Agenda item

Juan Fosco, Internal Auditor at Mazars LLP, introduced the report sets out the Internal Audit Strategy and proposed Operational Plan (Plan) for 2022/23 which details how the Council will meet its statutory requirements for Internal Audit.

A Member referred to the cyclical process of organising the audit process and enquired about the internal effort and costs associated to support the process.

The Internal Auditor replied that the audit process focuses on one area over a two-week timeframe which is then reported on.

Stephen Fitzgerald, Interim Head of Finance and Corporate Resources, explained that he could assist however not at the meeting and offered to provide a ratio analysis on it at a later time. He said time was taken up to inform the internal audit process however the process drives efficiency within the Council.

A Member noted the changes to the Strategic Risk Assessment and asked how it features in the Internal Audit Plan. He also felt it prudent to mention the Council’s plans for leisure centres given the big increases in energy costs that are to occur.

The Internal Auditor stated that Mazars are reviewing the leisure centre continuity plans and providing an opinion about best practice. He added that the risks are considered in the plans and they are dynamic in nature and have built in contingency days where they react appropriately to any changes that arise.

The Interim Head of Finance and Corporate Resources highlighted that there will be a report discussed at a forthcoming Cabinet meeting in which the risk of spending pressures will be presented.

The Member referred to the full income of the leisure centres and asked whether the Council is taking money off on the other side.

The Interim Head of Finance and Corporate Resources responded that the Council has thought about the issue carefully and will await what situation will occur as it may be the position of the previous winter where income was affected. He, however, noted mitigations that would be brought forward and resources drawn upon to deal with any outcomes.

The Chairman expressed hope that the government will provide support for the heating of swimming pools.

The Vice-Chairman referred to most reports being carried out online and assumed it was because officers are working at home. She asked whether working from home causes a delay in officers providing information.

The Internal Auditor confirmed that in the last two years the way audits have been conducted has changed. Audits can now take place through Microsoft Teams and screen sharing arrangements as well as enabling a secure portal where information can be shared to make the process less time consuming.

A Member referred to Item 11 and 12 on the IT Audits and asked what the scope of the audit is dependent on as well as when it is implemented.

The Internal Auditor explained that the two audits are included in response to the Audit Needs Assessment. Currently the draft report is with the Digital to assess and scope the delivery of timescales. He also assured he Chairman that the audits will be delivered sometime in Q3 and Q4 of the year and at the very least by March 2023.

The Chairman sought assurances that the list of matters the Internal Audit will review will not be constrained by fees or resources.

The Internal Auditor assured the Committee that it will not be constrained and provided examples of where some audits were removed in order to focus on audits that gave the most value.

The Chairman referred to the small print on P.15 and found it interesting how Mazars see the interaction of the auditor and the committee. He suggested that perhaps he could include bullet points of the auditor's expectation of the Council.

The Vice-Chairman noted the removal of some audits and the addition of others and enquired whether Mazars revisits them if at all.

The Internal Auditor outlined the process in which a master spreadsheet is used to record all audits that have occurred and will occur and consider each respectively every 2, 3 or 5 years especially in light of legislation changes.

The Chairman referred to the first line of Part 5.2, P.11 and enquired whether consideration is in fact a fee.

The Internal Auditor confirmed that it refers to when Mazars raises a recommendation with Management that has a financial implication.

The Chairman then noted that no Member wished to speak so moved to vote on the recommendations which was agreed unanimously.

RESOLVED

The Committee noted the contents of the report.