Agenda item

Report of the Chief Operating Officer (Section 151 Officer)

The Audit and Procurement Committee considered a report of the Chief Operating Officer (Section 151 Officer) that submitted the draft Internal Audit Plan for 2023-24, attached as an appendix to the report, to enable the Committee to express its views on the extent and nature of the planned coverage.

In terms of proposed audit activities, the draft Internal Audit Plan documented the outcome of the audit planning process for 2023-24. The report set out the mechanism for allowing the Audit and Procurement Committee to discharge its responsibility but also enabled them, as a key stakeholder of the Internal Audit Service, to comment on the content and scope of the proposed Internal Audit Plan.

The report indicated that the draft plan is based on an allocation of priorities against the current level of audit resources available.  For 2023-24, it has been assessed that the resources available are 480 days for audit and corporate fraud work. However, due to unplanned absence within the Service at the current time (which has been factored in as far as possible), this assessment may be subject to some adjustment during the course of the year. In the event that there are significant changes to the level of resources available for 2023-24 which impact on the delivery of the Audit Plan, this will be reported to the Audit and Procurement Committee. 

In addition to the 480 available audit days, the Service also has two trainee posts as part of the longer-term strategic plan for the Service.  Given the nature of these posts, it is not viewed as appropriate to formally include them within the assessment of resources for 2023-24, although they will provide support to the Team in delivery of audit work. 

In focusing the available resources to develop a plan which meets the needs of the Council and adds value, the following approach has been taken:

·  An initial risk assessment has been undertaken, which considers the Council’s corporate risk register and any priorities identified from consultation with Directors, and other senior managers, alongside other priorities linked to areas of risk which have been highlighted by the Chief Internal Auditor.  Where appropriate, an assessed risk level has been included in Appendix One.  Where the risk has been assessed as medium rather than high, this generally reflects the findings of previous audit reviews in the respective area / an initial assessment of the control environment.

·  The approach to undertaking annual audits of the Council’s key financial systems has been reviewed and where appropriate to do so (e.g. where there is history of the system being well controlled) it has been determined that full audits will be undertaken on a bi-annual basis.  However, where it has been agreed that there are areas of identifiable risk within these systems, these have been included as specific engagements within the draft audit plan for 2023-24, e.g Housing Benefit (HB) subsidy.

·  A risk-based approach to the audit of schools, rather than a cyclical programme of audit work.

·  A flexible and responsive approach to issues highlighted by senior officers with dialogue to ensure resources are directed in accordance with their priorities.

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

Areas of planned work include:-

·  Corporate Risks

·  ICT

·  Council/Audit priorities

·  Regularity

·  Directorate risks

The report concludes that it is believed that the draft Audit Plan for 2023-24 is sufficient for the work required to report on governance, the management of risks and internal controls in the year and to prepare the annual opinion and report.

RESOLVED that the draft Internal Audit Plan for 2023-34, as appended to the report, be noted.