Agenda item

To receive the report of the Cabinet Member for Performance and Resources which provides the background and rationale underlying the proposals to form an Internal Audit and Risk Management Shared Service between Gloucester City Council, Stroud District Council and Gloucestershire County Council. 

101.1   Council considered a report of the Cabinet Member for Performance and Resources concerning proposals to form an Internal Audit and Risk Management Shared Service between Gloucester City Council, Stroud District Council and Gloucestershire County Council.

101.2   Councillor Norman moved the recommendations set out in the report.

101.3   Councillor James seconded the motion.

101.4   Councillor Norman explained that the shared service was an opportunity to build on the existing partnership with Stroud District Council to share resources and achieve efficiencies. He advised that the Council’s audit functions would be delegated to the County Council and staff would TUPE and be managed there.

101.5   Councillor Wilson welcomed the proposal. He stated that it would create an extra layer of independence for the audit service, in addition to a cost saving.

101.6   Councillor Smith asked what prevented the new partnership being transferred to a private company.

101.7   Councillors Williams, Gravells, Brown and Tracey declared personal interests as they were also County Councillors.

101.8   Councillor Norman advised that outsourcing remained an option in the future, but that as the existing partnership functioned well, building on the shared service was the preferred option. He explained that the proposal would provide the opportunity to take advantage of economies of scale, increase available expertise, share best practice, and implement succession planning.

101.9   RESOLVED –

(1)      Agrees to the creation of a Shared Internal Audit and Risk ManagementService with effect from 1 April 2015 (“the Commencement Date) or such other date as is agreed between Gloucester City Council, Stroud District Council, and Gloucestershire County Council on the basis set out in this report;

(2)      Delegates this Council’s Internal Audit Function to Gloucestershire County Council in accordance with the provisions of Section 101, of the Local Government Act 1972, Sections 19 and 20 of the Local Government Act 2000 and all other enabling powers subject to (6) below;

(3)      Agrees to enter into an Administrative Collaboration Agreement, under S101 of the Local Government Act 1972 with the partner authorities;

(4)       Delegates authority to the Corporate Director Services and Neighbourhoods, in consultation with the Cabinet Member for Performance and Resources, to approve the terms of the Administrative Collaboration Agreement;

(5)      Agrees to the transfer of staff to Gloucestershire County Council as Host Authority on the terms set out in the Administrative Collaboration Agreement from the Commencement Date;

(6)      Agrees to the formation of an Internal Audit and Risk ManagementShared Services Board involving the Section 151 officers from each of the participating authorities, to oversee the implementation and ongoing monitoring of the s101 Agreement; and

(7)      Authorises the Monitoring Officer to make any consequent changes to the Council’s Constitution to reflect the shared services arrangements and delegation of the internal audit service function to the Head of the Internal Audit and Risk Management Shared Service at Gloucestershire County Council.