To agree future service delivery arrangements.

THAT:

(a)       The South West Audit Partnership (SWAP) is selected to provide the council’s internal audit service;

(b)       The Chief Financial Officer is delegated authority to finalise contractual arrangements including a TUPE transfer of staff within the approved annual budget;

(c)       The council join SWAP and become part owners of the local authority owned company at zero cost – subject to approval by the SWAP Board; and

(d)       The Chief Financial Officer is delegated authority to be the council’s representative on the SWAP board and to exercise the council’s vote at shareholder meetings.

The recommended provider has a proven track record of delivering quality internal audit services to 12 local councils, including Wiltshire and the Forest of Dean on a not for profit basis within the reduced budget for the service approved by Full Council on 7 February 2014.  It was selected following a soft market testing exercise which considered both private and public sector providers as well as partnering opportunities.  SWAP represented the best value for money and greatest resilience for the council as well as the option to be flexible going forward if the needs of the council changes.   The council is keen to look at ways of working in partnership with other organisations to provide back office services more effectively.  This proposal is a clear example of working with colleagues from other councils to achieve this.

1          Remain with our current provider, KPMG.  This would have had the advantage of less disruption but would be outweighed by not achieving the proposed budget savings or having less audit input.  The service would in any event require re-procuring prior to the expiry of the contract on 31.3.15.

2          Bring the function back in-house.  The number of audit days could have been maintained within the proposed budget but given the size of the team would not have given the required capacity and resilience (i.e. cover for sickness, vacancies and ability to respond to urgent requests for support etc) or the range of skills and access to specialists.