Issue - meetings

The Executive Manager - Finance and Corporate Services advised the Group that the Internal Audit contract was due for renewal 2019/20 and a procurement exercise was undertaken in conjunction with Gedling Borough Council. The Council’s current auditors, RSM, were unsuccessful and the contract was awarded to BDO who scored highly against all cost and quality indicators.

Mr Gurpreet Dulay, Senior Manager, BDO, the Council’s new internal auditors addressed the Group and presented a report that focused on the Council’s three-year Internal Audit Strategy 2020 to 2023. Mr Dulay informed the Group that following discussions with senior officers of the Council ten audits are planned for 2020/21 covering a number of the Council’s key processes and systems. These include:

·         Budget Management and Reporting

·         Licensing

·         Markets

·         Pest and Dog Control

There will also be a follow-up audit of recommendations made in previous years but not implemented to ensure that audit recommendations are being complied with by officers.

To assist with their consideration of the audit plan the Group were asked the following questions:

·         Is the Group satisfied that sufficient assurances are being received within the annual plan to monitor the Council’s risk profile effectively?

·         Does the strategy for internal audit cover the Council’s key risks as they are recognised by the group?

·         Are the areas selected for review this coming year appropriate?

·         Is the Group content that the standards within the charter (provided in the appendix with the report) are appropriate to monitor the performance of internal audit?

The Group asked specific questions in relation to the plan and whether there were additional areas highlighted for targeting not covered in previous years and whether there are risk ratings that could be quantified for the Group to benchmark and compare with other similar authorities.

Mr Dulay explained that some reviews were not included and provided the example Building Control, as this was completed recently by the previous internal audit done by RSM, adding that BDO would conduct follow up audits where areas of concern have been highlighted. In respect of benchmarking Mr Dulay advised the Group that this would be provided in the audit opinions that BDO will provide in their reports.

The Executive Manager - Finance and Corporate Services advised that BDO had demonstrated an innovative approach to the Audit Programme, adding that the plan was not fixed, and is likely to change as challenges arise. The Executive Manager – Finance and Corporate Services added that a report on Risk Management Strategy is to be presented at the next meeting of Governance Scrutiny in May 2020.

It was RESOLVED that the Group approve the Internal Audit Strategy and Audit Plan for 2020 to 2023.