Agenda item

(iii)       Internal Audit Consortium Annual Report 2020/21

Committee considered a report which provided a summary of the Internal Audit Consortium’s Annual Report 2020/21.

The advent of Covid19 had impacted on the extent of completion of the 2020/21 internal audit plan.  However, enough of the internal audit plan (along with reliance on other assurances), had been completed to be able to give an unlimited audit opinion in respect of the 2020/21 financial year.

An appendix to the report detailed the audit reports issued in respect of audits included in the 2020/21 internal audit plan. 

In relation to the ‘Percentage of Plan Completed’, set at 75% for 2021/22, the usual target for this was 96% however, this would not be achievable given the continued impact of Covid19 and that the 2020/21 plan had run into 2021/22. 

It was noted that 23/32 audits had been completed = 72%.  Although not quite reaching the target this was still considered a major achievement given the circumstances.  It was also worth noting that an additional audit was undertaken that involved reviewing the processes in place for the payment of Covid19 business grants.  In respect of the remaining audits, the majority of these had been scheduled into the 2021/22 Internal Audit Plan.

Although Covid19 had meant that less internal audit work had been undertaken than usual during the year, it was the Internal Audit Consortium Manager’s opinion that sufficient work had been completed and assurances ascertained to be able to provide an unlimited opinion on the systems of governance, risk management and control in place.

As well as internal audit work, assurance had also been gained from previous years’ work, the work of the Risk Management Group, PSN compliance, external audit and compliance with the Code of Corporate Governance.

It was the Internal Audit Consortium Manager’s opinion that reasonable assurance could be provided on the overall adequacy and effectiveness of the Council’s framework for governance, risk management and control for the year ended 2020/21.

Overall, 100% of the areas audited received Substantial or Reasonable Assurance demonstrating that there were effective systems of governance, risk management and control in place.

There were no issues directly arising from internal audit work that needed to be included as significant issues on the Annual Governance Statement.

During 2020/21 a ‘self-assessment’ was undertaken to review compliance with the Public Sector Internal Audit Standards (PSIAS).  The review confirmed that there were no significant areas of non-compliance.

In May 2021, the internal audit consortium was subject to an external review and a report regarding this was included on this meeting’s agenda.

Quality control procedures had been established within the Internal Audit Consortium including Individual Audit Reviews, Customer Satisfaction Surveys and Client Officer Views.  All staff had been provided with a copy of the Public Sector Internal Audit Standards and the Internal Audit Manual had been updated to reflect the requirements of the standards and issued to all staff.  The audit manual was reviewed and updated in May 2020.

The Portfolio Holder for Finance and Resources congratulated the Internal Audit Consortium Manager and her team on the report and stated they were a credit to the organisation on the work they had achieved.

Moved by Councillor Tom Munro and seconded by Councillor Graham Parkin

RESOLVED that the report be noted.

Ruth Jaffray left the meeting at this point.