Issue - meetings

Consider a report by Chief Officer Audit & Risk on the updated Internal Audit Charter for approval that defines the terms of reference for the Internal Audit function to carry out its role and to enable the Chief Audit Executive to prepare statutory annual Internal Audit opinions on the adequacy of internal controls, governance, and risk management.  (Copy attached).

With reference to paragraph 9 of the Minute of 11 March 2019, there had been circulated copies of a report by the Chief Officer Audit and Risk providing the Committee with the updated Internal Audit Charter for approval.  The Charter defined the terms of reference for the Internal Audit function to carry out its role to enable the Chief Officer Audit and Risk to prepare an annual internal audit opinion on the adequacy of the Council’s overall control environment.  The definition of Internal Auditing within the Public Sector Internal Audit Standards (PSIAS) was “Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organisation’s operations.  It helped an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes”.  In accordance with the PSIAS, the purpose, authority and responsibility of the Internal Audit activity must be formally defined in an Internal Audit Charter, consistent with the Definition of Internal Auditing, the Code of Ethics and the Standards.  The Chief Officer Audit and Risk, as the Chief Audit Executive at Scottish Borders Council, must periodically review the Internal Audit Charter and present it to senior management (Corporate Management Team) and the board (Audit and Scrutiny Committee) for approval.  The Internal Audit Charter was shown in Appendix 1 to the report and had been updated by the Chief Audit Executive (SBC’s Chief Officer Audit and Risk) in conformance with the PSIAS for approval by the Audit and Scrutiny Committee to ensure that Internal Audit was tasked to carry out its role in accordance with best Corporate Governance practice.  Ms Stacey advised that the Internal Audit Charter had been updated to explicitly reflect the change in reporting line of the Chief Officer Audit and Risk associated with the revised Corporate Management structure from January 2020 and reflected the reintegration of all services directly delivered by the SB Cares ALEO into the Council from December 2019.  It also amended reference to Corporate Risk Officer to reflect resource arrangements for risk management activity from September 2019.  Ms Stacey further advised that the Internal Audit Charter would be considered alongside the Internal Audit Strategy and Plan 2020/21.

DECISION

AGREED the updated Internal Audit Charter as shown in Appendix 1 to the report.