Subject:		Internal Audit Progress Report – Quarter 2 (1 July to 30 September 2020)
Date of Meeting:		12 January 2021
Report of:		Acting Chief Finance Officer
Contact Officer:	Name:	Mark Dallen (Audit Manager) Russell Banks (Chief Internal Auditor)	Tel:	07795 336145 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 2 (2020/21), including a summary of all key audit findings.  The report also includes 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 2 was put on hold up until the end of August. From September 2020, audit activities have been delivered in accordance with a revised audit plan, which was approved by the Audit & Standards Committee in October 2020.

3.2 Key areas of focus up to the end of August 2020 were:

· Redeployment of some staff to Covid Cells to support the wider organisation;

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

· Carrying out data analytics on key financial systems;

· 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 2 are detailed in Appendix A, together with our progress against our performance targets.

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

            Finance Officer Consulted:     James Hengeveld                        Date: 11/11/20

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 in its capacity as the Committee with relevant delegated powers.

Lawyer Consulted: Victoria Simpson                                           Date: 13/11/20

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 2 - 2020/21.

Background Documents:

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

2. Revised Internal Audit Plan 2020/21