b. Internal audit

Local councils must undertake an internal audit to evaluate the effectiveness of its system of internal control, risk management and governance processes. 

The council should appoint a competent person as internal auditor - it cannot be a councillor or an officer involved with the finances of the council; they should be independent so as to ensure they provide objective assurance.

The internal auditor should have a systematic and disciplined approach that will help your council improve.  This does not, however, mean that they will undertake a detailed inspection of all records and transactions.  The internal auditor will carry out tests on areas of risk and in particular check for evidence that the council is complying with its own policies and procedures.  In particular it will focus on areas of risk including internal controls that are in place covering key financial and accounting systems. This will include looking for evidence of corrective actions as a result of previous internal and external audit reports.

The internal auditor will report to the council and will also complete and sign the report on the internal control objectives included as part of the Annual Governance and Accountability Return (AGAR) and the council must respond to any matters reported to them by recording its actions in the minutes.