Agenda item

Report of the Deputy Chief Executive (Place)

The Committee considered a report of the Deputy Chief Executive (Place), which outlined the draft Internal Audit Plan for 2018-2019, a copy of which was set out in Appendix One to the report.

The draft Internal Audit Plan documented the outcome of the audit planning process for 2018-2019 and provided a mechanism for allowing the Committee to discharge its responsibility to ‘consider the Head of Internal Audit’s Annual Report and Opinion and a summary of internal audit activities (actual and proposed) and the level of assurance given within the Annual Governance statement incorporated in the Annual Accounts’.  The report also enabled the Committee, as a key stakeholder of the Internal Audit Service, to comment on the content and scope of the proposed Internal Audit Plan.

The report set out the planning process for the plan. The draft plan was based on an allocation of priorities against the current level of audit resource available. The Committee were informed that the resources available for audit and corporate fraud work was 550 days. In focussing the resources to meet the needs of the Council, the following approach was taken:-

·  A documented risk assessment had been undertaken, which considered the Council’s corporate risk register and key priorities as identified from consultation with senior management. This had also been informed by an assurance mapping exercise which was undertaken in 2016-2017 to identify others sources of assurance that the Council placed reliance on.  Where appropriate, the assessed risk level had been included in Appendix One to the report. Where the risk had been assessed as medium rather than high, this generally reflected the findings of previous audit reviews in the respective area. 

·  A risk based approach to the audit of schools based on links with School Finance rather than a fixed programme of audit work.

·  A flexible and responsive approach to issues highlighted by Senior Officers with on-dialogue to ensure resources were directed in accordance with their priorities. 

·  A more flexible response to corporate fraud investigations, offering expert advice and support rather than undertaking the Investigating Officer role.

As a result it was believed that the draft Audit Plan was sufficient for the work required to report on key risks and controls in the year and to prepare for the annual opinion and report.

The report also referred to the implications concerning corporate risks, corporate governance and contingency / directorate risks.

The Plan set out the audit areas under the key driver headings of corporate risk, Council / audit priorities, financial systems, regularity and other.  Against each of the audit areas, the level of risk was identified, along with the planned audit days.

The Committee asked how the quality of reviews was assured – this was done through the Acting Chief Internal Auditor independently reviewing the quality of the work produced by her Team.

The Committee also raised concerns about the performance of the telephony system and customer service and were told there would be an external review of customer service undertaken this year.

Members were also assured that they could request specific reviews via the Audit Committee providing the scope of the review fell within the remit of the Committee.

RESOLVED that Audit and Procurement Committee approved the draft Internal Audit Plan for 2018-19 (attached as Appendix One to the report).