Agenda item

This report details progress made on delivery of the 2021/22 Audit Plan for the period April to June (inclusive) 2021.  The report highlights that:

·       Three audit assignments have been completed (two  ‘Reasonable’ and one ‘Partial’ audit opinions);

·       Sixteen audit assignments are in progress;

·       Implementation of audit recommendations is satisfactory;

A significant amount of work undertaken during the quarter related to completion of the 2020/21 Audit Plan. The ‘Chief Auditor’s Annual Report 2020/21’ 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 'I' to these Minutes in the Minute Book.

This report details progress made on delivery of the 2021/22 Audit Plan for the period April to June (inclusive) 2021.  The report highlights that:

·       Three audit assignments had been completed (two ‘Reasonable’ and one ‘Partial’ audit opinions);

·       Sixteen audit assignments were in progress;

·       Implementation of audit recommendations was satisfactory;

A significant amount of work undertaken during the quarter related to completion of the 2020/21 Audit Plan. The ‘Chief Auditor’s Annual Report 2020/21’ contained the outcome of this work which had been reported separately to this committee.

The Head of Audit and Management Assurance reported that Quarter 1 was a busy period for internal audit.  He outlined the four significant areas of work which was finalising the previous year’s audit plan coverage which had been completed, starting the new audit plan for 2021/22, producing the Annual Governance Statement and finalising the work necessary to produce the Chief Internal Auditor’s report. 

The Committee was referred to paragraph 4 of the report which explained in more detail the Community Infrastructure Levy (CIL) ‘partial’ audit opinion which was issued and was one of the three audits that had been completed so far this year.  The Head of Audit and Management Assurance reported on the good progress being made with the plan for 2021/22 and the assurance work that the Government had required post payment for all Government grants allocated to businesses using specified Government toolkits.  He referred the Committee to paragraph 9 and 10 and reported that CIPFA had conducted their three-day validation of the internal audit function to confirm that the Council’s internal audit team complies with public sector internal audit standards.  The Head of Audit Management reported that the team conformed to the required standards but this needed to be ratified by the CIPFA quality assurance board so the Council had not yet received the results officially and it was expected that there would be four minor recommendations and four suggestions on ways the Council can improve its processes.

Councillors raised a number of questions which included the way in which the audit had highlighted weaknesses relating CIL.  Councillor Brooke reported as vice-chair of the Broadstone Neighbourhood Forum on his concerns about controls, monitoring and management of the funds. He welcomed the internal audit recommendations. The Head of Audit and Management Assurance was asked if he had sufficient resource to exercise his functions on CIL which was a fragmented structure which would obviously take additional resource.  The Head of Audit and Management Assurance reported that he was content that he had sufficient resources and that the team would be following up the recommendations in the way referred to earlier in the meeting.  He explained that there were elements of good practice in the CIL system but there were also weaknesses hence the partial assurance opinion. Councillor Trent commented on CIL and that there was no decision-making process covering all aspects of CIL expenditure or policy.  He referred to legacy procedures and the current position in respect of the submission of bids and how they were being dealt with. The Head of Audit and Management Assurance commented that it was reassuring that internal audit had identified what Councillors and communities were experiencing in respect of CIL. Councillor Brown referred to his previous perception of good procedures operated by legacy Borough of Poole Council and the approach undertaken by Officers on areas such as liability assessments, invoicing, and payment.  He was concerned how differing approaches had arisen and asked if it was part of the amalgamation of the legacy Councils. The Head of Audit and Management Assurance reported that differing legacy arrangements were still an issue but again highlighted that there were good elements of the CIL system but there were also elements of less good procedure and it was this variation that had contributed to the ‘partial’ audit opinion on the BCP CIL function.  The Chairman indicated that ultimately to resolve these issues required resource within the relevant part of the Council to be adequate and effective.  He highlighted that he would like to be sure that if there were any shortcomings that this was taken forward to the appropriate senior officers and that the Committee would be supportive of the Head of Audit and Management Assurance taking appropriate action.  The Head of Audit and Management Assurance confirmed that the follow-up procedures would be applied in accordance with the required timescale.

The Chairman raised a question relating to follow up work on Government grants and resources within the internal audit team to undertake that work. The Head of Audit and Management Assurance reported he was confident at this stage that there was flexibility in the audit plan, and he did not feel the work being undertaken for the Government would exceed the contingency in the audit plan. 

Councillor Brooke referred to the detail set out in page 186 and indicated that there seemed to be a discrepancy between the table, text and the bullet points.  The Head of Audit and Management assurance reported that he would check the detail in the report and advise of any amendments.  Post meeting clarification note, the table showing 2 high recommendations, 6 medium recommendations and 1 low recommendation is correct.

RESOLVED that Audit & Governance Committee note progress made and issues arising on the delivery of the 2021/22 Internal Audit Plan.

Voting: Unanimous