Agenda item

Report of the Director of Finance and Resources (Section 151 Officer)

The Audit and Procurement Committee considered a report of the Director of Finance and Resources (Section 151 Officer), that provided the draft Internal Audit Plan for 2025-26 with the Audit and Procurement Committee to allow the Committee to express its views on the extent and nature of the planned coverage and to share the Internal Audit Strategy 2025-28. Appendices to the report provided the draft Internal Audit Plan for 2025-26 and the draft Internal Audit Strategy for 2025-28.

The Audit and Procurement Committee, within its terms of reference, was required 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'. In terms of proposed audit activities, the draft Internal Audit Plan documented the outcome of the audit planning process for 2025-26. The report provided the mechanism for allowing the Audit and Procurement Committee to discharge its responsibility but also enabled the Committee to support delivery of the Internal Audit Charter by approving the Internal Audit plan. 

The Global Internal Audit Standards in the UK Public Sector came into force on 1st April 2025.  The Standards required the Internal Audit Service to develop and implement a strategy which included a vision, strategic objectives and supporting initiatives for the Internal Audit function and which aligned with the expectations of senior management and the Audit and Procurement Committee.

Internal Audit was an essential part of the Council’s corporate governance arrangements. In considering the Global Internal Audit Standards in the UK Public Sector, Internal Audit was defined as "An independent, objective assurance and advisory service designed to add value and improve an organisation’s operations. It helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of governance, risk management, and control processes.” 

The priorities of internal audit activity were determined through the development of an annual risk- based Internal Audit Plan. The report documented the planning process and identified the outcome of this process, namely the draft Internal Audit Plan for 2025-26. Details of the objectives that the Service aimed to achieve, were set out in the report.

Draft Audit Plan 2025-26 – The results of the initial assessment of priorities for the Draft Audit Plan 2025-26 were set out in an appendix to the report, with the key points for noting highlighted in the report.

As a result, it was believed that the draft Audit Plan for 2025-26 was sufficient for the work required to report on governance, the management of risks and internal controls in the year and to prepare the annual conclusion and report.

Draft Internal Audit Strategy 2025-25 - The draft Internal Audit Strategy,  detailed in a further Appendix to the report, had been developed in collaboration with the Internal Audit team and had been presented to Leadership Board.  Whilst the Strategy covered a three-year period (2025-28), the specific initiatives detailed would form part of the relevant year’s Quality Assurance and Improvement Programme Action Plan. Delivery of the Strategy would be monitored through this process and the Strategy would be reviewed on an annual basis.

RESOLVED that the Audit and Procurement Committee approves: 

1) The draft Internal Audit Plan for 2025-26, attached as Appendix One to the report.

2) The draft Internal Audit Strategy for 2025-28, attached as Appendix Two to the report.