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Agenda item
Internal Audit Arrangements 2023-24
Decision:
1) Cabinet approves that the Orbis partnership is procured to provide the management of the Internal Audit Services for the 2023/24 Financial year with immediate effect and delegated decision to Chief Legal Officer to enter into agreement on behalf of Hastings Borough Council.
2) Cabinet approves that a service review of the Internal Audit Team is undertaken with a subsequent report to be brought back to Cabinet with recommendations for new arrangements to be in place by 1st April 2024.Minutes:
The Chief Finance Officer presented a report to consider interim arrangements for Internal Audit Services at Hastings Borough Council in 2023-24.
These arrangements will allow the council to gain from the expertise within the Orbis Partnership particularly in relation to areas that can be difficult to audit.
Councillor Willis proposed approval of the recommendations, seconded by Councillor Evans.
RESOLVED (unanimously):
1) Cabinet approves that the Orbis partnership is procured to provide the management of the Internal Audit Services for the 2023/24 Financial year with immediate effect and delegated decision to Chief Legal Officer to enter into agreement on behalf of Hastings Borough Council.
2) Cabinet approves that a service review of the Internal Audit Team is undertaken with a subsequent report to be brought back to Cabinet with recommendations for new arrangements to be in place by 1st April 2024.
Reasons:
1. Following the retirement of the long-standing Chief Auditor in April 2023 from Hastings Borough Council, the Internal Audit team will now undergo a service review.
2. Given the key role that Internal Audit plays in providing independent, objective assurance advice that adds value to, and improves an organisations operation, it is imperative that a fully resourced and experienced Audit team is in place for the 2023-24 financial year.
3. However, the timescales for looking at the longer-term options will mean that the team will be under resourced for a period of time that is considered unacceptable given the current risks to the organisation and therefore an interim solution is required with immediate effect.
4. Therefore, on an initial interim basis for the 2023-24 financial year it is recommended that Hastings Borough Council enters into an agreement with the Orbis Partnership (which currently includes East Sussex County Council, Surrey County Council, Brighton and Hove City Council and Horsham District Council) to provide Internal Audit Services for Hastings Borough Council.
5. The two current members of the Internal Audit team will continue to provide the ‘local’ service whilst being supervised and overseen by the Orbis Partnership management Team. This will then allow a service review to be completed and future option analysis to be developed and agreed.
6. The partnership will act as an advisor to the Council and provide the necessary experience and supervision required for this financial year whilst also assisting with the implementation plan for the agreed changes highlighted in the Value for Money Audit report 2020-21. The report was presented by the Councils External Auditors Grant Thornton at Audit Committee on 12th January 2023 and made a number of recommendations.
7. The transfer of the management of the Internal Audit Services to Orbis will allow the service to improve resilience, give the Council access to further audit specialisms and allow the service to be benchmarked from specialists the Council could not afford in operating alone for this financial year.
8. As part of the Councils ongoing commitment to training staff and Councillors, Orbis will also provide in house training for the Audit Committee, Councillors and Senior Leadership Team in order for them to better understand the role of the Audit Committee itself, as well as the role of the Internal Audit Team.
Supporting documents:
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