Capital and Procurement Audit

Person checking numbers with a calculator

Capital Projects

Our capital audits have evolved from a sound foundation of specialist experience in auditing a large number of traditionally funded capital projects across a number of organisations. The underlying principles for projects to succeed and achieve their objectives are sound project governance, project management and an effective control environment.

The audit focus on capital projects is to provide a risk-based audit, balancing probity and added value concerns. We recognise the risk based nature of these projects and provide proactive advice to its clients on relevant systems requirements covering for example:

regulatory framework;
approvals and monitoring;
project organisation/ management;
technical consultants;
budgetary/ cost control;
tendering and appointment;
commissioning;
post contract evaluation and reporting; and
assessment of future risk.

Capital projects are usually high risk, so enforcing the need for a proactive audit service. The requirement for strong internal controls and effective risk management cannot be understated.

We have worked with NHS Estates to ensure the successful implementation of Procure 21 (NHS England’s response to the Egan Report, which has been accepted by the UK government as the way forward to improve procurement from the construction industry). Our role was initially as leading members of their working group, developing key programmes and more latterly as open book auditors to both principal supply chain partners and principal supply chain members, operating on a nationwide basis.

Procurement Advisors

We have been appointed as a preferred supplier to the Welsh Assembly Government procurement initiative Designed for Life: Building for Wales (D4L:B4W) framework. This original framework was established in 2006 to produce demonstrative benefits, to align with the long-term aims/vision outlined within the “Better Value Wales” report. We continue to provide both audit and advisory support at the successor D4L:B4W 2 framework and the regional D4L:B4W 3.

Public Private Partnerships (PPP)

We have developed strategic partnerships, with both public and private sectors, which has allowed us to participate in a range of collaborative procurement projects. This includes significant private finance initiatives, such as the strategic re-development of health services at St Helens (capital value £250m), Salford Royal NHS Foundation Trust (capital value £136m), Mersey Care NHS Trust (potential capital value £125m) and the delivery of a New Health Service for Liverpool (capital value £300m).

We provide proactive advice to clients to assist them in achieving successful delivery; by using an experienced, specialist internal audit team to assist in successful project development.

NHS LIFT is a public private partnership between the NHS and private sector partners, which is targeted at improving primary care premises within the NHS in England. We have been involved in developing the audit role at NHS LIFT projects and assisted clients with the development of their project internal control frameworks.

FAQs

What are the Public Sector Internal Audit Standards for NHS Wales?

The Public Sector Internal Audit Standards (PSIAS) are mandatory for all NHS Wales organisations and are issued by the Welsh Government who are the standard setter for NHS Wales.

The standards are based on the mandatory elements of the International Professional Practices Framework (IPPF) of the Global Institute of Internal Auditors (IIA). The PSIAS define the nature of internal auditing across the UK public sector setting basic principles and a framework that provides value to all NHS Wales organisations.

Further details can be found here: http://www.wales.nhs.uk/governance-emanual/internal-audit/

What is an Internal Audit plan?

In providing independent assurance that all NHS Wales organisations’ risk management, governance and internal control processes are operating effectively, we carry this out by developing a risk based annual internal audit plan for each organisation.

The plan details all the audit reviews to be undertaken in the coming financial year. In compiling the plan, the Head of Internal Audit meets with Executive Directors and Senior Managers in the organisation along with Independent Members of the Audit Committee, which is a Sub-Committee of the Board that oversees Internal Audit.

The purpose of these meetings is to identify areas where the organisation faces the most risk.

The Head of Internal Audit will review the outcome of each meeting along with the corporate risk register, Board and Sub-Committee meetings to gain further awareness of new developments/strategies which may expose the organisation to risk.

The draft plan is then shared with the Board Secretary and then submitted to the Audit Committee for approval.

Where do our audit reports go?

For each review in the audit plan, unless otherwise agreed with management, we will issue an audit report which includes an assurance opinion on how effective the internal controls are in the process/service/function.

We issue a draft report to our main key contact(s) to discuss and review for factual accuracy. We then obtain management responses to recommendations, if any, that we have made. Once the management responses have been accepted as addressing the risks and the timescales are acceptable, we seek Executive Director Approval to issue the report as final.

A copy or summary of each report is then presented at the next Audit Committee meeting.

Get in Touch

If you have a query for our Audit and Assurance Services. Please contact us below: