Agenda item

Consideration was given to a report presented by Marc Bicknell, Chief Internal Auditor, which outlined the Council’s Internal Audit Plan for 2015/16.

Significant changes had been made in the approach to audit planning. These have been reflected in the resulting audit plan, which now more fully reflects a risk based assessment using the Council’s risk registers, budget documentation and other key plans. The Plan also reflects discussions with Directors and the Strategic Leadership Team on their views of key risks and areas for audit coverage.

The programme also included coverage in many areas criticised in the Professor Jay, Ofsted and Corporate Governance Inspection reports.

As well as a full refresh of the ‘audit universe’ and a thorough risk assessment of the Council’s activities, the Audit Plan had also taken into account:-

-               Financial information from budgets and key financial systems

-               Review of key plans and policies

-               Consultation with the Council’s Directors and Strategic Leadership Team

-               Known major upcoming changes in keys systems and governance arrangements

-               Views on the risk of fraud and error

-               Cumulative audit knowledge and experience

-               External requirements (including requirements to audit and sign off grant claims for the Government)

A summary of the approach to the development of the Audit Plan for 2015/16 was provided, which would be delivered in accordance with the Internal Audit Charter.  The Internal Audit Plan was focused on the achievement of the Council’s key objectives and priorities and the risks that may hinder the Council from meeting these.

As well as identifying all of the proposed pieces of work to be carried out during the year, the Plan:-

·           Explained the statutory requirement for Internal Audit

·           Described the approach and methodology adopted in producing the Plan

·           Showed the level of resources available to deliver the Plan was 1,405 days based on an establishment of 8.4 full time equivalents

·           Identified the Audit Universe for the Council

·           Included high level risk assessments for each Council service

·           Included a contingency to use in responding to requests for advice/assistance that arose throughout the year.  Client feedback told us that Internal Audit’s ability to respond promptly to unforeseen issues of the nature was highly valued.  With finite resources though, we would need to carefully review involvement in any issues presented

In line with the new UK Public Sector Internal Audit Standards, the Plan did not become fixed when it was approved.  It remained flexible and would be revised to take into account any significant emerging risks facing the Authority.

The scale of change in audit approach and resulting audit plan would be challenging for Internal Audit to deliver. Resources would need to be revised and invested within the service as necessary to enable it to successfully deliver the audit plan.

Consideration was given to a number of issues specifically around the external reviews, the “missing” reports and the flow of information throughout the Authority.  The Chief Internal Auditor confirmed this will be reviewed as part of a wider discussion on information governance and the management of Freedom of Information and Data Subject Access requests.

A series of quality assurance checks have been introduced in Children’s Services and Internal Audit will examine these.

A new IT system is to be introduced for Children’s Services and Adult Services and Internal Audit will examine this in due course.

One of the major areas of audit work would specifically focus on concerns raised by the Professor Jay and Casey reports and the serious weaknesses in children’s social care in Rotherham and the quality assurance function with a view to making sure proper management arrangements and assessment timescales were in place.

Through careful management of our resources, we will continue to undertake the necessary work on fundamental financial systems to support the Section 151 officer to fulfil his statutory responsibilities.

Given the limited audit resources and the challenges to delivery of the Audit Plan, we will need to keep our practice of providing audit services to academies under review.

The audit plan will be kept under review on an ongoing basis, any significant changes to it will be reported to the Audit Committee for consideration and approval.

The Strategic Director of Resources and Transformation welcomed the shift in risk based focus, which was recognised in the report and which gave assurances as to how business was being managed from a governance perspective.

Resolved:- That the Internal Audit Plan for 2015/16 be approved.