Agenda item

Committee considered a report which provided progress made by the Internal Audit Consortium in respect of the 2020/21 Internal Audit Plan.

Ten audit reports had been issued during the period 2nd September 2020 and 31st December 2020.  Eight reports had been issued with substantial assurance and 2 with reasonable assurance.  A number of recommendations had been made / agreed where a full response had been received.  In respect of the audits being reported, it was confirmed that no issues arising relating to fraud were identified.

A mid-year review of progress against the internal audit plan and a discussion in relation to the potential risks arising due to Covid 19 had been undertaken with the

Section 151 Officer.  On the whole, it was felt that the plan was still appropriate and for the areas reviewed it would be ensured that COVID 19 had not adversely affected the controls in place.

In the January to March 2021 period, Internal Audit would be undertaking work in relation to business grants awarded (small business grants, leisure, retail and hospitality grants and discretionary grants) and a review of the procedures followed to ensure that there had been an adequate separation of duties in place.

In November 2020, CIPFA issued guidance in relation to the Head of Audits Annual Opinion: Addressing the Risk of a limitation of scope.  A limitation of scope should be considered if enough work had not been carried out to provide assurance on the Council’s Governance, risk management and control processes in place.  However, there was no definition of the amount of work required to provide an opinion and this was left to professional judgement.  At this stage, the Head of Internal Audit believed that by prioritising the work for the remainder of the year she would be able to give a full audit opinion.

The report also showed the 2020/21 internal audit plan and detailed completed audits and those in progress.  It was considered that reasonable progress was being made given the current circumstances relating to Covid 19.  However, there would be a need to carry some areas forward to 2021/22 and the 2020/21 plan may still be subject to change should significant risks emerge.

The Portfolio Holder for Finance and Resources commented that regular meetings were held with departments to consider risks and potential risks, feed into the overall Strategic Risk Register and to see the scoring of risks.  The Register was a fluid document and was up to date and would identify some of the emerging risks referred to by the Head of Internal Audit.  He added that the Head of Internal Audit and her team had worked hard to complete the audit plan for the current year and he relayed his thanks to them and also the Section 151 Officer for keeping him informed and up to date on the progress of the Internal Audit Plan.

A Member queried how Scrutiny could feed into audit reporting.  The Head of Internal Audit replied that although the Internal Audit Plan was independent from Scrutiny, any reports/findings/identified risks from Scrutiny would be taken into account when considering the Audit Plan.

Moved by Councillor David Dixon and seconded by Councillor Jim Clifton

RESOLVED that the report be noted.