Purpose

Internal Audit serves as an
independent and objective assurance and consulting function that
supports the Council in achieving its objectives by assessing the
effectiveness of risk management, internal controls, and governance
processes. It is a statutory requirement and essential in ensuring
that public funds are used properly, efficiently, and
transparently.
 
This report recommends awarding
a new contract for Internal Audit Services to BDO LLP. The proposal
includes formally extending the existing co-sourced arrangement to
incorporate the Head of Internal Audit role under a fully
outsourced model.
 
The recommendation follows an
options appraisal prompted by the expiration of the current shared
service agreement with Tamworth Borough Council and the retirement
of the Audit Manager. The Audit Committee reviewed future delivery
models on 17 July 2025 and endorsed retaining the co-sourced
approach while outsourcing the Head of Internal Audit role. Cabinet
approved this on 8 September 2025 and delegated contract award
authority to the Cabinet Member for Finance & Commissioning,
contingent on budget alignment.
 
A compliant procurement process
was conducted via a direct award under the YPO Framework,
identifying BDO LLP as the preferred bidder. The contract will run
from 1 October 2025 to 1 April 2028 and remains within the approved
budget.

Decision

The Cabinet Member for Finance &
Commissioning approved the award of the contract for Internal Audit
Services to BDO LLP for a period of 30 months (from 1 October 2025
to 1 April 2028), via direct award under the YPO Framework, in line
with the approved budget.