Issue - meetings

The 2023/24 Internal Audit Plan, including the Core Audit Plan and Anti-Fraud and Corruption Plan, have been developed, including detailed plans for quarter 1 and 2.

There are currently vacancies in the team and recruitment of three apprentices is underway to address this. As a result, the high-level Resource and Allocation Plan presented to Audit & Governance Committee in March 2023 has been revised, resulting in 260 less planned days on Core Audit and Assurance Work for this year only.

This reduction, 16%, presents a significant challenge for the Chief Internal Auditor to provide both sufficient good quality in year assurance and a similarly robust overall year end opinion. Through a range of contributing adjustments and actions, such as risk based prioritisation, flexibility and goodwill of the internal audit team, reasonable use of alternative forms of assurance and other tactics, it is anticipated that these challenges can be managed in the short term. 

Progress made on delivery of the 2023/24 Audit Plan for the period April to June 2023 (inclusive) highlights that:

·          5 audit assignments have been completed, of which there were 4 ‘Reasonable’ and 1 ‘Partial’ audit opinions;

·          16 audit assignments arein progress.

11 high priority recommendation have not been implemented by the initially agreed target date and are reported to Audit & Governance Committee as required by the Audit Charter.

Some work undertaken during the quarter related to completion of the 2022/23 Audit Plan, in cases where audits straddled the financial year end of 22/23 and the start of 23/24. The ‘Chief Auditor’s Annual Report 2022/23’ contains the outcome of this work which is being reported separately to this Committee.

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 'D' to these Minutes in the Minute Book.

It was reported that the 2023/24 Internal Audit Plan, including the Core Audit Plan and Anti-Fraud and Corruption Plan, had been developed, including detailed plans for Quarter 1 and 2 and it was explained that a report in the same format for the appropriate quarter period would be received at every core Audit and Governance Committee meeting.

The Committee was advised that there were currently vacancies in the Internal Audit Team and that recruitment of three apprentices was underway to address this. As a result, the high-level Resource and Allocation Plan presented to Audit and Governance Committee in March 2023 had been revised, resulting in 260 less planned days on Core Audit and Assurance Work for this year only although the Committee was informed that work was being targeted towards key risk areas as much as possible.

The reduction of 16% did present a significant challenge for the Chief Internal Auditor to provide both sufficient good quality in-year assurance and a similarly robust overall year end opinion. Through a range of contributing adjustments and actions, such as risk-based prioritisation, flexibility and goodwill of the internal audit team, reasonable use of alternative forms of assurance and other tactics, it was, however, anticipated that these challenges could be managed in the short term.

Progress made on delivery of the 2023/24 Audit Plan for the period April to June 2023 (inclusive) highlighted that five audit assignments had been completed with four ‘Reasonable’ and one ‘Partial’ audit opinions. Sixteen audit assignments were reported to be in progress. Eleven high priority recommendations had not been implemented by the initially agreed target date and these were reported to Audit and Governance Committee as required by the Audit Charter.

Some work undertaken during the Quarter related to completion of the 2022/23 Audit Plan, in cases where audits straddled the financial year end of 2022/23 and the start of 2023/24. It was explained that the ‘Chief Auditor’s Annual Report 2022/23’ contained the outcome of this work which would be reported separately to the Committee.

The Committee noted particularly that, the investigation of Commercial Operations on the Seafront (Review of Pop-Up / Temporary Activities Incorporating Bayside Restaurant) was ongoing and that, once concluded, the full report of the investigation would be made available to the Committee.

RESOLVED that Audit and Governance Committee:

a)    notes the changes to the High-Level audit resource plan;

b)    notes the recruitment plans underway to address vacancies;

c)    notes the audits planned for Quarter 2;

d)    notes progress made and issues arising on the delivery of the 2023/24 Internal Audit Plan;

e)    notes the explanations provided (Appendix 1 - High Priority recommendations where the original target date for implementation was not met)

Voting: Unanimous