Issue - meetings

A report from the Head of Internal Audit is attached.

The Public Sector Internal Audit Standards Self Assessment is attached.

The Internal Auditors’ Code of Ethics is attached.

The Internal Audit Charter is attached.

Barrie Strothers, Head of Internal Audit presented a report setting out a new set of standards that had been published by the Chartered Institute of Public Finance and Accountancy (CIPFA) and the Chartered Institute of Internal Auditors (IIA) and had come into force on 1 April 2013. The report informed Members of the changes to the way that Internal Audit will be assessed.

It was explained that until 2013, the CIPFA Code of Practice for Internal Audit in Local Authorities in the UK was recognised as best practice and had been adopted by the Council. Annual reviews were performed to assess the level of compliance against the Code and the results reported in an annual report to the Audit Commitee.

The new standards that had been published - the Public Sector Internal Audit Standards (PSIAS) were based upon the mandatory elements of the IIA International Professional Practices Framework (IPPF) as follows:-

·                     Definition of Internal Auditing

·                     Code of Ethics

·                     International Standards for the Professional Practice of Internal Auditing.

It was explained that the objectives of the PSIAS were to:-

·                     define the nature of internal auditing within the UK public sector,

·                     set basic principles for carrying out internal audit in the UK public sector,

·                     establish a framework for providing internal audit services, which add value to the organisation, leading to improved processes and operations, and;

·                     establish the basis for the evaluation of internal audit performance and to drive improvement planning.

Appended to the report was the PSIAS in detail and the evaluation undertaken by Head of Internal Audit. The result of which had resulted in the necessity to update the Internal Audit Charter and introduce a Code of Ethics for Internal Audit. Both documents were appended to the report.

It was also explained that further requirements of the Standard were:-

·                     The development and maintenance of a quality assurance and improvement programme

·                     A statement on conformance with the PSIAS and the results of the quality assurance and improvement programme within the Annual Report.

Barrie reported that these two areas were already covered within the Internal Audit reports that the Committee received on a regular basis.

Delegated decisions:

1.       That the report be accepted as this will help the Head if Internal Audit to achieve the Standards for Internal Audit as prescribed by the Chartered Institute of Public Finance and Accountancy (CIPFA) and the Chartered Institute of Internal Auditors (IIA).  

2.       That the revised Internal Audit Charter and the new Code of Ethics for Internal Audit. Committee be approved.

Sarah Janusz, Head of Procurement will give a presentation at the meeting.

Sarah Janusz, Head of Strategic Procurement attended the meeting to give the Members of the Committee an overview of the way in which the Council procures its goods and services.

The presentation set out the Procurement Strategy 2013 – 2015: Buying into Bury, the key spend categories, how the Council engages with the Bury Business Community and how the Council works in collaboration with other Councils and partners.

It was explained that it was a good time to look at procurement due to a number of different factors including:-

• Reductions in funding
• Increasing demand for services
• The requirement to get more for less
• Demonstrating best value for money, and;
• Ensuring procurement is embedded in governance arrangements

It was explained that the procurement strategy 2013 – 2015 was entitled ‘Buying into Bury’ and set out how the Council would:

• Ensure best value
• Deliver local economic benefit

The Strategy contributes to corporate vision, values and outcomes, sets out key performance indicators, Procurement structure, tools and techniques as well as external influences and challenges.

It was reported that contracts would usually fall into one of four categories:

• Routine - Low value, low risk – minimise acquisition costs, use frameworks, efficient order processes (Furniture, Highways materials, cleaning materials, etc)
• Bottleneck - Low value, high risk – Strategies include multiple suppliers, back-up contractors and partnering (mail services, traffic management, housing management etc)
• Leverage – High value, low risk – maximise economies of scale through collaboration (utilities, ICT, Agency Staffing, catering etc)
• Strategic – High value, high risk – use procurement expertise, ensure adequate resourcing and strong project management (Adults Social Care, Children’s Social Care, Construction – properties, Construction – Highways)

The top ten contracts were:

• Utilities                                             £2.7m
• Capital project                                    £2.7m
• Care contract                                      £2.4m
• Repairs/Maintenance Contracts                      £1.7m
• Utilities                                             £1.7m
• Capital project                                    £1.4m
• Capital project                                    £1.4m
• Care contract                                      £1.3m
• Care contract                                      £1.2m

Sarah explained that the Council had established a relationship with the local Chamber of Commerce and had put a number of different initiatives in place including the use of ‘The Chest’ which allowed local companies to view and tender for Council opportunities, the use of PQQs (pre qualification questionnaires), meet the buyer events, supplier feedback and payment terms for subcontractors.

The Council was also working in collaboration with AGMA and the Yorkshire Purchasing Organisation.

Members of the Committee were given the opportunity to ask questions and make comments and the following points were raised:-

• Councillor Bury asked whether the Council had set terms and conditions in relation to contractors employment of staff. Councillor Bury referred to the use of zero contract hours and agency staff.

Members of the Committee were given the opportunity to ask questions and make comments and the following points were raised:-

• Councillor Bury asked whether the Council had set terms and conditions in relation to contractors employment of staff. Councillor Bury referred to the use of zero contract hours and agency staff.

Sarah explained that there was a list of social criteria that would be considered when developing the  ...  view the full minutes text for item 269