The Chief Internal Auditor presented the Council’s draft Internal Audit Strategy and draft Annual Risk Based Audit Plan for the year April 2017 to March 2018. 

The Chief Internal Auditor informed the Committee that the proposed draft risk based plan struck a good balance between the risks identified, the internal audit resources available and the assurance work being carried out by other agencies.  The Plan provided for 1,070 productive days being delivered during 2017/18 based on the current vacancy rate of 50% in the structure in Quarter 1, 75% of the establishment in post in Quarter 2 and a full establishment in post in Quarters 3 and 4.  She stated that the delivery of the 1,070 productive days was wholly dependent on the above materialising.  Should this not be the case, there is the potential to buy in any shortfall during the year to meet the maximum commitment. 

The Chief Internal Auditor reported that the draft Internal Audit Strategy for 2017-18 demonstrates how the Internal Audit Section will be delivered and developed in accordance with the Terms of Reference and how it links to the Council’s objectives and priorities.  She stated the Strategy will be reviewed and updated annually in consultation with stakeholders namely the Audit Committee, Corporate Management Board, External Auditors and senior management.  

The Chief Internal Auditor reported that the draft Annual Risk Based Audit Plan 2017-18 has been formulated to ensure compliance with the Standards contained within the Public Sector Internal Audit Standards.  Draft detailed plans for each Directorate had been included to ensure compliance with the Standards and to keep the Audit Committee fully informed.

The Committee considered that it needed to exercise caution in approving the Audit Plan and expressed its concern at the lack of staff resources in Internal Audit could have on achieving the targets set in the Audit Plan.  The Chief Internal Auditor stated that the seriousness of the situation had been recognised by the Shared Service which was reviewing the position on a weekly basis. 

The Committee also expressed concern at the number of additional productive days to be delivered in Social Services and Wellbeing and requested a breakdown of the services it would support under Cross Cutting given the number of days proposed in the Plan.  The Chief Internal Auditor stated that she would more detail of the Cross Cutting services to be audited.  The Performance Audit Manager informed the Committee that auditing Cross Cutting services is an area where the Wales Audit Office could assist Internal Audit in order to mitigate the risks identified.  The Committee considered that the draft Audit Plan needed to change to take account of the support offered to Internal Audit by the Wales Audit Office.  The Chief Internal Auditor informed the Committee that the Audit Plan would be brought back to the next meeting of the Committee along with the Internal Audit Shared Service Charter and Forward Work Programme.    

RESOLVED:            That an amended draft Internal Audit Strategy and draft Annual Risk Based Audit Plan for 2017/18 be brought to the next meeting of the Committee taking account of the concerns raised by the Committee along with the Internal Audit Shared Service Charter and Forward Work Programme.