Issue - meetings

It is the opinion of the Chief Internal Auditor that during the 2020/21 financial year:

·       arrangements were in place to ensure an adequate and effective framework of governance, risk management and control (internal control environment) and that where weaknesses were identified there was an appropriate action plan in place to address them;

·       the systems and internal control arrangements were effective and that agreed policies and regulations were complied with;

·       adequate arrangements were in place to deter and detect fraud;

·       there was an appropriate and effective risk management framework;

·       managers were aware of the importance of maintaining internal controls and accepted recommendations made by Internal Audit to improve controls;

·       the Council’s Internal Audit service was effective and compliant with all regulations and standards as required of a professional internal audit service; and that

·       the arrangements, in respect of the Chief Internal Auditor, were consistent with all of the five principles set out in the CIPFA publication “The Role of the Head of Internal Audit in Public Sector Organisations”.

·       Whilst the COVID19 pandemic had a significant impact on the work of Internal Audit a revised Audit Plan was approved by the Audit & Governance Committee in July 2020 which has been delivered and no ‘limitation of scope’ opinion needs to be issued.

The Head of Audit and Management Assurance presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'F' to these Minutes in the Minute Book.

The Committee was advised that it was the opinion of the Chief Internal Auditor that during the 2020/21 financial year:

·       arrangements were in place to ensure an adequate and effective framework of governance, risk management and control (internal control environment) and that where weaknesses were identified there was an appropriate action plan in place to address them;

·       the systems and internal control arrangements were effective and that agreed policies and regulations were complied with;

·       adequate arrangements were in place to deter and detect fraud;

·       there was an appropriate and effective risk management framework;

·       managers were aware of the importance of maintaining internal controls and accepted recommendations made by Internal Audit to improve controls;

·       the Council’s Internal Audit service was effective and compliant with all regulations and standards as required of a professional internal audit service; and that

·       the arrangements, in respect of the Chief Internal Auditor, were consistent with all of the five principles set out in the CIPFA publication “The Role of the Head of Internal Audit in Public Sector Organisations”.

The Head of Audit and Management Assurance reported on the work that had been undertaken by the Internal Audit Team.  He reported that in the early stages of the pandemic the team was repurposed to deal with covid19 grants to local businesses which broadly took 6-8 weeks out of the Audit Plan.  The Plan was revised on 30 July 2020 and delivered so no ‘limitation of scope’ opinion needed to be issued.

The Head of Audit and Management Assurance took the opportunity to thank his internal audit team for their flexibility and pragmatic approach which had included working additional hours and further reported that only 7 working days were lost for the whole of 2020/21 financial year.  The Chairman, on behalf of the Committee, endorsed the above gratitude to the team for their focus during this period and more importantly for prioritising work.  He highlighted that it was a fine example of Local Government working at its best.

Members raised a number of questions including the reference to the ‘reasonable assurance’ and the associated definition.  The Head of Audit and Management Assurance explained that definitions can subtly change between Council internal Audit teams but in general terms the criteria was fairly standard, and the team was resourced to provide ‘reasonable assurance’. He explained that to provide ‘substantial assurance’ would require more time and additional resources.  Councillor Phipps felt that the above did not come across in the report.  The Chairman asked for further explanation on ‘reasonable assurance’ from the Head of Audit and Management Assurance in terms of his professional opinion.  The Head of Audit and Management Assurance reported from a professional perspective he had responsibilities to ensure that the audit opinion was based on risk based prioritised work designed to obtain  ...  view the full minutes text for item 20