The purpose of this report is to provide the Head of Internal Audit’s Annual Opinion on the Council’s control environment in relation to governance, risk management and internal control and to inform the Governance and Audit Committee of the work and performance of Internal Audit for the Financial Year 2020-21.

The Public Sector Internal Audit Standards require the Head of Internal Audit to provide an Annual Report to support the Annual Governance Statement. The report should:

The draft audit plan for 2020-21 was due to be presented to Audit Committee in April 2020 however the Covid-19 outbreak delayed the planning process as significant new risks and ways of working had to be considered to inform the Plan.  The 2020-21 Internal Audit Plan was therefore approved on the 10th September 2020.  The plan recognised that there would be a different emphasis due to the impact of COVID-19; particular risks arising from COVID-19, availability of audit and service staff and challenges arising from the remote ways of working. The approved plan was also more flexible to be able to respond to changing circumstances and events that may occur during the year as a result of the pandemic.

2020-21 has seen the Covid-19 pandemic have a major impact on how the Council has had to operate and the governance arrangements and processes that were put in place to ensure it could continue to support residents and businesses during this difficult and challenging year.

Covid-19 also changed how audit work was carried out in 2020-21 and all staff have worked from home for the year. Audits have been conducted remotely using various digital solutions, holding remote meetings, sharing of screens, and sending of data and evidence electronically.

The Internal Audit Annual Report is at Appendix A which summarises the reviews undertaken during 2020-21 including any counter fraud work, the recommendations made and any control issues identified. A total of 26 reviews were completed with an audit opinion and a total of 38 medium recommendations made. A detailed breakdown is included at Annex 1 of the appendix.

Progress against the 2020-21 Risk Based Plan is attached at Annex 2. This details the status of each planned review. It should be noted that some reviews listed have no audit opinion, for example advice and guidance, External Audit liaison, Fraud, and Irregularity work. This is because the audit work carried out in respect of these items was planned but the nature of the work does not lead to testing and the formation of an audit opinion.

Taking into account the results of the internal audit reviews completed during 2020-21, the recommendations made and considering other sources of assurance the Head of Internal Audit’s annual opinion on the adequacy and effectiveness of the Council’s framework of governance, risk management and internal control for 2020-21 is of reasonable assurance. No significant cross-cutting control issues have been identified that would impact on the Council’s overall control environment and the weaknesses identified are service specific.

RESOLVED:                       That Members of the Governance and Audit Committee gave due consideration to the Annual Internal Audit Report for the Financial Year 2020-21, including the Head of Internal Audit’s Annual Opinion on the adequacy and effectiveness of the Council’s framework of governance, risk management and internal control.