Procurement and Contract Audit Forum

CAL is currently promoting CIPFA's [Chartered Institute of Public Finance and Accountancy] Procurement and Contract Audit Forum (PACAF) which reports to CIPFA's Audit Panel.

Background

PACAF was established by CIPFA in 2008 to facilitate the identification, development and widespread adoption of best practice in procurement and contract audit. The objectives of the Forum, in its Terms of Reference, include promoting the required audit skills through training and development opportunities, sharing of knowledge through the PACAF network, and the identification and discussion of relevant topical issues.

 

The work of the Forum is steered by up to 15 Executive Members who each represent a sector or region within the UK.

The Work of the PACAF

The work of the Forum has included:-

  • The establishment of a training package for CIPFA (consisting of seven independent but interlocking two-day modules);
  • The publication of a range of standard high-level audit programmes that are available free to interested parties;
  • Running an annual conference; and
  • A publication on the subject of auditing PFI agreements during the operational phase, to add to the library of CIPFA publications that relate to procurement and contracts .

PACAF's Key Message to Heads of Internal Audit (HIAs)

The ‘Statement on the Role of the Head of Internal Audit in Public Service Organisations’ [CIPFA 2010], suggests risk management best practice requires HIAs to draw on the organisation’s risk register when preparing internal audit strategies and plans. HIAs need to review how risks are captured in such registers and the action plans that are in place.

 

PACAF’s key message to HIAs is that the risks to their organisations include those that are associated with procurement and contracts. Therefore, risk registers and, consequently, annual audit plans must adequately address the issue of procurement.

 

The Forum believes that audit plans often fail to address contract and procurement related issues, perhaps because auditors (and/or risk managers) do not appreciate the potential impact poor procurement processes can have on the organisation’s objectives. 

 

Several executive members of the Forum have delivered PACAF's key message, in the form of a standard  Powerpoint presentation, to audit groups in their sectors and areas. If you would like a member to deliver the presentation to your audit group then please contact us.

Current Initiatives

PACAF is determined to raise the profile of procurement and contract audit by making guidance and help easily accessible, highlighting areas of good practice and, as far possible, facilitating the sharing of information between auditors themselves. In this respect, a number of initiatives are currently being explored by members of the Forum. If you have any information that you think could be useful or feel you could help in any way, then please do not hesitate to contact us.