Agenda item

The Committee considered a report on the Internal Audit Plan for 2020-21.

The Committee noted that, in 2018-19, the Council’s internal audit function had been outsourced to KPMG. The Audit and Business Improvement Manager was the client-side officer and a multi skilled team within Audit and Business Improvement, who had both audit and business improvement experience, had been retained.  The new structure had produced year-on-year savings of approximately £90,000 for a similar level of audit coverage, but with fewer oncosts.

The Committee noted that, in 2019-20, 29 audits had been completed, which represented 94% of the audit plan.  The work carried out so far had shown that there was no indication of any material or significant issues arising.

In introducing the report, the Audit and Business Improvement Manager commented that in developing the Plan for 2020-21, the various high-risk factors associated with change brought about by the challenges of COVID-19, Future Guildford, financial pressures, and new ICT systems had meant that the Plan would need to focus on financial controls, asset controls, productivity, performance and outputs and delivery.  The new ways of working introduced to respond to these challenges required a performance framework that provided the necessary assurance. 

The internal audit team were continuing to carry out workshops and business re-engineering processes as part of Phase B of Future Guildford.  This was an opportunity for the team to provide assurance that any new structure, system and process re-design included the right level of governance and control.

In considering this matter, the following points were raised/clarifications made:

·       The reduction in the planned number of audit sessions was likely to reduce the contractor’s fee

·       It may be necessary to make changes to the Plan dependent on ongoing challenges and circumstances

·       The Council had established a recovery group to assist the retail sector in the town as lockdown eased.

·       The contract with KPMG had been extended as it was anticipated that the Audit and Business Improvement Manager would be leaving the Council next year and their continued engagement would provide the necessary continuity, flexibility and resilience

·       In relation to audits completed in 2019-20, the Audit and Business Improvement Manager confirmed that the audit assurance rating of “No Assurance” had been given in respect of missing ICT assets, which had been identified in the financial reconciliation and found that security of the assets, stock control and records were insufficiently robust.  The three findings of “Partial Assurance” related to data protection, housing voids/lettings and business continuity.  All of these matters would be looked at again.

·       In response to a question regarding the Council’s protection against, and any penalties that could imposed regarding, any major failure on the part of the Council’s internal audit contractor, the Audit and Business Improvement Manager confirmed that the contractor was closely supervised and their work carefully checked and monitored and any failure on their part could be addressed through the contract

Having noted that the audit plan for 2020-21 had been structured to reflect the changing needs and priorities of the Council at the current time, the Committee

RESOLVED: That the internal audit plan for 2020-21, as set out in Appendix 1 to the report submitted to the Committee, be approved.

Reason:

To ensure an adequate level of audit coverage.