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East Kent Audit Partnership

This web page has been developed to answer some of the questions you may have about us or our service.  Please do contact one of the team if you would like to learn more about us, and what we do.  If you have any concerns over the conduct of a particular auditor or the way in which an audit is progressing, please do contact me direct.  I trust the information contained on the next few pages is of interest to you; however I am always grateful for your feedback and ideas for us to improve should you wish to forward your comments to me.

Christine Parker

Head of Audit Partnership

01304 872142

Christine.parker@dover.gov.uk

Contents

1. Who Are We?
2. Why are we here?
3. Section 151 Officers
4. What do we do?
5. Why are you auditing me?
6. Why now?
7. How long will it take and how will it impact on me?
8. How can I help the Auditor and help to achieve a smooth audit?
9. What’s in it for me?
10. Who will see the report?
11. What happens after we have agreed to implement the recommendations?
12. What is an Audit Committee?
13. Who audits the Auditors?
14. What’s the difference between Internal and External Audit?
15. You may wish to consult us

1.  Who Are We?

The East Kent Audit Partnership is between Canterbury City Council, Dover District Council, Shepway District Council and Thanet District Council.

2.  Team Structure

The Team is made up of the Head of the East Kent Audit Partnership (EKAP) Christine Parker, and two Audit Managers, Chris Parker and Simon Webb, and a pool of Partnership Auditors (see names below). Chris Parker is the Deputy Head of the Partnership and covers the Shepway and Canterbury partner sites, and Simon Webb manages and deputises for the Dover and Thanet sites. Each member of the Audit Team has a “home” base at one of the partners’ offices, but also carries out work at any of the other authorities as required. This gives the team the flexibility to provide a range of auditing skills for all the partner authorities.

On occasion the partnership makes use of Consultants to provide additional internal audit resource to meet plans.

Meet the Team

Why are we here?

Under legislation the Council’s Section 151 Officer, (the Senior Officer in charge of the Council’s financial arrangements), has a duty to ensure that there is a continuous review of the Council’s financial arrangements, ensuring that the appropriate records are maintained and that the Council acts legally.

Part of the function of Internal Audit is to provide assurance that the Council’s arrangements are subject to an appropriate level of internal control, and to report any risks, weaknesses in the internal control system, or any financial loss or irregularity to the Section 151 Officer as well as the appropriate management. The four s.151 Officers together form the Client Officer Group, which governs the EKAP.

3.  Section 151 Officers

4.  What do we do?

Internal audit is an independent appraisal function, which seeks to provide management with a level of assurance on the adequacy of internal controls and of risks to the Council’s functions / systems.

• We advise management on control.
• We assist the organisation to achieve its objectives by offering advice on operational processes and procedures.
• We alert management to any significant weaknesses or irregularities.
• We provide assurance on the reliability and integrity of systems, and the extent to which they are adequately and effectively controlled.
• We review any irregularity.

Most of the above is achieved through completing Audit reviews, which are scheduled through a risk based work programme. Internal Audit has the authority to review any matter at any time, and can request supporting documentation and explanation from any officer of the Council. However, we rarely call unannounced.

5. Why are you auditing me and why am I often being audited?

There are several reasons why you may be audited:

• Inclusion in the annual audit plan if your service is considered to be a key system to the authority (e.g. key Financial system) or have had recent or significant operational, technological or personnel changes
• Selection on a risk basis to ensure coverage of all critical systems in operation across the authority
• Investigative requests from Senior Officers within the organisation

Generally all areas of activity of the Council will be reviewed once in three years. Each area is risk assessed and some areas may be reviewed more frequently. If an area or service is considered to be high risk or business critical (e.g. key financial systems) it is possible that a review may take place on an annual basis. Internal Audit also follows up the agreed actions resulting from reviews in between scheduled audits.

6. Why now?

Internal Audit works to a 3 year Strategic Plan which is reviewed annually to ensure that new initiatives, changing corporate priorities and high-risk areas are reviewed at appropriate intervals. These Annual Plans are agreed in advance with the Heads of Service and the Corporate Directors and approved by the relevant Audit Committee.

Individual reviews are discussed and a brief is agreed with the appropriate managers prior to them commencing.

7. How long will it take and how will it impact on me?

This depends on the complexity of the audit – however, we will always discuss this question with you at the start of the assignment. We try to limit disruption that may occur during an audit and will work around existing commitments of staff wherever possible. Co-operation in arranging meetings as early as possible during the audit also helps to minimise the time to complete a review.

8. How can I assist the Auditor and help to achieve a smooth audit?

For an audit, the auditor, manager and staff involved need to have an understanding of the benefits that can be achieved from working together. Our aim is to help you perform your duties more efficiently, not to find mistakes or criticise unnecessarily.

We understand that people may be apprehensive of an audit and therefore we try to provide as much information as possible prior to our visit. If you have any issues or concerns, please tell us. By informing us we will have a better understanding of these issues and may be able to offer a simple solution or advice on how to handle the situation.

9. What’s in it for me?

The audit will help to identify potential areas of weakness or inefficiency within the systems and processes and recommend actions to be taken to maximise the overall effectiveness of the service.

The audit report that is produced at the end of the review will:

• Provide a balanced description of good practice, key strengths and any weaknesses to be addressed.
• Provide a detailed action plan so that any programme of improvements can be effectively managed.
• Help managers to demonstrate confident and open leadership and their commitment to process improvement in their area.
• Provide an assurance level of the adequacy of the process reviewed. The assurance is the audit opinion that can be placed on the effectiveness of internal controls in place within the function to reduce the level of risk which may prevent achievement of the service objectives.

10. Who will see the report?

Once the report and action plan have been agreed by the manager of the section being audited the final report will be issued to the appropriate Head of Service, Corporate Director and Section 151 Officer. A summary of the report will also be reported to the Audit Committee, who oversees the audit function.

11. What happens after you have agreed to implement the recommendations?

At a future date, based on the agreed due dates, Internal Audit follow up the recommendations agreed in the action plan to establish whether or not they have been implemented; and if necessary identify the reason for any delay or lack of implementation. The aim being to revise the overall assurance level as a result of internal controls having been improved. A memo is issued to Management giving details of any follow up action taken and outstanding recommendations. Any agreed actions categorised as high risk which are not implemented are escalated to the Audit Committee.

12. What is an Audit Committee?

The Authority’s Audit Committee is comprised of members of the Council. The purpose of the committee is to provide independent assurance of the adequacy of the Authority’s risk management framework and the associated control environment, independent scrutiny of the authority’s financial and non-financial performance to the extent that it affects the authority’s exposure to risk and weakens the control environment, and to oversee the financial reporting process.

The terms of reference of the Committee are detailed within the Authority’s Constitution, copies of agendas, reports and minutes are available on the website.

13. Who audits the Auditors?

Internally each Authority has to review the effectiveness of Internal Audit on an annual basis and report their findings to the Audit Committee with the annual accounts in the Annual Governance Statement.

The Audit Commission are the external auditors that review the work carried out by Internal Audit. They need to be able to place reliance on our work to support their review and approval of the Council’s accounts and the financial processes that are in place. Each year the Audit Commission makes an assessment of Internal Audit and carries out an in depth review every three years.

14. What’s the difference between Internal and External Audit?

Internal and External Audit meet quarterly to ensure that there is no duplication in the work that they plan to cover. Where possible they rely on each other’s work to ensure maximum coverage from the resources available. The essential difference in their approach is that Internal Audit are looking to provide assurance on the systems and processes used by management to reduce risk, and External Audit are looking to state that the Council’s accounts are “fairly presented”. The Audit Commission is the currently the appointed external auditor for all four member East Kent Authorities.

Additional information on the Audit Commission can be found on their website www.audit-commission.gov.uk

15. You may wish to consult us...

• about any significant proposed changes to existing systems and implementation of new systems to enable us to make recommendations on the level of internal control to be applied;
• if you suspect you have discovered an instance of fraud or corruption;
• if a financial or system irregularity has been highlighted;
• for general advice on existing system controls and risks.

Internal controls are necessary to ensure the objectives of the function/ operation are met, and that economic and efficient use of resources and assets is achieved.

Additionally, controls safeguard resources against fraud, error, waste, and poor Value for Money. They can provide assurance on the reliability and integrity of information and that various policies, plans, procedures, laws and regulations are complied with.

Please do contact any member of the team should you wish to discuss any matter in confidence.

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