Report of the Local Government Efficiency Review Group

through open recruitment. Opportunities for exchange and secondment of
audit personnel with the private sector should be explored.
7.2.6 The scope for sharing internal audit services between local authorities
should be explored as a matter of priority. This would assist in developing
specialist skills, more team audits and increasing the independence of the
internal audit function. The grouping of internal audit services in such a
manner could be along the lines of the current County and City Managers’
Association regional structures or other appropriate clustering arrangements
or regional structures which may be proposed in the White Paper on Local
Government.
7.3 Local Authority Audit Committees
7.3.1 The Local Government (Business Improvement Districts) Act, 2006 (referred
to below as the 2006 Act) and Circular Fin 11/2007 set out the functions and
the role of audit committees under the following headings:
• Financial and budgetary reporting;
• Internal audit function and reports;
• Local government audit reports and responses;
• VFM;
• Risk management; and
• Annual report to the elected council.
7.3.2 Audit committees are now established in all city and county councils and
their membership generally consist of five members; three external and two
serving or retired Councillors. The chairperson is appointed from the
external members. Local government auditors attend audit committee
meetings to discuss the statutory audit reports and other matters of concern
to the committee. Audit committees have an important role to fulfil in driving
the VFM agenda in their respective local authorities. This work can be
undertaken in a number of ways such as:
• Ensuring that recommendations contained in VFM reports issued by
the LGAS are implemented;
• Reviewing local authority performance vis-à-vis service indicators and
comparing with national performance;
• Seeking proposals from management on internal VFM initiatives;
• Reviewing the authority’s corporate procurement plans;
• Ensuring that the annual internal audit work programme contains
specific VFM assignments.
7.3.3 The secretary to the local authority audit committee should keep the
committee briefed on any major change to the council’s financial
management procedures and on the possible impact of new legislation.
The committee should meet with all senior management and receive
presentations on their areas of responsibility, including a review of the key
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