Agenda item

To comply with the Global Internal Audit Standards and the public sector Application Note and to ensure early consultation with the Audit & Governance Committee, This report outlines the BCP Assurance Framework and the 2025/26 Internal Audit Plan proposed approach.

The Assurance Framework (Appendix A) has been updated with some minor changes to reflect current organisational structure and governance arrangements.

The proposed 2025/26 Internal Audit Plan approach shows the amount of resource required to provide core audit & assurance work (includes high level risks, key assurance functions and key financial systems audits). Other work (includes investigations) is also planned to be carried out alongside corporate assurance (includes corporate fraud) and governance work (includes annual governance statement).

The primary change for the 2025/26 Audit Plan is a slight reduction in resources due to decreasing audit apprentice positions from three to two during the year, offset by adding two career auditor roles. However, available time for Core Audit & Assurance work has increased due to the transfer of the council tax single person discount project and reduced apprentice training.

The proposed work in the draft 2025/26 Audit Plan has been designed to enable the Head of Internal Audit to provide an annual conclusion on the Council’s governance, risk management and control arrangements.

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 'E' to these Minutes in the Minute Book. The report outlined the BCP Assurance Framework and the 2025/26 Internal Audit Plan proposed approach.

The Committee was advised that it was good practice to consult with the Committee prior to the internal audit plan and charter being presented at its March meeting. The Head of Audit and Management Assurance outlined the purpose of the Assurance Framework in setting out the key assurance functions in place and providing a structure for the more detailed audit plan. He explained how the three line defence model worked internally and how it was supplemented by external assurance. The Assurance Framework had been updated with some minor changes to reflect current organisational structure and governance arrangements. The 2025/26 Internal Audit Plan proposed approach set out the amount of resource required to provide core audit and assurance work. A net reduction in staff days due to the successful completion of three apprenticeships was reported. This would be offset by two of these apprentices taking on substantive auditor roles. The transfer of the council tax single person discount project would also increase the time available. The Head of Audit and Management Assurance confirmed that the proposed resource allocation was sufficient to meet his own professional obligations and to provide the Council and Committee with a suitably robust, qualified and experienced internal audit function for 2025/26.

The Head of Audit and Management Assurance confirmed that there was no resource for any new apprenticeships. It was also clarified that the council tax second home premium was due to be implemented from 1 April 2025.

A query was raised around the lack of member input into the lines of assurance for functions, particularly for asset management and partnerships. It was suggested that there should be ongoing member involvement as part of the assurance process, including the oversight of significant projects. The Portfolio Holder for Finance acknowledged that the framework did not currently reflect where Members were involved through the democratic process and he agreed that this should be documented. It was noted that Member involvement also offered an opportunity to represent residents and provide them with feedback. Members were reminded they were able to request ‘deep dive’ explorations of specific topics. The Head of Audit and Management Assurance agreed to update the Assurance Framework to evidence what Member involvement already existed and assist in identifying any gaps.

A point was raised about the retrospective role of the Committee in having oversight rather than ongoing project management. In terms of oversight, the Head of Audit and Management Assurance was asked whether there was any capacity to request additional audits, e.g. to follow up on the previously discussed issue of planning breaches. He confirmed that this issue already formed part of the high level risk section of the internal audit plan and would be included in the next planning audit. The Monitoring Officer advised that the Committee could also seek assurance by referring matters to other committees, such as Overview and Scrutiny or Standards Committee, asking them to look into specific issues and report back. The Committee could then use these findings to feed into the audit plan and framework.

The Head of Audit and Management Assurance invited members to contact him with any further comments or queries between now and the next core meeting in March.

RESOLVED that the Committee agrees the BCP Assurance Framework.

Voting: Unanimous