Agenda item

Louise Ivens, Head of Internal Audit, to report

Consideration was given to a report presented by Louise Ivens, Head of Internal Audit, which provided information on the role of Internal Audit; the work completed during 2025-26 and highlighted the key issues that had arisen therefrom.  It provided the overall opinion of the Head of Internal Audit on the adequacy of the Council’s control environment, risk management and governance.  It also provided information regarding the performance of the Internal Audit function during 2025-26.

Based upon the Internal Audit work undertaken and, taking into account other internal and external assurance processes, it had been possible to complete an assessment of the Council’s overall control environment.  In the opinion of the Head of Internal Audit, the Council had overall an adequate and effective framework of governance, risk management and control. 

There had been a reduction in the number of audit reports with Partial/No Assurance opinions from the previous year.  Management continued to proactively seek audit assurance where concerns existed.  Whilst the Partial Assurance opinions had identified weaknesses in the control environment or compliance with controls, the weaknesses were not material enough to have a significant impact on the overall opinion on the adequacy of the Council’s governance, risk management and control arrangements at the year end.  The work undertaken during the year had clearly focused on the key risk areas of the Council and targeted to specific areas of concern.

The report included:-

-        Legislative requirements and Professional Standards

-        The Head of Internal Audit’s annual opinion on the control framework, risk management and governance

-        Resources and audit coverage during the year

-        Summary of audit work undertaken during 2025-26, including both planned and responsive/investigatory work

-        Summary of other evidence taken into account for control environment opinion

-        Summary of audit opinions and recommendations made

-        Internal Audit performance indicators

Audits were carried out in all areas of the Council during the year with the overall level of control found in audits to be good. 88% of audits resulted in a Substantial or Reasonable Assurance opinion with 6 Partial Assurances. 

During 2025-26, 197 recommendations (210 in 2024-25) were made to improve the internal control, risk management and governance arrangements across the Council. Of these, 17 (32 in 2024-25) were in the highest category (red).

There had been one staffing change during the year due to an experienced member of team having retired.  The post had proven difficult to recruit to but the new postholder would be taking up the position shortly together with a trainee auditor.  During 2025-26 this had had a minor impact on the number of days performed, however, it was the opinion of the Head of Internal Audit that resource levels throughout the year provided sufficient capacity to provide an adequate level of assurance to the Audit Committee and Executive Director of Corporate Services.  Sufficient work was completed during 2025-26 to enable the Head of Internal Audit to provide her overall opinion.

The Global Internal Audit Standards (UK Public Sector) required a quality assurance framework to be established including both internal and external assessments of the work of Internal Audit.  CIPFA undertook a comprehensive External Quality Assessment of the Internal Audit function during Autumn 2025 which measured conformance against the Global Internal Audit Standards, the CIPFA Code of Practice for the Governance of Internal Audit in UK Local Government (the Code) and the Associated Application Note: Global Internal Audit Standards in the UK Public Sector.

The assessment confirmed that the Internal Audit function was “Generally Conforming” overall to the Standards and Principles.  This was the highest classification that CIPFA awarded.

The Committee sought reassurance, given the availability and movement of staff members, that the resources sufficient to deliver the Internal Audit Plan.  The Head of Internal Audit confirmed that she was confident moving forward having recruited to the senior auditor position and the new trainee auditor.  It was hoped to be fully staffed by the end of the summer.

Resolved:-  (1)  That the work undertaken during the 2025-26 financial year and the key issues that had arisen therefrom be noted.

(2)  That the overall opinion of the Head of Internal Audit on the adequacy and effectiveness of the framework of governance, risk management and control within the Council be noted.

(3)  That the Committee’s satisfaction with the effectiveness and efficiency of  the Internal Audit function be noted.