Audit Plan Shell by Smjt2G

VIEWS: 10 PAGES: 21

									Audit Plan
Cambridgeshire County Council

Audit 1998/99




Nick Ward – District Auditor

Adrian Loades – Audit Manager




98f56645-c8a4-41ab-a837-101219ee1d4a.doc   DRAFT   November 2012
Audit Plan                               November 12
Cambridgeshire County Council



Contents


Section 1                                            02


Your audit plan in summary


Section 2                                            04


Responding to your priorities


Section 3                                            06


What your audit will cover


Section 4                                            18


How we will work with you


Section 5                                            22


The value we offer




                                Page 1    DISTRICT AUDIT
Audit Plan                                                                              Section 1
Cambridgeshire County Council



Your audit plan in summary




              The purpose of your audit plan

                     This Audit Plan identifies the work we propose to carry out in your
                     1998/99 audit. Your Audit Plan meets the requirements of the Audit
                     Commission's Code of Audit Practice and is tailored to your needs by
                     focusing on what we understand to be the main challenges facing the
                     Council:
                              continuing to develop your best value response
                              providing services whilst managing an increasingly poor financial
                               position
                              maintaining the control environment
                     We have demonstrated in recent audits that we can respond promptly and
                     flexibly to your agenda and have developed an audit approach which
                     maximises joint working without compromising the independence of the
                     external audit function.

              Our responsibilities

                     In October 1996, the Audit Commission, which is responsible for our
                     appointment and its terms, circulated to you and other audited bodies a
                     statement summarising what are (in the context of the usual conduct of an
                     audit) the key responsibilities of auditors. We think the statement is helpful
                     both to us and to you in setting out briefly the main parameters of our work.
                     To avoid our having to repeat it here, please regard the statement as
                     incorporated in this audit plan. What we say about what your audit will
                     cover should be reviewed against that more formal background.

              The cost of the audit

                     The Audit Commission introduced a fixed audit fee option for audit bodies
                     on a pilot basis in 1996/97. The new fee arrangements placed a greater
                     onus upon the external auditor to improve efficiency while providing
                     flexibility for the auditor to vary the staff mix to use more specialist
                     resources to help improve the quality of audit products. From a client
                     perspective, the fixed fee provides more certainty of fee level via an output
                     based specification.
                     We propose adopting the fixed fee methodology at Cambridgeshire County
                     Council for the 1998/99 annual audit. We therefore propose a fee of

1 Your audit plan in summary                       Page 2                             DISTRICT AUDIT
Audit Plan                                                                              November 12
Cambridgeshire County Council

                     £143,472 excluding grant claims. This represents a decrease of 11% on the
                     fee for the 1997/98 audit reflecting the impact of Local Government
                     Reorganisation. It also incorporates the annual fee increase by the Audit
                     Commission of 4.9%.
                     The basis of the audit fee is set out in the following sections of the Audit
                     Plan.




1 Your audit plan in summary                     Page 3                               DISTRICT AUDIT
Audit Plan                                                                               Section 2
Cambridgeshire County Council



Responding to your priorities




               This section summarises how our audit can contribute to the achievement of
               your goals and respond to your priorities.

               Continuing your Best Value response

                       We commented in our 1997/98 Management Letter on the good progress
                       being made by the Council in developing its response to Best Value. You
                       have embraced the philosophy of continuous service improvement and are
                       developing a framework for the cyclical review of services and community
                       consultation.
                       We will continue to provide support to and an independent assessment of,
                       the best value review process.
                       We will continue to provide comparative information on the performance
                       of individual services from the increasing range of District Audit national
                       databases. We will also make available our specialist staff to assist in
                       aspects of your reviews where requested and will put you into contact with
                       other local authorities undertaking similar work.
                       As well as our general programme of work on Best Value we have
                       orientated our value for money programme to support your Best Value
                       reviews. Our reviews of management arrangements in Education and
                       Social Services will provide recommendations to assist the Council in
                       ensuring that it has the strategic framework in place to provide Best Value
                       services in these areas. Our overview reviews of the provision of
                       management information and contracting and procurement will be
                       undertaken to allow the Council to position itself in these areas in advance
                       of its own service reviews.

                Providing services in an increasingly difficult financial environment

                       The Council has faced for a number of years an increasing gap between the
                       financial resources available and the demand for its services. We will
                       consider the risks to the Council’s overall financial position as part of our
                       responsibilities under the Code of Practice to assess financial standing.
                       Our value for money review of fees and charges will compare the fees and
                       charges that you currently levy to those of other County Councils. It will
                       therefore provide comparative details on the levels of your fees and charges
                       and also details of any areas where there may be further scope to levy fees
                       and charges. Benchmarking data provided as part of our Best Value work
                       will also aim to highlight opportunities to reduce costs.

2 Responding to your priorities                   Page 4                              DISTRICT AUDIT
Audit Plan                                                                              November 12
Cambridgeshire County Council

                       Our review of community safety will focus upon the arrangements in place
                       to ensure the effectiveness of the Council’s work with other agencies to
                       meet the requirements of the Crime and Disorder Act. Such inter-agency
                       arrangements are key for the Council to develop the effectiveness of the
                       services it provides.
                       The final part of our review of the planning of school places will also seek
                       to identify whether the Council is making the optimum use of its resources
                       in this area.

               Maintaining the control environment

                       Our 1997/98 Management Letter referred to our concerns that the loss of
                       key staff and “corporate memory” due to the LGR staff together with
                       resource and workload pressures meant that there was the danger of a
                       weakening of the control environment. We will continue to focus our
                       regularity and probity audit, in conjunction with Internal Audit, on those
                       areas of highest risk.
                       Additionally we will undertake two reviews of the Council’s progress in
                       addressing the Year 2000 IT problem. These reviews will provide an
                       independent assessment of your progress in minimising the risks you face
                       from this issue.




2 Responding to your priorities                   Page 5                              DISTRICT AUDIT
Audit Plan                                                                                         Section 3
Cambridgeshire County Council



What your audit will cover




               This section shows how we will meet the Code of Audit Practice requirements
               whilst also responding to many of your key challenges.

               Code of Audit Practice

                      To ensure that we properly discharge our statutory obligations as set out in
                      the Code of Audit Practice, we will complete the necessary regularity work
                      as efficiently as possible. We will also work with you to ensure that the
                      Audit Commission's national programme of value for money studies for
                      this year is achieved where relevant.

               Exhibit 1 Meeting our Code objectives

               Code objective      Audit work                             Benefits to you

               Opinion             To provide you with an opinion on your statement of accounts, rate of
                                   return statements and the Pension Fund
                                   Relying on the systems assurance             Our opinion will tell you
                                   available, we will review all material        whether your statement of
                                   items, directing particular attention to      accounts present fairly the
                                   the results of our analytical review          financial position and
                                   and to areas affected by changes in           income and expenditure for
                                   accounting practices; such as the             the year.
                                   Accounts and Audit Regulations 1996
                                   and the current Accounting Code of
                                   Practice.
                                                                               Good working papers will
                                   We will monitor the Council's
                                                                                 assist the audit to run
                                   procedures for closing its accounts
                                                                                 smoothly and minimise the
                                   and advise you in advance of the
                                                                                 queries raised with officers.
                                   year-end of the information required
                                   to facilitate the streamlined audit.
                                                                            
                                   We will seek to give early warning
                                   of any issues which could give rise         You will have the
                                   to a qualified opinion and where              opportunity to rectify any
                                   relevant to make recommendations              matters arising.
                                   on the steps required to resolve the
                                   issues raised.




3 What your audit will cover                        Page 6                                      DISTRICT AUDIT
Audit Plan                                                                                       November 12
Cambridgeshire County Council




               Code objective     Audit work                               Benefits to you

               Systems’ adequacy To assess the adequacy of your major financial systems and
                                 controls.
                                  As part of our Internal Audit/District       an assessment of the
                                  Audit protocol we will work with               adequacy of your major
                                  Internal Audit, to assess your major           financial systems
                                  financial systems, and will continue      
                                  our cyclical programme of reviews
                                  of other significant systems.


                                  We will continue to review the               report to the Head of
                                  overall effectiveness of Internal              Internal Audit and Special
                                  Audit.                                         Investigations on Internal
                                                                                 Audit issues.


                                  We will undertake two reviews of              An ongoing assessment of your
                                  the Council’s response to the Year             progress in addressing the
                                  2000 computer problem.                         Year 2000 problem.


               Value for money andTo review your arrangements for securing economy, efficiency and
               management         effectiveness in the use of your resources and whether these are
               arrangements       working effectively.

                                  We have provided below a list of             Maximum benefit from the
                                  projects and key areas of work with            value for money work
                                  summary details. We will agree the             carried out.
                                  project brief with officers before
                                  commencing work.

                                  Our VFM follow up work will focus
                                                                               The benefit of
                                  on areas where there remains
                                                                                 improvements identified in
                                  scope to improve performance. We
                                                                                 our previous audit reviews
                                  will also apply the Audit
                                                                                 will be realised. We will
                                  Commission's VFM performance
                                                                                 supply comparative data
                                  indicator initiative. These cover
                                                                                 based on the results of the
                                  recruitment and training,
                                                                                 Commission's VFM
                                  environmental stewardship, and
                                                                                 indicator initiative.
                                  well being of children.




3 What your audit will cover                       Page 7                                      DISTRICT AUDIT
Audit Plan                                                                                        November 12
Cambridgeshire County Council




               Code objective       Audit work                             Benefits to you

               Financial standing   By reviewing your arrangements for ensuring continued sound
                                    financial standing to form a view as to whether that standing is
                                    soundly based.

                                    Our on-going review will include:          We will give you an
                                                                                 independent view of your
                                        monitoring your budgetary
                                                                                 financial standing and seek
                                          control and financial
                                                                                 to identify opportunities for
                                          reporting arrangements
                                                                                 improving procedures.
                                         reviewing your financial
                                          standing in relation to the
                                          impact of statutory
                                          requirements and your own
                                          internal policies

                                        assessing the strengths
                                          and weaknesses of your
                                          arrangements

               Fraud and            To review your systems and arrangements for reducing the risks of
               corruption           fraud, irregularities and corruption.

                                    We will continue to monitor your           Identification of
                                    overall arrangements to prevent              weaknesses in procedures.
                                    and detect fraud and corruption and
                                    will review a number of areas in
                                    accordance with our cyclical plan.

               Legality             To review your arrangements for ensuring the legality of transactions
                                    that might have a financial consequence.

                                    Through discussions with key               We will work with you to
                                    officers and the review of minutes,          avoid unlawful transactions.
                                    we will give constructive feedback
                                    on legal issues.



               Citizens’ Charter    To satisfy ourselves that you have put necessary arrangements in
                                    place to collect, record and publish information as specified by the
                                    Audit Commission.

                                    Although the Council’s                      We will provide
                                    arrangements for collecting and              independent assurance to
                                    recording information in relation to         the public that systems in
                                    PIs showed improvement over                  place can produce
                                    previous years there remain                  indicators that accurately
                                    weaknesses in a number of areas.             reflect your performance.

                                    We will continue to work with your
                                    staff to ensure preparation of
                                    adequate working papers and meet
                                    the deadlines for publication.




3 What your audit will cover                         Page 8                                     DISTRICT AUDIT
Audit Plan                                                                                       November 12
Cambridgeshire County Council



                  Value for money programme

                        We are required by the Audit Commission to earmark at least 30 per cent
                        of audit resources for value for money work. We will tailor our value for
                        money programme as far as practical to meet the Council's key issues and
                        will provide continuing support to your best value initiative. Our aim is to
                        produce an annual value for money programme which addresses the key
                        issues facing the Council and tailors individual project briefs to this end.
                        We aim to add value by bringing to each study the wide range of
                        professional skills available within our Regional Added Value Unit and use
                        databases of good practice in the local authorities which we audit.


                  Our Response                     Expected Benefits                    Audit Output

             Community safety

             Fear of crime heads most              The audit will have four primary     An Audit Report
             national and local public quality     objectives:                          and a workshop
             of life surveys. The new Crime                                             with the Council’s
                                                         to assess how effective
             and Disorder Act aims to                                                   partners on inter-
                                                          partnerships have been in
             formalise arrangements for                                                 agency
                                                          implementing the Crime
             community safety and makes                                                 arrangements.
                                                          and Disorder Act;
             local authorities and police forces
             jointly responsible for formulating        to help partnerships
             strategies to address crime and              develop further their
             disorder.                                    community safety
                                                          strategies;
             We aim to assist the Council in
             implementing the act by                     to ensure that appropriate
             reviewing:                                   links are made between
                                                          youth justice and
                  partnership management
                                                          community safety; and
                    arrangements;
                                                        to spread good practice
                  the conduct of the crime and
                                                          between partnerships.
                    disorder audit;
                                                   We are currently developing
                  the development of an inter-
                                                   the audit methodology in order
                    agency strategy;
                                                   to focus upon the effectiveness
                  monitoring arrangements        of the partnerships that have
                    including community            been established. This will
                    consultation.                  require the audit to be
                                                   undertaken across all the
                                                   Council’s partners.




3 What your audit will cover                            Page 9                                 DISTRICT AUDIT
Audit Plan                                                                                        November 12
Cambridgeshire County Council



               Our Response                       Expected Benefits                     Audit Output
               Review of LEA management
               arrangements

               The project assists the local      The local education authority is      The audit output
               education authority to assess      provided with a focused               will be depend
               its approach to the leadership     diagnostic to undertake its own       upon the review’s
               and management of                  assessment of its strengths and       findings but is
               education services.                weaknesses.                           likely to consist of
                                                                                        a written report
               The focus and scope of the          External evidence from
                                                                                        and/or workshops
               project will be agreed with the    comparative data, surveys and
                                                                                        with officers.
               local education authority and      document reviews are used to
               will move as issues are            test the authority’s assessment.
               identified during the review.      Findings and their implications
                                                  for the authority are discussed
               The review could extend from
                                                  through a series of workshops.
               the full range of education
               services to a specific focus
               on service strategy or
               leadership.



               Service Review in Social
               Services
               The pressure on Social Services    The review will provide:             Audit report plus
               Departments to engage on a             A review of issues from         workshop with key
               structured programme of service         previous audit work and         officers.
               review is increasing .                  identification of progress
               The review is based around the         A robust set of external
               four key headings joint review          comparative data
               teams:
                                                      A clearer understanding of
                   Meeting individual needs           potential weaknesses in
                   Shaping future services            performance
                   Performance management            An action plan to investigate
                   Resource management                further and/or address these
                                                       weaknesses.
               The review will include the
               analysis of comparative
               information, the use of self
               assessment questionnaires and
               the review of key documentation
               and management information.
               It has been agreed with the
               Director of Social Services that
               the review will focus upon
               Children’s Services.




3 What your audit will cover                          Page 10                                   DISTRICT AUDIT
Audit Plan                                                                                                   November 12
Cambridgeshire County Council



               Our Response                          Expected Benefits                              Audit Output
              Charging, income and best
              value
              The best value regime will mean            The audit aims to provide a                Audit report
              that the Council will have to              review of fees and charges by
              develop mechanisms to balance              assisting with:
              pressures to raise income against               achievement of Best
              local performance plan objectives                 Value;
              which will incorporate the views of
                                                              the generation of income;
              users.
                                                              targeting of subsidy; and
              The audit will focus on providing
              comparative information on the                  contribution to corporate
              scope and level of fees and                       policy objectives
              charges currently levied.

               Review of planning school
               places
               The review will revisit and track     The audit will provide:                    A short audit report
               progress on those issues                       An assessment of the outcomes with detailed findings
               covered during our stage 1 audit                of actions taken since our stage being discussed in a
               in 1996/97. It will cover therefore             1 audit                          workshop.
               the planning and allocation of
                                                              An analysis of the barriers to
               mainstream school places for
                                                               implementing change and the
               pupils aged 5-18.
                                                               identification of possible ways to
                                                               overcome these barriers
               It will also consider local issues             Comparative information on the
               and in particular those arising                 performance of the authority in
               from new initiatives such as                    planning its school places
               school organisation plans, asset
                                                              An assessment of the work
               management plans, infant class
                                                               being done by the Council to
               size plans and the new
                                                               meet new national initiatives.
               admissions code of practice.

               Overview reviews of the
               provision of management
               information and contract
               management and procurement

               We will undertake an overviews        We will undertake high level                   Audit reports and
               of the provisions of management       overviews of each of the subject               briefings for the
               information and contract and          areas.                                         relevant Best Value
               procurement management. The                                                          review teams.
                                                     The Council will be measured
               work will be undertaken in
                                                     against good practice identified
               advance of the Council’s own
                                                     elsewhere and comparative data
               Best Value reviews in this area.
                                                     where appropriate.
               This work will provide a focus for
               the Council’s own Best Value
               Review in these areas.




       Other responsibilities

                      In addition we will certify your claims for central government grants. We
                      will assess the adequacy of your financial systems impacting on grant

3 What your audit will cover                                  Page 11                                      DISTRICT AUDIT
Audit Plan                                                                          November 12
Cambridgeshire County Council

                      claims where these are not reviewed under other Code of Practice
                      objectives.




3 What your audit will cover                   Page 12                            DISTRICT AUDIT
Audit Plan                                                                                  Section 4
Cambridgeshire County Council



How we will work with you



              The previous sections show how we will meet the Code of Audit Practice and
              tailor the audit to respond to your key challenges. This section sets out how we
              will work together to deliver your audit.

              The overall timetable

                     Involving you in the audit process will help ensure that we meet your
                     expectations and address the issues that concern you. During the year you
                     will receive a number of audit outputs which contribute to the overall audit
                     product. These are summarised in Exhibit 3 so that you know what to
                     expect and when.

              Exhibit 3 Overview of audit products and timing

            Audit output            Dec   Jan   Feb   Mar   Apr   May   Jun   Jul   Aug     Sep   Oct   Nov   Dec

            Audit plan

             Opinion audit1998/99

            Fraud

            VFM projects

            PIs review 1998/99

            Management letter

            Review meetings with
            Chief Executive


              Officer involvement is key

                     We want to involve officers throughout the audit process so that we can
                     deliver an audit that fulfils your expectations and priorities. We also need
                     to work closely together to meet a number of important deadlines.
                     Staying on schedule and meeting deadlines depends on officers as much as
                     us. Your involvement is summarised in Exhibit 4.




4 How we will work with you                       Page 13                                 DISTRICT AUDIT
Audit Plan                                                                                   November 12
Cambridgeshire County Council




              Exhibit 4 Your involvement in delivering the audit

              Audit output             Your input                                    Required by:

              Audit plan                brief our staff on your key issues           31 December 1998
                                        review our draft plan
              Systems and Fraud         internal audit to complete systems work      30 April 1999
                                        discuss our draft memo                       30 September 1999
              VFM projects              nominate lead directors and officers for     as required by
                                         each study                                    timing of the study
                                                                                      January to
                                        brief our staff at the set-up meeting and     November 1999
                                         liaise throughout the audits
                                                                                      as soon as
                                        discuss our draft action plans                practicable and
                                                                                       within one month
                                                                                       of issue of draft
                                                                                       report
              Final accounts            follow agreed close down process             31 July 1999
                                        consider interim matters arising             31 October 1999
                                        agree our draft report                       31 January 2000
              PIs review                brief staff on changes from last year        31 May 1999
                                        discuss our report                           31 October 1999
              Management Letter         discuss our draft Letter                     30 November 1999

                     We have also agreed with you that:
                             recommendations from regularity work are followed up
                             relevant officers will respond formally to reports within one month of
                              discussion of draft report and action plan.

              What we offer

                     Through our local audit team you will have access to experienced and
                     professionally qualified staff who are familiar with the challenges that you
                     face, supported by specialist skills from our regional units. The team is led
                     by Nick Ward (District Auditor) and Adrian Loades (Audit Manager).

              Measuring our performance

                     During the year there are a number of important deadlines we must meet.
                     These are required to ensure that our work is effective and we have agreed
                     with you a number of key targets against which you can measure our
                     performance.
                     We already issue client satisfaction questionnaires following the
                     completion of each of our VFM reviews to allow officers to feedback their
                     views of the value and conduct of the review. This year we will be


4 How we will work with you                         Page 14                                DISTRICT AUDIT
Audit Plan                                                                                       November 12
Cambridgeshire County Council

                     extending the use of these questionnaires to the principal elements of our
                     regularity audit.
                     We welcome your suggestions on other relevant performance indicators.

              Quality

                     We aim to deliver a high quality audit and have set a number of indicators
                     against which you can measure our performance.

              Exhibit 5 Your key quality indicators for our performance

              Indicator                           Target

              Your satisfaction with the audit     good liaison with the Authority's Internal Audit
                                                   give an opinion on the Authority's accounts by 31
                                                    October 1999 (subject to closedown process completed
                                                    by 31 July 1999, including all key reconciliations)

              Your satisfaction with VFM work      VFM projects to be at draft reporting stage by the date
                                                    of the 1998/99 Management Letter


              Timeliness

                     We will aim to produce all audit products in a timely manner and we have
                     set a number of performance targets against which you can measure our
                     performance. We will agree specific dates for reporting on each value for
                     money study when we present the project briefs.

              Exhibit 6 Your key timeliness indicators for our performance

              Audit product                Draft date                      Final date

              Audit Plan                   22 January 1999                 1 February 1999

              Composite systems            31 August 1999                  Within two weeks of draft being
              memorandum                                                   agreed

              Fraud and Corruption         31 October 1999                 Within two weeks of draft being
              memorandum                                                   agreed

              Final accounts               14 January 2000                 Within two weeks of draft being
              memorandum                                                   agreed

              Other memoranda              Within four weeks of            Within two weeks of draft being
                                           completion of work              agreed

              Opinion on the accounts                                      31 October 1999

              Management Letter            15 November 1999                15 December 1999

              VFM products                 In accordance with VFM timetable to be agreed at the set-up
                                           meeting

                     We will produce quarterly reports on the progress of the audit for
                     discussion with the Head of Finance.




4 How we will work with you                       Page 15                                      DISTRICT AUDIT
Audit Plan                                                                                     November 12
Cambridgeshire County Council



              Meeting your expectations

                      In addition to the specific targets, we will aim to meet your expectations of
                      us.

              Exhibit 7 Our service commitment to you

              Issue                             Our Response

              Listen to your concerns            through meetings with officers and Members
                                                 respond to informal feedback and complaints.
              Work together                      work with officers to produce action plans which identify
                                                  the responsible person and the time scale for
                                                  implementation

                                                 provide feedback and consultation during the course of
                                                  our work

                                                 present our findings in the most appropriate way.
              Co-operate with your managers      continue to co-ordinate our work with internal audit
                                                 respond promptly to requests for advice
                                                 comment particularly on issues surrounding the
                                                  preparation of the Statement of Accounts.

                      Our performance targets and co-operative working should help us meet
                      your expectations, but if we fall short we need you to tell us. If you have
                      particular concerns, please raise them with Adrian Loades as soon as
                      possible. If he cannot resolve your problem locally, please contact Nick
                      Ward.




4 How we will work with you                      Page 16                                      DISTRICT AUDIT
Audit Plan                                                                             Section 5
Cambridgeshire County Council



The value we offer




               This section tells you about the audit fee and the underlying assumptions

               Fee

                       Your proposed audit fee will be £143,472 plus VAT (excluding grant
                       claims and returns) and represents an 11% decrease on the previous year’s
                       audit plan. The fee includes the 4.9 % uplift in respect of the Audit
                       Commission annual fee increase.
                        The fixed fee means that we bear the risk of overruns and have a
                       greater incentive to improve our efficiency. We have prepared an audit plan
                       which is competitive and will deliver a high quality audit. The fixed fee
                       arrangements give us the flexibility to vary our staff mix to meet your
                       requirements by using experienced staff, including specialists, to help
                       improve the quality of audit products. We believe the new arrangements
                       will help us to improve the quality of our audit service, whilst providing
                       you with more certainty of the fee level.

               Assumptions

                       The move to the new fee regime assumes a continuation of good internal
                       audit cover and the successful implementation of previous
                       recommendations aimed at strengthening key control weaknesses and
                       improving inadequate working papers. We will only seek to vary our fee if
                       the risk environment has deteriorated significantly or if key
                       recommendations have not been implemented. Our specific assumptions
                       are based on our assessment of the current position:
                           recommendations from the previous year have been implemented and
                            we have been informed of any major changes in the main financial
                            systems
                           Internal Audit have completed their systems testing in accordance
                            with the protocol
                           you will provide good quality working papers and records to support
                            the accounts
                           no events occur which compromise the reliance placed on financial
                            systems
                           responses to draft reports will be in accordance with our agreed
                            protocols


5 The value we offer                             Page 17                             DISTRICT AUDIT
Audit Plan                                                                               November 12
Cambridgeshire County Council


                       We aim to meet the requirements of the Audit Commission by:
                            carrying out all applicable national studies at least to overview stage
                            applying studies beyond overview if we and you are satisfied that
                             clear benefits are likely to arise
                            devoting about 30% of audit resources to VFM work

               Analysis of audit fee by type of audit work

                       The following table shows the fee for our main areas of work proposed in
                       1998/99.

               Exhibit 8 Your audit programme for 1998/99


                 Type of audit work                                        £
                 Opinion and probity audit                                 73,444
                 Value for money / management arrangements                 44,408
                 Performance indicators                                        5,124
                 Planning & reporting                                      20,496

                 TOTAL (excl Grant Claims)                                143,472

                 Grant claims (est. based on 150 days)                     51,240


                       The cost of additional value for money studies over and above the core
                       audit will vary, depending upon the specification agreed, in the range of
                       £4,000 to £12,000.
                       Included in the grant claims estimated fee is an estimate for work on
                       Highways Agency claims. The level and timing of this work is variable.
                       We will alert your officers to any significant variations in the estimated
                       level of work as it is identified.

                   Billing arrangements

                       The new fee regime will not specify the inputs in terms of audit days but
                       will concentrate on the outputs in terms of quality. The audit fee will be
                       payable by ten monthly instalments with separate bills raised for:
                            extra work:
                                  requested by you including additional VFM work
                                  required if there are significant changes to the assumptions
                                   set out in the plan
                            special enquiries
                            grant claims work (per diem basis).




5 The value we offer                                Page 18                            DISTRICT AUDIT
Audit Plan                                                                                November 12
Cambridgeshire County Council



               Our commitment to public audit

               District Audit is committed to provide the best public audit available.
                       District Audit is an audit provider to the Audit Commission, specialising in
                       local government and healthcare work. We are the largest and longest
                       established public service auditing body in England and Wales. We carry
                       out our work as appointed auditors with integrity, objectivity, independence
                       and with due professional care.
                       Our task is to provide reassurance that our audited bodies are achieving real
                       improvements in cost-effectiveness and quality with minimal disruption to
                       their operations.
                       We aim to bring added value in both our regularity and VFM work through
                       understanding our audited bodies' operations and making full use of our
                       expertise in comparative analysis and benchmarking.
                       This Audit Plan has been designed to make your audit more consultative,
                       efficient and user-friendly.
                       DA staff are committed to supporting continuing improvement by
                       identifying solutions to problems and by keeping audited bodies clearly
                       informed at each stage of the process.
                       Additional audit services available for you on request include:
                            local VFM projects
                            benchmarking specific service based on comparative databases
                            focused anti-fraud initiatives.




5 The value we offer                              Page 19                                DISTRICT AUDIT
Audit Plan                                Appendix 0
Cambridgeshire County Council




0 The value we offer            Page 20   DISTRICT AUDIT

								
To top