Agenda item

The Head of Internal Audit to submit a report providing a copy of the draft Internal Audit Plan for 2021/22 and the Internal Audit Charter for review and formal approval, in line with the requirements of the Public Sector Internal Audit Standards.

Rachel Ashley-Caunt, Head of Internal Audit introduced the report, the purpose of which was to provide a copy of the draft Internal Audit Plan for 2021/22 and the Internal Audit Charter for review and formal approval, in line with the requirements of the Public Sector Internal Audit Standards.

Ms. Ashley-Caunt advised that the Plan for 2021/22, which set out the schedule of work for the next 12 months had been developed in consultation with Committee Members and Senior Leadership Team.  It detailed audit assignments, including the desired assurances, the reason for inclusion on the Plan, the number of days allocated to assignments and where possible the assignments were linked to the Council’s Corporate Risk Registers or Corporate Plan, as they aligned to the threat risk framework.

Ms. Ashley-Caunt highlighted

·         The Covid-19 Recovery assignment - This would be a crucial piece of work to review how the Council was dealing with the recovery phase of the pandemic, the changes to working practices and controls as a result of the pandemic, reflecting on how the Council dealt with  issues such as decision making and administration of business grants, which had been a significant fraud risk.

·         Intensive Housing Management Service - The Committee agreed to combine a number of overdue recommendations from this year in to a single recommendation (dependent on the Housing Revenue Account (HRA) Business Plan and defer this for full audit in 2021/22.

Ms. Ashley-Caunt advised that it was important that that the Plan for 2021/22 was flexible and a reserve list of assignments was detailed at Table 2.  The Plan would be reviewed and assignments reprioritised if necessary.  Member feedback was welcomed.

Ms. Ashley-Caunt drew Members’ attention to the Audit Charter (Appendix B), which set out delivery of the Internal Audit service, including the mission of the Internal Audit Team and the processes followed.  No changes had been proposed since the Committee had approved the document in March 2020.

During discussion the following points were noted:

·         The Charter reflected that audit recommendations were subject to deadlines for implementation, as agreed with Senior Management Team.  Recommendations not implemented within 3 months of deadlines were given revised deadlines and details were reported to the Committee.

·         The work undertaken by the Council’s Covid-19 Response and Recovery Task and Finish Groups (People and Place) would be a source of assurance for Internal Audit’s Covid-19 Recovery assignment.

·         Members were pleased that the Project Management assignment included the Asset Development Programme, which would help to strengthen the Council's longer term financial stability, particularly in view of commercial aspirations.

·         Members were pleased to note inclusion of the Asset Management – Leases assignment in the Plan for 2021/22, particularly in view of the Council’s new tenancy agreements.

·         The Starters and Leavers and Procurement Cards assignments would be useful in highlighting any security/control concerns.

·         Members noted inclusion of the Intensive Housing Management Service assignment, which reflected the monitoring and review of the service plan review and actions agreed in the 2019/20 audit.

[Councillor Chandler did not participate in the vote due to connectivity issues during the discussion]

Audit and Standards Committee:

1)    Reviewed and APPROVED the Internal Audit Plan for 2021/22;

2)    DELEGATED authority to the Director for Corporate Services, in consultation with the Chair of the Audit and Standards Committee, to agree amendments to the Plan during the financial year, if required;

3)    APPROVED the Internal Audit Charter and Strategy.