Agenda item

The Head of Internal Audit & Assurance Service submits a report to the Audit and Risk Committee which provides a summary of progress against the 2021-22 and 2022-23 Internal Audit Plans, including:

i.              Summary information on progress with implementing high importance recommendations

ii.            Summary of progress against the Internal Audit Plans

iii.           Commentary on the progress and resources used

iv.           An update on progressing improvements to internal audit arrangements following a meeting regarding the CIPFA research report, ‘Internal audit: untapped potential’

The Committee is recommended the note the routine update report.

The Head of Internal Audit & Assurance Service submitted a report to the Audit and Risk Committee which provided a summary of progress against the 2021-22 and 2022-23 Internal Audit Plans, including:

i.              Summary information on progress with implementing high importance recommendations

ii.            Summary of progress against the Internal Audit Plans

iii.           Commentary on the progress and resources used

iv.           An update on progressing improvements to internal audit arrangements following a meeting regarding the CIPFA research report, ‘Internal audit: untapped potential’

The Committee was recommended the note the routine update report.

Neil Jones, Head of Internal Audit Service (HoIAS) presented the report and noted the following:

·         The report took the opportunity to re-emphasise what was important for the committee, with how internal audit implemented important recommendations towards the front of the report, with paragraph 6 outlining the basis behind the designation of high important recommendations. Appendix 1 to the report introduced references to high importance recommendations.

·         There were three new recommendations following audit of key ICT controls, with weaknesses around the IT disaster recovery processes. Recommendations had been accepted and a plan was being developed for those, and brief assurance had been given on progress being made on those by Internal Audit.

·         Updates on recommendations were provided in bold font, with the most recent update on 5 September 2022. It was noted there had been a couple of extensions to deadlines for recommendations which were being monitored, one of which related to contract arrangements during Covid which had already been discussed.

·         The report and the appendix identified the number of times high importance recommendations had been extended.

·         Appendix 2 noted progress against plans up to 31^st July 2022, and it was reported that many of the audits had moved on, the outcomes of which would be brought to the next meeting of Committee.

·         Paragraph 13 in the report provided a summary of resources used in progressing work over the year, which had gone quite well with officers investing 303 days up to 31 July 2022.

·         Paragraph14 outlined a healthy staffing situation in terms of retention and recruitment. It was also noted there had been extensions to contracts, and the placement of a sponsored student from De Montfort University.

·         The final part of report provided a short update from CIPFA about the role of internal audit in local authorities. Improvements had already begun to be implemented, but it was recognised that larger projects would require further discussions.

Members were given the opportunity to comment and ask questions. The following was noted:

1.    In terms of social value, it was noted that internal audit had undertaken a piece of work on social value in procurement. Members asked if it would be possible to have sight of the report. Officers would confirm with the Monitoring Officer with regards to the sharing of a report that was not in the public domain with Audit and Risk Committee Members.

2.    Members asked if the 303 days of internal audit input were within plan. The HoIAS reported that in terms of budget the aim was to provide 800 days a year, but there had been a reduction in the amount of audit input over the past couple of years due to Covid and vacancies within the team. For 2022/23 the number of days input was on track.

3.    It was the role of the Committee to challenge, and the role of the HoIAS to help managers to understand and manage their own areas of risk in the control environment.

The Chair noted the contents of the report.

RESOLVED:

That:

1.    The contents of the report be noted.

2.    Officers to confirm with the Monitoring Officer whether an internal report on social value not in the public domain could be shared with Members of Audit and Risk Committee.