Agenda item

The Head of Internal Audit, Anti-Fraud and Assurance submitted a report which provided a summary of the Internal Audit activity completed, and the key issues arising from it, for the period 27 June 2022 to 30 October 2022. 

Members were informed of the progress of the delivery of the Internal Audit Plan analysed by the number of plan assignments producing a report and audit days delivered by Directorate/Service and in relation to external clients.

The following key points were noted:

·            As reported at the Committee’s June 2022 meeting, the Internal Audit Plan is currently under resourced by circa 180 days.  

·            Internal Audit are currently slightly ahead in terms of delivery on a pro rata basis (61%) of the resourced plan.

·            During the period, there had been four changes to the Internal Audit Plan as set out on page 2 of the report.

·            Four audit reports had been finalised in the period.

·            There were no audit reports issued during the period that had received a limited assurance opinion.

·            Internal Audit productivity at the end of Q2 was slightly down (69%) from the annual target (73%) due to the profile of annual and statutory leave.

·            There are no concerns with regards to the implementation of agreed management actions. 

·            Based on the work completed to date, an annual reasonable assurance opinion would be provided. 

In the ensuing discussion, it was noted that the Internal Audit Annual Plan includes circa 40% of days providing real time independent advice, support, challenge and objective assurance to add value in relation to initiatives, projects, programmes and transformation programmes. 

RESOLVED that the Audit and Governance Committee considered the assurances it needs on the effectiveness of the Authority’s internal control, risk and governance arrangements through the work of Internal Audit by:-

i)           Considering the issues arising from completed Internal Audit work in the period along with the responses received from management;

ii)          Noting the assurance opinion on the adequacy and effectiveness of the Authority’s internal control framework based on the work of Internal Audit in the period; and

iii)         Noting the progress against the Internal Audit plan for 2022/23 for the period.