Agenda item

To consider the outcome of the recent external assessment in accordance with the Quality Assurance and Improvement Programme (QAIP) and the action plan developed to address the findings from the report.  Also the Internal Audit Charter, the Terms of Reference of the Internal Audit Service, was presented for approval which had been reviewed/updated following the external findings

Consideration was given to a report presented by Louise Ivens, Head of Internal Audit, which detailed how Internal Audit was a major source of assurance to the Council on the framework of control, risk management and governance. All Internal Audit functions in Local Government must comply with GIAS (UK Public Sector) as from 1^st April, 2025.

The standards included the need for a Quality Assurance and Improvement Programme (QAIP) to provide continual improvement, based on ongoing quality assurance and an annual self-assessment, with an external assessment at least every 5 years.

An external assessment was undertaken during November and December 2025 which showed general conformance with those Standards - the highest classification that CIPFA awarded.  An action plan had been developed to address the findings from the report.  The action plan from the previous annual self-assessment had been updated and the 2 documents would be merged following the meeting to aid tracking of action implementation.  The QAIP had also been updated to reflect that the external assessment had now taken place.

The Internal Audit Charter was in effect the Terms of Reference of the Internal Audit Service and must be reviewed periodically and submitted to the Audit Committee for approval.  The Charter had been updated following the external assessment findings.

The Charter reflected the requirements of the Global Internal Audit Standards (UK Public Sector).  It must be considered by the Audit Committee to confirm that it accurately reflected their understanding and expectations of the Internal Audit function.

Discussion ensued with the following issues raised/clarified:-

·       The use of Copilot in relation to Internal Audit and how the Committee could be assured that this would produce reliable results. It was clarified that the use of AI was intended to create efficiency through streamlining.  It would be used in conjunction with the usual audit process, following a trial to test reliability, with all existing checks and balances remaining in place.

Resolved:- 

1.         That the production and ongoing implementation of the QAIP and the action plan based on the internal self-assessment reported to this Committee (Appendices A, B and C attached) be noted. 

2.         That the external assessment (Appendix D) of the report submitted and the resultant action plan (Appendix E) be approved.

3.         That the Internal Audit Charter, as attached in Appendix F of the report submitted, be approved.