Agenda item

To provide the Committee with a periodic report on the Internal Audit function for the period July 2021 – August 2021, and review the Internal Audit Charter for approval, as required by the professional standards.

The Committee had before it a report submitted by the Council’s Internal Audit Manager (A.1) which provided it with a periodic update on the Internal Audit function for the period July to August 2021 and enabled it to review the Internal Audit Charter for approval as required by the professional standards.

The Committee was also informed how Internal Audit continued to provide advice on the office transformation programme, the digital transformation programme and project management on a consultative basis.

Outcomes of Internal Audit Work

Members were aware that the Public Sector Internal Audit Standards (PSIAS) required the Internal Audit Manager to report to the Audit Committee on significant risk exposures and control issues. Since the last report four audits had been completed and the final report issued.

*For the purpose of the colour coding approach, both the substantial and adequate opinions were shown in green as both were within acceptable tolerances.

There had been no significant issues identified within the audits completed during the reporting period.

Management Response to Internal Audit Findings

The Committee was reminded that there were processes in place to track the action taken regarding findings raised in Internal Audit reports and to seek assurance that appropriate corrective action had been taken. Where appropriate, follow up audits had been arranged to revisit significant issues identified after an appropriate time.

The number of high severity issues outstanding was as follows:-

Update on previous significant issues reported

Fleet Management Policy

The Committee was informed that the Fleet Management Policy had been put forward to the Human Resources & Council Tax Committee in July 2021 for its approval. However, the Committee had requested some additional changes to be made to the policy and to be brought back to the next meeting of the Committee in October 2021.

Members were also advised that the Acting Transport Manager had now sat his final exam and that the results were expected at the end of October 2021.

Planning Enforcement Policy

The Committee was made aware that the Policy had now been reviewed by the Legal Services Team and was now back with the Planning Enforcement Team for its further review and consultation before it could then be considered for formal adoption.

In respect of the above, the Assistant Director (Finance & IT) undertook to provide members of the Committee with an update in relation to:-

(i)     the contingencies in place and options available should the Acting Transport Manager fail the exam; and

(ii)    the expected time scale for the Planning Enforcement Team’s completion of its further review of the Planning Enforcement Policy.

Internal Audit Charter

The Committee recalled that it was a requirement of the PSIAS for the Audit Committee to review and approve the Internal Audit Charter on an annual basis. The Charter had been last updated and approved in September 2019, as due to the Covid-19 pandemic and the focus of Officers being needed elsewhere the Charter had not been reviewed and approved in 2020. However, there had been no changes to standards or processes at that time and therefore no amendments would have been required anyway.

Members were advised that this was still the case and that the Audit Committee and Internal Audit Team continued to comply with the obligations and responsibilities set out within the charter. The current charter was included as Appendix B to item A.1 of the Report of the Internal Audit Manager.

Following a discussion and a review of the contents of the Internal Audit Charter it was:-

RESOLVED that –

(a)    the contents of the report be noted; and

(b)    the Internal Audit Charter be approved, subject to the inclusion within Section 9 of an appropriately worded reference to the fact that, under the Constitution, the members of the Audit Committee are required to undergo specific training in regards to the determination of the Council’s Statement of Accounts and the comprehension of Auditor reports.