Executive summary
The purpose of this paper is to provide a positional update on the City Region Deal website.
City Region Deal: Internal Audit Review
Executive Summary
This paper sets out the background to, and requirement for, a partnership-wide internal audit review in accordance with City Region Deal terms and conditions of grant.
The Audit Service Manager and the Lead Auditor attended the meeting of the Chief Officers’ Group (‘COG’) on 20 May 2024 to present and discuss the background and requirements for the review. At that meeting, COG requested further details on specific proposals for the review be documented and shared with COG members for their consideration and comment. A draft Internal Audit Assignment Brief (‘the Assignment Brief’) was subsequently circulated to COG for consideration and comment before finalisation. A copy of the Assignment Brief is attached at Appendix 1 to this report.
The paper requests that Joint Committee notes the scope, proposed timeline and resources for the review as set out in the Assignment Brief; and that Joint Committee commits partners to providing appropriate support and engagement with the audit process, including through the provision of documentation, information and responses to the internal audit team.
Author:
Gordon O’Connor, Audit Service Manager, Stirling Council
Email address: oconnorg@stirling.gov.uk
RPMO contact:
Claire Farmer, Head of RPMO
Email address: farmerc@stirling.gov.uk Telephone number: 01786 233422
Recommendations
Joint Committee is asked to:
- note the background to, and requirement for, a partnership-wide internal audit review in accordance with City Region Deal terms and conditions of grant;
- note and take assurance from the scope, proposed timeline, resources and reporting arrangements for the review, which was subject to consultation with the Chief Officer’s Group, as set out in the Assignment Brief at Appendix 1 and ;
- require that partners provide appropriate engagement and information to support the audit review process.
Implications
There are no direct resource, staffing, equalities, sustainability or environmental implications arising from this report.
The contents of this report fall within the terms of reference of the Joint Committee.
Legal & Risk Implications and Mitigation
The Terms of Reference of the Stirling and Clackmannanshire City Region Deal (CRD) Joint Committee require the Joint Committee to make suitable arrangements for the review and audit of its activities. Each CRD partner is responsible for making its own arrangements for the Internal Audit of its activities and for providing assurance to their organisation’s Audit Committee (or equivalent) on their organisation’s arrangements for risk management, governance and control.
As Accountable Body, however, Stirling Council’s Internal Audit team will lead on Internal Audit work at a partnership level and report on that work, including the provision of appropriate assurance, to the Joint Committee. This is in line with the grant offer letter from the Scottish Government to Stirling Council, as Accountable Body, most recently dated 29 June 2023.
Background
The terms and conditions associated with the grant made by the Scottish Government to Stirling Council in relation to the Stirling and Clackmannanshire City Region deal are set out in a grant offer letter dated 29 June 2023.
Sections 14.3 to 14.5 of the grant offer letter set out requirements in relation to Internal Audit Arrangements. It is for the Accountable Body to ensure the allocation of Internal Audit resources and to ensure that Internal Audit work is undertaken in line with the Public Sector Internal Audit Standards (the ‘Standards’).
Considerations
As part of its role as Accountable Body, Stirling Council will provide Internal Audit resource in line with the conditions set out in the grant offer letter. The conditions are clear that the Scottish Government expects CRD to form part of the Accountable Body’s risk based Internal Audit Plan every second year as a minimum.
Stirling Council’s Internal Audit Plan for 2024/25 was approved by the Council’s Audit Committee on 14 March 2024. That Plan included resource to be allocated to the Internal Audit of CRD activities.
Stirling Council’s Internal Audit team is required to operate in compliance with the Standards. The most recent self-assessment against the Standards was undertaken by the Audit Service Manager in February 2024. An external assessment of the team’s compliance with the Standards was undertaken by North Ayrshire Council’s Chief Internal Auditor in December 2022 and was reported to the Council’s Audit Committee on 30 March 2023. Both assessments concluded that the team operates in compliance with the Standards.
Stirling Council’s Audit Service Manager and Internal Audit Team Leader attended the meeting of the Chief Officers’ Group (‘COG’) on 20 May 2024 to present and discuss the background and requirements for the review. At that meeting, COG requested further details on the specific proposals for the review be documented and shared with COG members for their consideration and comment.
A draft Assignment Brief was subsequently circulated to COG members, via the Regional Programme Management Office, on 23 May 2024 for consideration and comment before finalisation.
2024/25 Internal Audit work will focus on higher-level partnership governance arrangements relating to:
- strategic direction and decision-making;
- the governance framework and support arrangements for the Joint Committee;
- risk management arrangements for key strategic and /or operational risks;
- grant claims submission, compliance with grant offer terms and conditions and the distribution of funding payments to partners; and
- reporting on Deal and project progress to the UK and/or Scottish Governments.
Findings and conclusions flowing from this work will then be used to inform more detailed work in future years focussing on specific City Region Deal risks.
Resource Implications
The full financial implications of the recommendations are set out in the report. Yes/No
This includes a reference to full life cycle costs where appropriate.
Finance Officers have been consulted and have agreed the financial implications Yes/No
as set out in the report.
Staffing
The full implications on staffing are set out in the report. Yes/No
Exempt Reports
Is this report exempt? Yes/No
Equalities Impact
Have you undertaken the required equalities impact assessment to ensure that
no groups are adversely affected by the recommendations? Yes/No
Legality
It has been confirmed that in adopting the recommendations contained in this report,
the Joint Committee is acting within its legal powers. Yes/No
Sustainability and Environmental
It has been confirmed that sustainability and environmental issues have been
considered within the report. Yes/No
Policy Implications
None
Consultations
No external consultations.
Background Papers
Have you used other documents to compile your report? Yes/No
Appendices
Appendix 1 – Stirling Council Internal Audit Assignment Brief: City Region Deal Review
Approved by:
Julia McAfee
Chief Officer – Governance
Stirling Council
31 May 2024