Decision - Internal Audit Stategy and Annual Audit Plan 2013/14

90.1         The Committee considered a report of the Executive Director of Finance & Resources, presenting the Draft Internal Audit Strategy & Annual Audit Plan 2013/14. This included both the operational internal audit and counter fraud work programmes together with an Audit Charter replacing the former Internal Audit Terms of Reference. The report outlined the principles upon which the plan had been prepared as well as setting the outcomes that the plan would seek to achieve.

90.2         Councillor Hamilton asked questions about the 800 days allocated to counter fraud. The Head of Audit & Business Risk explained that the current Housing Benefit Fraud Team was merging with corporate fraud increasing the number of days and there is a note in the document to explain this.

90.3         Councillor Wealls asked about any key thematic changes compared with last year, and The Head of Audit & Business risk explained that there were no major differences only where there had been large areas of change – such as the inclusion of Public Health. There was a process to maintain to determine audit needs based on a continuous risk assessment.  Some of the audit reviews were cyclical; whilst others related to follow-up audit reviews.

90.4         Councillor Wealls asked about the number of days allocated for gifts and hospitality; Officers explained that a different directorate was audited each year; the testing often required a survey of managers. Councillor Wealls went on to ask about the ‘Workstyles’ programme and how this linked with TBM. The Head of Financial Services, Nigel Manvell, explained that Workstyles were reported through TBM as one of the core VFM programmes, and added that the TBM process would pick up any financial problems including any potential under-achievement of savings, It was explained that the Workstyles Project Board also kept the programme under review because there were wider benefits of the programme to be monitored than just financial savings; these included expected office space and carbon reductions; monitoring customer satisfaction for visitors to new Customer Service Centres, monitoring flexible working; reducing storage through rolling out electronic document management and other matters.

90.5         Councillor Smith asked why the i360 was still a high risk, and in response the Head of & Business Risk explained that this was just one example of major projects audit review and had been rated as high risk.

90.6         Councillor Sykes asked about ‘deliverables’ and in particular the implication of undertaking the statutory minimum. In response the Head of Audit & Business Risk explained that the Council was not far above what is classed as the ‘minimum audit cover’ and the focus of the work was on adding value.

90.7         Councillor Ann Norman asked about concessionary fares and evidence of fraud in this area; The Head of Audit & Business Risk explained that there were national indicators that suggested this was on the increase, and it was important that the Council ensured its own scheme was robust.

90.8         Dr Horne asked if it would be useful for the plan to set out the role of the Committee and the Executive Leadership Team in reviewing these audits, and also suggested that it could be highlighted how the Audit Plan had shifted to change the risk profile; finally he noted that in relation to the costs of the function it would be helpful to clarify the split between in-house and external. The Head of Audit & Business Risk explained that when planning coverage of the Audit Plan there would be close liaison work with the external auditors and that the split of costs was therefore variable but focused on making best use of available skills to ensure value for money. Dr Horne went on to ask about the protocol and the Head of Audit & Business risk explained it would change for the forthcoming year as the new Internal Audit Standards  had just been issued, and more time would need to be given to the interpretation of these.

90.9         Councillor Hamilton noted that audit reviews giving limited or no assurance, should be reported to the appropriate Committee Chair in the same way they had been reported to the Lead Cabinet Member in the past.

90.10    RESOLVED –

  i.                  That the Audit & Standards Committee provides any comments and highlights any of significant concern it wishes included if possible, in the draft Internal Audit Strategy and Annual Audit Plan for 2013/14.

ii.                  That the Audit & Standards Committee approves the draft Internal Audit Strategy and Annual Audit Plan for 2013/14 attached at Appendix 1.