Agenda item

The Committee considered a report of the Chief Internal Auditor and Corporate Fraud Manager which submitted the Internal Audit Strategy, Charter and Internal Audit Plan for the period 1 April 2022 to 30 September 2022 for approval (for copy see file of minutes).

Responding to Mr C Robinson query regarding the approach to IT audits, the Chief Internal Auditor and Corporate Fraud Manager advised that individual audit assignments look at IT systems that support service delivery, however there was a separate IT audit plan. The IT auditor focuses on IT delivery and new areas of development with a focus on cyber security risks. The Corporate Director of Resources suggested that in future ICT related activity would be identified clearly in the internal audit plan appendix so that members could easily see which were dedicated IT audits.

Responding to comments from Councillor A Jackson in relation to grant audits, the Chief Internal Auditor and Corporate Fraud Manager advised that grant reviews are carried out routinely and that the value of the grant determines whether it requires Internal Audit certification. The Corporate Director of Resources advised that there were a number of safeguards in place to ensure that claims were in line with grant conditions. Accountants check all grant claims and there is a requirement that the Chief Internal Auditor issues an audit certificate before he signs off the claim as the Section 151 Officer. It was noted that the Interim Head of Planning, Development and Housing would be providing assurances on value for money issues relating to the Bishop Auckland Towns Fund and Future High Streets Fund which would be reported at item 8 on the agenda.   

Referring to the Internal Charter and the number of significant recommendations and activities remaining overdue, Mr I Rudd asked if the responsible manager would be invited to attend the Audit Committee to provide an explanation for the delay. The Chief Internal Auditor and Corporate Fraud Manager advised that timescales are agreed for actions to be implemented and progress on implementation is followed up on a quarterly basis. Timescales can be revised which is reported in detail at Part B of the agenda and the Committee can request officers to attend the Audit Committee to provide an update on the progress made. It was noted that any overdue high-level recommendations would be raised with the Service Managers and the Chair of the Audit Committee.

The Corporate Director of Resources explained that progress updates had been added to the overdue actions log to provide reasons for the revised timescale or the delay in implementation of audit recommendations. The Audit Committee can request that Officers attend the Audit Committee if members were not satisfied with the justification for the delay. He assured the Committee that Officers are routinely requested to attend the Audit Committee in relation to overdue implementation activity linked to limited assurance opinions.

Resolved:

(i)      That the Internal Audit Strategy be approved;

(ii)     That the Internal Audit Charter be approved;

(iii)   That the proposed Internal Audit Plan for the first six-month period of 2022/23, 1 April 2022 to 30 September 2023 be approved;

(iv)     That the indicative Internal Audit Plan for the second six-month period of 2022/23, 1 October 2022 to 31 March 2023 be noted.