Agenda item

To consider and note the Internal Audit work undertaken since the last Audit Committee, 1st August to 31st October 2024, and the key issues that have arisen from it and the performance objectives of Internal Audit and the actions being taken by Audit management in respect of meeting the performance objectives.

Consideration was given to a report presented by Louise Ivens, Head of Internal Audit, which provided a summary of Internal Audit work completed during 1^st August to 31^st October, 2024, and the key issues that had arisen.

The plan attached as part of the report showed the position up to the end of October 2024, the progress of the 2024/25 audit plan, the reports finalised between August and October 2024 and performance indicators for the team.  Since the last report there had been 5 audits deferred, one removed and one addition to the plan. 

Internal Audit provided an opinion on the control environment for all systems or services which were subject to audit review. The report detailed the audit opinions and a summary of all audit work concluded in the last quarter. 8 audits had been finalised since the last Audit Committee, 4 of which had received Reasonable Assurance and 4 received Partial Assurance opinion. 

A review of the current performance indicators was detailed in Appendix D and client satisfaction survey responses attached at Appendix E.

Historically, progress against the Quality Assurance and Improvement Plan had been reported on an annual basis.  This would form part of the quarterly Internal Audit progress report and was attached at Appendix F of the report.

The new Global Internal Audit Standards (GIAS) were issued on 9^th January, 2024, and would become globally effective from 9^th January, 2025.  They would then replace the International Professional Practice Framework the mandatory elements of which were the basis for the current UK Public Sector Internal Auditing Standards (PSIAS).  The Relevant Internal Audit Standard Setters (RIASS) has agreed to use the new GIAS as the basis for internal auditing for the UK Public Sector and asked the UK Public Sector Internal Auditing Standards Advisory Board (IASAB) to carry out a review of the new standards with a view to identifying and producing any sector specific interpretations or other material needed to make them suitable for UK public sector use.  The IASAB had determined that if GIAS was applicable to the internal audit of UK public sector bodies, subject to a small number of additional requirements and interpretation.  The IASAB had developed the “Application Note: Global Internal Audit Standards in the UK public sector”.

CIPFA was consulting on a Code of Practice for the Governance of Internal Audit from the perspective of the organisation i.e. local government responsible for internal audit.  The Code complemented the standards which applied to the practice of internal audit from the perspective of the Head of Internal Audit.

The effective date of the new material developed by IASAB was 1^st April 2025 to align with requirements for annual opinions and other relevant aspects of UK public sector governance which lined up with the financial year.  Until then, the existing PSIAS based on the old Internal Professional Practices Framework would continue to apply.

Resolved:-  (1)  That the Internal Audit work undertaken since the last Audit Committee, 1^st August to 31st October, 2024, and the key issues that have arisen from it be noted.

(2)  That the performance objectives of Internal Audit and the actions being taken by audit management in respect of meeting the performance objectives be noted.