Issue - meetings

The report of the Executive Manager – Finance and Corporate Services.

Mr Ali – Internal Audit - RSM provided the Internal Audit Strategy for 2019-22, which was approved by the Group at its meeting on 10 May 2018 and is based on discussions with officers and the Chairman of the Corporate Governance Group. He continued to advise members that the Internal Audit team examine the underlying risks facing the Council and update the strategy and the resultant audit plan with senior officers on an annual basis. He added that there are four questions to assist Members in their consideration of the audit plan. These are:

1)    Is the Corporate Governance Group satisfied that sufficient assurances are being received within the annual plan (as set out at appendix A of the strategy) to monitor the council’s risk profile effectively?

2)    Does the strategy for the internal audit (as set out in appendix B of the strategy) cover the Council’s key risks as they are recognised by the Corporate Governance Group?

3)    Are the areas selected for coverage this coming year appropriate?

4)    Is the Corporate Governance Group content that the standards within the charter (as set out in Appendix C of the Strategy) are appropriate to monitor the performance of internal audit?

On the assumption that Members believe the four questions are positively answered then the level of resource should be adequate. RSM have been challenged to continue to provide value for money with their audit fee and Mr Ali confirmed that the audit fee for 2019/20 is £48,750 (excluding VAT).

Members considered the report and asked specific questions in respect of Asset Investment and why this was marked as advisory and will not be audited again until 2021/22. The Executive Manager – Finance and corporate Governance advised that there were new CIPFA guidelines and external auditors are also involved in auditing Asset Investment. Mr Ali added that the Audit Strategy is subject to changes if the group wished to look at Asset investment before 2021/22. Mr Ali to feedback views on whether changes to the audit Plan were necessary given the risk profile of asset investment.

Members thanked Mr Ali for a comprehensive report, but questioned the fee for 2019/20 and whether this was considered value for money. The Executive Manager – Finance and Corporate Services responded by explaining the fee was necessary. Local Authorities are having to respond to national financial challenges and Council’s are having to do things differently in an increasingly risky environment.

It was RESOLVED that the Internal audit Strategy and Audit Plan for 2019/22 be approved.