Agenda item

The Audit Manager presented the report which provided Members with the opportunity to review the proposed Strategic Internal Audit Plan for 2016/2021.

The Strategic Internal Audit Plan was attached to the report as Appendices 1 and 2.

The overall strategy of the Internal Audit was reviewed on an annual basis and was attached as Appendix 3.

Members were reminded that the purpose of the Strategic Audit Plan was intended to:

·         Ensure all areas were audited over the life of the plan, taking into account client’s audit requirements and the major risks facing the Council.

·         Ensure there were adequate resources to undertake the required audits.

·         Provide a basis for monitoring actual performance of the Internal Audit function.

The Committee’s attention was drawn to the following sections of the report:

·         Preparing the Plan.

·         Format of the Plan.

·         Outcomes.

The Audit Manager explained that within the plan there were 8 core audits which were considered to be fundamental and covered systems that were essential to the business of the Council.  In the past those systems had been audited extensively every year with high levels of assurance achieved repeatedly over several years.  However, it was highlighted that it was now felt that more effective use could be made of internal audit resources by allocating additional time to cover other areas.  Therefore coverage of the core systems would consist of audits in alternate years unless there were any significant changes in the area concerned.

Members were informed that a more proactive approach had been taken with major projects and an allowance had been made within the plan for the Audit Team to provide ‘critical friend’ support.

The Committee’s attention was drawn to section 3.6 of the report and the Audit Manager explained that for some audits, for example, health and safety and CCTV, external specialists reviewed the Councils systems.  This arrangement reduced the need for Internal Audit to review the systems and duplicate work.

In response to questions from the Chairman, Councillor Humphrey regarding the working arrangement with the Council’s Audit Team and the External Auditors, the Audit Manager explained that all audit undertaken by the Council’s Audit Team were available to be viewed by Ernst and Young.

The Chairman, Councillor Humphrey referred to page 49- Operational and Service Delivery – Allotments being identified as a medium risk and no assurance given and asked for an explanation.  The Audit Manager explained that when the audit was undertaken in 2015/2016 no assurance had been given, however, since the audit a significant amount of work had been carried out to improve the position and a follow up had been also carried out.  It was noted that an audit would be undertaken in 2017

Following further questions from the Chairman, Councillor Humphrey regarding Care and Repair being given limited assurance in 2013/2015, the Audit Manager explained that each audit report requiring improvement was accompanied by an action plan and a follow up audit was undertaken six months later to monitor progress.

In response to questions from the Chairman, Councillor Humphrey relating to the Audit Plan, the Audit Manager explained that the 2017/2018 audit plan would be reviewed and if required any important audits could be brought forward.  The audits identified in the plan would be prioritised with the resource available.

Councillor Middleton referred to page 58, the total available resource of 704 days and asked if there were any arrangements in place to deal with periods of sickness or emergency leave.  The Audit Manager advised that there was an element of contingency built into the plan and that resources would be adjusted accordingly. 

RESOLVED:  The Committee noted the Strategic Internal Audit Plan for 2016/2021.