Audit, Governance & Standards Committee

14 March 2022

 

 

Internal Audit & Assurance Report 2022/23

 

Final Decision-Maker

Audit, Governance & Standards Committee

Lead Head of Service

Andrew Townsend, Interim Head of Audit Partnership

Lead Officer and Report Author

Andrew Townsend, Interim Head of Audit Partnership

Classification

Public

 

 

Wards affected

All

 

 

 

 

 

 

Executive Summary

 

 

 

The report summarises the risk assessment and consultation process undertaken by Internal Audit to compile the programme of work that will lead up to the 2022/23 Head of Internal Audit Opinion.

Purpose of Report

 

Decision

 

 

 

 

 

 

 

This report makes the following recommendations to this Committee:

1.   Approve the Internal Audit & Assurance Plan for 2022/23 at Appendix 1 to this report. This includes delegating to the Head of Audit Partnership to keep the plan current for in-year emerging risks as set out in para 2.5 of the report.

2.   Note the Head of Audit Partnership’s view that internal audit currently has

sufficient resources to deliver the plan and a robust Head of Audit Opinion.

3.     Note the Head of Audit Partnership’s assurance that the plan is compiled

independently and without inappropriate influence from management.

 

Timetable

 

 

 

Meeting

 

Date

 

Audit, Governance & Standards Committee

14 March 2022

 


Internal Audit & Assurance Plan 2022/23

 

1.       CROSS-CUTTING ISSUES AND IMPLICATIONS

 

Issue

Implications

Sign-off

Impact on Corporate Priorities

We do not expect the recommendations will by themselves materially affect achievement of corporate priorities or cross cutting

objectives. However, they will support the Council’s overall achievement of its aims by contributing to effective corporate governance.

Andrew Townsend, Interim Head of Audit Partnership.

1 March 2022

Cross Cutting Objectives

Risk Management

The audit plan draws on the Council’s risk management in considering the areas for audit examination. In turn, audit findings will provide feedback on the identification, management and controls operating within risk management.

 

Financial

The work programme set out in the plan is

produced to be fulfilled within agreed resources for 2022/23.

 

Staffing

We will deliver the recommendations with our

current staffing establishment.

 

Legal

The Accounts and Audit Regulations 2015 contain provisions on internal audit. The Regulations require that the Council undertakes an effective internal audit taking into account public sector internal auditing standards. The Standards require that the Head of Audit Partnership provides an annual opinion based on objective assessment of the framework of governance, risk management and control.

 

Therefore, the Council is required to consider and approve an Internal Audit & Assurance Plan for 2022/23 to maintain regulatory conformance.

Interim Deputy Head of Legal Partnership

Privacy and Data Protection

Accepting the recommendations will increase the volume of data held. We will hold that data in line with our retention schedules.

Andrew Townsend, Interim Head of Audit Partnership.

 

 

1 March 2022

Equalities

The recommendations do not propose a change

in service therefore will not require an equalities impact assessment

Public Health

No direct implications.

 

Crime and Disorder

No direct implications.

 

Procurement

Accepting the recommendations does not create a need for any new procurement exercise.

 

 

2.           INTRODUCTION AND BACKGROUND

 

2.1        The Public Sector Internal Audit Standards (the “Standards”) require the audit Partnership to produce and publish a risk based plan, at least annually, to determine the priorities for the year. The plan must consider input from senior management and Members and be aligned to the objectives and risks of the Council.

 

2.2        The purpose of this report is to set out the annual assurance plan 2022/23 to Members. The report details how the plan is devised, the resources available through the Partnership and the specific audit activities and engagement delivered over the course of the year.

 

2.3       


The Standards set out the requirements of the Chief Audit Executive (the Head of Audit Partnership fulfils this role for Maidstone Borough Council) in creating the audit plan. Specifically, Standard 2010:

 

2.4        The Committee needs to obtain assurance on the effectiveness of the control environment, governance and risk management arrangements. The principal source of this assurance is derived from the annual assurance plan.

 

2.5        Standards explicitly support that the plan is flexible and responsive to emerging and changing risks across the year. Therefore the 2022/23 plan includes audit reviews that are high   priority and those that are medium priority. By taking this approach we are able to achieve flexibility within the plan and ensure that the plan remains relevant throughout the year.


 

3.   AVAILABLE OPTIONS

 

3.1        There is a statutory requirement for the Council to have an internal audit of its governance, risk and control processes. The Accounts and Audit Regulations 2015, more specifically require that the audit takes into account the Public Sector Internal Audit Standards. The Council could decide that it does not want a programme of work for the audit service, however,   this would go against professional Standards.

 

3.2        The appendix sets out the proposed plan for 2022/23, including background details on how we compiled the plan and how we propose to manage its delivery. The proposal is for the Committee to consider and approve the plan.

 

3.3        We confirm to Members that, although the plan has undergone broad consultation with management, it is compiled independently and without being subject to inappropriate influence.

 

3.4        The Committee as part of its terms of reference must retain oversight of the internal audit service and its activities. This includes the Committee’s role to formally consider and approve the plan.


 

4.        PREFERRED OPTION AND REASONS FOR RECOMMENDATIONS

 

4.1     We recommend Members approve the attached audit and assurance plan. The plan has been created through a process conforming with appropriate Standards and Regulations and in consultation with a broad range of officers. The Head of Audit Partnership believes this is the appropriate plan of work to support his opinion at year end.


 

5.       CONSULTATION RESULTS AND PREVIOUS COMMITTEE FEEDBACK

 

5.1        We consult with Managers, Heads of Service and Directors throughout the year as we undertake our work, but also specifically as part of the audit planning process. The plan attached represents the collective views of management and the audit service.

5.2        The overall resource allocation between the partners is consistent with the collaboration agreement and discussed with the Shared Service Board.


 

6.       NEXT STEPS: COMMUNICATION AND IMPLEMENTATION OF THE DECISION

 

6.1     On approval we will begin work towards delivering the approved plan immediately. We will report to Members on progress in the autumn and raise any urgent matters as set out in the Audit Charter.


 

7.        REPORT APPENDICES

 

7.1     The following documents are to be published with this report and form part of the report:

·         Appendix 1: Internal Audit & Assurance Plan 2022/23


 

8.        BACKGROUND PAPERS

 

The appendix includes reference to the Public Sector Internal Audit Standards (full document at this link). Further background papers, including detailed resource calculations, risk assessments and notes from consultation meetings can be made available on request.