Agenda item

Members considered the Internal Audit Report for the period October to December 2020, which provided information on the work undertaken by Internal Audit in the period.

The report was split into four sections as follows:-

·         The Audit Plan and any revisions to it;

·         Audit work undertaken during the period;

·         Implementation of Management Actions arising from Audit recommendations; and

·         Internal Audit Performance.

It was reported that the routine audit work was now carrying on as normal, despite the impacts of the Covid pandemic.

With regard to the implementation of actions arising from recommendations, this was a high priority area, and the Internal Audit Team had worked with Management to ensure that any actions able to be implemented had been completed. However, in areas where this had not been possible, this was largely due to the reprioritisation of resources during the Covid Pandemic.

In terms of Internal Audit performance, the Committee noted that information on this area was limited but noted the prompt issue of audit reports to Management.

Members were invited to put any queries to officers on which they required further information.

The Committee noted that they had held a discussion with regard to the Internal Audit Plan before the meeting in their training session, and had acknowledged that even though the Council was working in unprecedented times, the Audit Team had delivered work appropriate to the circumstances and the work plan for the remainder of the year was reasonable. They were satisfied that the Internal Audit Function was performing satisfactorily.

A number of queries were also raised regarding the Economy and Environment area, and the support being given to this as it was evident that there were a number of overdue actions where improvements needed to be made. Officers assured Members that they were receiving support and it was a very fluid situation that was being monitored.

In terms of building up to giving his annual audit opinion, the Head of Internal Audit informed the Committee that a more lateral approach had to be used this year, gaining assurance from the unplanned work that the team had carried out as part of the initial pandemic response and the consequent work that had arisen as part of the pandemic. He stated he had also had to draw down into the “assurance reserves” that the team had built up from previous years’ work and also obtained from other sources. He stated that he would continue working through this with the Assistant Director of Finance including how to build back up the “assurance reserves” in the future. The team were very experienced with extensive knowledge of the Council’s operations. This had had been invaluable in this very difficult period of time, and he provided reassurance to the Committee that coverage and support would always be given on a risk-based basis. The year had been considerably more demanding than previous years, and whilst a different approach was being taken in delivery of Internal Audit work and arriving at his annual opinion, CIPFA were recognising this within their guidance.

            RESOLVED that:-

1)    The Audit Committee note the position of the Internal Audit Plan;

2)    The internal Audit work completed across the period be noted; and

3)    The Audit Committee note the position with regards to the implementation of management actions arising from Internal Audit Recommendations.