Subject:		Internal Audit Progress Report – Quarter 1 (1 April to 30 June 2020)
Date of Meeting:		27 October 2020
Report of:		Executive Director of Finance and Resources
Contact Officer:	Name:	Mark Dallen (Audit Manager) Russell Banks (Chief Internal Auditor)	Tel:	01273 291314 07824 362739
	Email:	mark.dallen@brighton-hove.gov.uk russell.banks@eastsussex.gov.uk
Ward(s) affected:		All

FOR GENERAL RELEASE

1.         PURPOSE OF REPORT AND POLICY CONTEXT

1.1 The purpose of this report is to provide Members with an update on all internal audit and counter fraud activity completed during quarter 1 (2020/21), including a summary of all key audit findings.  As requested by Members the summary of key audit findings also includes narrative on the key findings from the most recent audit of the Housing Repairs Service which was completed after the end of quarter 1.

1.2 The report also includes details of progress on delivery of the annual audit plan along with an update on the performance of the Internal Audit service during the period.

2.         RECOMMENDATIONS:    

2.1      That the Committee note the report.

3. CONTEXT/ BACKGROUND INFORMATION

3.1      As a result of the Covid-19 pandemic the majority of our planned work during quarter 1 was put on hold and audit resources were redeployed to support the wider organisation. For those staff remaining within the service key areas of focus were on:

· Advice and support in relation to system changes to support remote working;

· Finalisation of reports that were in year or put on hold at the 2019/20 year-end;

· Carrying out data analytics on key financial systems e.g. creditors;

· Delivery of some high priority audit projects.

4. ANALYSIS & CONSIDERATION OF ANY ALTERNATIVE OPTIONS

4.1 Full details of both the audit and non-audit work delivered during Quarter 1 are detailed in Appendix 1, together with our progress against our performance targets.

4.2 A revised 2020/21 Internal Audit Plan has been produced and is presented as a separate agenda item to this Committee.

5. COMMUNITY ENGAGEMENT & CONSULTATION

5.1 None.

6.         CONCLUSION

6.1 The Committee is asked to note the report.

7.         FINANCIAL & OTHER IMPLICATIONS:

Financial Implications:

7.1 It is expected that the Internal Audit and Corporate Fraud Plan 2020/21 will be delivered within existing budgetary resources. Progress against the plan and action taken in line with actions support the robustness and resilience of the council’s practices and procedures in support of the council’s overall financial position.

            Finance Officer Consulted: James Hengeveld                           Date: 24/09/20

Legal Implications:

7.2 The Accounts and Audit Regulations 2015 require the Council to ‘undertake an effective internal audit to evaluate the effectiveness of its risk management, control and governance processes, taking into account public sector internal auditing standards’. It is a legitimate part of the Audit and Standards Committee’s role to review the level of work completed and planned by internal audit.

Lawyer Consulted: Victoria Simpson                                           Date: 23.9.20

Equalities Implications:

7.3       There are no direct equalities implications.

Sustainability Implications:

7.4       There are no direct sustainability implications.

Brexit Implications:

7.5       There are no direct Brexit implications.

Any Other Significant Implications:

7.6       None

SUPPORTING DOCUMENTATION

Appendices:

1.         Internal Audit Progress Report Quarter 1 - 2020/21.

Background Documents:

1.         Internal Audit Strategy and Annual Audit Plan 2020/21.