“A number of institutions indicated that they have experienced issues with internal audit in recent years. Typically external organisations had been employed to complete internal audits, and the services provided had been poor as a result of a lack of detailed knowledge by those performing the work. Subsequently a number of institutions have moved their internal audit to the Kingston City Group (KCG), and have indicated that they are very comfortable with the service and level of expertise provided. There are a significant number or organisations providing internal audit services. Whilst those who use the KCG service do not report a significant reduction in cost, the quality of service received is far greater, and therefore provides a high level of satisfaction.”  

“Opportunities and Interest in Shared Services (London HEIs) – Report to London Higher” (Grant Thornton – January 2011)

“The best shared services respond to clear needs from within the sector and develop accordingly, from ‘grass roots’ engagement. A notable example is the work of the Kingston City Group, a shared service providing internal audit services, which has enabled a pooling of expertise that gives members access to a greater variety of skills than they could support individually. The service is seen as a great success, and now delivers commercial services to non-members.

The Kingston City Group

The Kingston City Group (KCG) was formed in 2005 to serve the internal audit and management assurance needs of higher education institutions in London and the south east on a shared services basis. It was established to address concerns raised by a number of institutions regarding the quality of internal audit service provision through both outsourced and in-house arrangements.

The formation of the KCG required an initial critical mass of institutions with shared expectations and high standards for internal audit. The consortium was established on the premise of long-term partnership between member institutions. It has successfully combined the strengths and advantages of both outsourced and in-house models and minimised the associated weaknesses.

The KCG consortium is jointly owned by member institutions which enables them to be involved in strategic planning, governance and management of the consortium, to share in all benefits, and to generate savings on VAT costs associated with staff resources.

Since its establishment in August 2005, the membership has grown from four to 14 institutions, with combined total annual income of £1 billion. The KCG turnover is now nearly £1.5 million per annum from the delivery of over 2,500 audit days. The consortium currently employs 15 staff operating from a number of audit offices.

KCG is widely recognised across the sector as an innovative provider of internal audit, risk management and advisory services that offers high quality service and value for institutions in London and the south east, and now has a national reputation with a growing brand.”

“Efficiency and effectiveness in higher education: a report by the Universities UK Efficiency and Modernisation Task Group” (UUK - September 2011)