Issue - meetings

This report sets out the Internal Audit Charter, approval of which by the Audit & Governance Committee is a requirement of the Public Sector Internal Audit Standards (PSIAS). A new Internal Audit Data Analytics Strategy, which sets out how Internal Audit will increase its use of data analytics to provide a greater level of assurance, to increase testing coverage and improve efficiency, has been added, together with a number of minor changes.

The Core Audit Plan, Anti-Fraud and Corruption Audit Plan, and detailed Quarter 1&2 plans will be brought to the next scheduled (main) Audit & Governance Committee in July 2023. This is later than normal due to the rearranging of the Committee calendar caused by the May 2023 local elections.  As an interim measure, for this year only, the Head of Internal Audit & Management Assurance will circulate the Core Audit Plan, Anti-Fraud and Corruption Audit Plan, and detailed Quarter 1 plan to the members of the Audit & Governance Committee in April for awareness.

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 'C' to these Minutes in the Minute Book.

The report set out the Internal Audit Charter and Members were reminded that approval of the Charter by the Audit and Governance Committee was a requirement of the Public Sector Internal Audit Standards (PSIAS).

The Committee was informed that a new Internal Audit Data Analytics Strategy (Annexe 6 of the Charter), which set out how Internal Audit would increase its use of data analytics to provide a greater level of assurance, to increase testing coverage and improve efficiency, had been added, together with a number of minor changes.

The Core Audit Plan, Anti-Fraud and Corruption Audit Plan, and detailed Quarter 1 and Quarter 2 plans would be brought to the next scheduled Audit and Governance Committee in July 2023. It was explained that this was later than normal due to the rearranging of the Committee calendar during the Pre-Election period ahead of the May 2023 local elections.

For awareness and, as an interim measure for the current year only, the Head of Audit and Management Assurance advised that he would circulate the Core Audit Plan, Anti-Fraud and Corruption Audit Plan, and detailed Quarter 1 plan to members of the Audit and Governance Committee in April for awareness.

In response to questions, more information was provided about the intention to increase the use of Data Analytics by Internal Audit over the next three years to support the effective and efficient delivery of assurance.

In response to questions about the proposed reduction in time allocated towards audit activity in respect of the Council’s transformation programme, it was explained that partial alternative assurance (to internal audit) of this programme was being undertaken by the Transformation Board itself. In addition, the Overview and Scrutiny Committee had requested a cross-party scrutiny group and this was intended to facilitate additional involvement, test and challenge and to provide assurance to Councillors in relation to the transformation programme. Members were assured that, despite this, the way in which audit days were allocated included sufficient flexibility to ensure it remained possible at any stage to refocus the allocation as necessary.

RESOLVED that Audit and Governance Committee

a)    approves the Internal Audit Charter, including the Internal Audit Data Analytics Strategy, and agree that the Chair of the Committee signs the document to record this approval (this may be a virtual sign off using email);

b)    notes that the 2023/24 detailed Core Internal Audit Plan will be presented at the July 2023 Audit and Governance Committee;

c)    notes the 2023/24 budget for the Internal Audit service as approved by Council as part of the 2023/24 Council Budget setting and Medium Term Financial Plan update in February 2023

Voting: Unanimous