Institutional assurance reviews
HEFCW's institutional assurance service is responsible for carrying out institutional assurance reviews in higher education (HE) institutions and other related work to evaluate the internal control, risk management and governance arrangements at the HE institutions which HEFCW funds. This work is carried out to provide assurance to HEFCW's Council, and to the Chief Executive as accounting officer, on the adequacy and effectiveness of those arrangements.
We set out our requirements for higher education institutions' accountability and audit arrangements in an Audit Code of Practice. HE institutions' compliance with the mandatory requirements of the Audit Code of Practice is a requirement of the Financial Memorandum between HEFCW and HEIs in Wales. It is therefore a condition of the annual grant we give to HE institutions in Wales.
Financial Memorandum and Audit Code of Practice
As part of our Strategic Engagement arrangements, we have moved to a more risk-based approach in the way we conduct institutional assurance reviews. This places greater emphasis on seeking assurance on the robustness of institutions' own internal processes.
From time to time we issue specific guidance on audit or internal control matters in HE institutions. We also refer HE institutions to a range of external guidance on related matters.
We issue audit related circulars with advice on audit matters, guidance on control or value for money issues, or which draw attention to reports issued by the Wales Audit Office and the National Assembly for Wales's Audit Committee.
Where an issue raised has an actual or potential effect on the internal control environment or arrangements within a HE institution, we expect the institution's management to:- ensure that the internal controls actually in place are adequate
- advise the institution's Audit and/or Finance Committee (or equivalent) of the receipt of the guidance and the action taken, even where there is clearly no further action required
Audit of Funds for the Purpose Guidance: Circular W00/77HE
There are also some Wales Audit Office (WAO) National Reports available relating to higher education.
In 2005 HEFCW reviewed the processes by which HE institutions in Wales established the salaries of the head of institution and other senior staff, and the process for determining severance arrangements.
Review of Remuneration and Severance Governance Processes for Senior Staff at HE institutions in WalesHEFCW's Audit Code of Practice applies to all higher education institutions in Wales and also to their related companies. In December 2005 the UK funding bodies published guidance for HE institutions on related companies.
We refer HE institutions in Wales to guidance produced by HEFCE in 1999 on preventing, detecting and investigating fraud.
We endorse the internal audit approach set out in the Institute of Internal Auditors' International Professional Practices Framework (2009), which includes the Code of Ethics and International Standards. In addition, we endorse the Institute of Internal Auditors' Position Statement on Risk Based Internal Auditing (2003). These documents are available from the Institute of Internal Auditors.
The Council of Higher Education Internal Auditors (CHEIA) is the representative body for HE internal audit service providers in the UK. It provides a network for all internal audit professionals for their development and the promulgation of best practice.
Email enquires: assurance@hefcw.ac.uk.
