Agenda item

The Interim Head of Audit Partnership introduced the Annual Internal Audit Report and Opinion 2021/22.  In accordance with the Public Sector Internal Audit Standards (the Standards), the report included:

·  The annual opinion of the Interim Head of Audit Partnership on the overall adequacy and effectiveness of the Council’s internal controls, corporate governance framework and risk management arrangements;

·  A summary of the work completed by Mid-Kent Audit that supported the opinion; and

·  A statement on conformance with the Standards.

It was noted that:

·  The planned programme of work delivered by the Internal Audit team had been constrained by the impact of the COVID-19 pandemic restrictions and significant staffing changes within the team.  The results of the reduced level of internal audit work concluded during the year required the Interim Head of Audit Partnership to seek additional assurances to form his opinion (including the work of the Mid-Kent Services Benefits Fraud team and other corporate monitoring teams and the outcomes of an external review of the Council’s ICT cyber security arrangements).  Utilising all these forms of assurance, the Interim Head of Audit Partnership was able to draw a positive conclusion as to the adequacy and effectiveness of the Council’s risk management, control and governance processes.  In his opinion, the Council had adequate and effective management, control and governance processes in place to manage the achievement of its objectives.

·  The Interim Head of Audit Partnership had reached his conclusions independently and without any undue pressure from Officers or Members.

In response to questions, the Officers explained that:

·  Details of audit findings were reported back to the Committee.  However, at this stage, that information was not ready.  The Interim Head of Audit Partnership’s opinion was such that he was still able to give a clean bill of health and Members were still in a position to agree that the opinion could be relied upon.

·  The Standards required audit planning to start with a risk assessment considering internal and external risks.  Based on the risk assessment and consultations with management and to ensure the Plan remained flexible and responsive to emerging and changing risks throughout the year, a priority rating was allocated to each of the audit projects included in the Plan.  Local Plan Budget and Spending had been allocated a medium priority rating.  The aim had been to focus on the delivery of all high priority rated projects and some medium priority rated projects during the year.  It was the intention to focus on high priority rated projects in future.

·  Work on the audit review of IT Development was ongoing.  It was being undertaken by specialist contractors.

During the discussion, the Internal Audit team was thanked for its efforts.

RESOLVED:

1.  That the annual opinion of the Interim Head of Audit Partnership on the overall adequacy and effectiveness of the Council’s internal controls, corporate governance framework and risk management arrangements be noted.

2.  That the work underlying the opinion and the Interim Head of Audit Partnership’s assurance of its independent completion in conformance with proper Standards be noted.