To seek the approval of the Audit Committee for the Internal Audit Plan for 2018/19.

There was submitted a report by the Council’s Acting Audit and Governance Manager (A.2) which sought the Committee’s approval for the Internal Audit Plan for 2018/19. The Plan was before the Committee as Appendix A to that report and had been developed using a risk based approach, taking into account the Council’s Corporate Objectives, Corporate Risks, Departmental Risks and Emerging Risks.

Members were informed that it was proposed to deliver the Annual Audit Plan using the current resource establishment with the introduction of new audit techniques such as Continuous Auditing, Assurance Mapping, Root Cause Analysis / Data Analytics, Lean Auditing, Self-Assessments and Consultancy / Advisory Services as well as the introduction of a new apprentice within the Team.

The Committee was advised that the Plan would be kept under review during the year, in consultation with the Council’s Management Team, and taking account of changes to the Council’s priorities, operations and risk. Changes to the Plan would be brought to the attention of the Committee for its approval.

The Committee was also reminded that Public Sector Internal Audit Standards required that the Chief Audit Executive (or equivalent officer): -

1.      Periodically reviewed the Internal Audit Charter and presented it for approval.

2.      Provided a high level statement of how the Internal Audit Service would be delivered and developed in accordance with the Internal Audit Charter and how it linked to the organisational objectives and priorities.

3.      Established a risk based Internal Audit Plan, at least annually, to determine the priorities of the Internal Audit function, consistent with the Council’s goals.

4.      Had in place a mechanism to review and adjust the plan, as necessary, in response to changes to the Council’s business, risks, operations, programmes, systems and controls.

5.      Produced a plan that took into account the need to produce an annual Internal Audit opinion.

6.      Considered the input of senior management and the Audit Committee in producing the plan.

7.      Assessed the Internal Audit resource requirements.

The Acting Audit and Governance Manager (Craig Clawson) made the Committee aware of the background matters in relation to –

(i)     the development of the Audit Plan;

(ii)    the Internal Audit resource requirements; and

(iii)   the Internal Audit Plan detail.

In relation to the Internal Audit Charter, the Committee was aware that in previous years an updated Audit Charter had been presented to its March meeting for Members’ approval. The Audit Charter included legislative and regulatory requirements; governance arrangements between the Audit Committee, Management and Internal Audit; and roles and responsibilities and processes and procedures undertaken by Internal Audit and the Audit Committee. However, as the Internal Audit Team developed the new approach in delivering the internal audit plan, many of those processes and procedures would be subject to change. It was therefore proposed by Officers to present an updated Internal Audit Charter to the Committee later in the year. In the meantime, the existing Charter would remain in place and continue to set out the core principles defining the purpose, authority and responsibility of the Internal Audit Function which therefore would remain relevant until such time as a revised charter was agreed.

Following discussion, it was RESOLVED that -

(a)    the Internal Audit Plan for 2018/19 be approved; and

(b) that the existing arrangements for updating the Plan during the year, where necessary to reflect changing Authority activity and operational needs and to provide flexibility of service delivery, be continued, with significant amendments reported to the Committee as part of the periodic Internal Audit reporting arrangements.