Agenda item

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 November, 2024 to 31^st January, 2025, and the key issues that had arisen.

The plan attached as part of the report showed the position up to the end of January 2025, the progress of the 2024/25 audit plan, the reports finalised between November 2024 and January 2025 and performance indicators for the Team.  Since the last report there had been 3 audits deferred and 2 audits removed from 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. 6 audits had been finalised since the last Audit Committee, 3 of which had received Substantial Assurance, 2 received Reasonable Assurance opinion and one Partial Assurance. 

A review of the current performance indicators was detailed in Appendix D, post-audit questionnaires and results included at Appendix E and the Quality Assurance and Improvement Plan at Appendix F. 

Since the last meeting, a slightly revised Application Note: Global Internal Audit Standards (GIAS) had been issued.  This provided a framework for the practice of internal audit in the UK public sector when taken together with the Global Internal Audit Standards (GIAS) issued by the Institute of Internal Auditors.  It set out interpretations and requirements which needed to be applied to the GIAS requirements in order that these form a suitable basis for internal audit practice in the UK public sector.

Consultation on the Code of Practice for the Governance of Internal Audit in UK Local Government had now closed and the final Code had been published.  The Code complemented the standards which applied to the practice of internal audit from the perspective of the heads of internal audit (or ‘chief audit executive’).

From 1^st April 2025 the requirements of the Application Note, the Code and the Global Internal Audit Standards apply to work on internal audit engagements commenced on or after this date.  It would be referred to as GIAS (UK public sector).

CIPFA (the Relevant Internal Audit Standard Setter for local government) had stated that internal audit teams would not be expected to demonstrate full conformance on this date.  They must work in accordance with the new standards from this date and by doing so would build up their conformance.  Further detail on the standards and the action that had been updated following a self-assessment was included on the agenda as a separate item.

It was noted that the audit of the cash and banking system and reconciliations had been deferred to 2025/26.  This was due to the long process involved in moving from one banking provider to another.  Once the implementation had been completed, the processes and procedures would be audited to ensure it had been done accurately.

With regards to a query on the deferred recommendation, it was noted that the introduction of the new telephony system had caused delays but the action following the audit was on track for completion at the end of March.

Resolved:-  (1)  That the Internal Audit work undertaken since the last Audit Committee, 1^st November, 2024 to 31st January, 2025, 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.