capacity and resources and alternative in house provision. It was also highlighted that the Committee had raised questions about the legal status of the Council within the proposed partnership. In response to this, Councillor Schofield provided assurances on the following: 

-       SIAP service users were invited to be party to a key stakeholder/partnership joint arrangement. It was noted that formal legal requirements in a partnership arrangement were excluded.

 

-       The term “partnership” was used to summarise the operational working arrangement and did not create legal obligations for the Council.

 

-       The Council’s obligations related to participation in the Key Stakeholder Board to represent operational interests.

 

-       Hampshire County Council, as “host” for SIAP, had responsibility for the overall service. It was highlighted that no liability for SIAP would be passed to any of its key stakeholders/partners.             

During the discussion that followed the Executive Member for Finance responded to various questions on the provision of internal audit services.

RESOLVED that:

 

(i)            With effect from 1 April 2019, the Council be authorised to join the Southern Internal Audit Partnership as a Key Stakeholder / Partner thereby securing market tested, quality assured and value for money Internal Audit services for the Council for a minimum period of five years.

(ii)          The Section 151 Officer, in consultation with the Monitoring Officer, be authorised to enter into the joint working agreement with Southern Internal Audit Partnership.

(iii)         The Section 151 Officer be authorised to represent the Council’s interests by becoming a voting member of the Southern Internal Audit Partnership Key Stakeholder Board. 

(iv)         Approval be given for exemption from the Council’s contract procedures for the reasons outlined in the exempt Part 2 report of the Executive’s agenda.

Reason for decision: To secure market tested, quality assured and value for money Internal Audit services for the Council for a minimum period of five years.

Alternative options: To continue with the current provider or investigate other options.


Meeting: 18/10/2018 - Executive (Item 58)

Internal Audit Partnership Agreement (Exempt)

To consider exempt information in relation to the Internal Audit Partnership Agreement.

Supporting documents:

Decision:

RESOLVED that the exempt information in relation to the Internal Audit Partnership Agreement be noted.

Minutes:

RESOLVED that the exempt information in relation to the Internal Audit Partnership Agreement be noted.


Meeting: 11/10/2018 - Overview and Scrutiny Committee (Item 34)

Internal Audit Partnership Agreement (Exempt)

To consider exempt information on the internal audit partnership agreement arrangements.

Minutes:

RESOLVED that the Exempt information with regard to the Internal Audit Partnership report to be considered by the Executive on 18 October 2018 be noted.


Meeting: 11/10/2018 - Overview and Scrutiny Committee (Item 30)

30 Internal Audit Partnership Agreement

To consider and provide observations on Internal Audit Partnership Agreement arrangements.

Supporting documents:

Minutes:

The Committee received a report on a proposed Internal Audit Partnership agreement, in advance of its consideration by the Executive. It was identified that the proposed new agreement, whereby the Council would join a larger internal audit partnership, was expected to continue to provide a good quality of service to the Council whilst also providing cost savings.

 

The Committee considered and discussed the report, with questions and comments made regarding the following topics:

 

·         Cost: It was identified that there was no initial buy-in cost to joining the partnership, and that being a member would mean that the Council would not be charged the additional rate for an external contract.

·         Audit Days: It was identified that the proposed number of audit days was in line with the number currently used, and offered a margin for flexibility where required.

·         Independence of Audit: It was identified that whilst the Council would be a member of the audit partnership, the independence of the audits offered would be maintained by the partnership board, containing representatives from multiple local authorities within the partnership.

·         Capacity and Resourcing: It was identified that the Council had considered the available resources of the partnership to deliver audit services to the Council and any other new partners. It was identified that the partnership had additional resources available that were not committed to long term arrangements and could therefore be deployed to support demand.

·         Alternative in-house provision: It was identified that it would be possible to have an in-house lead for audit provision, supported by external contractors, but that this was not expected to provide a cost saving, and that membership of the partnership would also provide access to a larger pool of specialist resources where required.

·         Partnership profits and liabilities: It was identified that the partnership was a non-profit organisation. It was identified that there would be no liabilities for the Council resulting from its membership of the partnership, and that a written answer would be provided to confirm the relevant details of the partnership arrangements.

·         Quality Assurance: It was identified that the Council had received references regarding the quality of the audit services provided by the partnership from existing members of the partnership, including from members who had joined the partnership in 2012 and those who had joined more recently.

 

RESOLVED that the Internal Audit Partnership Agreement report, and the Committee’s comments to support the Executive’s consideration of the report, be noted.