Agenda item

The Shared Internal Audit Service Manager introduced the report which set out the Council’s internal audit work programme for 2023/24. 

The Shared Internal Audit Service Manager said that the audit approach could be seen from page 26 of the report. He drew Members’ attention to page 31 of the report which showed a summary of the work programme with allocation of the 250 purchased audit days. The Shared Internal Audit Service Manager said that the work programme included coverage of key financial systems, as agreed by Leadership Team in February 2023.

The Shared Internal Audit Service Manager said that Appendix A of the report detailed the proposed audits outline scope, with Appendix B giving the proposed audit start dates.  He said that flexibility may be required but that it was expected that this work would be delivered by the end of March 2024.

The Shared Internal Audit Service Manager said that the Committee would continue to receive update reports, which would detail the work of completed audits, and any important recommendations.

Councillor Curtis referred to page 31 of the report and asked how the estimates contained within the draft audit plan had been compiled, and if changes to the estimated allocation of audit days could be made should circumstances transpire.   

The Shared Internal Audit Service Manager said that the number of audit days purchased was commissioned by the Council. He said that a professional judgement was made as to if this number was sufficient, of which he was confident. He said that it was possible to flex the audit plan, and that any changes would be reported back to the Committee.

The Shared Internal Audit Service Manager said that the amount of time which was allocated to each audit was again a professional judgement, based upon experience. He said that there was a contingency of days within the plan, which could be drawn upon. He added that should less time be used than expected this surplus would be moved to into the contingency to be utilised on something else.

Councillor Curtis said that this was encouraging to hear.

Councillor Fernando referred to page 33 of the report and asked for further detail on how customer client feedback was being reviewed.

The Shared Internal Audit Service Manager said that a standard customer service questionnaire was sent to lead officers at the conclusion of any audit, but the rate of return was gradually declining. He said that alternative ways of gathering such intelligence were being explored, but that technology was in its infancy. 

The Chairman referred to paragraph 1.2 of the introduction to the report and asked if the strategy document mentioned could be circulated to the Members of the Committee. The Shared Internal Audit Service Manager said that he would arrange for this. 

The Chairman referred to page 29 of the report and asked if the approach to work had changed post covid and if the impact of Covid was reducing.

The Shared Internal Audit Service Manager said that that pre Covid work was carried out almost exclusively on site. He said that the impact of Covid meant that the Shared Internal Audit Service (SIAS) continued to deliver most of its work remotely, but that the methodology remained the same. He said that SIAS utilised technology, such as Microsoft Teams for communication, and data analytics for auditing purposes. He said that the impact of Covid was less than it was one/two years ago and continued to diminish.

The Chairman referred to paragraph 2.16 of the report and asked why full completion of every aspect of the work plan was not always possible.

The Shared Internal Audit Service Manager said that this tended to happen in February/March with year-end closure pressures. He said that this may mean that aspects would not be completed until May but would not be cancelled without both the agreement of the audit sponsor and Members being advised. 

The Chairman referred to Appendix A of the report and asked why some of the audits were short.

The Shared Internal Audit Service Manager said that certain audits were carried out annually and therefore required less time than a conventional audit.   

The Chairman referred to page 37 of the report and asked who the ‘Audit Champion’ was.

The Shared Internal Audit Service Manager said that the Audit Champion was the Head of Strategic Finance and Property, who monitored the audit programme. He said that SIAS had quarterly catch ups with the Audit Champion, and that these meetings were also attended by the Shared Anti-Fraud Service. 

The Head of Strategic Finance and Property said that he had oversight of the audit programme, which ensured that SIAS were kept on track and up to date with any arising issues. He said that this also ensured that SIAS were not being obstructed internally. The Head of Strategic Finance and Property reiterated that the audit programme was flexible to the Council’s needs.

Councillor Curtis asked for confirmation that the Committee’s oversight included being informed of any changes to the audit programme.

The Shared Internal Audit Service Manager said that the Committee’s update reports would include any such changes to the audit programme.

It was moved by Councillor Fernando and seconded by Councillor Curtis that the recommendation as detailed, be approved. After being put to the meeting and a vote taken, the motion was declared CARRIED.

RESOLVED – that the proposed East Herts Council Internal Audit Plan for 2023/24 be approved.