The Committee considered and approved the draft Internal Audit Strategy (Appendix A) and draft Annual Risk Based Audit Plan for 2022-23 (Appendix B).

The Deputy Head of the Regional Internal Audit Service sought approval of the Annual Internal Audit Strategy and Risk Based Plan for 2022-23.

The Deputy Head of the Regional Internal Audit Service reported that the draft Internal Audit Strategy document for 2022-23, demonstrated how the Internal Audit Service will be delivered and developed in accordance with the Terms of Reference and it will be reviewed and updated annually in consultation with stakeholders.  She informed the Committee that the 2022-23 draft Annual Risk Based Plan of work had been formulated in compliance with the Public Sector Internal Audit Standards (PSIAS).  She stated that the proposed Annual Plan continued to recognise particular risks arising from remote ways of working and is also flexible to allow for changing circumstances and events that may occur.  Internal Audit work will be undertaken remotely using video conferencing and digital solutions as a basis for meetings and sharing documents and data but will also include in person visits and meetings as required for each audit. 

The Deputy Head of the Regional Internal Audit Service informed the Committee that the proposed Annual Plan will offer sufficient coverage to be able to provide an opinion at the end of 2022-23 and the Committee will receive updates on how the Plan is being delivered and any changes that may be required.

A member of the Committee asked whether the plan was deliverable, and would it link with the Risk Register, financial systems and budget monitoring and whether further reports would be received on progress made on the plan.  The Deputy Head of the Regional Internal Audit Service informed the Committee that the plan had been constructed based on a full complement of staff, but there are contingencies in that the SWAP Internal Audit Services could be commissioned to undertake some of the audit work.  She stated that the Committee will receive quarterly reports on progress on the plan.  The plan would also link with the Risk Register and included within the plan is the audit of financial systems and budget monitoring. 

A member of the Committee asked if there was a reason for the inspection of highways not being included in the plan.  The Deputy Head of the Regional Internal Audit Service informed the Committee that there are a finite number of days to available for audits, and following decisions with Senior Management within the Directorate it was agreed warranted to concentrate resources on other service areas that were deemed higher risk and therefore higher priority, but highways will be considered in future years.

A member of the Committee asked whether the Council has the capacity for the level of change proposed.  The Head of the Regional Internal Audit Service informed the Committee that the Council does have a good track record of implementing recommendations and making changes requested.  The Chairperson asked whether there is sufficient capacity within the Internal Audit Service to deliver the plan and whether it should be rationalised.  The Head of the Regional Internal Audit Service informed the Committee that external support can be bought in when needed and there was a need to ensure the key areas are covered.

RESOLVED:            That the Committee considered and approved the draft Internal Audit Strategy (Appendix A) and draft Annual Risk Based Audit Plan for 2022-23 (Appendix B).