Agenda item

Strategic and Annual Internal Audit Plans 2015/16 (Agenda item 11)

Report of the Internal Audit Consortium Manager.

Minutes:

The Internal Audit Consortium Manager presented the report and provided Members with an overview of the stages followed prior to the formulation of the Strategic Internal Audit Plan for 2015/16 to 2017/18 and the Annual Audit Plan for 2015/16.  The Annual Internal Audit Plan would serve as the work programme for the Council’s Internal Audit Services Contractor, TIAA Ltd.  It would also provide the basis for the Annual Audit Opinion on the overall adequacy and effectiveness of Breckland Council’s framework of governance, risk management and control.

 

The report Strategic and Annual Internal Audit Plans contained:

 

o              an update on the minor amendments made to the Internal Audit Charter;

o              the Internal Audit Strategy, which was  a strategic high level statement on how the internal audit service would be delivered and developed in accordance with the Charter and how it linked to the organisational objectives and priorities;

o              the Strategic Internal Audit Plan, which detailed the plan of work for the next 3 financial years;

o              the Annual Internal Audit Plan, which detailed the timing and the purpose of each audit agreed for inclusion in 2015/16; and

o              provided the Committee with the performance measures against which the new contractor would be monitored.

 

The Internal Audit Charter would be brought back to the Audit Committee every two years for review and reviewed by the Internal Audit Consortium Manager annually.  The only change made for the 2015/16 year was the introduction of formal exit meetings which would ensure that a robust and thorough discussion was held on the conclusion of the review.  This would ensure that any actions proposed by management to implement recommendations would ensure that the risks were appropriately mitigated.  The Audit Charter would be further reviewed and refreshed once the new contract had been in operation for 6 months and an updated Audit Charter would be presented to the Committee with the audit plans for 2016/17.  As part of the review of the Audit Charter, the Code of Ethics would be reviewed by the Internal Audit Consortium Manager and no longer reported to this Committee as it was an internal management process.

 

The Internal Audit Strategy set out how the internal audit service had been developed in accordance with the Charter and how it linked to the organisational objectives and priorities.

 

Referring to the Strategic Internal Audit Plan, Members were informed that the IT audits were currently in draft and had not been finalised due to the new contract not starting until April 2015.  The Internal Audit Consortium Manager advised that she would be meeting with the new IT Audit Manager (TIAA) and staff at Breckland Council and Norfolk County Council to determine the IT audits and an update would be provided to the Audit Committee later in the year.

 

The performance management audit had been carried forward due to the many changes in that area. 

 

The new Internal Audit Services contract included a suite of key performance indicators against which the new contractor would be reviewed on a quarterly basis which would also all be linked to the payment mechanism.

 

Mr Ludlow asked about the audit area for disabled adaptations on page 91 of the agenda.  Members were informed that this audit was about making sure that the right advice and guidance was provided and to ensure that the budget allocated was appropriate to meet the needs of the District.

 

Mr Ludlow asked about the audit area for disabled adaptations on page 91 of the agenda.  Members were informed that this audit was about making sure that the right advice and guidance was provided and to ensure that the budget allocated was appropriate to meet the needs of the District.

 

Mr Ludlow also asked about the performance indicators at the bottom of page 95 of the agenda, numbers 12 and 13.  The Internal Audit Consortium Manager advised that this was actually about learning from these audits and reflecting what happens at the Council as well as looking at what the customer should get at the end.  In response to a question about the high priority recommendations for Managers, the Executive Director of Place advised that internal audit was a management tool and the approach the Council was taking was very new to Managers therefore a base line would be set in year 1 and year 2 and would vary from council to council.

 

RESOLVED that:

 

1.            the following be noted and approved:

 

a)            the minor amendments to the Internal Audit Charter (as noted in the report);

b)            the Internal Audit Strategy for 2015/16;

c)            the Strategic Internal Audit Plans 2015/16 to 2017/18; and

d)            the Annual Audit Plan 2015/16.

 

2.      the Committee notes the performance measures for the new Internal Audit Contractor.

 

Supporting documents: