Agenda item

     I.        That the Audit Committee approve the internal audit plan for 2021/22-2023/24 as set out in annex 1; and,

    II.        That the Audit Committee approve the internal audit Charter for 2021/22 as set out in annex 2.

The Committee was asked to consider the programme for internal audit over 2021/22 and 2023/24. It was noted that there had been changes to the schedule for some audits. The Interim Head of Finance gave an overview of how the audit plan was developed and reviewed.

It was explained that the audit plan was risk based and this determined the priorities for internal audit activity. The plan was fluid in order to ensure that it continued to remain relevant to the Council’s risk profile and ensure an appropriate level of audit coverage, particularly given the finite nature of audit team resources. A further key consideration was to ensure that audits added value. Over the past year the plan had also been revised to ensure sufficient focus on risks related to the pandemic.

Natalie Jerams, Deputy Head of Southern Internal Audit Partnership (SIAP), explained that Appendix 1 was the plan for the forthcoming 3 years and reiterated that the plan should remain fluid. With this in mind, the Committee was requested to focus on the audits planned for 2021/22. There had been some significant changes within the 2021/22 plan, with some audits being pushed further along the audit programme due to the emergence of risks in new areas or some audits being considered as lower priority currently.

In terms of producing the audit plan, this had been carried out in consultation with the Corporate Governance Group and the wider Management Team. The Council’s visions and priorities were considered as part of the planning process, as well as the strategic risks recorded in the risk register. Other areas of assurance and previous audit opinions were taken into account when determining priorities over the next 12 months.

The Committee was reminded that resources for carrying out audits were finite and a wide spectrum of audit coverage was required so an annual report and opinion could be provided.

The Committee was directed to the report which showed the audits to be included for the year and were there for the Committee to review.

Neil Pittman, Head of SIAP, also stated the need for the plan to be flexible, as risks changed ordinarily but the current year brought additional change.

A Councillor commented on the report requesting two changes to the wording of the Council’s strategic risks. The Interim Head of Finance explained that this was SIAP’s report which quoted the Council’s risk. Any feedback on strategic risks would be better considered during the later item on the agenda. There was also some concern around coverage of fraud risks in the plan; in response Councillor Schofield explained that the Council had its own fraud team that was dedicated to investigating fraud.

The Committee considered the Internal Audit Charter 2021/22. There had been no changes from the previous year.

RESOLVED that:

(i)        That the Audit Committee approves the internal audit plan for 2021/22-

            2023/24 as set out in annex 1; and,

(ii)        That the Audit Committee approves the internal audit Charter for      2021/22 as set out in annex 2.