Agenda item

The Internal Audit Charter defined the purpose, activity and responsibility of internal audit activity and is was and presented annually for approval.  It had been updated by the Head of Audit and contains no significant changes from previously. They were compliant with the Public Sector Internal Audit Standards (PSIAS). She advised that the majority of audits were either rated as “reasonable” or “substantial”.

The Internal Audit Strategy included information about its resources, the approach to preparing the internal audit plan, approach to delivering the audit plan, quality assurance, reporting (including definitions), annual opinion, follow up findings and agreed action plans and internal audit performance monitoring.

Members noted that the quality assurance in internal audit was in accordance with the Accounts & Audit Regulations 2015 an annual review of internal audit against PSIAS would be undertaken. This would be conducted externally at least once every five years in line with PSIAS requirements. It was a requirement under these regulations. It was also noted that the results of the reviews would be reported to the Committee.

Members enquired about the internal audit plan and how it was determined which items would be included during 2018/19. The Head of Audit advised that officers provided their views on areas of risk in the Council and audits were operationally based by service block and an early view of these audits would be provided to Members in the report (quarter 1) submitted to the Committee at its meeting on 25 July 2018 and this would be part of an on-going assurance during 2018/19.

Members were particularly keen on ensuring that the IT systems update be reviewed, and the Head of Audit stated that internal audit were meeting with officers in August and assured the Committee that a detailed report was being undertaken and this would be submitted to them in due course as part of the regular quarterly internal audit reports.

Members referred to the Audit Plan 2018/19 tables provided in the report and enquired about ratings. They noted that a number of these stated “rating to be arranged” and the Head of Audit apologised and stated this was an error and the up to date version would be e-mailed to the Committee which would show the ratings in those specific cases. The correct ratings where shown in the earlier Annual report item.

Members asked about the My Place Audit for 2018/19 and Housing Services contracts, the latter was “limited assurance”. A copy of the 2016/17 Internal Audit annual report would be emailed to Members which would show comparison with that year.

Members asked how “limited assurance” audits were followed up. The Head of Audit stated that “no assurances” were followed up with another full internal audit however in terms of limited, high risk recommendations were followed up and tracked by Internal Audit.

Members asked about for an explanation of how internal audit arrived at their ratings which were critical, high, medium, low risk. The Head of Audit stated that ratings were in line with definitions provided in the report and she was happy to provide the rationale for Members if requested.

The Committee agreed the:

·  Internal Audit Charter

·  Internal Audit Strategy 2018/19 onwards

·  Internal Audit Plan 2018/19