Internal Audit Terms of Reference, Code of Ethics, Audit Strategy, Strategic and Annual Audit Plans and Summary of Internal Audit Coverage for 2012/13 (Agenda item 10)
- Meeting of Treasury Management Policy (Annual Report) & Internal Audit Plan (Annual Report), Governance and Audit Committee, Friday, 3rd February, 2012 10.00 am (Item 8.)
Report of the Head of Internal Audit.
The Head of Internal Audit presented the report.
The report explained the statutory requirements and standards for providing an Internal Audit Service and set out the proposed Terms of Reference, Performance Indicators, Code of Ethics and Strategic and Annual plans for the service in relation to 2012/13.
Section 3 of the Terms of Reference had been revised to be more explicit about how Internal Audit will liaise with other Internal Audit Service providers whose organisation are involved in shared management and/or shared service arrangements with Breckland Council. Referring to the Terms of Reference and paragraph 3.11 of the report, Mr Kybird asked the meaning of a “Hold Harmless” letter. In response, the Head of Internal Audit explained Hold Harmless letters were used to allow the contents of final audit report produced by the Deloitte auditors on behalf of Breckland Council to be shared with other councils/organisations. The other organisations may chose to place reliance on the work performed but on the understanding that Deloitte would not be accountable to them for the work done, only to Breckland Council that commissioned the audit in the first place.
A number of grammatical and numerical errors within the report were highlighted.
- On page 99, in paragraph 8.5 of the report a misspelling was noted with reference to job budgets.
- At page 107, in paragraph 1.2, the Terms of Reference presented on 3/2/12 related to 2012/13 and not 2011/12 as stated.
- With reference to the Strategic Audit Plan, the job budget for Culture and Leisure in 2011/12 had been revised to 13 days and this in turn required the total days per annum for systems audit in 2011/12 to be amended to 158.5 (bottom of page 115) and total days per annum for 2011/12 to be updated to 203.5 (bottom of page 116).
- Two further changes were also required to the Strategic Audit Plan – the correction of a misspelling of St Edmundsbury and the addition of the word ‘High’ in the column headed ‘Assessed audit risk’ against Accountancy Services on page 112.
On page 116, the Head of Internal Audit drew Members’ attention to the fact that a provision had been made for computer audit coverage going forward; this had yet to be fully allocated to individual reviews. However, as soon as a new Computer Audit Needs Assessment had been completed in Quarter 1 of 2012/13, the Committee would be updated as to projects identified for delivery thereafter.
Referring to those audits assessed as ‘very high’ risks on page 117 of the Annual Audit Plan under the heading Fundamental Financial Systems, the Head of Internal Audit explained that these were being covered by St Edmundsbury Borough Council.
In response to a concern about how agreed audit recommendation were being monitored, it was explained that there was a process in place to verify the status of agreed audit recommendations at six monthly intervals with the outcomes of this reflected in update reports to the Committee.
RESOLVED that subject to a number of minor amendments (mentioned above), the following Internal Audit documents be approved:
- Terms of Reference and Performance Indicators for 2012/13
- Code of Ethics 2012/13
- Audit Strategy 2012/13
- Strategic Audit Plan for 2012/13 to 2014/15
- Annual Audit Plan 2012/13; and
- Summary of Internal Audit Coverage 2012/13
- Covering report for BRK Audit Plans for 2012-13 (18 01 12), item 8. PDF 88 KB
- BRK Terms of Reference 2012-13 App 1 (17 01 12), item 8. PDF 100 KB
- BRK IA Performance Indicators 2012-13 App 1a (17 01 12), item 8. PDF 42 KB
- BRK Code of Ethics 2012-13 App 2 (17 01 12), item 8. PDF 52 KB
- BRK Internal Audit Strategy App 3 (17 01 12), item 8. PDF 91 KB
- Draft Strategic Audit Plan 2012-13 App 4 (17 01 12), item 8. PDF 57 KB
- BRK Annual Plan 2012-13 App 5 (17 01 12), item 8. PDF 54 KB
- BRK Audit Coverage 2012-13 App 6 (17 01 12), item 8. PDF 90 KB
- BRK Assurance Chart from 2008-09 onwards App 7 (17 01 12), item 8. PDF 43 KB