Agenda item

Report of the Deputy Chief Executive (Place)

The Committee considered a report of the Deputy Chief Executive (Place), which set out the draft Internal Audit Plan for 2019/20 for the Committee to express their views on the extent and nature of the planned coverage.

The draft Internal Audit Plan documented the outcome of the audit planning process for 2019/20 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 Directors and other senior managers, alongside other priorities identified from (a) the annual review of the Local Code of Corporate Governance and (b) areas of risk which have been highlighted by the Chief Internal Auditor during the course of the year.  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 and / or an initial assessment of the control environment. 

·  A risk based approach to the audit of schools based on links with School Finance / issues raised by schools, rather than a fixed programme of audit work.  In 2019/20, specific focus has been given to schools which have not been audited for some time.

·  A flexible and responsive approach to issues highlighted by Senior Officers with 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 for 2019/20 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, Council / audit priorities, corporate governance, contingency / directorate risks and carried forward audits.

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.

In considering the draft Internal Audit Plan for the year, Councillor Sawdon reported that there had been press coverage regarding the Council having lost out on significant income by having not yet implemented a Community Infrastructure Levy (CIL).  He proposed that an audit be undertaken to ensure the Committee could be satisfied regarding the amounts of income received through Section 106 Agreements against possible CIL funding.  This proposal was seconded by Councillor Blundell.  The Committee voted 2 for and 2 against this proposal.  The proposal was subsequently lost with the Chair’s casting vote against the proposal.

RESOLVED that, the Audit and Procurement Committee approve the draft Internal Audit Plan for 2019/20 attached as Appendix One to the report.