Agenda item

The Shared Internal Audit Service (SIAS) Manager introduced the report which summarised the audit activity and outcomes for 2025/26. He drew Members attention to page 90 of the report which gave the annual assurance opinion.

The SIAS Manager referred to page 93 of the report which showed individual audit opinions and recommendations, which included comparisons with last year in the supporting appendix starting at page 98.

The Shared Internal Audit Service Manager summarised Internal Audit activity and outcomes for 2025/26 and provided an overall Reasonable Assurance opinion, consistent with the previous year. Members were advised that the report also set out Internal Audit’s compliance with the Global Internal Audit Standards, performance against service indicators, and key service developments during the year.

Members were advised that there was content at page 95 of the report that showed how the service had faired against performance indicators for the last year, which were all met without exception.

The Committee was advised that there were also details of main service developments that had taken place, including securing business that generated income from outside of Hertfordshire. The Internal Audit Charter 2026/27 was presented for annual approval, starting at page 106.

The Charter was essentially the terms of reference or mandate for internal audit, and it sets the authority and responsibilities of the service. The charter was reviewed and approved annually by the committee and was substantially unchanged from the previous year, with the exception of an amendment reflecting member involvement in overseeing the role of the Council’s Internal Audit Manager, as required by the Global Internal Audit Standards.

The Committee was also reminded of the requirement for management to confirm that Internal Audit’s scope and resources had not been subject to inappropriate limitations during 2025/26. The Director for Finance, Risk and Performance confirmed that the scope and resources for internal audit were not subject to inappropriate limitations in 2025/26.

In response to a question from a Member regarding the Reasonable Assurance opinion, the Shared Internal Audit Service Manager explained that assurance opinions ranged from Substantial Assurance to No Assurance and that achieving a higher overall opinion would require a greater proportion of individual audit reports receiving Substantial Assurance ratings.

A further question was raised regarding the omission of BEAM from the audit opinions listed within the report. Members were advised that an audit of BEAM was scheduled to commence during Quarter 2 (July to September) and would result in an Internal Audit report with an assurance opinion.

The Chair thanked the SIAS Manager for his report. It was moved by Councillor Deffley and seconded by Councillor Deering, that the recommendations, as detailed, be approved. After being put to the meeting and a vote taken, this motion was declared CARRIED.

RESOLVED – that (A) the Annual Assurance Statement and Internal Audit Annual Report 2025/26, be noted;

(B)   the results of the self-assessment required by the Global Internal Audit Standards (GIAS) and the Quality Assurance and Improvement Programme (QAIP), be noted;

(C)   the SIAS Audit Charter 2026/27, be approved; and

(D)   that management assurance be sought that the scope and resources for internal audit were not subject to inappropriate limitations in 2025/26.