Decision Reference Number: WPCC4-0005
Lead Officer: Sara Ansell
Chief Officer approval: N/A
Date: 29th April 2024
Status: Partially-confidential
If partially-confidential or confidential please detail the FOI exemption applied and specify which parts are confidential:
Attachments are exempt from disclosure
Decision summary:
This decision notice seeks formal approval of the Service Level Agreement between Warwickshire County Council and Warwickshire PCC for the provision of internal audit services in 2024/25.
I confirm that my register of interests declaration is up to date and that none of my interests preclude me from making this decision.
Signature: P.Seccombe
Date: 14/06/2024
Supporting information
1. Background information
The requirement for an internal audit function is contained in the Accounts and Audit Regulations 2015 which require PCC’s to ‘undertake effective internal audit to evaluate the effectiveness of its risk management, control and governance processes, taking into account public sector internal auditing standards or guidance’.
The internal audit service has been provided to the PCC for several years by Warwickshire County Council, and agreement has been reached for the services to continue throughout 2024/25. The PCC and Joint Audit and Standards Committee (JASC) receive regular updates from the Internal Audit Manager regarding progress against the audit plan. In March each year, they also receive a draft copy of the audit plan, charter and draft Service level Agreement (SLA) for the forthcoming year, for their consideration and comment prior to formal approval. The SLA outlines the key aspects of the service delivery, along with payment terms and expectations regarding the service.
2. List of additional information attached as appendices
Service Level Agreement
3. Expected benefits
The provision of an effective Internal audit service will ensure that the PCC meets the requirements of the Accounts and Audit Regulations 2015. The provision of these services also provides assurance regarding the effectiveness of internal controls. This SLA provides assurance regarding the arrangements that are in place for the delivery of internal audit services in 2024/25.
4. Impact of not approving the application
If the SLA with Warwickshire County Council is not approved, the arrangement for internal audit provision would remain in principle and not be formally agreed. If this were the case, there would be potential that the PCC would not be meeting the requirements of the Accounts and Audit Regulations, and assurance regarding the effectiveness of internal controls may not be in place.
5. Costs (including any identified savings)
The daily cost of the service is £357. The SLA provides for 165 days. The annual cost therefore is £58,905. Final charges will vary dependent on the number of days provided. The costs have been allowed for in the internal audit budget held by the PCC.
6. Equality considerations
All relevant policies apply.
7. Legal comments
No legal opinion has been sought on the terms of the SLA, but all provisions are included within the SLA document.
8. Social or Environmental considerations
The services are provided locally.
9. Publication
This decision notice will be published on the OPCC website
Comments from the Treasurer
The provision of an internal audit service will provide assurance regarding the effectiveness of a number of internal control systems, and will also ensure compliance with regulations. The internal audit plan for 2024/25 has been agreed with the internal auditor and also with Warwickshire Police. The Service Level Agreement outlines the arrangements for the delivery of the service for 2024/25, the costs of delivering the plan and any other associated details regarding how the organisations will interact with each other. All costs are included within the annual budget.
Comments from the Chief Executive and Monitoring Officer
This service is an important part of the Corporate Governance arrangements
