Decision Reference Number: WPC3-0092
Lead Officer: Polly Reed
Chief Officer approval: N/A
This agreement is for the provision of internal audit services to the Warwickshire Police and Crime Commissioner (PCC) and the Warwickshire Chief Constable by the Internal Audit Service of Warwickshire County Council (WCC) (the organisations).
I confirm that my register of interests declaration is up to date and that none of my interests preclude me from making this decision. Chief Executive Polly Reed to signed due to the conflict of interest of the PCC with WCC leader.
Signature: Polly Reed
1. Background information
The requirement for an internal audit function is in The Accounts and Audit Regulations 2015 which require Police and Crime Commissioners and Chief Constables to: “undertake an effective internal audit to evaluate the effectiveness of its risk management, control and governance processes, taking into account public sector internal auditing standards or guidance”.
The regulations also lay down far-reaching requirements regarding systems of internal control. They require each organisation to:
- Have a sound system of internal control which facilitates the effective exercise of its functions and the achievement of its aims and objectives and which includes effective arrangements for the management of risk”;
- Conduct a review at least once in a year of the effectiveness of its system of internal control; and
- Prepare an Annual Governance Statement.
The regulations and standards require a much wider role for internal audit compared to the historical focus on financial systems. The Public Sector Internal Audit Standards (PSIAS) forms the basis of internal audit for the PCC and Warwickshire Force. The standards define internal audit as: “an independent, objective assurance and consulting activity designed to add value and improve an organisation’s operations. It helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.”
2. List of additional information attached as appendices
App 3- Warwickshire Police SLA
3. Expected benefits
The organisations are responsible for the system of internal control and should put in place policies and procedures to help ensure that the system is functioning correctly. Internal Audit provides assurance to the organisations through the Joint Audit and Standards Committee on the effectiveness and reliability of their control system, maintaining an Audit Committee in accordance with all regulatory requirements and guidance.
4. Impact of not approving the application
Not for filing responsibilities to ensure that a process for policy and procedures are in place increases risk, increased vulnerabilities to weakened governance processes and deteriorating standards amongst organisational objectives. Significant impact on preparing an Annual Governance Statement in accordance with regulatory requirements and relevant guidance.
5. Costs (including any identified savings)
The total charge for 2023/24 will be £57,300 for the provision of 170 days which equates to a daily rate of £337. The charge will be adjusted to reflect any shortfall in the days provided or any over provision.
6. Equality considerations
All relevant policies/procedures apply.
7. Legal comments
Legal advice has been sought in relation to the contract.
8. Social or Environmental considerations
Adherence to policy and regulation will be met.
Information in this form is subject to the Freedom of Information Act 2000 (FOI Act) and other legislation. Unless the information provided is covered by an exemption and stated to be either confidential or partly confidential, the information contained in the form will be published on the OPCC website.
Comments from the Treasurer
The agreement for joint internal service audit has been comprehensively reviewed. It is a necessity to meet regulation and responsibility. The document is up to date and reflect current requirements and sets the governance arrangements that must operate within for the forthcoming financial year from April 2023.
Comments from the Chief Executive and Monitoring Officer
This agreement is an essential part of the governance arrangements for the PCC and Warwickshire Police and set out how they will operate and interact with each other. They are reviewed annually to ensure they reflect requirements correctly.