Worcestershire County Council

Internal Audit

Introduction

Internal Audit is provided for Worcestershire County Council by a dedicated Internal Audit section located in the Financial Services Directorate. The section also provides internal audit to the West Mercia Police Authority, Hereford and Worcester Fire and Rescue Service and the West Mercia Supplies organisation.

Purpose of Internal Audit

It is a statutory requirement for all Local Authorities to maintain an Internal Audit function. The service is provided in accordance with the Local Government Act (1972); the Accounts and Audit Regulations Act (2003) and the relevant CCAB professional guidance including the Code of Practise issued by CIPFA.

Internal Audit is defined as follows:

“ Internal Audit is an independent assurance function which provides an objective opinion to the organisation on the control environment comprising risk management, control and governance by evaluating its effectiveness in achieving the organisations objectives. It objectively examines, evaluates and reports to management on the adequacy of controls as a contribution to the proper, economic, efficient and effective use of resources.”

Scope of Internal Audit’s work

The scope of the internal audit function covers the internal control system of the County Council and the other bodies for which the section provides internal audit.

The internal control system includes the whole network of systems and controls established by management to ensure that the objectives of the organisation are met.

Each year a strategic audit plan is produced detailing the audit work to be undertaken during the financial year. The plan is submitted to the Council’s Audit Committee for review.

Meeting the needs of our customers

The audit plan is based on an audit needs assessment which ranks identified audits in importance taking account of risk. As part of audit planning senior management of each directorate will be consulted to provide input with regard to any areas of concern they may have.

In undertaking audit assignments audit will always endeavour to work closely with client managers. System and control weaknesses identified as a result of audit examination will be fully discussed together with appropriate recommendations for remedial action. A formal report detailing audit findings and recommendations will be issued to all appropriate levels of management.

Internal Audit will, wherever possible, provide an appropriate response to requests from managers for advice and guidance on systems, procedures and controls.

As part of the normal reporting process Internal Audit will, on an annual basis, provide a summary report to the Council’s Audit Committee detailing progress against the annual plan.

Prevention and detection of Fraud

Under the Council’s Financial regulations a Chief officer or any other member of staff has a responsibility to immediately inform the Chief Internal Auditor of any loss or financial irregularity or suspected irregularity.

The Council has introduced a “Whistleblowers” Code which enables staff to raise concerns in a confidential manner in the knowledge that the concerns will be properly investigated and that they will be protected from any recriminations or victimisation. The Council also has in place an Anti Fraud Policy which has been brought to the attention of all staff. Both the Whistleblowers Code and the Anti-Fraud Policy are accessible via the staff Intranet.

Any allegation of fraud or financial irregularity that is brought to the attention of internal audit will be thoroughly investigated by appropriate audit staff. If it is considered appropriate the facts will passed to the police for further action. A report on audit’s investigations will be provided to  Management and audit will assist in any disciplinary action as appropriate.  

Internal Audit takes part in the National Fraud Initiative and the Council is a registered member of the National Anti-Fraud Network.

Information on contacting Internal Audit is available here