|Function/scope||Description||How performed at present|
|Risk management arrangements, the control, environment and associated anti-fraud and anti-corruption arrangements||Consider the effectiveness of the authority’s arrangements||Strategic risks are discussed and agreed with the Executive and the Shadow Executive. Operational risks are defined and agreed at officer level, and reported to the Executive. The risk management policy is approved by the Executive, and is open to call-in by O&S and ratified by Council. Plans exist to present 2006 review of risk management to O&S beforehand.
Anti-fraud and anti-corruption policies are approved by the Executive and full Council. The Director of Finance reviews them, and a report is made to members if changes are recommended. Other codes of conduct relating to staff are similarly reviewed and issued by the Head of Personnel and Central Services in consultation with Management Team.
|Action is taken on risk-related issues||Seek assurances from auditors and inspectors that action is being taken ||Internal audit recommendations are agreed with relevant managers, and an action plan prepared which is considered by Director of Finance and Managing Director.
Recommendations are followed up with managers either at next audit (where annual reviews occur) or approx. six months after final report issued. Two Local Performance Indicators are published: % recommendations agreed and % implemented.
External audit recommendations similarly agreed with relevant managers and Director of Finance. Annual Audit Letter, which does not contain detailed recommendations, presented to the Executive and published on the Council’s website.
Officers monitor actions to mitigate risks (likelihood and impact); changes reported to Executive (see above).
|Assurance statements||Review to ensure these properly reflect the risk environment and action necessary to improve it||Statement on Internal Control approved by the Executive and Council along with the Statement of Accounts.
Risk management as described above.
Annual Internal Audit report presented to the Executive.
Annual Audit Letter considered by Leader, relevant portfolio holder, Managing Director and Director of Finance prior to presenting to Executive.
Inspectorate reports discussed and agreed by service managers, and reports made to Executive, and O&S committees as appropriate.
|Internal audit strategy, plan and performance||Approve (but not direct) strategy and plan; monitor performance||Internal Audit plan prepared in consultation with senior and chief officers; agreed between the Audit Manager and the Director of Finance.
Plan variations agreed between Audit Manager and Director of Finance and summary reported along with summary of performance within the Annual Internal Audit report.
Audit strategy approved by Executive; reviewed by Audit Manager and changes considered necessary recommended to Executive.
|External audit plan||Comment upon depth of work||Details discussed with District Auditor by the Director of Finance, who liaises with the portfolio holder. Reported to Executive.|
|Internal audit reports||Review summaries and seek assurances that action taken as necessary||As outlined above.|
|Audit Manager’s annual report||Receive and consider||Currently presented to the Executive.|
|Reports of external audit and other inspection agencies||Receive and consider||As outlined above: details of external audit reports dealt with by officers and not presented to members except Annual Audit Letter. Reports on inspections taken to Executive, and O&S Committees as appropriate.|
|Relationships between internal and external audit, inspection agencies and other relevant bodies||Ensure relationships are effective and audit process is actively promoted||Officer-level discussions take place between internal and external audit; external audit uses internal audit’s work in forming their opinion.
Inspection agencies tend to come to Waverley infrequently and tend to specify who they wish to see and what work they wish to do. Members (Executive/O&S) are advised of planned inspections, and inspectors meet key members as part of their planning and fact-finding.
|Financial statements, external auditor opinion and management response||Consider financial statements and ensure suitable accounting policies and treatments are followed and any changes justified; provisions are justifiable; external auditor’s comments on significant adjustments and internal controls||Statement of Accounts presented to the Executive for approval by Council.
Detailed progress on actions is not reported to members other than in the Annual Audit Letter; otherwise these are monitored and implemented by the Director of Finance in conjunction with Managing Director/ Management Team.